CS Take on MLPs
Weekly Analysis
Shale Plays Are Viable
22 pages, 38 exhibits
Download Link: sendspace.com
NY Times Article Misses Mark on Potential for Natural Gas Supplies
from Shale: The article on June 25th, “Insiders Sound an Alarm Amid a
Natural Gas Rush”, raises a warning flag on the potential for US shale gas,
likening the industry enthusiasm surrounding the play to the dot com era. We
strongly disagree with the article, which was egregiously one sided and
unbalanced. Shale gas production now accounts for about 25% of US
production from just a negligible factor a few years ago. Low natural gas
prices are indicative of the surge in US production and the success of US
shale drilling. We continue to recommend MLPs that have exposure to the
shale plays. Our favorites are DPM, EPD, NGLS and PAA.
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Erratum: Shale Plays Are Viable
There was an error in our 6/28 weekly, CS Take on MLPs, "Shale Plays Are
Viable". Under the bullet, "SUG Acquisition Update, Rival Bid By WMB- Just
the Facts". Please note that WMB has NOT issued an estimate of the
multiple that its proposed acquisition for SUG implies. Based on SUG’s Feb
25th 2011 guidance, WMB’s proposed transaction equates to 9.0 times the
midpoint of SUG’s 2011 EBITDA guidance of $930 million to $1.0 billion.
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FUNDamental Insights
CEF Highlights
27 June 2011 ¦ 28 pages
citigroupgeo.com
In this report, we aim to provide investors with a regular update and our latest views
of the closed-end fund (CEF) sector. |
