CS Take on MLPs
2Q Earnings Recap: Pipe Dreams and Storage Nightmares
28 pages, 45 exhibits
Download Link: http://www.sendspace.com/file/twg55i
2Q Earnings Recap: The MLPs generally reported strong 2Q11 earnings
with EBITDA growing 15% (y/y) in aggregate for the companies under our
coverage. Areas of strength included crude oil & NGL transportation while
areas of weakness included natural gas storage and natural gas and product
pipelines. Infrastructure opportunities were a focus throughout earnings
season as companies target bottlenecks and wide price differentials across
the onshore NGL and crude oil system. As noted in our 2Q11 earnings
preview, with competing project proposals, the race to secure shipper
commitments has begun (e.g. Cushing-Gulf Coast, Conway-Mt. Belvieu,
Marcellus ethane, and Permian & Eagle Ford liquids) and continues to be a
key area to watch,
Drilling Activity in Shale Plays Remains Strong: Eagle Ford leads the
group with 176 rigs. As noted above, development of the shales is creating
infrastructure opportunities for the MLPs. Our top picks focused on the
shales include DPM, EPD, NGLS, SXL and TLLP...
...Please note, “CS Take on MLPs” will not be published the last two weeks of
August and will return the week of September 5th.
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FUNDamental Insights
15 August 2011 ¦ 29 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. |
