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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (38955)	8/25/2010 12:19:44 AM
From: Spekulatius	Respond to of 78464

re EPD - I got my dose of MLP euphoria in 2008, thank you very much. All I can say about this sector: "There will be blood!". A great movie for people who love E&P's and pipelines <g>. That said EPD is a class act - they have a lover burden from GP "taxes" than most (25%) and that makes a big difference. But EPD just like most others MLP is too expensive with 12.3X EBITDA. If I were to value WMB like that, i would get the their complete E&P division for free. And something like this might happen - all these gassers, pipeline companies and gas utilities will spin off their pipeline companies to cash in on the MLP boom (some have done so already like KWK).

To: Paul Senior who wrote (38955)	10/13/2010 3:37:54 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78464

EPD. I'll average up on my position with a few more shares. This lp is very expensive (ref: Spekulatius comments here), and the stock has now surpassed at least one analyst's target goal; the distribution yield is now low at 5.5%. If I understand correctly, some oil people believe Eagle Ford will be VERY prolific given the new drilling techniques. (We have the Chinese as the latest believers as they now come in to partner up with Chesapeake to spend $Billions in the Eagle Ford .) The way I look at it is that EPD ranges over the e&p companies that will be involved the Texas Eagle Ford oil/gas play. EPD with its pipelines, processing and storage facilities, is going to profit regardless of which e&p companies pull the oil/gas here. It seems to me that EPD is almost guaranteed to do very well here, and for that (assuming I'm correct), I am willing to pay up for my shares now. Over the next few years, EPD stock "should" rise and the shareholder distributions "should" increase.