Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: E_K_S who wrote (41445)	2/17/2011 5:01:47 PM
From: 7 Years	Read Replies (1) \| Respond to of 78748

E_K_S - EBY.V - Emerald Bay Energy - penny stock - interesting company. Son-in-law and I are both in it. Small producer right now, has grandiose expectations this year. Here are a couple of links for the company: ebyinc.com rigzone.com Got in at 0.06 - have done worse in the past. Any comments? Ernest

To: E_K_S who wrote (41445)	2/20/2011 11:04:59 AM
From: E_K_S	Respond to of 78748

Williams Plans Split into Stand-alone Companies by Rod Walton Thursday, February 17, 2011 rigzone.com From the article:"...The move will focus the original Williams on its midstream and pipeline infrastructure assets, while the spinoff will consolidate the exploration and production segment. An initial public offering for the new, currently unnamed Williams E&P company, containing 20 percent of those assets, will be held as early as the third quarter. The remaining E&P assets will be part of a tax-free spinoff to Williams shareholders in 2012...." EKS

To: E_K_S who wrote (41445)	2/23/2011 4:03:54 PM
From: E_K_S	Respond to of 78748

CS Take on MLPs Weekly Analysis The Hidden Value of the GP 27 pages, 45 exhibits Download Link: sendspace.com From the article:"...The Hidden Value of the GP Our Take on WMB Restructuring: One piece of the value puzzle that maybe missed by some is the value of WMB's GP interest in Williams Partners (WPZ). WMB's stock gained 8.4% as the market's "best kept secret" was revealed on Wednesday. WMB plans to separate into two companies by creating a separate E&P company that will be partially taken public in a planned offering in 3Q11. WMB's remaining interest will be spunout in 2012. There may be additional upside as Credit Suisse's HOLT group calculates a potential value of $38 / share. (Please see page 3 for the HOLT valuation. To note, other integrated natural gas companies with a GP ownership include OKE, EP, and SE. )..." "...Source: Credit Suisse Our Take on WMB Restructuring HOLT Suggests More Upside WMB's stock gained 8.4% after announcing plans to separate into two companies. There may be additional upside as Credit Suisse's HOLT group calculates a potential value of $38 / share: Consolidated Valuation: WMB is priced for stable 6.2% CFROI levels and 2.5% asset growth. Valuation remains conservative to history as the market has tended to price WMB to improve CFROI ~200bps. Sum-of-the-Parts Valuation: o WPZ: $18.37/sh assuming WMB’s 77% interest is valued at market o Other Midstream: $4.48/sh assuming stable CFROI at 7.3% through 2014. o E&P: $4.91/sh assuming CFROI decline from 2.1% to -2.6% by 2014. WMB Plausible Upside: Assuming WMB’s E&P segment is valued in-line with peers, which are priced for 4.4% CFROI levels, $38/sh (35% upside) is warranted. One piece of the value puzzle that maybe missed by some is the value of WMB's GP interest in Williams Partners (WPZ). WMB owns ~210 million units of WPZ (~75% of the total) that has a market value of ~$10.8 billion or $18.40 per WMB share. In addition, WMB is expected to receive about $285 million of cash distributions from WPZ for its GP ownership. This cash flow is taxed at a corporate tax rate (we assume 36%). If we apply a multiple of 15 to 20x after-cash flow, we arrive at a $2.7 billion ($4.68 per share) to $3.6 billion ($6.25 per WMB share) value for just the GP interest. To note, other integrated natural gas companies with a GP ownership include OKE, EP, and SE..." ----------------------------------------------------------- The report provides an excellent perspective on the Energy MLP Universe. Check out page-8- of the article for over performers and under performers. This may provide a good starting point to select undervalued companies. When compared to the YTD performance of the S&P 500, MLP pipeline companies have under performed this index by 5%. Page-20- (Exhibit 40) provides Credit Suisse Coverage Universe. Their top 4 undervalued MLP's: (1) Kinder Morgan Management, LLC KMR (15% undervalued) (2) Boardwalk Pipeline Partners, LP BWP (13% undervalued) (3) Niska Gas Storage Partners NKA (11% undervalued) (4) Plains All American Pipeline, LP PAA (11% undervalued) EKS