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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Dennis Roth who wrote (152018)	6/15/2011 9:37:14 AM
From: Dennis Roth	2 Recommendations Read Replies (1) \| Respond to of 206093

CS Take on MLPs Weekly Analysis Rockin with OKS in the Bakken 23 pages, 35 exhibits Download Link: sendspace.com OKS Bakken Field Trip Takeaways: 1) Activity in the Bakken Shale remains brisk. 130 rigs are working in the North Dakota Bakken, second only to the 149 rigs working in the Eagle Ford. 2) ~100 MMcf/d of natural gas is being flared because of the lack of infrastructure, or about 25-30% of the gas produced in the Bakken. 3) OKS is the largest independent processor in the Bakken Shale and has 1.7 million acres dedicated. 4) OKS is investing $1.5- 1.8 bn through 2013 in the Bakken at returns of 5 -7 times EBITDA. PAA Analyst Day: 1) Reiterated 3-5% distribution growth with potential upside from a sizable acquisition, 2) Gaining a presence in the Eagle Ford with crude oil pipeline and dock project, 3) $600 mn 2011 growth capex and target of $400-600 mn annually, 4) Crude oil pipeline expansions primarily in the Permian and Bakken, 5) Near-term challenges remain in gas storage, but PAA positive on long-term value of strategic storage assets. See pg 4. DCP Midstream to Bring More NGLs to Belvieu: Last week, DCP Midstream LLC announced the purchase of Seaway Products Pipeline from COP. DCP plans to expand and convert the pipeline to NGL service to bring 150 MBbls/d of NGLs from the Midcontinent to the Gulf Coast. The total cost is estimated to be $750-850 mn and the project is expected to come online in mid-2013. If this project proceeds, DCP would likely drop existing assets down to its MLP, DPM, to help finance the project, in our view.