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

To: E_K_S who wrote (51038)	3/5/2013 11:27:29 PM
From: Jim P.	Respond to of 78618

EKS I follow APL very closely. Recent contract change with SD and decline in oil prices putting a little pressure on the heavy end of the NGL barrel have led to some price weakness. Still think that APL will be at a $3.00 distribution rate by 4th Q 2013 and may be a little higher. Market not appreciating the growing NGL's in the Permian vs the contract change with SD. Permian barrels restricted by take away capacity just like the Mississippi barrels of SD. Difference in NGL barrels 30% ethane in Texas and 50% ethane in Oklahoma. Much more valuable barrels in the Permian. APL should be priced for 7% or less with the growth cycle in the Permian (Pioneer) and OK (SD) so I expect $42 or higher by the end of the year on a sustainable run rate distribution. Funny how MLP's yield while based on growth expectations generally do not move up in price until the distribution increase is staring investors in the eyes. I am thinking of adding to my already large position at the current prices. The last conference call eluded to more growth via purchase of assets. Very unlike Dubay to be so enthusiastic so something accretive is in the works. I hope it is a Permian acquisition that is bold on but do not have a clue. Jim

To: E_K_S who wrote (51038)	11/19/2013 1:36:03 PM
From: E_K_S	Read Replies (2) \| Respond to of 78618

Atlas Pipeline Partners, L.P. (NYSE: APL) - Increased position by 60% w/ my buy today @ $35.21/share This is on of Citi's top picks in the gathering and processing segments of the midstream natural gas industry. From their recent report dated 12/7/2013: Longer-term prospects for APL remain attractive due to its growing footprint in the liquids-rich Permian and Eagle Ford basins that continue to see robust producer activity. Also, in the Midcon region, drilling activity seems to be improving. Despite a lower rig count in its targeted basins, well counts have actually risen. The 3Q well count was up 8.8% while rig count was down 3.6%, indicating improving producer efficiencies. Thus, we would expect APL’s Midcon operations to show some improvement sequentially in 4Q. Next year APL should benefit from processing capacity addition of 520 MMcf/d (~34% growth from current levels). They have a target price of $44.00/share 25% higher from the current price of $35.34/share. EKS