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

To: E_K_S who wrote (53400)	2/13/2014 2:30:29 AM
From: Spekulatius	Read Replies (2) \| Respond to of 78722

The backstop for BWP will be when L takes out the 45% of BWP that they don't own. The current status quo with BWP that needs rebuilding (and probably large investments to get them growing again) makes no sense for L, imo. L now has a GP for BWP that is basically worthless (very little IDR because of the BWP distribution cuts). Retaining some cash flow will help, but it will be long drawn out process to get BWP going gain. If L takes out the BWP units they don't own, they could maybe put another billion or two in it and then eventually IPO it again. L has more than 4B$ in cash at the holding level, so funding is not a problem. Even "thumbsuckers" like the Tisch brother should see that. Anyways, even at the reduced 2014 forecast, BWP will have 1.64$ in distributable cash, so with a 13$ price/unit, that is better than a 12% cash flow yield. I also think that there is decent chance of a takeout, which imo would need to occur at a decent premium to the current price. I have not done anything, as I have been taking time to evaluate the situation, but I think i would get a chunk if units at 13$ or thereabouts.

To: E_K_S who wrote (53400)	2/13/2014 11:39:20 AM
From: Mattyice	1 Recommendation Recommended By E_K_S Respond to of 78722

EKS, I'm reading about EPB, on the surface it seems like a good value. Southern Natural Gas (sonat), Elba, and Southern LNG Co are really well positioned to benefit from upcoming reverse flow (backhaul) that is about to happen on all the major interstate pipelines from the Northeast/Marcellus area. I feel like Atlanta will soon be a premium market due to the power gen that is about to get started there with huge amount of supply gas that will be shipped down from up north (where in the past pipes use to long haul gas from the gulf up north), and Sonat which they have a 60% interest is perfectly positioned. Sonat, Elba has always traded at a premium to Henry Hub, I feel like this will continue to widen. Why does this mattter? these pipes make tons of money selling spot gas to industrial's who get in a bind. Having a premium to other supply areas and the demand behind it makes for a full pipe, no matter if there transport rates are locked up. A full pipe is a good thing. I'm assuming this thing is getting beat up due to its large positions in WIC and CIG? I dont really like mlp companies to be honest but i like some of their assets here and not to mention Kinders decent sized purchase.