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: Bart Hoenes who wrote (54101)	6/28/2014 4:23:53 PM
From: E_K_S	1 Recommendation Recommended By Mattyice Respond to of 78594

Hi Bart - Re: Regency Energy Partners LP (RGP) Energy Transfer Equity, L.P. (ETE) I recently started a position in RGP 10/2013 & 11/2013 at $25.00/share ( a 1.5% portfolio position & 5.8% position in my MLP basket) on the announcement that PVR partners was to be acquired by RGP. I owned shares in PVR so I decided to double up my position once I saw what the operational footprint of the combined companies was (RGP &PVR). PVR Partners, L.P. to Be Acquired by Regency Energy Partners LP for $28.68 Per Unit Then earlier this month RGP sells 11% of newly issued units to ETE ( I have owed a small position in ETP for years w/ dividends reinvested that now makes up a 1% portfolio position). Regency Energy Partners Raises $400 Million of Common Equity - June 4, 2014 9:11 AM Regency Energy Partners LP (RGP) (“Regency” or “Partnership”), announced today that it sold 14.4 million common units to ETE Common Holdings, LLC, a wholly owned subsidiary of Energy Transfer Equity, L.P., which owns the general partner of Regency, for $400 million. This announcement is after many larger deals were announced this year in the NG gathering, processing and transportation area specifically Williams offer to Buy Access Midstream Partners for $5.99 Billion in Cash. I own a 2% portfolio position in WMB and a 1% position in WPZ. I also own a small amount of TARGA RESOURCES PTNR LP (NGLS) but try to have exposure in all the prime U.S. shale areas through my basket of 20 MLP positions. My MLP basket allows me to spread my bets around w/o trying to pick any one winner. My focus has been to hold companies that have the operational footprint either in secondary growing markets (like FISH) and/or larger markets where a merger and/or acquisition may be attractive for any of the larger companies (ie. ETE, KMI, WMB). I am also speculating on other drillers that may consider creating a "drop down" MLP and/or partner w/ private NG gathering/processing companies to form a "joint ownership" public MLP. Several of these are in the Oil & Gas exploration and development business and have become prime candidates for an eventual spin off assets to form a publicly traded MLP (combined assets to form a Midstream operation). MHR and SFY are two candidate companies I own. SFY recently completed a new LT NG gathering contract w/ Howard Energy Partners ( Swift Energy Co contracts for additional firm transportation) which SFY will begin delivering NG in 2015. Is it possible that Howard Energy Partners and Swift might want to monetize a portion of their Midstream operation/contract obligations by creating a public MLP? Will MHR's subsidiary company Eurka Hunter spin off the remaining 60% interest in their NG gathering & processing company ( Magnum Hunter's Eureka Pipeline: A Fantastic Asset Fairly Valued) ? Energy Transfer Equity, L.P. (ETE) may be interested in either of these potential deals as a private party investor (non operator). So there are a lot of moving parts as companies develop the U.S. shale area and it's this infrastructure of the Midstream operations I see as undervalued. My strategy is to focus my buys into a few special situations (smaller but growing Midstream plays) and then continue to build my MLP basket. I still think there will be a lot more consolidation in the Midstream sector and it's not too late to invest in this sector. I am buying those companies that plan on expanding into the LNG export business and/or have pipelines to export LNG terminals. El Paso Pipeline Partners, L.P. (EPB) is one name I have been buying that should have exposure to LNG export activity. EPB will develop an approximately $1.5 billion LNG liquefaction export project at the Elba Island LNG re-gasification terminal. (Note: GLLC and GLE are each wholly owned subsidiaries of Gulf LNG Holdings Group, LLC, which is held 50 percent by Southern Gulf LNG Company, LLC, a wholly owned subsidiary of El Paso Pipeline Partners, L.P. (NYSE: EPB)) . EKS