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

To: Sergio H who wrote (4046)	12/18/2014 8:42:15 AM
From: E_K_S	Read Replies (2) \| Respond to of 4719

Keep me advised as to what you find. I want to expand my exposure in this area. I own EPD and have those shares automatically reinvested. I have not looked at RRMS and/or BKEP and will do that. I believe WPT's ownership is one where the Parent is a private (non-public) company and has dropped down storage assets to WPT. They continue to selectively drop down more terminals too. I do not see any significant conflict since (1) the parent still has some ownership interests in WPT's assets (both in the MLP & storage contracts), (2) I believe the parent also maintains some interests in the storage contracts (fixed rates) that help secure the long term FCF for the MLP, and (3) the parent has more assets to drop down to the MLP in the future as long term storage demands grow. To me, the parent is an important "partner" to WPT both financially and as a customer. The one potential problem with WPT is their storage contract terms are short (usually 3 years) and if they can not be renewed at current rates, FCF will fall. If/when there is a glut of oil needed to be stored, that could be positive as new storage rates & terms could be increased. Terminals are mainly located in the East and at/near port terminals. I guess this is for refined Oil close for delivery to the end users. I also like all pipeline companies that have infrastructure into the East distribution hubs. There are several companies that own and operate these pipeline connections that also own storage facilities too. SE is one that comes to mind. Also, CLMP is/has a project to build/expand one of their pipeline into new York but has been delayed. EKS