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Tag Archives: paa
Maybe it’s the contrarian in me but I keep expecting EPD to disappoint. Or maybe I’m hoping they disappoint so I can buy a ton more shares. But alas I was the one disappointed yet again. EPD reported strong Q2 2012 results on Aug 1st. Full release is here. Lets see how strong and resilient their results were. We are now smack in the middle of MLP earnings season with Kinder Morgan having kicked it off last week. So far the trend in the results has been some weakness in the numbers mainly due to lower oil and NGL prices. … Continue reading
It’s been since May that I updated my table on MLP valuation. With the recent volatility in the market and the month of August coming to an end it is a good time to take a look at MLP valuation. Lets jump right in. As I’ve done before, I updated my top 5 MLP table which also includes the MLP index, AMZ. I like to use both relative and absolute value metrics for any investments and I think the two best are dividend yield and the spread to the 10yr treasury note. Here is the updated table. MLPs, the AMZ, … Continue reading
Its pretty common investment wisdom that a bull market hides a lot of mistakes. Companies of all types, quality, and sizes go up together. Fortunately, this doesn’t last forever. Tough markets tend to separate the wheat from the chaff and expose any weaknesses in business models, cost of capital, etc… I’ve noticed this taking place in the MLP space recently. The table below shows a list of the MLPs that I track and how much they have come off their 52 week highs. Some difference. The strongest performance has been put in by EPD which is down only 4.46% from … Continue reading
What is the worst that could happen? That’s a question I always ask myself when making an investment. I look at the major risks posed to an investment and do a worst case scenario analysis with respect to that risk factor. When it comes to MLPs probably the major risk associated with an investment in the sector is the potential ending of their preferred tax status by the government. Over the years rumors of the ending of the MLP tax preferred status has caused the sector to sell off several times and I’m sure has kept many investors away from … Continue reading
Well, the MLP correction I discussed earlier seems to have run its course for now. I thought this would be a good time to see what this correction has done for MLP valuations relative to history. I last did this back at the end of Q1 2011 and was planning to hold off until the end of this quarter but I thought readers would be interested in a more timely update considering the recent drop in MLP prices. First, a few words on the correction. The MLP index, AMZ, hit bottom on May 17th at 351.19 representing a correction of … Continue reading
With the end of Q1 2011 upon us, and earnings reports to start coming soon, I thought it was a good time to re-look at MLP valuations, specifically the top 5 market cap MLPs and the Alerian MLP index. I posted on year end 2010 values in this post. Below are two tables showing the valuation of the top 5 MLPs; EPD, KMP, ETP. WPZ, and PAA. The top table shows the valuations from year end, reproduced from my earlier post, and the bottom table shows the current valuations. As the bottom table shows, MLP valuations are up across the … Continue reading