My reading over the last few weeks has convinced me that we will see a lot more NG in the North American market than I had previously expected, so I am looking for MLPS with more oil and NG liquids than NG. I already have plenty of ENP. I would appreciate recommendations of well hedged alternatives.
Thank you all for this intelligent discussion. It is refreshing to find a board with a minimum of childish and profane nonsense. I own LINE, EVEP, and VNR in modest quantities. I am thinking of diversifying into MLPs such as ETP, BWP, and ATN. Anyone have thoughts, other suggestions, or whatnot?
I own some ETP, it's generally a good company with solid prospects, though the IDRs are on the high side.
Of the pipeline MLPs, EPD, OKS, KMP, and ETP are the "blue-chips." They all have investment grade credit ratings and a large percentage of fee-based revenue. I've always felt that KMP commands too high a premium -- it has the lowest yield and the highest IDRs. But I think all the others are good buys.
With oil and gas prices in contango, I would look for MLPs with storage capacity. Although they are facing lower volumes, BPL and TPP both have lots of storage, which should do well in the near future.
I hope you will be thrilled with your investment in LGCY.
Responding to your e-mails and looking critically at LGCY again as if it were a new investment, I added some units myself yesterday at under $7, albeit fewer than 10,000. I also added to my ATN, BBEP and EVEP holdings in the process after I engaged in discussions on boards about those MLPs.
That is part of why I enjoy participating on these boards. The discussion process makes me think critically about my own investments and reminds me of opportunities that are sitting right there.
So thanks to you (and the others) as well.
Bird, The highest percent liquids (oil & ngls) production for any mlp is PSE (pioneer). They also have 85% of their production hedged at $100 oil for the next 3 years.
This not a reccomendation to buy, only a response to your inquiry.
Per PSE Nov presentation, crude is hedged 85%, 75%, 80% in 2009-2011; NGL 45%, 40% and 0%; NG 55%, 55% and 0%. Hedge prices are good.
It looks like they are thinking of acquiring Pioneer Natural Resource's option to buy the Midkiff-Benedum processing facilities from APL at some point in the future, option expires 11-2009. That would make it a much more complicated entity to evaluate.
I've looked at PSE from time to time. It's an oddball:
* It has no debt (probably a good thing right now)
* It doesn't do any drilling (Maybe not so good right now - since production will decline without continuing acquisitions)
* Very new. Just IPOd this year.