0users liked this postsusers disliked this posts0Reply MLPs up 3% for the week and 17.6% YTD
Yes most of the MLP pipes are at very rich valuations.
It is possible we have reached a stabilization point with natural gas. Production does seem to have been down a % but that could have been due to weather. But sooner or later the rig count will tell large gains in efficiency of not.
A housing recovery could used a great deal of ngas as well. But given Obama uncertainty every where but no where as much as employment security, I am not so sure. Low mortgage rates are a powerful incentive but first people have to feel at least a little secure in employment.
Some chemical capital investment is being made but not nearly enough given the economics. BUt then again Obama's passive aggressive nonsense maybe setting the ngas market up for a short term spike.
None the less as our board fool RLP'D pointed out, EPs are somewhat gun shy to make commitments to new pipe as long as they can get near Brent pricing by training.
Like all this Obama/Progressive Corn Ethanol corruption it is nothing a mature responsible man as President could not correct with a sweep of the pen.
I am trimming back on my pipe a little. But not EPD and their processing and export assets.