Bentek published an extremely NEGATIVE report on Pipeline MLP's and Pipeline ETN's
Bottom line...........with all the Shale gas coming online in multiple plays acrross the USA the demand for long distance pipelines for NG will diminsih......this is exacerbated by the mild (so far) Winter....basically local gas [like Marcellus in the Northeast Corridor] can serve local markets without having to transport accross the country.
Also has big implications for NG Storarge.
As substantiation, they offer the shrikage in differentials between the various hubs.
U.S. Capital analysts Becca Followill and James Carreker pointed out in a note last Friday "just how big the Kinder Morgan family of companies will be in the pipeline space once the transaction closes." By the analysts' math, the consolidated KMI-El Paso would have a roughly 52% market share in the Rockies based on 2010 throughput figures for interstate pipelines and estimates for Ruby from regulatory filings last year. Clearly, some assets will have to be sold.
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And as for REX? "We don't see Rockies Express as a likely sales candidate given its below-market returns (2010 estimated return on equity of 3.2%) and the fact that ConocoPhillips was unable to find a buyer at the right price for their 25% share in 2010," U.S. Capital said.