I look at continuing news events like today's two big joint venture announcements in Eagle Ford (Statoil/Talisman and CNOOC/Chesapeake) and remind everyone that EPD and NGLS stand to benefit the most from Eagle Ford since these two foreign companies are looking to a future of liquified natural gas coming from their JV interests in Eagle Ford, arriving in the gulf for loading in liquid form onto ships.
The smart money are the Statoils and CNOOCs of the world. It looks by all appearances they are overpaying for Eagle Ford access but in the long term these two companies have shown themselves to be very smart long term investors in the future. And the future is clearly liquified nat gas being loaded onto ships in the gulf. If you accept that thesis then you start to realize why EPD and NGLS and other MLPs with Eagle Ford and gulf access/exposure can be long term winners that cause one to disregard the call to simply sell based upon near term run ups.
The reasons some MLPs keep hitting new 52 week highs are not simply driven by yield seekers IMO. I think there is some significant long term positioning based upon news events just like today's two big JV announcements.
a couple of other reason to continue to own EPD (and other mlp's) are illustrated by the just released minutes of the latest FOMC meeting.
Number one is a continuation of ZIRP as illustrated by this:
"...Nearly all members agreed that the statement should reiterate the expectation that economic conditions were likely to warrant exceptionally low levels of the federal funds rate for an extended period."
And number 2 is the upcoming QE2 and the further erosion of the US dollar, which will drive up asset prices - especially those to do with commodities:
"...Many participants noted that if economic growth remained too slow to make satisfactory progress toward reducing the unemployment rate or if inflation continued to come in below levels consistent with the FOMC's dual mandate, it would be appropriate to provide additional monetary policy accommodation. However, others thought that additional accommodation would be warranted only if the outlook worsened and the odds of deflation increased materially. Meeting participants discussed several possible approaches to providing additional accommodation but focused primarily on further purchases of longer-term Treasury securities and on possible steps to affect inflation expectations. "
I, for one, think that EPD is NOT going down anytime soon by any large percentage. Sure, there could be a dip or two, but I don't see a large correction coming for a while. Too many things are working against a large pullback.