lower natural gas prices+lower throughputs due to a slowing economy + an uncertain economy = a general sell-off. And hey, with financial companies like Merrill,Citi,AIG,Lehman Brothers etc still under horrible pressure..life is tough. The Detroit Three are yelling for a federal bailout, Boeing is on strike,OPEC is trying to cut production,etc etc. And then we have Obama screaming about high taxes and redistributing incomes....Need anything else to cut stock prices? What we could use is some good news like a solid McCain/Palin victory and the SEC to get going.
Good question. Look at what happened today after they beat estimates and raised guidance. I am unsure how their earnings relate to energy prices. I have always understood that their earnings are more closely related to volume transported (not $$ transported). But the latest report indicates they beat because of higher commodity prices, so I guess there's some vigorish in there somewhere.
I've got a healthy position, and will buy more as soon as I free up some funds.
Yahoo listed six MLPs with yields ranging from 5.8% to 9.0% when I ran the screen: Copano Energy (5.8% yield), Enbridge Energy Partners (7.4%), Energy Transfer Partners (9.0%), Magellan Midstream Partners (5.9%), Oneok Partners (6.4%) and Sunoco Logistics Partners (6.6%).
Magellan just issued $250mil in debt which also coinsides with a big new pipeline project (roughly $240 mil est.) in Texas. That's roughly $4 per share in additional debt and the stock is down about $7 since the announcement (maybe analysts are expecting an overrun on the project).
I say that this factors into the decrease in price per share but I suspect would be recouped in the longer term. I can say from first hand knowledge that Magellan is continually very oriented toward growing their petroleum transportation capacity. This baby is going to keep growing and growing in revenue so far as I can tell.