P/E ratios are not as important as distribution coverage and cash flows. That said, you still can compare price of the equity to accounting earnings of all MLPs to see how those compare with other MLPs of similar MLP type. The real problem with looking at P/Es for any oil and gas company is the fact that they have to write off the decline in reserves based upon current price. Those write-offs typically destroy revenue and therefore the P/E ratio, but all oil and gas companies face that situation if they are primarily natural gas producers, especially during this period of declining prices. A fair comparison is to look at the P/E of other MLP energy producers: Linn, Breiburn, Legacy, etc.
why only LGCY has goofy p/e over 120? BPT, Pbt, chkr, per trusts have reasonable pe below 20. there are differences between corporations, trusts and mlp's , but not that much difference to justify LGCY's pe over 120....which means it is grossly overpriced. Only the dividend keeps LGCY floating in the atmosphere, phoney.