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San Juan Basin Royalty Trust Message Board

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  • nomowk nomowk Jan 29, 2002 10:14 AM Flag

    Good morning mscow
    I am not short anything at this time. I have only taken short positions on very rare situations. I do not have any experience in energy other than as an invester.
    I am not sure if you are referring to KMP or KMI when you say they are overpriced. I might agree as regards KMI but do not think KMP is overpriced, but perhaps fully valued. I had KMP for the run up last year, and as I stated once before, sold right after the split. Two reasons for selling, one the last time they split the unit price floundered for a year or so after and I felt it was pretty well run its course and would not represent any capital appreciation potential. I still think KMP is a good bet in pipelines as is EPD. I just think both are fully valued at this time.
    As far as RT's including SJT, I thought by this time we would begin to see some recovery in NG prices. NO such luck. Where the bottom lies, is anybody's guess. With the warm winter (we were 72 and sunny yesterday in Missouri) and the extremely high storage level we still have, I do not see much hope for a recovery in price until sometime next winter.
    When you lump KMP into the NG play and state they have not suffered the same as others in the NG business, you must remember that KMP is a pipeline company and is not as strongly influanced by prices as a trust or E&P. They get their fee's no matter what the price. They may not move as much product, but the fee's will still come in. This is the situation with EPD as well, but they do run a fractionating operation and will suffer from the lack of demand in propane.
    Good luck

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