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Genesis Energy LP Message Board

  • dreiser139 dreiser139 Aug 4, 2012 4:47 PM Flag

    question to hachio

    gel a mini mmp
    watcha think
    i see similarities
    i know gel much smaller but similar track and model.
    any thoughts
    good investing

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    • Hi,Dreiser! A really interesting Q. I do own units in both MMP and GEL. The similarity in GEL/MMP operations is that they both serve refineries. However,there's a major difference in that MMP's strenghth IMO is in the "P&S" area("Pipes and Storage")where GEL is small. When you look at a map of MMP's backbone pipe system from TX to the MidWest areas and all the attached terminals think storage tanks instead of the word "terminals" and you have MMP's game plan. Even its' terminals along the coast are just storage tanks. Blending operations fit this well. On the other hand,GEL seems to be an amazing collection of commercial endeavors. Think about sulfur collection at refineries,conversion into bleaching agents,and sales into South America. Add in underwater pipelines ("CHOPS)" where MMP is zero, lots of trucks, the fleet of "black barges", and the fact that GEL now owns a small refinery in the Rockies and a chunk of a small one in TX, and you have again IMO kind of a pioneering spirit that is unique among the MLPs I have interests in. I can't wait to see what GEL looks like when "it grows up"!! When GEL linked up with the oil sands guys in Canada to deliver crude to gulf coast refineries in place of Keystone I was delighted. When MMP was studying a $3Billion ethanol pipeline from the corn belt to Chicago it said,"No USA Govt Loan Guarantee,No Pipeline". I think GEL would have just built the probably would have killed GEL,but they would have tried it. That's a big difference in culture between the two MLPs: GEL is to some measure a "Navy Seal of the Oil Patch" while MMP is more traditional Navy. My "Widows and Orphans" fund for the family is loaded up with EPD,PAA,and MMP; my personal "Going for the Gold" fund has a chunk of GEL in it. Best Regards

      • 1 Reply to hachi05man
      • hachio thxs for the reply
        unfortuanetly i sold my epd,paa,and mmp several years back.
        for my money they are the best of the large mlps.
        gel is my second largest mlp holding and i keep adding.
        i like their style ,management and collection of assets.
        im hoping im early and they turn out to be as good as mmp.i have money to invest since my retirement plans throw off cash monthly.i have owned many mlps over the years and i believe gel is the best of the second tier mlps that i have ever owned.
        meaning smaller market cap.
        eventually i must stop buying gel and look for another second tier mlp.
        any suggestions.
        as always thxs for your input.
        by the way the mwe board,which by the way is my largest mlp holding,is superb.
        those guys on there really know their beans.
        however i am getting the feeling that mwe ,for at least now,may be slowing down as a stock grower.
        the company however still has vision and a great management team.however no matter what they profess new stock offerings will be on the way since they are committed to growing very large.
        good investing

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