Genesis Energy, L.P. (DNR has interest) Reports First Quarter Results
Peter- I agree completely that there a lots of anomalies in the MLP market. And I can't figure out what drives them. Curently, EPD and EPE? A 10% increase in the dist. at EPD increases the EPE dist. by over 21%. EPE yield is 5.5% and EPD yield is 6.5%. (EPE is complicated because they own a couple of other GP interests) A couple of weeks ago there was big disparity in MGG/MMP, yield less than 1% pt difference with twice the growth at the GP. These are examples of GP/LP values but values are all over the map for the group. IMO, they are a microcosm for stocks overall, inefficiencies, but they are just more apparent. Hare
"IMO, they are a microcosm for stocks overall, inefficiencies, but they are just more apparent. Hare"
I think that that is a very intelligent way to look at it. For the MLP/distribution focused entities, we can see the inneficiencies by comparing the rates of return and, say, the growth rates, so the anomalies are made plain. For the E & Ps which are not trying to produce income but rather trying to increase production and reserves the metrics are not as transparent over time--some appear to be prospect rich but are not, etc.
One thing is for sure, it almost doesn't matter what you own in energy or commodities this AM. Everything up another 2% or so as the BDI continues to rule.