13% to 15% Total Returns for Oil and Gas MLPs in 2013 Predicted by RBC Capital Markets Have Been Right On The Money: What's Next?

Wall Street Transcript

67 WALL STREET, New York - July 9, 2013 - The Wall Street Transcript has just published its 2013 Oil & Gas Review. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Increasing Demand for Midstream Assets - U.S. Energy Infrastructure Build Out - Emerging Shale Plays - Oil and Gas Transportation Infrastructure Demand - Master Limited Partnerships Distribution Growth - Outlook for Natural Gas Liquids - Low Treasury Yields and MLP Dividends

Companies include: Plains All American Pipeline L (PAA), Magellan Midstream Partners LP (MMP), Western Gas Partners Lp (WES), DCP Midstream Partners LP (DPM), Anadarko Petroleum Corp. (APC), Kinder Morgan Energy Partners (KMP), Copano Energy LLC (CPNO) and many others.

In the following excerpt from the 2013 Oil & Gas Review, Elvira Scotto discusses the outlook for the sector for investors:

TWST: What's your overall sentiment and 2013 outlook for the midstream MLPs?

Ms. Scotto: For MLPs as a whole, if you look at them on a total return basis, they have had a very strong track record of outperforming the broader markets. The MLP index, AMZ, outperformed the S&P 500 on a total return basis in 12 of the last 13 years. The group, AMZ, underperformed last year; however, it is off to a strong start in 2013 with year-to-date total return of about 12% versus 8% for the S&P 500.

The way we look at MLPs is on a total-return basis. MLPs are currently trading at an average yield of about 6%. In general, underlying fundamentals remain strong, and we expect distribution growth on average of about 6% to 7% in 2013, so we expect total return of about 13% to 15% for the year.

TWST: What industry trends or themes are having the greatest impact on these companies?

Ms. Scotto: We believe the shale revolution and new drilling technologies that are driving increased production of oil, natural gas and natural gas liquids are having a significant impact on midstream MLPs. Producers can now economically extract oil, gas and liquids from new areas or previously abandoned areas, which drives a need for...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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