Organic Growth Opportunities for MLPs Focused on Crude Oil Infrastructure and Logistics: Oil Production Growth Will Prompt a Need for the Construction of Pipelines, Rail Loading and Unloading Facilities and Storage Terminals

Wall Street Transcript

67 WALL STREET, New York - March 21, 2013 - The Wall Street Transcript has just published its Oil & Gas: Master Limited Partnerships Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. 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 more.

In the following excerpt from the Oil & Gas: Master Limited Partnerships Report, an expert analyst discusses the outlook for the sector for investors:

TWST: What are your favorite names among your coverage universe right now and why?

Ms. Scotto: I cover the midstream MLPs, and even within midstream there are a number of subsectors. Each subsector has its own growth opportunity set. The subsectors I follow include crude oil/refined products infrastructure and logistics, gathering and processing, natural gas pipelines and storage, large cap and diversified, and general partners.

Currently, we favor the MLPs that are focused on crude oil infrastructure and logistics, as we believe they will benefit from the growing production of crude oil in North America. We believe that the need for additional infrastructure and logistics solutions to support crude oil production growth will provide organic growth opportunities, including the construction of pipelines, rail loading and unloading facilities, storage terminals, etc., that should help drive above-average distribution growth. And we favor MLPs with above-average distribution growth potential. Within that group, a couple of my favorite names are Plains All American Pipeline (PAA) and Magellan Midstream Partners (MMP).

Plains has a well-positioned asset base. Its footprint covers many of the growing oil plays, including the Permian basin, the Bakken shale, the Mississippian Lime and others. Plains has exposure to the strong crude oil logistics environment, and given its well-positioned asset base, its supply and logistics business should continue to generate strong margins as North American crude oil production grows.

Plains also has a large slate of organic growth projects, plans to spend over $1 billion on organic growth projects this year alone, and we believe this provides visibility into future distribution growth potential. We're expecting about 8% to 10% distribution CAGR over the next couple of years for Plains...

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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