Upstream MLPs Acquire Assets While the Midstream Grows Organically: Daniel Katzenberg, Executive Director and Senior Analyst at Oppenheimer & Co. Inc., Interviews with The Wall Street Transcript
67 WALL STREET, New York - July 11, 2013 - The Wall Street Transcript has just published its Oil & Gas Review 2013 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, 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: SandRidge Energy, Inc. (SD), Plains All American Pipeline L (PAA), Breitburn Energy Partners LP (BBEP), Boardwalk Pipeline Partners, L (BWP), Enbridge Energy Partners LP (EEP), Kinder Morgan Energy Partners (KMP) and many more.
In the following excerpt from the Oil & Gas Review 2013 Report, an expert analyst discusses the outlook for the sector for investors:
TWST: You mentioned Plains All American. Would you talk about why you like that stock, as well as any other top investment picks?
Mr. Katzenberg: Plains is certainly a top pick. What really stands out for them is, first, they have very high leverage to oil and the liquids plays. They have a big footprint in the Permian basin in West Texas, which has been attracting more and more capital over the last year or so, and they're really poised to benefit from that growth. They also just recently announced a rail acquisition up in the Bakken, and I think as we go forward we'll see Plains benefiting from the ability to bring Bakken crude toward the East Coast, which is a trend I expect to see going forward.
Another midstream company that I think is attractive is Regency Energy Partners (RGP). This has historically been a natural gas company, but what's changed is they have a lot of organic growth projects coming out of the Eagle Ford shale, which are liquid focused. I think as these projects come online late this year and into early next year, it really starts to have a more attractive outlook.
On the upstream side, there are two names that I think are attractive. BreitBurn (BBEP) had a very active year last year in the acquisition market, and they currently have about $900 million available to make acquisitions this year. We expect that they'll most likely use the majority of that and make accretive acquisitions. They had a secondary offering just a few weeks back, so I think they're pretty well-positioned from this point going forward. I expect to get some acquisition announcements soon, and possibly of a large size, that will really improve their outlook.
The other one, Mid-Con Energy Partners (MCEP), is a relatively young upstream company. It went public in December 2011. They are 99% levered to oil. It focuses on water-flooding projects, which is an enhanced oil-recovery process. It has a very strong management team and great growth prospects going forward.
TWST: Are there any names you're particularly cautious about?
Mr. Katzenberg: We still are cautious on...
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.
