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Master Limited Partnerships

A blog dedicated to the discussion of MASTER LIMITED PARTNERSHIPS.

Lots Of MLPS About To Breakout

Posted on 02/16/2007 08:08:35 | Link | Post Comment
Its Monday morning and we begin with a piece of corporate news as Holly Partners (HEP) reports earnigns that were nicely higher. Stock could be a mover today. We are also seeing the last big round of ex-distributions today including Atlas Pipeline Partners (APL), Duke Midstream (DPM) Williams Partners (WPZ) and a few others but all the heavy weights in the MLP index went ex-distribution last week so there should be only minimal impact today. No action so far with regards to upgrades or downgrades.
No doubt about it we have enjoyed a fantastic run here in out little group so it might be a good place to see where opportunities lie.


The MLP index weekly chart still shows no sign of a top and is in re-accelleration mode. Now at some point this thing is going to plateau and we will enter another basing phase where we spent most of 2006. Plus we are getting a bit stretched with regards to yield compression as average yields in MLPs are in the low 6 range. But the perception right now is that distributions will continue to rise in a flat rate enviornment.

Holly Partners has been in a trading range for nearly 2 years and has shown signs lately of joing the party. Today's earnigns news could be a stock mover and propel this one out of the base.

Propane MLP Inergy has also been pretty much moving sideways but it looks like this one also may be starting a new upleg.

Last year"s stellar winner Crosstex (XTXI) which is the GP of Crosstex LP (XTEX) has been quiet for awhile but the chart may be telling us that a new upleg may be starting. The only problem here is that it had such a fantastic run from 10 to 30 that it might be a stretch to ask for a repeat performance. Still the chart looks positive here.

The energy complex is higher this moring especially natural gas which is up 36 cents and nearing 8 bucks. So we wait for the open and see what today brings us

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