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Prior Updates Dec 05 Nov 05 Oct 05 Sept 05 August 05 July 05 June 05 May 05 April 05 Mar 05 Feb 05 Jan 05 Dec 04 Nov 04 Oct 04 Sept 04 August 04 July 04 June 04 May 04 Intro to MLPs MLP & Energy News Oil Online MLP Blog Petro News Utility/MLP Blog Yahoo News MLP's 101 MLP Primer Market Stats MLPs at Yahoo MLPs at CNN MLPs at Excite MarketWatch MLPs at MSN MLPs at WSJ Factoids December November October September REIT Updates Dec News Dec Off/Ind/Apt Dec Retail/Hlth Bank Updates December November October September August |
During January, APL, BPL, EPD, ETP [for Q2], HEP, HLND, KMP, MMLP, MMP, PAA, PPX, SXL and XTEX announced distribution increases. While the pipeline sector was up 4.85% for the month, its yield was still up 23 basis points. The total midstream sector was up 4.44% and the yield, at 6.56%, was up 20 basis points. I have manufactured consensus DCF numbers for KSP and an 05 DCF for TLP - so be aware/suspicous of metrics regarding those two in the data below. I have an 06 DCF for TLP from a brokerage I regularly use, so I used that stat for 2005 in calculating the Distribution/DCF ratio. I have used a distribution coverage ratio to calculate a DCF for KSP from a brokerage I usually do not use, because they do not specifically list DCFs. This is the time of year that Yahoo begins posting 2007 estimates for some stocks. 07 estimates already exist for ETP, TLP, WPZ and KSP - and they crept into data at this site as changes in the 2006 estimates - and were excised the morning of 2-01. Sorry about that. This is the toughest time of year to gather EPS data accurately - so be cautious in your own gathering as you continue to be suspicous of mine. This month I have added shippers to this update [along with new pipeline companies BWP, HLND, and WPZ]. AG Edwards, Citigroup and Raymond James include shippers with the pipelines in their monthly updates. Including shippers adds some diversification to the midstream group. The shipper group has slightly higher yields - another good reason to cover them. And two of this group [TGP and USS] are among the highest rated midstream MLPs. I have kept the shippers seperate in some stats - and hope this is of assistance. In December I added a spreadsheet showing the monthly changes in price targets. This may turn out to be meaningful in explaining monthly price changes. KMP & TPP were examples in December. There were no EPS changes to explain their drop, but a significant drop in their median price targets do explain their drop in price. In January, target changes appear to be just meaningless noise. Two different months and two different perceptions about the explanatory powers of this metric. Time will tell. As of 12-30, with the ten year treasury at 4.40% and the MLP sector yielding 6.92%, the spread of MLPs over the yield of the 10 year stands at 252 basis points. The sector's prices fell 1.64% for the month and ended the year down 0.26% with an approximate total return of 6%. The spread of MLPs over the yield of the 10 year on 11-30 stood at 230 basis points after ending October at 188, September at 174, August at 208, July at 159, June at 211, May at 216, April at 195, March at 156, February at 152 and ending January at 178. For 2005 the average spread has been 186. TEPPCO Announces Retirement of President and Chief Executive Officer Busines Wire 12-30 TEPPCO announced today that Barry R. Pearl has retired as president and chief executive officer (CEO) of Texas Eastern Products Pipeline Company, LLC, the general partner of TEPPCO Partners, L.P., effective Dec. 31, 2005. Lee W. Marshall, Sr., chairman of TEPPCO's board of directors, has been named as acting CEO. Martin Midstream to Offer 3 Million Units & Increases Distribution PRNewswire 1-05 Martin Midstream Partners announced that it has declared a quarterly cash distribution of $0.61 per unit, payable on February 14, 2006 to common and subordinated unitholders of record as of the close of business on February 1, 2006. The February distribution reflects an increase of $0.04 per unit over MMLP's November 2005 distribution and represents MMLP's third distribution increase since its distribution in respect of the fourth quarter of 2004. The February distribution also represents a 14% increase when compared to the distribution paid in respect of the fourth quarter of 2004. Martin Midstream also announced that it has commenced an underwritten public offering of 3,000,000 common units (plus up to an additional 450,000 common units to cover over-allotments, if any) under its existing shelf registration statement. MMLP intends to use the anticipated net proceeds from the offering to repay indebtedness incurred in connection with recent acquisitions and to fund expansion and growth capital expenditures. On 1-11 Martin Midstream announced that it has priced a public offering of 3,000,000 of its common units at $29.12 per unit, before underwriting discounts and offering expenses of $1.31 per unit. The closing of the offering is expected to occur on January 17, 2006, subject to satisfaction of customary closing conditions. Estimated net proceeds from the offering of $82.9 million will be used by MMLP to repay indebtedness incurred in connection with recent acquisitions and to fund expansion and growth capital expenditures. Energy Transfer Partners EBITDA Rises On Hedged Mark-to-Market Gains Businesswire 1-09 Energy Transfer Partners reported record net income for Q1 ended November 30, 2005 of $119.8 million, as compared to net income of $30.6 million for Q1 ended November 30, 2004, an increase of $89.2 million or about 290%. EBITDA, as adjusted, for Q1-06 was $197.1 million versus $69.7 million reported for Q1-05, an increase of $127.4 million or approximately 180%. The first quarter results demonstrate the benefits from operating the various pipeline systems and storage facilities acquired as well as those pipelines constructed during the previous two years as a single system. ETP's ability to access almost any major natural gas market in Texas gives ETP a competitive advantage in providing our customers with maximum flexibility for transporting their gas. Net income rose to $119.808 million from $30.61 million. Net income per Limited Partner unit rose from $0.76/unit from $0.27/unit. Some $80 million of the $89 million gain will be reversed in coming quarters, since it came from gains on hedges. As ETP explained in the conference call, they put in place hedges as they put gas into storage. Prices swing while it is stored. ETP could sell the gas they store today up to three months later. GAAP requires them to do 'mark to market' adjustment on that gas. During Q1, there was a $80 million gain due to that mark to market. Atlas Pipeline Partners Increase Distribution to $0.83 Businesswire 1-09 Atlas Pipeline Partners reported today that it had declared a record quarterly cash distribution for the fourth quarter 2005 of $0.83 per limited partner unit, payable February 14, 2006 to holders of record as of February 7, 2006. This is the seventh consecutive distribution increase for the Partnership. Distributions declared for the year ended December 31, 2005 of $3.16 per limited partner unit represent an 18% increase compared with distributions declared per limited partner unit for the prior year. Crosstex Acquires Amine Treating Rental Assets From Hanover PRNewswire 1-10 Crosstex Energy, L.P. announced it has agreed to purchase the U.S. amine treating rental assets of Hanover Compression L.P. for approximately $52 million. The purchase will add 48 plants to the Partnership's treating business segment. "Thirty-two of the treating plants we are buying are in operation adding about 20 new customers, and the other 16 are ready for refurbishment and will be available to meet our customers treating needs," said Barry E. Davis, President and Chief Executive Officer. "This purchase complements our coverage of the amine treating rental market, and will allow us to expand our service capabilities to all our Treating customers by providing a larger treating plant fleet with more inventory to better target their needs." Modern gas production requires the removal of corrosive contaminates such as hydrogen sulphide (H2S) and carbon dioxide (CO2) prior to further processing or transportation. H2S is a highly toxic gas that is corrosive to carbon steels. CO2 is also corrosive to equipment and reduces the Btu value of gas. Various types of amine-based absorbents (such as MEA [Monoethanolamine], DEA [Diethanolamine], or MDEA [Methyldiethanolamine]) can be used for custom-designed treatment units, which will remove H2S and CO2 to meet the sales gas specification. Kinder Morgan Invests $57 Million to Expand Terminals Network PRNewswire 1-12 Kinder Morgan Energy Partners, L.P. announced a major expansion project and an acquisition that will provide additional infrastructure to help meet the growing need for terminal services in key markets along the East Coast. The combined investment of $57 million includes the construction of new liquids storage tanks at KMP's Perth Amboy terminal in New York Harbor and the purchase of a bulk facility adjacent to the company's Shipyard River terminal in Charleston, S.C., from Allied Terminals. EPD to Expand Capacity of the Independence Hub Oil & Gas Jounral 1-11 Enterprise Products Partners LP says it has secured agreements with the Atwater Valley Producers Group to increase both the processing capacity of the Independence Hub platform and the transportation capacity of the Independence Trail Natural Gas Pipeline from 850 MMcf/d to 1 Bcf/d. These expansions of approximately 150 MMcf/d are required to accommodate expected natural gas production from three additional discoveries made in the area since the time the project was initially sanctioned. The Atwater Valley Producers Group includes Anadarko Petroleum, Dominion Exploration & Production, Kerr- McGee Oil & Gas, Hydro Gulf of Mexico, Devon Energy, and Energy Resources Technology, a subsidiary of Cal Dive International. The three additional natural gas discoveries pegged for tieback to the Independence Hub are the Mondo NW field, discovered in January 2005, the Cheyenne field, and the Q field. The cost of the expansion is approximately $28 million, and is principally supported by an increase in fixed fees that the Atwater Valley Producers Group will pay during the first five years of operations of the Independence Hub platform. The facilities, currently under construction, are expected to be installed in 2006 followed by first production in 2007. The Independence Hub, which is 80% owned by affiliates of Enterprise, and 20% owned by Cal Dive, is a 105-ft deep-draft, semisubmersible platform with a two-level production deck. The facility will be installed on Mississippi Canyon block 920 in 7,920 ft of water. The platform is currently under construction and is expected to be completed in 1Q 2007. Anadarko will operate the platform that is designed to process production from the initial 10 anchor fields. The facility will also be equipped with excess payload capacity to tie-back up to nine additional subsea pipelines. The Independence Trail Natural Gas Pipeline, which is wholly owned by an affiliate of Enterprise, is a new 134-mi, 24-in pipeline that will transport production from the Independence Hub to an interconnect with Tennessee Gas Pipeline located in West Delta block 68. Construction of the pipeline is scheduled to be completed in 4Q 2006. Both the platform and pipeline are fully subscribed by the Atwater Valley Producers Group for the first five years of service. EPE and EPD Increases Distributions Businesswire 1-17 Enterprise GP Holdings (EPE) announced it declared its quarterly distribution of $0.28 per common unit. This distribution represents a 5.7% increase over the $0.265/unit paid in Q3-05 and a 12% increase over the $0.25/unit expected initial quarterly distribution. Enterprise increased the partnership's quarterly cash distribution rate from $0.43 per common unit to $0.4375 per common unit with respect to Q4-05. This represents a 9.4% increase over the $0.40 rate that was paid with respect to Q4-04. Distributable cash flow for Q4-05 provided 1.1 times coverage of the cash distribution to the limited partners. For the year, distributable cash flow was $906.1 million and provided 1.3 times coverage of the cash distributions to limited partners. Magellan Midstream Partners Increases Distribution PRNewswire 1-18 Magellan Midstream Partners has increased the partnership's distribution to 55.25 cents/unit. The Q4 distribution represents a 21% increase over the Q4-04 distribution of 45.625 cents/unit and a 4% increase over the Q3-05 distribution of 53.125 cents. KMP Reports Income and Increases Distribution PRNewswire 1-18 KMP reported 2005 net income before certain items of $982.4 million, or $2.37 per unit, up 18% from $833.4 million, or $2.22 per unit, in 2004. For Q4, KMP had net income before certain items of $256.5 million, or $0.59/unit, versus $227.7 million, or $0.59/unit forQ4-04. KMP also increased its quarterly cash distribution per common unit to $0.80 from $0.79 per unit. Payable on 2-14-06, to unitholders of record 1-31-06, the distribution represents an 8% increase over Q4-04 distribution of $0.74. KMP previously announced it expects to declare cash distributions of $3.28 per unit for 2006. The Products Pipelines segment delivered a 7% increase in 2005 earnings before DD&A to $508.3 million, up from $475.5 million in 2004. "This segment's earnings before DD&A, which were below the published annual budget of over 12% growth, were impacted by Hurricanes Katrina and Rita in Q3 and weaker than expected performances by the West Coast Terminals, the North System and the Cochin Pipeline, whose revenues were impacted by lower demand for propane as a result of unseasonably warm weather," Chairman and CEO Richard D. Kinder said. Q4 earnings before DD&A were $127.3 million, up 5% from $121.6 million Q4-04, led by strong performances on Pacific, CALNEV and the Southeast Terminals. The Natural Gas Pipelines segment produced 2005 earnings before DD&A of $500.2 million, up 22% from $410.7 million for 2004, significantly ahead of its published budget of 7 percent growth. For the fourth quarter, segment earnings before DD&A were $139.5 million, up 31 percent compared to $106.9 million for the comparable quarter in 2004. "Growth in this segment was driven by outstanding performances from the Texas Intrastate Pipeline Group and the Red Cedar gas gathering system, along with contributions from the acquired TransColorado Gas Transmission Company," Kinder said. The CO2 segment delivered 2005 earnings before DD&A of $471.2 million, up 33% from $353.5 million in 2004, and almost right on target with its published annual budget of 34 percent growth. The Terminals segment reported a 21% increase in 2005 earnings before DD&A to $318.1 million versus $263.1 million for 2004, and significantly exceeded its published annual budget of 10% growth. For the fourth quarter, segment earnings before DD&A were $84.6 million, up 26 percent from $67.1 million. Pacific Energy Partners Increases Distribution Buasinesswire 1-20 Pacific Energy Partners declared a distribution of $0.555/ unit for the quarter ended 12-31-05, an increase of $0.0425/unit. The resulting distribution is 8.3% greater than in Q3 and 11.0% greater than in Q4-04. Magellan Reports Results PRNewswire 1-23 Magellan Midstream Partners reported Q4-05 operating profit was $51.2 million compared to $48.1 million for Q4-04, representing a 6.4% increase. Net income increased to $37.6 million during Q4-05 from $35.3 million in the corresponding 2004 period, a 6.5% increase. Net income per limited partner unit was 46 cents during Q4-05 compared to 48 cents during 2004, a 4.2% decline, resulting from a higher allocation of net income to the general partner as the cash distribution per limited partner unit increases. Pipeline operating margin was $57.7 million, a decline of $1.4 million. Revenues increased slightly between periods due to higher transportation barrels shipped and increased ancillary revenues due to additional demand for services such as additives and tank leases, all partially offset by lower transportation revenues that resulted primarily from an inventory build in the fourth quarter of 2005. Pipeline revenues are recognized when the transported product exits the pipeline system. When inventories build, the product has not yet left the pipeline system so the transportation tariff cannot be recognized. Terminals operating margin was $18.0 million, an increase of $2.9 million. The addition of the Wilmington, Delaware marine facility, which was acquired in Sept. 2005, increased operating results during fourth-quarter 2005. In addition, the partnership's marine terminals benefited in the current period from recently completed expansion projects at two facilities and increased fees due to higher import activity resulting from tight global petroleum products supply following the third-quarter hurricanes. Revenues also increased at the partnership's inland terminals primarily due to higher additive injection fees. Management expects the partnership's cash generation to increase in 2006, enabling a continuation of its five-year history of growing cash distributions. Targeted distribution growth for 2006 is 8% to 10%. Further, management currently estimates 2006 net income per unit to be approximately $2.03. The significant increase in cash distribution growth during 2005 and the targeted distribution growth in 2006 result in an increase in the allocation of net income to the general partner during 2006. Without this increased allocation, 2006 net income per unit would be approximately 19 cents higher. Net income per unit for first-quarter 2006 is estimated to be 44 cents. Guidance specific to 2006 has not been provided previously. Crosstex Raises Distributions PRNewswire 1-24 The Crosstex Energy companies (XTEX amd XTXI) announced the eleventh consecutive increase in quarterly distributions and the seventh consecutive increase in quarterly dividends: the Partnership's common and subordinated units will increase from $0.49 per unit to $0.51 per unit and the Corporation's common stock will increase from $0.46 per share to $0.56 per share. Plains All American Raises Distributions PRNewswire 1-24 Plains All American Pipeline announced a cash distribution of $0.6875/unit ($2.75/unit annualized) on its outstanding limited partner units. The distribution to be paid in February represents an increase of approximately 12% over the quarterly distribution of $0.6125 paid in February 2005 and approximately 2% over the November 2005 distribution of $0.675. Hiland Increases Distribution PRNewswire 1-24 Hiland Partners announced an approximately 22% increase in its cash distribution for Q4-05. The declared quarterly distributions on the Partnership's common and subordinated units will increase from $0.5125 per unit (an annualized rate of $2.05 per unit), to $0.625 per unit (an annualized rate of $2.50 per unit). Sunoco Reports Year-End Results and Increases Distribution PRNewswire 1-24 Sunoco Logistics Partners announced net income for Q4-05 of $15.0 million, or $0.56/unit compared to $14.7 million for Q4-04, or $0.57/unit. Higher pipeline volumes in the Western pipeline system, including volumes from a Texas crude oil pipeline system acquired in August 2005, and higher terminal revenues were partially offset by lower lease acquisition results and a reduction in net income of approximately $5.7 million related to unusual events. The $5.7 million consists of $3.0 million related to the impact of Rita on the Nederland Terminal and the Western Pipeline System, higher insurance costs related to a $1.3 million special assessment by one of SXL's insurers, and $1.4 million of costs related to relocation of the Western area headquarters from Tulsa to Houston, which will be completed in Q1-06. For 2005, net income was $63.2 million, a 10.7% increase over the $57.0 million for 2004. The increase was due principally to higher pipeline volumes in the Western pipeline system, and higher refined product terminal volumes due in part to a full year's results in 2005 from SXL's 2004 acquisitions, partially offset by lower lease acquisition results and a $9.8 million reduction in net income due to unusual events. The $9.8 million consists of $5.3 million from the impact of Rita, higher insurance costs related to $2.5 million in special assessments by one of SXL's insurers, and $2.0 million of HQ relocation costs. Sunoco Partners LLC, the GP of SXL, also declared an increased cash distribution for Q4-05 of $0.7125 per common and subordinated partnership unit ($2.85 annualized), an increase of $0.0375 per partnership unit over the preceding quarter ($0.15 annualized increase). Operating income for the Eastern Pipeline System decreased to $7.8 million for Q4-05 from $9.6 million for Q4-04. This decrease was primarily due to a $1.7 million increase in operating expenses and a $0.4 million decrease in total revenues. Total revenues decreased $0.4 million due to a decline in total shipments, partially offset by an increase in revenue per barrel mile. Operating expenses increased from $11.1 million in Q4-04 to $12.8 million for Q4-05 due mainly to increased pipeline maintenance activity. The Partnership has completed most of the initial repairs required under the extensive pipeline integrity management program it implemented in 2002 as a result of Department of Transportation requirements, and expects its repair costs to decrease beginning in 2006. The Terminal Facilities business segment had operating income of $9.0 million for Q4-05, an increase of $0.9 million from $8.1 million for Q4-04. Operating income increased due to a $1.8 million increase in revenues, partially offset by a $0.9 million increase in selling, general and administrative expenses. Revenues increased by $1.8 million due principally to higher revenues at the Nederland Terminal despite the impact of Rita, as well as higher volumes at SXL's refined product and refinery terminals. Selling, general and administrative expenses increased by $0.9 million as compared to the prior year's fourth quarter period, to $4.2 million for Q4-05 due mainly to the allocation of a portion of the special insurance assessment. Operating income for the Western Pipeline System increased $0.5 million to $2.7 million for Q4-05 from $2.2 million for Q4-04. The increase was primarily the result of higher pipeline volumes, including the results from the August 2005 Texas crude oil pipeline system acquisition, and higher throughput on the Nederland to Longview, Texas pipeline, partially offset by lower lease acquisition results. Total revenues and cost of products sold and operating expenses increased in Q4-05 compared with Q4-04 due principally to an increase in the price of crude oil. The average price of West Texas Intermediate crude oil at Cushing, Oklahoma, increased to an average price of $60.04/barrel for Q4-05 from $48.27/barrel for Q4-04. Depreciation and amortization increased by $1.5 million due principally to the August 2005 Texas crude oil pipeline acquisition. Selling, general and administrative expenses increased $1.6 million due to $1.4 million of costs related to the HQ relocation and the allocation of a portion of the special insurance assessment. Management anticipates incurring an additional $3.0 million in expenses related to the relocation in Q1-06. Maintenance capital expenditures increased $0.4 million to $31.2 million for 2005 compared to 2004 due primarily to higher pipeline integrity management maintenance activity in 2005. Also included in maintenance capital expenditures in 2005 is $2.7 million associated with the HQ move. Management anticipates maintenance capital expenditures to be approximately $27 million, including approximately $2 million associated with the HQ move for 2006. Expansion capital expenditures in Q4-05 include construction of a new 20-mile pipeline to connect the Texas crude oil pipeline acquired in August 2005 to the West Texas Gulf Pipe Line, construction at Nederland of two new crude oil storage tanks with total capacity of approximately 1.1 million barrels, installation of ethanol blending facilities at a number of refined product terminals, and the acquisition of an interest in the Mesa Pipe Line system, acquired in December 2005. Expansion capital expenditures in 2005 also include the acquisition of the Texas crude oil pipeline system and storage facilities. Expansion capital expenditures for 2004 consist of the acquisitions of the Eagle Point terminal assets in Westville, New Jersey, three refined product terminals in Baltimore, Maryland; Manassas, Virginia; and Columbus, Ohio, and an additional one-third interest in the Harbor pipeline system. ETP Updates 06 Guidance and Recommends Distribution Increase Businesswire 1-26 Energy Transfer Partners announced that due to ETP's improved financial performance following the release of its Q1 earnings, ETP is increasing its EBITDA guidance for fiscal year 2006 to $650 million from the previously announced $575 million. As a result of the Partnership's improved financial performance, management will recommend, following the close of ETP's Q2 ending February 28, 2006, a $0.10 increase in ETP's distribution to its common unitholders of $2.20 annually to $2.30 annually. Enterprise Partners Reports Hurricane-Related Falling Net Income/Unit Buswinesswire 1-26 Enterprise Products Partners reported net income for Q4-05 of $108.4 million, or $0.23/unit, compared to $115.4 million, or $0.28/unit for Q4-04. Net income for Q4-04 included a $0.04 per unit gain on the sale of an interest in the Cameron Highway Oil Pipeline in 2003. Net income for Q4-05 was reduced approximately $0.06/unit as a result of the net impacts of hurricanes and a $0.01/ unit charge for the cumulative effect of a change in accounting. We estimate that Katrina and Rita accounted for a decrease in net income of $0.07/unit, during the quarter, which was partially offset by the receipt of $0.01/unit from the initial recovery from business interruption insurance with respect to Hurricane Ivan. Enterprise is at varying stages of the insurance claims process with respect to each of the hurricanes. We expect to receive additional insurance recoveries in 2006 and 2007, the amounts of which have not been determined at this time. Net income for the twelve months of 2005 was $419.5 million, or $0.91/unit, compared to $268.3 million, or $0.87/unit, for 2004. The 2004 results for Enterprise include only three months of earnings from GulfTerra. Distributable cash flow for Q4-05 increased 8% to $211.7 million from $196.5 million for Q4-04. Revenue for Q4-05 increased 31%, to $3.8 billion compared to $2.9 billion for Q4-04. Operating income for Q4-05 was $177.6 million compared to $175.3 million for Q4-04. Gross operating margin increased to $303.4 million for Q4-05 from $279.2 million for Q4-04. EBITDA for Q4-05 increased to $284.2 million from $275.6 million for Q4-04. Gross operating margin for NGL Pipelines & Services increased to $152.3 million in Q4-05 from $142.5 million in Q4-04. The NGL pipeline and storage business generated $61.4 million of gross operating margin in Q4-05 compared to $51.8 million for Q4-04. Pipeline volumes for Q4-05 increased 9%, or 131,000 barrels per day ("BPD"), to 1,521,000 BPD compared to 1,390,000 BPD in Q4-04. Gross operating margin increased due to improved results from EPD's NGL storage facilities in Mont Belvieu, an increase in NGL import activities and results from the Dixie Pipeline and certain NGL storage and terminal facilities as a result of acquisitions that were completed in 2005. These increases were partially offset by decreases in gross operating margin largely attributable to lower volumes on certain pipelines and higher energy costs. Gross operating margin from the NGL fractionation business increased to $17.2 million for Q4-05 from $15.3 million in Q4-04. This increase was primarily due to an increase in fractionation margins at Mont Belvieu, which was partially offset by a decrease in gross operating margin due to a decrease in NGL volumes available for our Norco, Promix and Baton Rouge fractionators in Louisiana as a result of the effects of the hurricanes. NGL fractionation volumes for Q4-05 averaged 236,000 BPD versus 304,000 BPD in Q4-04. Enterprise's natural gas processing and related marketing business generated $73.7 million of gross operating margin in Q4-05 compared to $75.4 in Q4-04. An increase in gross operating margin from the partnership's NGL marketing business and natural gas processing plants in the San Juan and Permian basins was more than offset by a decrease in gross operating margin from natural gas processing plants in Louisiana and South Texas. Gross operating margin from Onshore Natural Gas Pipelines & Services in Q4-05 increased to $95.3 million from $72.0 million in Q4-04. The increase was largely due to an increase in margin from EPD's natural gas gathering pipelines in the San Juan and Permian Basins, which completed a record number of well connects in 2005 due to the substantial completion of our previously announced optimization projects, and a solid performance from our Texas intrastate natural gas pipelines which realized an 11% increase in transportation volumes from new developments such as the Barnett Shale. During Q4-05, EPD's onshore natural gas pipelines transported approximately 5.9 trillion Btu/d compared to 5.6 Trillion Btu/d for Q4-04. Gross operating margin for the Offshore Pipelines & Services decreased to $15.3 million in Q4-05 from $33.9 million in Q4-04. The majority of this change was due to a decrease in volumes and higher operating expenses as a result of the hurricanes. Offshore natural gas pipelines recorded gross operating margin of $4.7 million on average throughput of 1.5 TBtu/d in Q4-05 versus $14.4 million and 1.8 TBtu/d, respectively, for Q4-04. Gross operating margin for EPD's offshore platform services and production business was $7.9 million for Q4-05 compared to $13.6 million for Q4-04. EPD's crude oil pipeline business had gross operating margin of $2.7 million on transportation volumes of 109,000 BPD in Q4-05, compared to gross operating margin of $5.8 million on transportation volumes of 138,000 BPD for Q4-04. Gross operating margin for the Petrochemical Services earned in Q4-05 increased 32% to $40.5 million compared to $30.8 million for Q4-04. Approximately $8.0 million of the increase was from EPD's octane enhancement business, which generated gross operating margin of $4.4 million for the fourth quarter of 2005, compared to a loss of $3.6 million for the fourth quarter of 2004. The partnership's propylene fractionation business earned $21.1 million of gross operating margin in Q4-05 versus $16.3 million in Q4-04, an increase of $4.8 million. Propylene fractionation volumes were 54,000 BPD for both the fourth quarter of 2005 and 2004. These increases were partially offset by a $3.1 million decrease in gross operating margin from the partnership's butane isomerization business, which generated $15.0 million of gross operating margin on volumes of 77,000 BPD, during the fourth quarter of 2005 compared to $18.1 million on volumes of 85,000 BPD in the fourth quarter of 2004. Capitalization -- Total debt outstanding at December 31, 2005 was approximately $4.8 billion, which was 45.5% of the partnership's total capitalization. At the end of 2005, Enterprise had total liquidity of approximately $770 million, which includes availability under the partnership's $1.25 billion credit facility and unrestricted cash, at December 31, 2005. In 2005, Enterprise made capital investments totaling $1.3 billion for capital expenditures, business combinations, asset purchases and investments in unconsolidated affiliates. Conference Call Notes: EPD's large Offshore units were hit hard by hurricanes - by shut ins and delays. Still, remember that EPD had no significant damage to its assets in the Gulf. EPD had $900 million spent on off-shore assets in 2004 and 2005 - only the Independance project is left for more spending/investment in 2006. These project will add to income in 2006. EPD has benefited from a large geographic footprint / sector diversification / and strong customer relations. EPD remains commited to organic growth. EPD has planned projects in the Rocky Moutians - 2 new NGL projects in Colorado and Wyoming, which will feed into the Mid-American pipeline system. EPD sees its 'Western strategy' as low risk, and as a good balance to EPD's Gulf investments. Compared to other MLPs - EPD is positioned for growth in the Rockies and the Gulf - EPD has 'visabile growth' and well placed assets. 'We are in right place at right time with a strong balance sheet and set to execute.' EPD had 1.3 DCF coverage ratio for full year 2005. $442 million of DCF has not been distributed, but re-invested in EPD, since its IPO. EPD had $1.3 billion invested in new assets in 2005 and EPD anticiaptes $1.6 billion of organic growth projects/investments in 2006, of which 76% will go to 'on-shore' investments. EPD currently has 32% of its debt in floating rate debt and a 5.5% average interest rate on those debts. Question Period: Micheal Bloom from Wachovia asked, on the hurricane loss of $21 million - how much will you recover and when? EPD said the $21 million is net of the insurance deductable. Bloom asked in what ways did EPD benefit from the hurricanes. EPD said it moved more NGL from Texas to Lou. - so EPD continued to have benefits in Q4 from hurricane. Bloom asked about EPD's floating debt. EPD said it had 32% floating - and they wanted 30%-35% floating. Paul Tights [?] from Lehman Brothers asked about 2006 cap-ex and its funding. EPD said that 2006 will be a major year for new construction. Debt/EBIDA will ramp up - but that metric should drop once these projects come on-line. EPD wants to maintain 'investment grade' debt ratings - so there will be new equity offerings, but they would not talk about new equity fundings now. On the possible EPD and Teppco merger - EPD said that its units are currently trading at a discount compared to TPP - so the EPD unit holder would suffer if there was a merger now - that the 'numbers do not work'. So there will be no merger near term - or even mid-term. Robert Lane of Sanders Morris Harris asked about the Cameron pipeine projection of 100,000 barrel/day. EPD: It is 65-70 barrells/day currently - Holstein and Mad Dog platforms are coming on line - and this will cause ramp up in volumes for Cameron. EPD said that the Marco Pollo ramp up is on track. John Tysseland of Citigroup asked about EPD's pending purcahse of the NGL plant from Teppco. EPD: The discussions are in preliminary stage. The two companies see strategic fit for transaction - but no specifics have been reached on the trade. Ted Garner of Raymond James asked about the GnA run rate? EPD: $15-16 million/quarter. Ted asked for the estimates for maintanence cap ex. EPD: $115 million. Holly Energy Partners Increases Quarterly Distribution PRNewswire 1-27 Holly Energy Partners declared a cash distribution for Q4-05 of $0.625 per unit, to be paid February 14, 2006 to unit holders of record February 6, 2006. This distribution represents a 4.2% increase over the partnership's previous quarterly distribution. Buckeye Partners Income/Unit Falls - Distribution Rises PRNewswire 1-27 Buckeye Partners reported net income for 2005 of $100.0 million, or $2.69/unit. BPL's net income in 2004 was $82.9 million, or $2.76/unit. Revenue in 2005 was $408.4 million compared with revenue of $323.5 million in 2004. Operating income in 2005 was $161.3 million compared with operating income of $122.1 million reported for 2004. Net income per unit amounts in 2005 reflect the issuance of 3.6 million LP units in public offerings during 2005. Financial results in 2005 and 2004 include amounts attributable to the pipelines and terminals acquired from affiliates of Shell following their acquisition in October 2004. In addition, financial results in 2005 include amounts attributable to the pipelines and terminals acquired from Exxon following their acquisition in May 2005. BPL's net income for Q4-05 was $27.6 million, or $0.72/unit, compared with net income of $22.3 million, or $0.67/unit, reported for Q4-04. Revenue in Q4-05 increased to $108.3 million from revenue of $99.2 million in Q4-04. Operating income also increased in Q4-05 to $43.6 million from $36.5 million in Q4-04. The Q4-05 results include revenue, operating income, and net income attributable to the pipelines and terminals acquired from ExxonMobil. Pipeline volumes for Q4-05 were 1,420,600 barrels per day compared to 1,368,000 barrels per day in Q4-04. Costs and expenses for Q4-05 were $64.7 million compared to $62.7 million for Q4-04. The Board of Directors of Buckeye GP LLC also declared a regular quarterly partnership cash distribution of $0.7375/unit payable 2-28-06, to unitholders of 2-7-06. This cash distribution represents a quarterly increase in the distribution of $0.0125/unit to an annual distribution of $2.95. This is the 76th consecutive quarterly cash distribution paid by BPL, and the seventh consecutive increase in the quarterly cash distribution. KSP Reports Q4 Loss in Net Income, Rise in Operating Income PRNewswire 1-27 For the three months ended 12-31-05, KSP reported operating income of $6.7 million, an increase of $3.7 million, or 127%, compared to $2.9 million of operating income for the three months ended 12-31-04. The increase resulted from the significant expansion of KSP's fleet barrel-carrying capacity over the past year, most notably through the acquisition of Sea Coast, continued strong vessel utilization and higher average daily rates in KSP's coastwise trade. The strong utilization and freight rates are a result of continuing strong demand. In addition to the Sea Coast vessels, KSP has put into service an additional 529,000 barrels of capacity since December 2004. These increases were partially offset by the loss of the DBL 152, discussed below. The increased vessel operating earnings were partially offset by increased general and administrative costs and depreciation. The $2.2 million increase in general and administrative expenses, as compared to the three months ended 12-31-04, included $1.1 million of increases in personnel costs in support of KSP's growth, and $0.3 million in additional costs related to our new facilities in Norfolk and Seattle. The increase also included $0.3 million in costs related to a postponed bond offering. Depreciation and amortization increased $1.6 million, also as a result of the additional vessels. EBITDA increased by $5.4 million, or 68%, to $13.3 million for the three months ended December 31, 2005, compared to $7.9 million for the three months ended December 31, 2004. KSP incurred a $2.6 million net loss for the three months ended 12-31-05, or $0.27/unit, compared to net income of $1.4 million, or $0.16/unit, for the three months ended December 31, 2004. The $4.0 million decrease in net income resulted primarily from a $6.9 million loss on reduction of debt related to retirement of KSP's Title XI bonds in November 2005, and a $0.9 million increase in interest expense, incurred to finance vessel acquisitions over the past year, partially offset by the $3.7 million improvement in operating income. Retirement of the Title XI debt improved KSP's borrowing flexibility, and eliminated certain restrictive covenants, collateral requirements and working capital constraints. As previously reported on 11-11-05, one of KSP's tank barges, the DBL 152, struck submerged debris in the U.S. Gulf of Mexico, approximately 30 miles south of Port Arthur, Texas, causing significant damage to the double hull which resulted in the barge eventually flooding and capsizing. The submerged debris was a service platform which collapsed during Rita. At the time of the incident, the barge was carrying approximately 120,000 barrels of No. 6 fuel oil, a heavy oil product. The exact amount of oil that escaped into the ocean has not yet been determined; however the likelihood of shoreline impact from the incident is low. The barge was declared a constructive total loss, and it is expected to be scrapped; KSP has received the total $11.0 million insured value from its hull and machinery insurers. KSP also maintains significant protection and indemnity insurance for pollution-related costs and claims, including cleanup costs and environmental damages. KSP does not maintain "loss of hire" insurance. The operating results of the barge during calendar year 2005 were not significant to KSP's total operating results for the calendar year 2005, including Sea Coast on a full year, pro forma basis. KSP also announced that its distribution to unitholders in respect of the second quarter will increase by $0.02 to $0.59 per unit, or $2.36 per unit annualized. Holly Energy Partners Reports Net Income of $1.70/Unit PRNewswire 1-30 Holly Energy Partners reported Q4 net income of $7.2 million ($0.43/unit), as compared to $6.5 million ($0.46/unit) for Q4-04. For 2005, HEP's first full calendar year of operations, net income was $26.8 million ($1.70/unit). Results of operations for Q4-05 include the operations from the assets acquired from Alon USA, Inc. subsequent to the acquisition date of February 28, 2005, including four refined products pipelines aggregating approximately 500 miles, an associated tank farm and two refined products terminals with aggregate storage capacity of approximately 347,000 barrels. Additionally, included in the results of operations for Q4 are the two 65-mile parallel intermediate feedstock pipelines which were acquired on July 8, 2005 from Holly Corporation [HOC], the owner of our GP, and which connect Holly's Lovington, NM and Artesia, NM refining facilities. Results of operations for 2004 reflect the results of operations of Navajo Pipeline, the predecessor to Holly Energy Partners. Revenues of $22.6 million for Q4-05 were $6.6 million greater than the $16.0 million in the comparable period of 2004, principally due to $5.4 million of revenues from the pipeline and terminal assets acquired from Alon and $2.4 million of revenues from the intermediate pipeline assets acquired from Holly on July 8, 2005, partially offset by a reduction in revenues from the Rio Grande Pipeline of $1.3 million. Shipments on HEP's refined product pipelines averaged 145.4 thousand barrels per day ("mbpd") for Q4-05. Shipments on HEP's intermediate product pipelines averaged 58.4 mbpd for Q4-05. Net income was $7.2 million for Q4. Revenues of $80.1 million for 2005 were $12.3 million greater than the $67.8 million in 2004, principally due to $17.6 million of revenues from the pipeline and terminal assets acquired from Alon and $4.6 million of revenues from the intermediate pipeline assets acquired from Holly, partially offset by revenues of $7.9 million in 2004 from assets not originally contributed to HEP. "On January 27, 2006, we announced our cash distribution for the fourth quarter of 2005 of $0.625 per unit, an increase of 4.2% over the amount of $0.60 distributed per unit for Q3-05. Our EBITDA for Q4 was $14.1 million, and after subtracting net interest expense of $2.7 million and maintenance capital expenditures of $140,000, distributable cash flow for the quarter was $11.3 million. The aggregate distribution declared for the quarter amounts to $10.5 million." Valero Reports Net Income of $2.86 vs $3.15 in 2004 Businesswire 1-30 Valero announced net income applicable to limited partners from continuing operations and before certain non-cash items of $29.6 million, or $0.63/unit, for Q4-05 compared to $17.9 million, or $0.78/unit, as reported for Q4-04. For the full year 2005, net income applicable to limited partners from continuing operations and before certain non-cash items was $101.5 million, or $2.90/unit, compared to $72.5 million, or $3.15/unit, as reported for the full year 2004. Including certain non-cash items and discontinued operations, Valero reported net income of $24.2 million, or $0.52/unit, for Q4-05 and $100.3 million, or $2.86/unit for the full year 2005. The certain non-cash items mentioned above, which totaled $4.6 million in Q4, or $0.09/unit, primarily relate to the write-off of a portion of idle pipeline in South Texas and increased depreciation and amortization expense related to the purchase accounting for the Kaneb acquisition completed on July 1, 2005. For Q4-05, Valero reported distributable cash flow from continuing operations of $42.2 million, or $0.90/unit, compared to $22.4 million, or $0.97/unit, as reported for Q4-04. For the full year 2005, distributable cash flow was $136.5 million, or $3.90/unit, compared to $90.3 million, or $3.92/ unit, as reported for the full year 2004. Distributable cash flow available to limited partners from continuing operations covers the distribution to the limited partners by 1.05 times for Q4 and 1.16 times for the full year 2005. VLI's earnings for Q4 were "below our guidance and expectations" provided in Q3, said Curt Anastasio, Valero's CEO. "The sale of assets to Pacific Energy Partners, the turnaround of Valero Energy's McKee refinery and increased maintenance expense, impacted earnings" in Q4. "We also had several positive developments in 2005 with respect to our operations in South Texas and Mexico. Not only did we benefit from an increase in volumes on our Dos Laredos system, which increased from 5,000 barrels per day to over 9,000 barrels per day, we also benefited from the expansion of our Rio Grande Valley pipeline by over 10,000 barrels per day. In addition, we announced the start of a major pipeline construction project of more than 110 miles of pipeline in northeastern Mexico and South Texas, which will allow us to move around 36,000 barrels per day of petroleum products. We still expect to have this project completed in May of this year. "Looking ahead to 2006, operations are expected to be adversely impacted by lower throughput volumes from the scheduled maintenance turnarounds at some of the Valero Energy refineries we serve. In addition, we expect to have increased maintenance. In the second half of 2006, we expect to benefit from increases in our pipeline tariffs effective July 1," said Anastasio. Enbridge Reports Net Income of $2.86 vs $3.15 in 2004 Primezone 1-30 Enbridge Energy Partners, L.P. (NYSE:EEP - News) (``Enbridge Partners'' or ``the Partnership'') today declared a cash distribution of $0.925 per unit payable February 14, 2006 to unitholders of record on February 7, 2006. The Partnership also reported net income for the three months ended December 31, 2005 of $49.7 million, or $0.68 per unit, compared with net income of $41.6 million, or $0.61 per unit, for the fourth quarter of the prior year. Adjusting for the impacts of noncash mark-to-market charges and a sale of nonstrategic midstream natural gas assets, the Partnership's adjusted net income for the fourth quarter of 2005 was $36.9 million, or $0.48 per unit, down from $43.4 million, or $0.63 per unit, in fourth quarter 2004. Adjusted EBITDA increased to $99.3 million in the fourth quarter of 2005 from $97.3 million in the same quarter last year. The noncash mark-to-market charges arise from valuing certain of the Partnership's hedging transactions that do not qualify for hedge accounting treatment under Statement of Financial Accounting Standard No. 133. The Partnership has been making steady progress on a large slate of internal growth projects and reported the following status: -- As announced recently, the Partnership is undertaking a $530 million expansion of its East Texas natural gas system to accommodate growing producer supply in the region. The expansion will provide a 700 MMcfd transmission line and associated facilities to deliver gas to Southeast Texas industrial and electric generation markets as well as interstate pipeline connections. -- The Southern Access expansion of the Lakehead System commenced in December. As currently specified, the $887 million (in 2005 dollars) project will increase delivery capacity into Chicago by 400,000 barrels per day by early 2009, with nearly half of this capacity available in early 2008. A decision from the US Federal Energy Regulatory Commission on the tariff principles negotiated with shippers is expected by the end of March. -- Enbridge Inc. is on pace to complete the reversal of its Spearhead Pipeline and commence deliveries to the crude oil distribution hub at Cushing, Oklahoma by early March. Initial committed volumes are 60,000 barrels per day. Spearhead will draw volumes from an interconnect with the Lakehead System near Chicago. -- The North Texas Link is on schedule to provide a route for 100,000 MMBtu/d of gas produced in North Texas to access the Carthage Hub, commencing within the next few months. The Partnership has a firm transportation commitment on an Atmos pipeline and is investing $20 million to tie this line upstream to its North Texas facilities and downstream to its East Texas transmission pipeline. -- A number of projects, totaling approximately $180 million, are scheduled to add 350 MMcfd of processing capacity and 80 MMcfd of treating capacity to the Anadarko, East Texas and North Texas systems, over the next 15 months. -- In December, the Partnership completed a $28 million project that added 2.3 million barrels of commercial crude oil storage to the Mid-Continent system terminal at Cushing. Three additional projects have been approved to add 3.2 million barrels of merchant storage, at a cost of $53 million, for service in late 2006. OUTLOOK FOR 2006 Enbridge Partners estimates that its operating income will increase to between $275 and $295 million in 2006 and that depreciation will be approximately $145 million. Net income is estimated to increase to between $160 and $180 million for the year. These estimates exclude any impact from noncash mark-to-market gains and losses under SFAS 133. Mother Nature Plays Lead Role In Volatile Natural-Gas Market Spencer Jakab, Dow Jones Newswires 1-09 The U.S. natural-gas market hasn't been for the faint of heart. Futures prices soared 90% from June through early September, crashed more than 20% in just a few sessions ending Nov. 4, soared 35% in the three weeks leading up to their settlement high of $15.378 per million British thermal units on Dec. 13, and then plunged 38% through last Thursday. For consumers reeling from volatility, the bad news is that it may get worse. Observers say the roller-coaster nature of trading is a function of natural-gas prices having grown more influenced by changes in weather than ever before at a time when high prices have eaten into industrial demand. What is more, unlike with oil and refined products, the fact that virtually all supply must come from North America reduces any safety margin that can absorb excess supply or meet extra demand. Even after dropping to below $10 per million BTUs, natural-gas prices are about four or five times their level before this decade. This has led industrial use as a percentage of U.S. natural-gas demand to decline to about 33% in 2004 from about 36% in 1999, but the recent price spikes may have accelerated the process. On Friday, the February gas-futures contract finished at $9.632 per million BTUs. Paul Cicio, executive director of advocacy group Industrial Energy Consumers of America, says analysts "have failed to comprehend" the level of the drop in demand from manufacturers "that occurred as a result of high post-Katrina prices." An October survey by the group of its members showed willingness to curtail usage this winter because of high prices. The upshot of the drop in demand is that a cold week in the winter leads to a bigger surge in consumption than existing models predict, and a mild week produces the opposite reaction. Evidence that this is happening came in the past month, which saw two records for gas in storage on opposite ends of the spectrum. A draw from storage of 202 billion cubic feet the week ended Dec. 9 was a record for the date. Three weeks later saw an unprecedented winter buildup in storage of one billion cubic feet. We may be getting more sensitivity to the weather because a lot of industrial demand has dropped out. Natural gas' weather-sensitivity also extends to the summer. A buildup of gas-fired generation in the late 1990s and early part of this decade has resulted in "peaking demand" -- power needs from generators that switch on only when mostly coal, nuclear and hydroelectric units are unable to meet demand -- being met exclusively with gas. For example, about 18% of power needs were met by gas last May, but in July and August about 25% of it came from gas and much more on hot days when air conditioners were most in use. Barnett Shale is a Hot Property Dan Piller, Ft Worth Star-Telegram 1-01 Everything about the Barnett Shale natural-gas field got bigger last year -- and its reputation spread from North Texas across the country. Production was up 19% through the first 10 months of 2005, putting the field on track to increase its production to almost 435 million cubic feet in 2005. The prices producers received doubled during the year, from the $6-$7 per thousand cubic feet to a record $15 per thousand cubic feet as cold weather arrived in December. In early 2005, 50-60 drilling rigs were working in the field that adjoins Fort Worth. By year's end, 125 rigs were working with the biggest concentrations now in Johnson, Tarrant and Parker counties. Producers began using drilling rigs with up to 3,000 horsepower, double the normal power, to cut into the hard rock 8,000 feet below North Texas. Chief Oil & Gas successfully drilled a mile down and then a mile horizontally on Ross Perot Jr.'s Alliance Airport property north of Fort Worth.Several producers reported getting initial production of 5 million cubic feet or more per day from Barnett Shale wells in Johnson County. Chairman Mark Papa of EOG Resources bragged of a "monster" 7.7 million cubic feet well near Mansfield that was drilled in September. Numbers like that, four or five times the average initial production from conventional wells, were bound to attract big fish. During 2005, Shell Energy, Marathon Oil and ConocoPhillips leased, partnered or merged their way into the nation's hottest natural-gas play. Finally the biggest of all, Exxon Mobil, entered into a partnership with Dallas-based Harding Co. It also has cities and airports looking for new revenue sources. Fort Worth Spinks Airport recently signed a lucrative lease on its 822 acres for natural-gas drilling that includes a one-time $3 million bonus and about $1.7 million annually for the airport in royalties. Dallas/Fort Worth Airport is exploring a partnership with a drilling company to gain new revenues. In Fort Worth, drillers have signed deals to explore on undeveloped land. The city has more than 90 wells drilled. All of that has caused worries about safety, especially after a well in Palo Pinto County exploded last month, gouging a huge crater that burned for days. The expanded play was made possible by improvements in technology that made cracking the heretofore impermeable shale possible and the higher natural-gas prices, which made the more expensive Barnett wells economical. The cloud on the horizon was the shortage of equipment and rising day rates. Producers who didn't have rigs were reporting increased delays in getting rigs and crews, and when they arrived, the price had doubled to $15,000 per day and up. Those higher prices doubtlessly will cut into the profit margins of producers this year, especially if natural-gas prices settle back into a more normal $7-$8 per thousand cubic feet range as expected. Technology has increased the success rate of finding commercial oil or gas deposits. In the U.S., for example, dry holes still accounted for 13% of all wells drilled in 2003. But this compares with 37% in 1973, 32% in 1983 and 26% in 1993. For wells seeking new deposits of oil or gas (exploratory wells), technology has decreased the dry hole rate from 78% (only 22% of wells finding commercial quantities of oil or natural gas) in 1973 to 56% in 2003.[1] The use of better seismic and drilling technologies means fewer wells are required to add the the world's oil and gas supplies. (Society of Petroleum Engineers website) On 1-13 KeyBanc Capital Mkts / McDonald Initiated coverage on BWP at Buy. On 1-17 Sanders Morris Harris Upgraded CPNO from Hold to Buy. On 1-23 Credit Suisse Initiated coverage on PPX at Outperform. Smith Barney on ETP Smith Barney is raising its fiscal year 2006 adjusted EBITDA estimate by roughly 10% to $575.4 million from $524.5 million and our 2006 earnings estimate 8% to $2.06 per unit from $1.90 per unit. This increase reflects the better than expected results for the fiscal first quarter and our expectation that the partnership will continue to benefit from continued strong volumes and margins throughout the remainder of 2006. As a result, of these increases we are also increasing our 2006 distribution estimate from $2.30 per unit to $2.40 per unit. For 2007, we are increasing our adjusted EBITDA estimate to $633.4 million from our previous estimate of $599.9 million and our 2007 earnings estimate to $2.31 per unit from $2.20 per unit as we expect the partnership will benefit from several organic growth projects that are should come online throughout 2006 in addition to continued growth in the producing regions served by the partnership's assets. As a result of our increased 2007 estimates we are also increasing our 2007 distribution estimate from $2.70 per unit to $2.75 per unit. We are raising our 12-month target price by $5.00 to $45.00 per unit. Our new target price assumes that the annual distribution will be increased by $0.50 to $2.70 per unit within the next 12 months and the units should trade with a 6.0% yield. Previously, we had assumed that Energy Transfer would raise its annual distribution to $2.40 per unit and that its units should trade with a 6.0% yield. The expectation of a distribution increase reflects the partnership's continued growth as a result of attractive organic growth projects described below and continued system-wide volume growth. Looking ahead, ETP continues to be one of our favorite names and we expect the partnership to have another strong year supported by: 1) a favorable market environment 2) increased efficiencies from past acquisition activity leading to strong operational performance, and 3) an extensive pipeline of organic growth projects. NOTE #1: Please confirm through your own research any numbers on which you are to make a buy, sell or hold decision. This page is ment to be a supplement for those already getting monthly sector updates from their broker. It is the goal of this page to provide more timely data - and perhaps cover a wider array of stocks and different valuation metrics. Data entry errors sporadically happen. Since these stats are only a 'supplement', is it OK for them to ignore stats like Debt/Market Cap and the GP/LP split ratios - but YOU should not ignore them. NOTE #2: The operator of this site owns units in EPD, ETP and XTEX - and this ownership could distort the coverage of those MLPs. Candidates for future acquisition include APL, BWP, MMP, PAA and SXL - so news on those will disproportionately draw my attention. My own research gives me a bias towards MLPs that are distribution growers - thus those MLPS with slower distribution growth [EEP, NBP, PPX, TCLP and TPP] may have coverage that is slighted. NOTE #3: For MLPs to be in my coverage universe, I must be able to find DCF estimates for them, they must have been in existence since the first of the coverage year, and Yahoo needs to have EPS and ratings data on them. This is why GEL is not in the universe, and why HLND, TGP, TLP, USS and WPZ are being added in 2006. NOTE #4: Those wishing to contribute DCF data to this site can do so by contacting factoids@flash.net -- The only way we are going to get consensus DCF stats is if we build them ourselves, and that takes a team effort. This site frequently uses data provided by the members of the 'MLP and Royalty Trust' yahoo group. |