EV PARTNERS HOLDERS...GET READY!
More on the headline shortly but we continue to move along the the repair job that seems to spreading across MLP land. The real test will come if crude oil corrects (because we know it never will) and how MLP react to any broad sell off in big energy. So far MLPS have held up well agains any day to day noise in the world where they often shoot first and ask questions later.
Among some of the worst performers at least we see bases in the likes of Constellation Energy Partners (CEP) which i think is setting up to head back into the 20s shortly.
Linn Energy (LINE) among that list of most hated MLPS continues to form a nice "W" bottom and could challenge 24.50-25 which if we get above that would be a nice breakout formation. The stock price firmed up last week after earnings so I remain positive here (and long)
Eagle Rock Energy Partners (EROC) has come out of its bottom formation and finished last week right at the highs so here the path of least resistence is higher and 20 could be on the horizon.
Okay now back to the headline. EV Partners (EVEP) posts earnings this morning which contain the usual noise. Now when you back out the deriviates mark to market losses on the hedges you come up with 58 cents for the quarter. But the most important thing is the company is pre-announcing a distribution boost of a whopping 8 cents a share to 70 cents or $2.80 annual which places this outperformer at an over 10% yield based on Friday's close. Should be a nice mover this morning.
Crude oil is down this morning by 80 cents or so at 125 and small change as the dollar rallies. Nat gas is up and gasoline is down by a few pennies. I paid 4.05 for regular this weekend.
Finally this morning we have the double disaster as Cheniere Energy (LNG) and Cheniere Parnters (CQP) which both remain in free fall..LNG is in worse shape..survival in question for that one and Citigroup downgrades the stock this morning to hold from buy. Use a ten foot pole here and stay away unless you enjoy the casino.