Hints and tips:
...Leverage has been applied ‘downstream’ at the portfolio company level, ‘upstream’ with recourse to GPs and LPs, and ‘midstream’ to the funds that own portfolio companies in the form of NAV loans....
...“The synergies I think are obvious any time you combine two companies like this.”...
...In today’s newsletter, I look at a big pipeline deal between Oneok and Magellan Midstream, and what it says about the profound shift under way in the American energy landscape....
...For example, Magellan Midstream, an energy MLP, last year paid out only about 71 per cent of its cash flows as dividends....
...“I think it’s really a short-term story,” she said....
...“If I had crude buyers asking me which ones should I buy and how much should I pay, I’d need to run the numbers through more sophisticated linear program models to come up with the answers,” says Mr Sutton...
...“Even in my earliest projects I would write a back story,” he says. “I always needed to find a narrative.” In the late 1990s he made the leap....
...Its first public move was in EQT, a US energy group, where it lobbied the company to split its production and midstream businesses....
...In last Tuesday’s Inside Business column, I told the story of El Paso Pipeline Partners LP (El Paso MLP), which was rebuked for paying too much for an acquisition....
...“I think virtually anything in the midstream energy area would fit us,” he told investors....
...“To the extent that our project has slowed, I think it’s their assessment of whether that ban is lifted or not.”...
...– this midstream infrastructure play – over the next few years”.”...
...Moreover, because interest rates are low, asset values are high, especially for midstream assets such as pipelines, or businesses that are already generating significant cash flow....
...I think there will continue to be as we see this boom in domestic production coming online. You’re going to need tanks.”...
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