Hinds Howard's  Instablog

Hinds Howard
Send Message
I serve as the senior MLP research analyst for CBRE Clarion Securities, a global asset management firm based in Radnor, PA. My primary focus is on investing in Master Limited Partnerships (MLPs) within a larger infrastructure investment team.
My company:
CBRE Clarion Securities
My blog:
  • MLP Week Thoughts: When Flat Feels Great 0 comments
    Nov 20, 2011 10:15 PM | about stocks: EPD, ENB, CMLP, NKA

    MLPs were up slightly this week overall, but it has rarely felt better, with falling stocks and commodities (even gold) dropping.  The S&P 500 was down 4 out of 5 days and 48.2 points (3.8%) on the week. 40+ of those points happened on consecutive 20 point decline days on Wednesday and Thursday.  MLPs, on the other hand, shook off the largest equity issuance week of all time last week, and in spite of a decidedly risk-off week, managed to finish 0.8% higher. The chart below shows how week over week, year over year, and since the April 28 peak for the MLP index, MLPs have separated themselves from the broader stock market, certainly aided by declining interest rates.

    The chart below highlights the extent to which MLPs moved in the opposite direction of stocks this week.  With a short (and likely limited volume) week upcoming, I expect MLPs to join the correlation party again, and track stocks closely this week, again bouncing around at the whim of the European sovereign debt market and whatever news comes out of Washington DC and the Super Committee.

    Seaway Goes the Other Way

    The biggest news items of the week in the energy space were the two announcements made by Enbridge, Inc. ($ENB) on Wednesday.  The first: that ENB will purchase 50% interest in Seaway crude pipeline system from ConocoPhillips for $1.15 billion (press release).  The second: that ENB and Enterprise Products Partners ($EPD), which owns the other 50% of Seaway, would reverse the direction of the crude flowing through Seaway and start transporting up to 150k barrels/day in the second quarter of 2012 (press release), at a cost of $300 million.  EPD went on to announce on Wednesday that EPD and ENB would discontinue their joint effort to develop the Wrangler pipeline, which was going to have 800k barrels/day of capacity and looked to be ahead in the race to de-bottleneck Cushing's crude supplies.  Smart, cheap moves by ENB and EPD....

    Read the rest of the post here.

    Stocks: EPD, ENB, CMLP, NKA
Back To Hinds Howard's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


  • something going on with $OKS today, no news but down 2.4%
    Dec 17, 2010
  • $TRGP prices IPO at $22 (4.7% yield), ends the day up more than 10%, closing at a 4.2% yield
    Dec 7, 2010
  • New normal after months of MLP outperformance: market way up, interest rates rising, MLPs flat/down
    Dec 2, 2010
More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.