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MLPs are looking up, analyst says; recommends EPD, GEL, SEP, MMP

  • The past week has rewarded the energy MLP sector with new YTD highs, mostly thanks to the gains in crude oil prices; the Alerian MLP ETF rose another 0.8% to $12.36 in today's trade, up from $11.77 a week ago and $7.97 in mid-February.
  • DA Davison MLP analyst Poe Fratt tells Bloomberg he still sees good value in MLPs, saying MLP prices have only just started to inch up since early April, noting that while Treasury yields have fallen, yield spreads look more attractive.
  • Fratt's best 2016 idea in energy MLPs is Enterprise Products Partners (NYSE:EPD), which he says remains well positioned in the challenging environment; the firm also rates Genesis Energy (NYSE:GEL), Spectra Energy Partners (NYSE:SEP) and Magellan Midstream Partners (NYSE:MMP) at Buy.
  • ETFs: AMLP, AMJ, KYN, TYG, KYE, SRV, CEM, MLPI, NML, FEN, NTG, KMF, MLPA, EMLP, FMO, AMZA, FEI, JMF, SRF, CBA, MLPN, GMZ, MLPX, GER, EMO, TTP, CTR, MLPS, CEN, SMM, DSE, FPL, AMU, MIE, JMLP, ENFR, ATMP, MLPW, IMLP

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EPD--
Enterprise Products Partners L.P. Common Units