cato

Outrageous Opportunities in Upstream MLPs

jjason,

I suggest you read the 10Ks of your Canroy stocks very carefully. You will find that many of these companies are taking on debt to finance their distributions. Not a good thing!

Also check out Morningstar's detailed reports on these stocks.

Outrageous Opportunities in Upstream MLPs

Energy:
If you look at the prices used for the PV-10 calculations of most of these companies, you'll find that they are significantly below the hedge prices. So, if anything, they underestimate the value. Not to mention that 10 is pretty generous discount rate, even in today's environment.

While equity financing is clearly closed to these companies for now, debt is still available, as evidenced by debt-financed acquisitions by CEP and LINE made this year.