Shell Midstream Needs To Follow The Example Of Rattler Midstream

Long Player
Investing Group Leader

Summary

  • The threat of a cheap takeover by the parent company is real.
  • The yield on these units is too high, even though there's evidence that the distribution is well supported.
  • Financial leverage is very reasonable.
  • Rattler Midstream and Antero Midstream appeared to have solved the pricing problem.
  • The market awaits the future choices involving Shell Midstream.
  • This idea was discussed in more depth with members of my private investing community, Oil & Gas Value Research. Learn More »
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Photo by ElenVD/iStock via Getty Images

Shell Midstream (SHLX) just posted another ho-hum quarter. Mr. Market left the common units on the "side of the road" as the rest of the industry appears to enjoy a more vigorous rally. Lately articles have appeared about the threat of a "take under" due to the disappointing common

I analyze oil and gas companies and related companies like Shell Midstream in my service, Oil & Gas Value Research, where I look for undervalued names in the oil and gas space. I break down everything you need to know about these companies - the balance sheet, competitive position and development prospects. This article is an example of what I do. But for Oil & Gas Value Research members, they get it first and they get analysis on some companies that is not published on the free site. Interested? Sign up here for a free two-week trial.

This article was written by

Long Player
23.83K Followers

Long Player believes oil and gas is a boom-bust, cyclical industry. It takes patience, and it certainly helps to have experience. He has been focusing on this industry for years. He is a retired CPA, and holds an MBA and MA.

He leads the investing group Oil & Gas Value Research. He looks for under-followed oil companies and out-of-favor midstream companies that offer compelling opportunities. The group includes an active chat room in which Oil & Gas investors discuss recent information and share ideas. Learn more.

Analyst’s Disclosure:I am/we are long AM, RTLR. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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