Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Risk As Shown In Bond Rates - E&P News

|Includes: Vanguard Natural Resources, LLC (VNR)

The bond market has - relatively - fallen in love with E&P bonds. This is a 2014 event. And if E&Ps can continue to have a low cost of debt - this could be a game changer. (By the way - this is stuff that us dumb retail investors are not suppose to know. But it may be the case that you are only as dumb as your due diligence level.)

Here is my data on E&P bonds as of August of last year (I lacked access to bond data at year at 2013):

Bond data from FINRA web site on 8-05-13

Comp Source CUSIP Price Yield Maturity
Short Maturities
APL APB.GC 04939MAC3 $104.060 5.920% 12/15/2015
BPL BPL.GF 118230AD3 $105.437 0.749% 10/15/2014
BWP L3703461 882440AS9 $104.893 1.871% 06/01/2015
EPD EDP3667070 293791AR0 $106.303 0.944% 03/01/2015
MMP MMP.GA 559080AA4 $104.890 0.558% 06/01/2014
MMP MMP.GB 559080AB2 $114.039 1.361% 10/15/2016
KMP KMI3675344 494550BA3 $107.203 0.852% 02/15/2015
OKS OKE3688619 68268NAF0 $104.231 1.448% 02/01/2016
WPZ WMB.JE 893570BW0 $114.142 1.105% 04/15/2016
9 Year Maturities
ACMP CHKM3836735 16524RAE3 $103.500 5.471% 07/15/2022
DPM DPM3829889 23311VAB3 $102.711 4.559% 04/01/2022
EPD EDP3695098 29379VAU7 $101.597 3.828% 02/15/2022
EEP EEP3696243 29250RAU0 $102.823 3.781% 09/15/2021
ETP ETP.AA 29273RAQ2 $106.394 4.270% 02/01/2022
KMP KMI3829314 494550BL9 $99.665 3.994% 09/01/2022
MMP MMP.GG 55907RAA6 $105.662 3.387% 02/01/2021
MWE MWE.GK 570506AP0 $105.750 5.174% 06/15/2022
NGLS NGLS3964295 87612BAK8 $106.000 5.269% 08/01/2022
PAA PAA3831124 72650RAZ5 $100.175 3.625% 06/01/2022
SEP SE3692607 84756NAB5 $104.713 3.882% 06/15/2021
TCP TRP3692939 87233QAA6 $102.588 4.248% 06/15/2021
WES APC3691578 958254AA2 $108.181 4.105% 06/01/2021
WPZ WMB3699224 96950FAH7 $99.268 4.104% 11/15/2021
High Risk MLPs
BBEP BBEP3951154 106777AD7 $101.750 7.525% 04/15/2022
EROC EROC.AC 26985UAB3 $102.975 7.458% 06/01/2019
EVEP EVNT3815264 26926XAB9 $101.500 7.521% 04/15/2019
LINE LINE3696401 536022AF3 $101.705 7.340% 02/01/2021

FINA = Financial Industry Regulatory Authority

Here is my current data on E&P bonds:

E&P MLP Bond prices 6-25-14
Company ------------------ Coupon Rate Maturity CUSIP Last Trade Last Trade Yield
BreitBurn Energy Partners 7.875% 04/15/2022 106777AD7 $109.12 5.447%
Eagle Rock Energy Partners 8.375% 06/01/2019 26985UAB3 $108.06 3.876%
EV Energy Partners, L.P. 8.000% 04/15/2019 26926XAB9 $105.37 5.865%
Linn Energy, LLC 7.750% 02/01/2021 536022AF3 $107.51 4.444%
Memorial Production Partners 7.625% 05/01/2021 586049AB4 $105.00 6.403%
Vanguard Natural Resources 7.875% 04/01/2020 92205CAA1 $109.10 4.602%

Here is the FINRA tracking of one bond from VNR - with prices shown first at the start of the year 2014 in the first data set - and recent prices in the second and third data set:

Issue: VNR3840075 Description: Vanguard Natural Resources, LLC Coupon Rate: 7.875 Maturity Date: 04/01/2020
Execution  
Date Time Settlement Status Quantity Price bond Yield            
1/10/2014 15:20:57 1/15/2014 T 10000 106.425 6.117            
1/10/2014 15:20:55 1/15/2014 T 10000 106.425 6.117            
1/10/2014 15:20:47 1/15/2014 T 10000 106.425 6.117            
1/10/2014 12:34:36 1/15/2014 T 125000 105.300 6.415            
1/10/2014 12:34:36 1/15/2014 T 125000 105.300 6.415            
1/9/2014 15:26:57 1/14/2014 T 500000 105.166 6.451            
1/9/2014 12:28:00 1/14/2014 T 350000 105.750 6.296            
1/8/2014 13:32:56 1/13/2014 T 47000 107.700 5.778            
1/8/2014 13:32:56 1/13/2014 T 47000 107.700 5.778            
1/8/2014 13:32:55 1/13/2014 T 47000 107.950 5.692            
1/8/2014 11:35:00 1/13/2014 T 100000 105.500 6.363            
12/27/2013 14:21:02 1/2/2014 T 5000 106.000 6.241            
12/27/2013 14:21:02 1/2/2014 T 1000 106.250 6.176            
12/27/2013 14:21:02 1/2/2014 T 4000 106.250 6.176            
12/23/2013 13:49:31 12/27/2013 T 9000 106.000 6.245            
12/23/2013 13:49:31 12/27/2013 T 9000 106.000 6.245            
12/23/2013 13:49:31 12/27/2013 T 9000 106.450 6.128            
12/23/2013 11:37:37 12/27/2013 T 5000 104.630 6.606            
12/23/2013 11:37:37 12/27/2013 T 5000 104.630 6.606            
12/23/2013 11:37:37 12/27/2013 T 5000 104.515 6.637            

Issue: VNR3840075 Description: Vanguard Natural Resources, LLC Coupon Rate: 7.875 Maturity Date: 04/01/2020
Execution  
Date Time Settlement Status Quantity Price bond Yield            
5/6/2014 16:08:29 5/9/2014 T 1MM+ 108.000 5.374            
5/6/2014 16:08:04 5/9/2014 T 1MM+ 107.750 5.506            
5/6/2014 12:20:44 5/9/2014 T 15000 108.725 4.994            
5/6/2014 12:20:43 5/9/2014 T 15000 108.625 5.046            
5/5/2014 10:32:16 5/8/2014 T 262000 107.790 5.488            
5/1/2014 16:52:03 5/6/2014 T 3000 108.700 5.018            
5/1/2014 16:52:03 5/6/2014 T 3000 108.950 4.888            
4/30/2014 14:17:10 5/5/2014 T 1MM+ 108.000 5.387            
4/30/2014 14:16:38 5/5/2014 T 1MM+ 107.750 5.518            
4/30/2014 12:36:10 5/5/2014 Correction 375000 108.750 4.995            
4/30/2014 12:36:10 5/5/2014 T 395000 108.750 4.995            
4/24/2014 16:44:56 4/29/2014 T 250000 108.250 5.275            
4/23/2014 17:23:35 4/28/2014 T 250000 108.000 5.408            
4/21/2014 15:18:50 4/24/2014 T 167000 108.250 5.291            
4/21/2014 13:14:49 4/24/2014 T 30000 109.870 4.464            
4/21/2014 13:14:18 4/24/2014 T 30000 108.870 4.973            
4/21/2014 11:05:08 4/24/2014 T 50000 109.870 4.464            
4/21/2014 11:04:53 4/24/2014 T 50000 108.870 4.973            
4/21/2014 09:27:14 4/24/2014 T 50000 107.777 5.535            
4/16/2014 13:50:45 4/22/2014 T 20000 111.000 3.907            

Issue: VNR3840075 Description: Vanguard Natural Resources, LLC Coupon Rate: 7.875 Maturity Date: 04/01/2020
Execution  
Date Time Settlement Status Quantity Price Bond Yield            
6/24/2014 13:15:29 6/27/2014 T 10000 109.000 4.657            
6/24/2014 13:15:29 6/27/2014 T 10000 109.100 4.602            
6/24/2014 09:28:59 6/27/2014 T 550000 108.610 4.875            
6/24/2014 09:15:24 6/27/2014 T 50000 108.500 4.937            
6/23/2014 16:12:45 6/26/2014 T 75000 108.000 5.221            
6/23/2014 16:12:45 6/26/2014 T 25000 108.000 5.221            
6/23/2014 16:12:45 6/26/2014 T 25000 108.000 5.221            
6/23/2014 16:12:45 6/26/2014 T 25000 108.000 5.221            
6/23/2014 16:11:13 6/26/2014 T 25000 109.000 4.662            
6/23/2014 16:11:13 6/26/2014 Cancel 25000 109.000 4.662            
6/23/2014 16:11:13 6/26/2014 T 25000 109.000 4.662            
6/23/2014 16:11:13 6/26/2014 Cancel 25000 109.000 4.662            
6/23/2014 16:11:12 6/26/2014 Cancel 75000 109.000 4.662            
6/23/2014 16:11:12 6/26/2014 T 75000 109.000 4.662            
6/23/2014 16:11:12 6/26/2014 Cancel 25000 109.000 4.662            
6/23/2014 16:11:12 6/26/2014 T 25000 109.000 4.662            
6/20/2014 16:05:54 6/25/2014 T 7000 109.305 4.497            
6/20/2014 16:05:54 6/25/2014 T 1000 109.555 4.359            
6/20/2014 16:05:54 6/25/2014 T 3000 109.555 4.359            
6/20/2014 16:05:54 6/25/2014 T 1000 109.555 4.359