Boardwalk woes don't spill over into other oil and gas MLPs

|By:, SA News Editor

Today was a disaster for Boardwalk Pipeline Partners (BWP), -46% on the day after cutting its distribution by more than 80%; the good news is that Wall Street does not seem too concerned about a spillover into peers and competitors, at least not yet.

Most of the high-yield MLPs held up well, though one exception was El Paso Pipeline Partners (EPB), whose emphasis in natural gas pipelines and terminating caused it to slide in sympathy with BWP.

In its downgrade to Underperform from Neutral with a reduced price target of $20/unit, Credit Suisse says the MLP's assets are primarily located along Gulf Coast regions where drilling activity and production have been in decline due to lower natural gas prices; storage margins also have dropped due to tighter differentials across natural gas trading hubs.