Investing Topics: Midstream Energy

Here's my take on what the CUI Portfolio and Utility Report Card MLPs had to say at the National Association of Publicly Traded Partnerships' MLP Investor Conference last week.

Uncle Sam is kicking the can down the road again on the Keystone XL Pipeline. In a non-decision that should have surprised no one, the US State Department delayed a final ruling on the $5.4 billion project.

Energen Corp (NYSE: EGN) will sell its Alabama gas distribution utility to Laclede Gas (NYSE: LG), for $1.28 billion in cash plus $320 million in assumed debt. The company will deploy the estimated $1.1 billion in after tax proceeds to further develop its high potential properties in the Permian Basin.

Every portfolio has winners and losers. The key is knowing when to let the best performers run, and cut the worst loose.

Thanks again to everyone who tuned in to my second on-line chat for Conrad’s Utility Investor subscribers last week. The full transcript of the 4-hour question and answer session is now available on the CUI website by clicking on the “Events” tab from the home page.

Mention master limited partnerships and sooner or later someone will bring up taxes. The big worry: A US version of Canada’s infamous Halloween Massacre of 2006, which shaved $24 billion off the value of income trusts in two weeks.

This Aggressive Portfolio holding remains one of our favorite turnaround stories.

Kinder Morgan Energy Partners LP (NYSE: KMP) doesn't understate the maintenance capital expenditures in its natural-gas pipeline segment.

Only two Portfolio holdings have yet to turn in earnings this reporting season. Aggressive Holding ENEL SPA (Italy: ENEL, OTC: ENLAY) will unveil its fourth quarter 2013 numbers on March 11. Conservative Holding Piedmont Natural Gas (NYSE: PNY) releases its first quarter fiscal 2014 results on March 7.

Almost anything can affect stock prices in the near term. Long-term, earnings and dividend growth are what counts.