MMP for GROWTH + HIGH YIELD

[dan_s]

I have posted our updated profile and forecast/valuation model for Magellan Midstream Partners LP (MMP) to the EPG website.

This week I am focused on updating all of the profiles for companies in our High Yield Income Portfolio. MMP is definitely in the top quartile for safety and growth. This midstream company has increased cash distributions to unit holders for 66 quarters and there is no reason that the trend will not continue since DCF is well above the current distribution.

The outlook for midstream services (gathering, processing, transportation and storage) is STRONG and as long as U.S. production of oil, gas and NGLs keeps increasing, it will remain strong. MMP is one of the most respected companies in this space.

MMP's annual tax-deferred yield is now 6.6%, but it will be going up.

Sitting here for my review are updated profiles on ENLK, VNOM, EPM and HCLP. I told our five MBA's that there would be nothing under the Christmas tree for them if all of their profile assignments aren't updated by Dec. 20th. Anna and Cas are already done. We are extremely fortunate to have such a fine group of young financial experts helping me.

[dan_s]

Wells Fargo has recently turned very bullish on midstream MLPs.

"In our opinion, the silver lining to the recent underperformance is that MLPs now look historically cheap no matter how you slice them. The dividend yield that investors can get from MLPs right now is far above the yield of all other assets listed (REITs, T-Bills, S&P 500, S&P Utilities, High Yield Bonds, etc.)."

As I've pointed out, the demand for midstream services is now as high as I have EVER seen it.

Send me an email if you'd like to read the WF report. dmsteffens@comcast.net