Wednesday, January 7, 2009

Pipeline limited partnerships rebound sharply following selloff

Shares of pipeline operators plunged in the waning months of 2008, but have rebounded sharply in the first few days of 2009.
Atlas Pipeline Partners, for example, rebounded from $5.20 a share at yearend 2008 to $10.25 at end of day Jan. 6, up almost 100 percent, and was paying a $3.84 annual dividend. Eagle Rock Energy Partners, paying $1.64, jumped from $4.50 a share to $8.02. Enbridge Energy Partners, paying $3.96, jumped from $24.03 to $30.20. Plains All American, paying $3.57, ran from $32.00 to $38.98. Williams Partners LP, paying $2.54, jumped from $$11.50 to $16.34. And Buckeye Partners, paying $3.50, ran from $30.25 to $36.80.
In 2008, companies such as Enterprise Products Partners and El Paso Corp. have struggled with falling share prices, tight credit markets and a shifting mix of shareholders that has eroded their stock prices.
Enterprise fell almost 35 percent last year, while Kinder Morgan Energy Partners dropped 15 percent and El Paso plunged 55 percent. The declining shares led to El Paso’s removal from the Standard & Poor’s 100 Index.

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