I’m interested in this asset class, especially the pipelines that run natural gas and shale oil. Anyone have any resources they can point me to? I’m basically interested in learning how to value them, project cash flows etc. With oil prices so high last few mos, many of them may be overpriced, I think though that is the perfect time to start your research so you can be well positioned when they come down in a few mos.
very true…look at performance of the spun off division of CVR partners (NYSE:UAN). It isnt a oil play but a Nitrogen fertilizer maker. Uses pet coke as input rather than nat gas like most of the others.
The below may help with some of the tax structure. In terms of how to project CF etc., probably just look at some SS models. Citi has the top rated MLP analyst, I believe. http://www.mhinvest.com/pdfs_mhi/2010/MHI_MLP_ExecSummary.pdf