Link to
SeekingAlpha.com:
MLPs.
According to PIMCO, the pipelines segment of the energy sector is
attractive because of "strong asset quality, long-term contracts,
noncyclical cash flows and significant growth in pipeline capacity."
Indeed, pipeline owners have stable business models that depend more on
the volume of transported products than on product prices.
That is
exactly why, despite the plunge in natural gas prices caused by the
surge in the supply, pipeline operators have continued to grow their top
and bottom lines. Moreover, margins are not under the pressure, as the
competitive pressures are almost absent because pipeline operators
usually service different geographical areas.
(Still, it should be noted
that some pipeline operators may include the gathering and processing
operations, which do expose them to short-term fluctuations in commodity
prices).
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