No. of Recommendations: 8
I can't add any particular insight to pipelines or MLPs in general, but natural gas and to a lesser extent petroleum are things I think I know.

Natural gas prices have been in a funk for several years now. After a year or so mostly in the $2's, they are now in the low $3's which still is not particularly profitable for producers. To make matters worse, NG prices have been so low for so long that most producers have burned through higher hedges that had been protecting them to some extent from the lower prices.

I review the following link every Thursday that lists U.S. natural gas storage numbers.

Storage numbers, indicating the weekly draw typically from November through March and the weekly injection typically from April through October, are to me the sum of all supply and demand factors.

The first weekly report of this year blew the lights out taking over 200 bcf out of storage, this is unusual for a week in late December to early January when so many institutions are closed. The next 2 weeks while not as good, were still above the 5 year average. So after the first three weeks beating the 5 year average, the next 3 weeks have been been below the 5 year average.

Early this year, I looked at a lot of NG producers and all seemed overpriced or fully priced for a modest increase in NG prices. Last year I also looked at CHK when that company was beaten down due to some management issues, although it had a significant drop it didn't appear to me to be a great bargain.

Oil prices, although down $5 over the last week, are good enough to be quite profitable. I would focus on the Oils and not the NG producers.
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