New
York, NY, USA (September 2, 2014) -- Golden Networking's MLP
Investing Conference 2014 New York City
(http://www.mlpinvestingconference.com),
"How the Kinder Morgan Deal will usher in a Golden Age for MLPs
Tapping into the Great American Energy Boom", will review the
current landscape for MLPs and discuss why the next decade should be
the golden years of energy infrastructure investing. MLPs, sponsors,
and investors will analyze recent developments and future
opportunities and challenges for this asset class.
According
to Barron's, energy-transport companies like Kinder Morgan have
historically put their pipeline assets into MLPs to garner higher
valuations. MLPs, which pass their profits directly to investors,
untaxed, typically trade at big premiums to income-producing
securities like utilities, telecom companies, and cable-TV operators.
Kinder Morgan's new strategy reverses the MLP advantage, raising the
question of how the stock should now be valued. The company, headed
by co-founder and CEO Rich Kinder, would like investors to value it
based on its lofty dividend yield.
Kinder
Morgan Inc.'s recent $70 billion consolidation of its Master Limited
Partnerships (MLPs) runs counter to the industry trend of spinning
off pipelines and oil terminals into tax-advantaged partnerships that
funnel cash to investors. However, by simplifying its empire's
corporate structure, Kinder is lowering borrowing costs, freeing up
cash for bigger dividend payouts and unifying the company under a
single stock that can be used as currency to buy competitors focused
already on building the energy infrastructure of the future.
The
move signals a new round of deal making for the pipeline industry,
which has seen growth rocket in the past five years as the boom has
spread across North America. Potential acquisition targets for firms
such as Kinder, Enterprise and Energy Transfer Partners now include
more than 120 energy MLPs that have a combined enterprise value of
$900 billion. That is set to grow rapidly as less volatile cash
payouts that beat debt yields are sought and massive new investments
are made in the burgeoning oil and gas fields of Texas, North Dakota
and Pennsylvania.
Topics
that MLP
Investing Conference 2014 will discuss include:
• The
REIT syndrome: increasing institutional ownership in the MLP asset
class
• The
biggest risk: what about if oil prices fell to $80 a barrel and
stayed there
• Implications
of Kinder Morgan Inc.'s deal to consolidate its energy infrastructure
MLPs
• Barbarians
at the gate: a new round of deal making for the pipeline industry
MLP
Investing Conference 2014 is produced by Golden Networking, the
premier networking community for business and technology executives,
entrepreneurs and investors. Panelists, speakers and sponsors are
invited to contact Golden
Networking by sending an email to
information@goldennetworking.com.
Media
Contact:
Julia
Petrova
Media
Relations Coordinator
Golden
Networking
+1-414-FORUMS0
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