Pipeline operators have been roaring into public markets in search of badly needed capital, diving into an untapped money pool as the country grapples with a lack of energy transportation infrastructure.
Yield-starved investors, bouncing from low interest rates on bonds to a choppy stock market, have appeared happy to fork over the millions that midstream companies — most of them tax-advantaged master limited partnerships — have asked for in the past year.
And based on the market’s momentum, the industry could see five to 10 more similar public offerings announced before the year is out, said Joe Dunleavy, a partner at PricewaterhouseCoopers in Houston.
“It’s a very active and frothy market, and there’s a lot of chatter; I’ve had several phone calls on it — today,” Dunleavy said. “There’s a great need for infrastructure development. A lot of the pipelines were built for World War II, and there’s a need for repair.”Read the entire article by clicking here.
Connect with us on Facebook and Twitter!