Bernard Colson, Managing Director and Senior Analyst for MLPs at Oppenheimer & Co., says EQT Midstream Partners LP (EQM) is one of his top stock picks for 2015. He believes the company is positioned to continue strong growth.
“Number one, they have no commodity price exposure in a direct way. All of their contracts are fee-based contracts,” Colson says. “Number two, they’re leveraged in kind of a manageable way. I mean, every MLP is going to have some debt. You’re not going to have any MLPs that don’t have any debt, but they have a manageable level of debt.”
FOR MORE INFORMATION ON THIS INTERVIEW CLICK HERE.
In addition, Colson says EQT has a significant cash flow cushion and a strong, supportive parent company, both of which make the stock a defensive investment. And, Colson says EQT is exposed to the Marcellus Shale, which is a natural gas-focused shale. Since natural gas prices have not come down nearly as much as oil prices, Colson believes we will see continued development in the Marcellus.
“There are a lot of reasons to like [EQT Midstream Partners]; I anticipate that it’s going to grow in the kind of mid-20s on a percent basis,” Colson says. “Now, it’s a lower yield. It’s right now, I’m looking at a 2.7% yield, but it’s company that is set up to continue its strong growth.”
EQT Midstream Partners LP (EQM) Positioned to Be a Meaningful Grower
March 31, 2015
American Tower Corp (AMT) Positioned for Strong Organic and Same-Tower Growth in 2014
January 17, 2014
Plains All American Pipeline, L.P. (PAA) Well-Positioned for Cash Flow Growth and 10% Distribution Growth
March 28, 2014
Apartment REITs Continue to Put Down Strong Numbers
June 25, 2012
Questcor Pharmaceuticals Inc (QCOR) Positioned for 50% Gain from Current Price with Steady Growth of Acthar Drug
August 07, 2013
