Brien O’Brien and Robert Kad of Port Capital Pound the Table for Midstream MLPs

September 18, 2017


Brien M. O’Brien is the Chairman and Chief Executive Officer of Port Capital LLC. Mr. O’Brien has spent the majority of his 35-year career building and leading investment management firms.  Robert S. Kad is a Managing Director of Port Capital LLC, and he is also the Portfolio Manager of the MLP Energy and Infrastructure Strategy. He brings more than 14 years of investment experience to the firm, with a focus on midstream energy infrastructure and MLPs. Earlier, Mr. Kad worked for Morgan Stanley, Alerian Capital Management and Goldman Sachs.

Mr. Kad sums up the investment approach of Port Capital in their exclusive interview with the Wall Street Transcript:  “…our systematic approach to stock selection and portfolio construction is built upon a rigorous bottom-up fundamental due-diligence research process and stringent risk management protocols. Stock selection within our MLP strategy is predicated upon multiyear per-unit distributable cash flow and distribution growth maximization — effectively, a three-dimensional array of cash flow stability and growth magnitude and sustainability.”

An example of an MLP that fits their investment thesis is Noble Midstream Partners (NYSE:NBLX).  “We view NBLX as an exceptionally well-positioned MLP for sustained growth, supported by committed producer parent NBL (NYSE:NBL); strong asset positioning and growth investment opportunities around both DJ Basin and Delaware Basin — Permian — footprints; high distribution coverage, almost two times; with low leverage, just over one times; and continued operating tailwinds in its water-handling businesses.”

To see the other MLP portfolio picks from the team at Port Capital, read the entire interview at the Wall Street Transcript.