Ted Gardner, CFA, is Managing Director and Portfolio Manager of Salient Partners, LP. Mr. Gardner is a Managing Director and serves as Co-Portfolio Manager at Salient in the firm’s MLP complex. Mr. Gardner formerly served as Portfolio Manager and Director of Research at RDG Capital, LLC, a Houston-based asset management firm specializing in MLP investments.
RDG was acquired by Salient in 2011. Previously, Mr. Gardner served as a research analyst with Raymond James and Associates following MLPs in the pipeline, midstream, propane, maritime and coal industries.
Mr. Gardner is a CFA charterholder and holds a Bachelor of Business Administration from The University of Texas at Austin and an MBA from the University of St. Thomas, Cameron School of Business in Houston, Texas.
In this 2,732 word interview, exclusively in the Wall Street Transcript, Mr. Gardner explores some of his top portfolio picks:
“If you look at one of the largest names in the space, Enterprise Products (NYSE:EPD), it includes oil pipelines, natural gas pipelines as well as natural gas liquids pipelines. They also have petrochemical assets that deliver feedstocks into petrochemical plants and other assets.
It is not unusual these days to have this diversification, particularly among the larger-cap names. We don’t seek an oil pipeline in XYZ basin; rather, we are really looking at whole businesses.
There are opportunities in multiple areas. There is a pretty large infrastructure buildout occurring in the Permian Basin for both oil and natural gas. We have also had some opportunities in the natural gas liquid space. Our approach is holistic.”
Other trends in this sector are analyzed by this highly experienced expert:
“In other instances, you hear of conversations among companies about consolidating projects. What we mean by that is, if you had two or three pipelines being contemplated, none of which have the necessary level of commitment to secure their economics individually, if you put them together in one joint venture pipeline, then you get to your economics.
A good example of this is MPLX’s (NYSE:MPLX) recent public announcement that it would join the Wink to Webster Pipeline project along with Exxon Mobil (NYSE:XOM) and Plains All American (NYSE:PAA), rather than pursue a separate project. These are some of the trends that we are seeing from a return-on-invested-capital perspective.”
Get the full detail from this industry expert by reading the entire 2,732 word interview, exclusively in the Wall Street Transcript.