The huge drop in oil is really starting to show up at the pump for
consumers, and right before the holidays that is a blessing. It is also
showing up in energy-related stocks and master limited partnerships
(MLPs). This may prove to be a blessing for patient, long-term
aggressive energy growth and income investors. A new report from UBS
documents that the fall in oil prices has certainly made investors
nervous, and specific company by company thesis may need to be reviewed.
The UBS team thinks that the upstream MLPs need to continue to
execute accretive acquisitions to offset naturally declining reserves
and production. They point out the industry catch-22, as many energy and
production companies may be sellers of assets, while the MLPs are
constrained by cash shortages to make deals.
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