Kenny Feng On Income And Growth
The Energy Report | Nov 21, 2012 11:20AM ET
More and more investors are catching on to the steady returns and market resilience that master limited partnerships (MLPs) have historically offered. And when MLP investors evaluate sector performance, they frequently use the Alerian MLP index as their benchmark of choice. Alerian maintains the standard indices for MLPs, and in this Energy Report interview, the company's president and CEO, Kenny Feng, explores some of the issues vital to income- and growth-seeking investors.
The Energy Report: Kenny, you are a former MLP portfolio manager. You've also been an analyst at a bulge-bracket investment bank, Goldman Sachs Group Inc. (NTI ), which is a refiner with a variable distribution policy. When the partnership's management team and bankers went on their IPO road show, the offering range was $19-$21, which is pretty standard for MLPs. But the deal priced at $14, presumably because the bookrunners feared that investors didn't understand the value of the asset and they didn't want the units to break their IPO price. Today, a few months later, it's trading above the high end of that $19–21 range, so we just might see more refining MLPs and variable distribution MLPs -- today there are only three and seven, respectively -- on the horizon.
TER: I have enjoyed speaking with you very much. Thank you.
KF: Thank you, George, I appreciate it as well.
Kenny Feng, CFA is the president and CEO of Alerian, an independent provider of objective indices, data sets, and analytics for the master limited partnership (MLP) sector. Over $10 billion is directly tied to Alerian's indices, including the leading benchmark of MLP equities: the Alerian MLP Index. Feng is a former managing director and portfolio manager of SteelPath Capital Management, a Dallas-based MLP investment manager. Prior to his experience at SteelPath, Feng covered MLPs, electric and gas utilities and diversified gas companies at Goldman, Sachs & Co. in the firm's Global Investment Research Division. Feng graduated summa cum laude with a Bachelor of Science in economics from the Wharton School and a Bachelor of Arts in international studies from the University of Pennsylvania. He also serves on the advisory board of Midstream Business, a monthly publication addressing the need for business market intelligence on North American midstream energy infrastructure.
DISCLOSURE:
1) George S. Mack of The Energy Report conducted this interview. He personally and/or his family own shares of the following companies mentioned in this interview: None.
2) The following companies mentioned in the interview are sponsors of The Energy Report: None.
3) Kenny Feng: I personally and/or my family own shares of the following companies mentioned in this interview: None. I personally and/or my family am paid by the following companies mentioned in this interview: None. I was not paid by Streetwise Reports for participating in this interview.
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