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Re: Wild-bill post# 25983

Thursday, 10/08/2015 7:33:55 AM

Thursday, October 08, 2015 7:33:55 AM

Post# of 29204
New Shale Gas Customers: Not So Bullish?

Thanks to LT at Seeking Alpha for the link.

Although it's nice that CPST got new customers in the shale play, we and CPST, probably should be a bit cautious about taking this as an indicator that things are alright, or moving strongly in that direction.

If the article below is correct, we should expect reduced orders for various pipeline-related facilities to continue for quite some time. With these applications being such a large part of CPST's revenue, it foretells continued difficulty for quite some time.

"There is now too much capacity chasing declining production in nearly every once booming shale basin. For example, midstream processors in the Haynesville shale are now scrambling for business due falling production and a glut of capacity."

"In other words, we are at the beginning of what I expect to be a brutal bear market in infrastructure MLPs".

Although it's a little late, a well done article worth a read IMO.

Pipeline MLPs Are In Trouble - Here's Why

Bill

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