Short BWP – New Best Idea

12/02/13 07:54AM EST

We are adding SHORT Boardwalk Pipeline Partners (BWP) to our Best Ideas list.

BWP is a $6.4 billion market cap MLP primarily engaged in the transportation and storage of natural gas in the south/central US.  The diversified holding company Loews Corp. (L) owns the 2% GP interest in BWP, all IDRs (currently in the 50/50 split), and 52% of the BWP’s outstanding common units.

BWP is a high-conviction short idea given the Company’s deteriorating base business, aggressive accounting, high leverage, unsustainable distribution, valuation, and more...

Our full report on BWP will be published Thursday morning, 12/5; later, at 11am EST, we will host a brief call to discuss the key points of our thesis and field questions.  Hedgeye Energy clients will receive both the report and conference call dial-in information on Thursday morning.

Kevin Kaiser

Managing Director

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