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Boiler And/Or Burner Conversions: A Potential Financial Boon - Joseph Bohm

There is a strong case to be made that converting a boiler from oil to gas could be the single best investment available to owners of multifamily properties. Not only is there huge opportunity for savings, but there is opportunity to increase revenue as well. The property also becomes more attractive to buyers.

The following scene has played out numerous times across the industry. A potential buyer wants to pay $5.5 million for a multifamily rental property and the owner is staying firm at his asking price of $6 million. Neither wishes to budge; both are confident in their valuation of the asset. So how to break this stalemate? How to bring both parties back to the table? Throw in a gas conversion. Read More

MLPs And Utilities Are Crowded And Overvalued - Joseph Bohm

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in MLPS over the next 72 hours.

Too many investors are currently attracted to yields that can't last. Pipelines are facing a decontracting crisis. Low basis prices have disincentivised long term (firm) contracting on pipelines.

There are 2 types of transport capacity a user can take on a pipe: firm and interruptible. Firm transport rates are regulated by the FERC. Interruptible (IT) rates are set by the market. Because new gas plays are being developed near traditional demand centers there is little demand for long haul pipes. Physical market participants are no longer "reserving seats" on those pipelines by recontracting for firm capacity. By choosing the cheaper interruptible transport they are showing great confidence in their ability to move gas to where it is need without fear of "getting cut." Read More