QEP Resources Inc (QEP): Should You Buy This New MLP?

Page 2 of 2

Second, the IPO is more about raising cash for QEP than growing the midstream business. The company’s recent acquisitions of $1.4 billion of oil and natural gas properties in the Three Forks and Bakken have raised its debt-to-equity levels. Raising cash by selling a piece of its midstream business might be more about balance sheet repair than value creation.

I’d be much more comfortable investing in a more established midstream player like Enterprise Products Partners L.P. (NYSE:EPD). The company offers broad diversity across all major geographies, including the Bakken and Rockies, as well as owning a diversity of assets. Other’s mileage may vary, but my money is in Enterprise Products.

The article Should You Buy This New MLP? originally appeared on Fool.com and is written by Matt DiLallo.

Fool contributor Matt DiLallo owns shares of Phillips 66 and Enterprise Products Partners L.P. The Motley Fool recommends Enterprise Products Partners L.P.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2