Brookfield Infrastructure Partners: Business Outlook Looks Good, But Watch The Leverage (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• I expect a $4 billion pipeline to result in a sequential 50% increase in capital to be commissioned and invested capital over the next 2 quarter.
• The Midstream segment may turn around in 2025 as volumes may pick up under the new president's energy policies, and increased natural gas reserves.
• A reduced floating rate debt exposure mix undermines BIP's funding costs to benefit from lower interest rates. Keep an eye on net debt and leverage ratios, which are also increasing.
• Valuations are at a discount a little above decadal low P/AFFO multiples. Relative technicals vs. S&P 500 show a fight between strong seller momentum and a key support level.

Read the full article here.