In This Issue: Opportunities Abound For The North American Midstream Energy Sector: After years of underappreciation and underinvestment by parent companies, the pipeline segment is in the midst of a building boom for infrastructure projects throughout North America. The need to get natural gas to east from west is the main force behind this. A range of projects is on the drawing board, including a massive pipeline that would move gas from Alaska's North Slope, with cost estimates now approaching $30 billion for this project.Energy MLP Creation Remains An Attractive Option For Midstream Energy Firms: Today's master limited partnership (MLP) structure comes in a variety of sizes, shapes, and risk profiles. Despite the limiting nature of the structure, several firms have recently announced their intentions to form new MLPs. Big Energy MLPs Spend On Organic Growth, And Bondholders Wait For The Cash: The aggressive spending of many energy-based MLPs has been eroding their credit metrics as the construction cycle climbs toward its peak. Canada's Oil Sands: Transforming Pipeline Infrastructure In Western Canada: Spurred by burgeoning investment in the Canadian oil sands, the pipeline sector in Canada is in the early stages of a transformation that will expand capacity and create new markets for producers. What It Means For Credit When Energy MLPs Go Upstream: Standard & Poor's doesn't rate any of the new upstream MLPs; however, considering that several issuers we rate have publicly discussed their intentions to transfer assets to MLPs, we believe it's not too early to identify the factors and issues that will play a role in the creditworthiness of MLPs that seek ratings in the future. As Acquisition Prices Climb In U.S. Midstream Energy Sector, Companies Turn To Organic Spending For Growth : Over the past year, acquisition prices in the U.S. midstream energy sector have soared. In response to high prices in the 12x to 13x EBITDA range, many midstream companies have shifted their growth strategies to organic projects. The Growing Need For U.S. Natural Gas Storage And Its Credit Implications: Expectations for incremental cash flow and expanding market demand are driving the surge in natural gas storage projects in the U.S. MLP Structures Strive To Meet New Financing Challenges: Many midstream energy MLPs are increasingly demanding a way to raise capital that allows them to curtail future cash outflows to securityholders and lets them retain cash for the build-out phase of their projects. U.S. Propane Distributors Are Adapting To Warmer Winter Weather: Improved operating models, along with eliminating lower margin operations and expanding into midstream opportunities, have enabled the sector to rely less on sheer volume of propane sold. | 
