Boardwalk Pipeline Partners, LP (BWP) is a Texas-based natural gas processing, storage and transportation company that owns approximately 14000 miles of natural gas pipeline throughout the United States. The firm has been trading in a 52-week range of $11.99-$33.00. After a major dividend cut in the first quarter, leading to a massive selloff, BWP is down 31.34% YTD.
The company looks to be troubled, however, this can be seen as a good buying opportunity. BWP has been trending higher after the February selloff and with the growth in domestic natural gas production becoming more prevalent, BWP may find itself in a position to capitalize on its infrastructure, which extends into the gulf to potentially useful export sites as well as the northeast where the shale rock that the natural gas is being harvested from is located.
Last Thursday, an options trader made a huge long play on the BWP September calls, selling off the September 15 calls for 3.30 and buying into the September 17.5 calls at 1.80. Today BWP opened at $17.42.
This article was written by Kyle Sheahan, an associate at KeeneOnTheMarket.com.
e: Kyle@keeneonthemarket.com