did anybody have shares with CEP? What do you think? A good idea to buy?What do you think of shares of CONSTELLATION ENERGY PARTNERS(CEP)?IMO Bad idea. Return on equity (per msn.com) is only 1.4%. Should be (per Warren Buffett) at least 14%.
This is a oil and gas exploration and production partnership. As they take the oil and gas out of the ground, sell it and pay high dividends, the net worth of the company goes down, and usually the share price with it.
If you want a partnership (do you know about the extra tax forms needed for April 15?) get one in the "midstream" section of energy, not one that depletes the value of its resources every day. By midstream, I mean the pipelines that transport the oil and natural gas from CEP and other producers to processor plants (many times owned by the pipeline companies) to the final user. Once the pipeline are in the ground, these midstream companies just sit back and collect fees for the amount of oil/gas transported. No quick depletion of value.
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