I agree, not seeing why the pipeline guys are taking such a beat down. Targa is just moving the product around.... I bought at 46 and will continue to hold it. I will buy more share if it hits the 36 mark.
I don't see it as a negative for NGLS at all. Think what's on some traders minds is more mid-streams will be doing SPO's. I have a hard time thinking this will happen when so many are near 12 month lows.
If this is for Atlas I think it is ok, but I'm not sure. And since it went down 3% after hours tells me 'no'.
This keeps worrying everytime this goes down more than 50 cents. But I was told that Crude Oil will be
back to the 60's in no time, and that most oil stocks will be back higher. And when this happens, I believe that NGLS is one of those that will fly high. I would think that getting Atlas, mgmt. has figured this was a good merger or they wouldn't have done so. This is just my 2 cents but could be wrong. Any comments from others?
Wish I'd taken my own advice and cashed out of NGLS and bought ETE instead despite the cap gains! Look at ETE price today. Cheap cost of capitol is the way forward from here, the days of growth and 8% payouts are gone. NGLS management owns almost no stock. Now we know why. They should have taken ETE's offer.
I am stunned with the performance here but it looks like 35 could be possible…can not believe they turned down the buyout. Market doesn't fell good…just today what the heck was up? i see +100 but sure doesn't feel like it.
I don't know how long you've owned NGLS or how much experience you have with MLP's. That said you might want to check with your tax consultant. You might be better off selling all units and buying back some of them. That way you get to use and passive loss that's accumulated since you bought . The rules for stock shares and partnership units can be very different.
But....lower production then leads to higher prices down the line. Maybe later this year....maybe next but it will happen and when it does the production will follow. It's a cycle that hasn't and will not change.
$$## I for one will be glad when the pps sorts itself out and adjusts to the near 8% distribution. This has been one frustrating ride with NGLS since november.
This seems quite logical & correct=plus how many contracts are written with marginal producers & those with leverage who can lower contract demands. A conundrum brought on by lower oil & gas prices.
I cant understand for the life of me why when oil goes down this stock gets clobbered. It is not a driller. and it's not affectd that much from the commodity swings so why the slaughter?
For the long term investor this will be a double in 12-18 months. They are simply a toll-taker on moving oil/gas around and storing it. No matter what the commodity pricing is, the oil/gas will still need to be moved. Their exposure to NGLs pricing is small. Re-contracting risk is minimal in the near/medium term. Once Atlas is executed, growth will return later this year. Plus, I believe oil will be at $60 by mid summer and $70-75 at the end of the year where it will probably stay longer term.
And ....... the CEO of Enterprise is not the type who likes to be told no. Enterprise will be back in a take-over attempt within a year.
Targa is a gift at these prices. But it your outlook is trading, much of the volatility has faded away.
Good luck longs!