Thanks. But the funds showup because of the date that they must redistribute the KMP money into other mlp stocks. I mentioned this topic because throughout the years I ask those awake to follow the volume. Individuals have a very minor influence on stocks and to have this dislocation it is the fund money that does this. MWE hit 77 not because of individuals but because of fund money. The day traders and momentum players hit it back down with just alittle plus for the day. PS if you want to buy mlps a certain day put orders in 12 noon to 2;30 as they usually trade lowest then. Highest usually first first 1/2 hour and last half hour of trading. Just a general observation. For those reading this far ,now,the WTI price is the most important factor for the market tone in mlp's. No matter what anyone says if it falls to $ 70-$ 73 look out. The NG futures have a great effect over $4.50 in NG related mlp's
In addition, you have individual investors that may move investment dollars also. By the way I did respond to your post before, but go deleted as yours did also.
We can assume Alerian would put money into MLP's that have future clarity, hope so. Depressed crude prices could influence where the money goes. The outfits you noted appear promising. I think MWE has and will continue to gather some of the investment dollars - IMO they have clarity with limited ties to oil and such due to increase in fee-based income. That was noted by managements comments. I a still working conf. call transcripts.
Understand you mentioned Alerian, but another though is if enough individual investor get burned over the KMI deal coupled with positive impact to business that are energy sensitive, could that some of the investment dollars end up else where outside the MLP arena and energy overall? Just take a browse through the KMP posts and see the concerns. For me since recent market correction I added to one new MLP, but started three new long-term common stock positions. Essentially diversify and reduce my bottom line impact due to being over invested in one sector. The influx of newly MLP IPO's for some make it harder to choose, and I find many where the yields are too low though I would like to buy into a few. I think 2015 may provide another market correction opportunity, then I'll revisit. I do kinda have conversation with myself as a function of being surrounded by the low-informed.
Today Friday has some funds redirecting the money coming out of KMP. The over 30+M KMP trading shares has prompted a dramatic volume day for MWE PAA EPD ETP VLP EQM WES ENLK etc The alerian funds have still to deploy.The next 9 days will I expect show a mlp bounce.
Friday a number of mlp's had dramatic volume days. So MWE EQM WES ENLK VLP PSXP PAA EPD
are just some to be named. As long as oil does not swoon to 74 south some mlp's will go up as funds remove themselves from KMP and reshuffle
"...INEOS Olefins & Polymers Europe more than two years ago became the first overseas company to contract for US-sourced ethane, first striking a deal with Range Resources and then, more recently, with CONSOL Energy, both for Marcellus/Utica-sourced ethane that would run through the Mariner East pipeline to Sunoco Logistics’ (SNX) NGL terminal in Marcus Hook, PA. In January 2013 INEOS signed a 15-year deal with Evergas to deliver the ethane by ship to its Grangemouth, Scotland and Rafnes, Norway steam crackers. It subsequently agreed to buy six new “Dragon Class” carriers—then (in November 2014) it decided to buy two more, for a total of eight. (In a hedge of sorts, the new carriers will be able to carry liquefied natural gas, liquefied petroleum gas or ethylene instead.) As part of the project, INEOS already is developing an ethane receiving terminal and a 300 MBbl ethane tank at Rafnes, and a similar terminal and a 580 Mbbl tank at Grangemouth; the Rafnes projects will be completed in 2015 and the Grangemouth projects in 2016. (By the way, Marcus Hook may not be the only site from which INEOS will export US ethane. In May 2014 it reached an agreement with Enterprise Products Partners (EPD) for ethane capacity at EPD’s planned ethane export facility on the Texas Gulf coast.)..."
Change giving up partnership shares for increase distribution incentives
My #1 mlp is ETE. From what I have read ,mainly from CS and recent 2 day meeting it appears that ETE just wants to own the GP of etp rgp sun sxl. My analogy is they have a money tree. Soon to add the LNG terminal in mid 2015. What is most interesting is they keep giving up their shares of partnershjp units to get ownership shares. ETE comes of age in 2016
Was't interesting for one, ME-2 will be about if not equivalent to ATEX, and to boot, as I noted in past posts, the distance is 2/3rds less versus ATEX or anything else going to PADD-3. Considering along with ME-1, Mariner East projects will move a variety and more products at much less cost.
Some pipeliners made fun of MWE and SXL when the initial projects were announced. And to think SXL only paid 60 million for the doomed assets.
Number 2, Since Patoka is to become a major hub in lieu of Cushing, I'll entertain that SXL scope in unannounced details for the Dakota crude project will include a new crude line to the east coast. The row will be fresh and clear.
Number 3, will ETE acquire the remain SXL assets it does not already control? I think that will happen.
KMP closes its rollup November 26. Follow where all funds put their money from KMP KMR EPD next 10 days. OPEC meets next week no surprises expected. Will MWE get bumped up higher than 77?
The liquids processing referred to is making propylene from propane. Sunoco Logistics' Mariner East 1&2 are big potential outlets for butane, propane and ethane extracteded by MarkWest's processing plants in PA, WV, and OH. Not competition at all.
What does this mean for Markwest? More competition in the area or a potential customer?
November 19, 2014 | 2:44 PM
By Katie Colaneri
Reuters reports Philadelphia-based Sunoco Logistics is moving ahead on plans to build a natural gas liquids processing and export hub on the site of a former oil refinery in southeastern Pennsylvania.
The newswire obtained records that show the company is seeking a permit from the Pennsylvania Department of Environmental Protection to build a storage facility that would hold more than 2 million barrels of propane, butane and ethane.
Sunoco Logistics did not comment to Reuters, but announced plans earlier this month to build a pipeline that would bring 275,000 barrels a day of natural gas liquids from Ohio, West Virginia and western Pennsylvania to the industrial complex in Marcus Hook.
More from Reuters:
“Sunoco is basically trying to capture the international market, particularly in northeast and northwest Europe,” said Vivek Mathur, a senior analyst at ESAI Energy. “If you’re a Marcellus producer and you have an option to move product to the Gulf Coast or through the Mariner East, it makes economic sense to choose Mariner East.”
Mathur said the facility will chill, store and process enough of the NGLs to meet regional demand and to capture an export market that the Energy Information Administration expects to grow dramatically over the next two decades.
Construction of the storage tanks is expected to start after permitting is complete.
Frank Semple came to MWE as hired help brought in by John Fox the founder. John Fox was the visionary with an organization that recognized Frank Semple as a young visionary to grow MWE into the juggernaught they both were looking for, but neither could build without the other.
John Fox was smart enough to do two things--
1) Recognize Frank Semple's abilities and
2) Brought him into MWE and let him build it without interference.
This is a generational resource and investment opportunity I believe we'll be very happy with for a very long time. Ten years ago I made a big commitment to EPD because I believed in Dan Duncan and his management team. Frank Semple is not a midstream visionary like Dan but I agree he's got this partnership on a trajectory which will result in an industry leading processor in the years ahead. It's hard to be patient sometimes as an investor but I think MWE will deliver the "top quartile" distribution growth Semple has promised. I don't know what that number is, but if they can compound it averaging 12% from here, we'll be getting $11/unit ten years from now. If they want to grow it more slowly to reinvest more DCF, a la EPD, I'm good with that, too. As long as they allocate capital well the value should accrue one way or another.
yes and as noted in a prior post they have moved into the top 4 US processors and noted they are on a trajectory to become largest US processor over next few years