Things might be rosy right now. But a substantial part of the fracking industry needs 75 a barrel, just to break even.
Right now, we don't see the reduction in production.
But when smaller companies who have to borrow to drill can't make money, they are done till it rises.
And larger companies have money targeted to new wells, but they won't want to sell oil at a loss for long.
We have already seen a handful of drilling rigs turned off.
Large Cap MLP'S traded 4x to 20x average daily volume late as apparently a Major MLP holder liquidated..Maybe Fiscal year end next week,maybe rebalancing. Would not take it seriously.Look @ volume for PAA,MMP,EPD,BPL,and the two KM Companies KMP AND EPB....
your still dripping ? whatever happened to buy low sell high ? I understand etp is staying high, but there have been so many babies throw out with the bathwater with the lows in OIL.
You've got it wrong. Nobody would choose all-cash since KMI has gone up since the deal terms were laid out it would be silly to do so. The all-stock option is over prescribed and is the choice that will be prorated, not the all-cash option.
Even those who elect all cash will only get a fraction of what they want. Millions of unwanted KMI shares will be sold to put proceeds, after paying involuntary income taxes, into other MLPs. To be sure, ETP will get its share of the new demand for mlp units, as will other mlps. The selling, however, will be concentrated in one stock....KMI. That's why I just sold it short.
Fidelity has not posted discount drip units as of a few minutes ago, 9:15 am, 11/20.
Anybody have discount drip units posted yet?
Also, discount drip price should be 61.8503. Drippers who pay substantially more than that, please shame your broker here by nsming it and the price you paid per unit, to four decimal places. Let's hear from Etrade and Vanguard drippers, as well as any other broker who does not participate in the discount drip program.
I'm not sure the kmp money flowing into etp is a ton YET, but I expect it will be many tons before this month is out.
There is a massive amount of money in KMP that people want to keep in a MLP.... IF you take the KMI shares for your KMP you will get 5% taxable with a promise of 10% divi growth
ETP is paying 6% dist tax differed and the growth rate has been about 9%... no brainer to move to ETP
On a side note... Kinder is screwing the MLP partners by making them pay the tax... so that he can depreciate the assets again.... Just as he took KMI private and then public Kinder will resurrect KMP in about 2 years