The breakeven for going back to oil for ethane is at about $1.50 ethane. Ethane is now about .24. got to remember we have so much ethane it is mostly left in the NG stream. Europe uses naptha because NG is $12 and ethane even more. NG demand only will go up because of some 20 new power plants that will burn NG. 2 in Arizona alone!
Cheaper oil will mean a greater demand for oil which will increase pipeline business. Cheap oil is good for ETP and other pipeline companies whose revenue is not based on commodity prices but the use of their pipelines.
Sentiment: Strong Buy
Stock markets will all crash and burn period.. We are at least 20% over priced world wide/stock markets. All one big joke and pyramid scheme.
At some point lower oil prices have to affect ng demand and discourage some ethane replacement of naptha. But I agree that that is only after an extended period of low oil prices.
The problem comes only if prices stay down for an extended time (say 18 months). At that point shippers will begin to produce less and smaller producers will default on contracts. Definately some BK a year or tow out. Problem now is uncertainty and panic with investors. People also do not understand the price collapse has only effected oil and not NG.
Yes, do explain CRL00 why that hurts ETP if as mako 24 says pipelines are booked up and there is a shortage of capacity;
Sentiment: Strong Buy
How will that hurt ETP? Their pipelines are booked up and there is still a shortage of capacity. I don't see how less capex from producers will effect ETP's earnings.
Here is what happened:
COP cut their cap-ex budget by 20%
"deferral of spending on North American unconventional plays"
8:31 am ConocoPhillips sets 2015 capital budget of $13.5 bln, a decrease of ~20% compared to 2014 (COP) :
•The reduction in capital relative to 2014 primarily reflects lower spending on major projects, several of which are nearing completion, as well as the deferral of spending on North American unconventional plays.
•Despite the lower investment level, the company expects to achieve approximately 3 percent production growth in 2015 from continuing operations, excluding Libya. Key sources of growth include recent major project startups in Canada, Europe and Malaysia, development drilling programs in the Eagle Ford and Bakken, and new production from 2015 major project startups at Eldfisk II, the Australia Pacific LNG (:APLNG) Project and Surmont Phase 2.
In my opinion the MLP craze is over, until further notice.
Do not buy on the pullback. You will lose money.
Oil with go LOWER THAN YOU THINK. Only the Investment Banking Cartel knows where the bottom is.
Individual investors CANNOT CALL THE BOTTOM.
Oil is now where housing was in 2006. Avoid all Energy stocks.
down 7+% in a day!?! I don't see any distribution cut coming. I really believe the more ETF's that are out there, the more decent shares get pounded. People see oil down and sell anything related to energy at all. Agree, time to slowly increase.
How can you afford to "trim" your holdings since you get hit with full recapture of depreciation as ordinary income and no allowance for passive loss carryforwards on a partial sale?
ahhh... So far, so good. a nice $2.52 bump to PPS. at 1:00 p.m EST, that equates to 3.93% increase from yesterday's close. am hoping that continues as ETP shareprice was undervalued after Friday's selloff due to OPEC announcement. ETP shareprice was like water eventually seeking its own level.
Long-Term Sentiment now a "Buy" vs. "Strong Buy".
again, hope i'm right.
looking for $70 before i trim. even then, with such a nice yield, would only trim 1/3.
what a pounding. sold off Altria (MO) to take advantage of today's beating. not seeing a financial fundamental reason for today's butt kicking. all oil related stocks still suffering from last week's OPEC announcement and the impact it had on oil prices. belief is that there is over reaction and that apparently was the case in seeing some oil companies recovering a bit today. not ETP, SDRL, GLNG, NSH and the like. as they continued to get hit it appeared this is an opportune time to lower cost avg, reap the yield, and position for capital gains once the over reaction abates.
this is a time to buy. Long-Term Sentiment = Strong Buy
hope i'm right... lol.
Sentiment: Strong Buy