I concur. Everyone in the midstream sector that I've talked to has said that it will likely be years before the MLP sector recovers, and that includes EPD. These are definitely tough times, and to think the midstream sector is immune from the pain, is kidding themselves. I would say that the DRIP is only one of several benefits that shareholders take for granted that is on the table for possible cuts.
Again you make no case for it taking many years to recover. If you really think that oil will be at $40 than you are in the wrong investment. By the way people short much higher yield investments such as oil trusts and mortgage reits all the time. You really don't know what you are talking about.
What do you base many years on? As soon as oil starts to go up the MLPs will follow. Sometime next year oil will start to rise. Sounds like your a short.
Exxon has a pipeline subsidiary and holds a 49% interest in the Plantation pipeline which is one f the most important pipelines in the southeast.
Everything you say is correct yet I don't see the Saudis giving in yet. At this point what have
they accomplished? They've burned through $70+B of reserves to what end? Our energy co.
are hurting but most have hunkered down to ride it out. There are those that might not make
it, but many more will as stronger, leaner companies. My feeling is they have not punished
Russia and Iran enough and will continue with this course well into 2016. Just my opinion,
and one I hope is wrong.
I think there is a meeting of OPEC on December 6-big question is whether they will back up words with action. Also, the Motley fools had an interesting article about the supply/demand figures--they are never right and are constantly being revised
Saturday Barron's has article on how low oil not sustainable and once Saudi's get on board with Russia -- May have a shift in their policy with result of much higher oil prices in 2016.. Too many countries are on the way to going broke for cheap oil to last much longer.
Very, very, very doubtful. It could take many years for the MLP sector to recover. I wouldn't hold out any hope that a bailout by a big money investor might happen. As I see it, the only hope is that patience will eventually be rewarded (if you live long enough.) That said, I wouldn't be a buyer for the foreseeable future. I would also discontinue participation in the DRIP. Just make sure you keep your money in the strongest members of the group such as EPD and MMP.
Morningstar just came out with an excellent, objective article that is well worth reading. The title is: Should You Invest in MLPs? John Waggoner gives some good tax information that dispels some of the misconceptions I've seen on this and other message boards.