which is the same as the increase for over 2 full years now split adj... and once again I will point out that means the growth rate continues to contract
It has been hinted that EPD would defend the unit price with a bump or a one time special distribution.... with the units approx. 20% off their highs this would be the proper time to defend the unit price
However the energy space environment prohibits a special at this time... which is why they should have been a little more generous when times were bright
I think we are going to be in for some difficult #s moving forward as NGLs have been taking a beating price wise and that is where there is some exposure
2015 is not going to be the best of years and I doubt we see new highs... or anywhere near there this year
The current government might try to put a tariff on imported oil, which could cause some nasty repercussions at the World Trade Organization.
The next distribution is 4 times the previous quarterly increase of one-half cent per unit. That comes as a big surprise and indicates that management believes they can at least maintain a half cent quarterly increases or more going forward. They seem to be eager to continue their record of increasing payouts since they always mention that they have X-number of consecutive increases.... 42 and counting. The timing of this latest increase is obviously meant to allay concerns about the distributions. If the next distribution in April is more than half a cent, I'll take that as an even stronger sign of management's confidence of future earnings. I'm waiting anxiously to see what MMP sets as their next distribution.
The chart and the historical price shows it splitting twice in 2 days. It only split once, but they never corrected it. Use someone another chart. Yahoo is totally messed up, and there's apparently no way to bring it to their attention..... at least not that I can find.
Should actually help existing Pipes at the expense of Rails....Also there won't be any production decline,but a big decline in the U.S.rate of growth..
when I just googled the text of the message the only hits came up from the LINE and XOM bds so it may just be someone post and not a news blurb
It appears to be a cut and paste from somewhere.... it paints a bleak picture as to what may be ahead... also has a nice little tell about the cost savings of pipe over rail.... but massive drops in production will eventually have a cash flow and EPS impact on midstream pipes
Bakken Crude Prices on Monday $24.33-$33.44 Per Barrel
Tuesday, December 30, was the last time that the posted price of West Texas Intermediate (WTI) crude oil topped $50 a barrel. That price indicated how much Plains Marketing, a division of Plains All American Pipeline L.P. (NYSE: PAA), was willing to pay for a barrel of WTI crude. On Monday, January 5, Plains said it would pay $46.25 per barrel for WTI. Indeed, $40 oil is already here.
Crude prices on the NYMEX fell below $50 a barrel briefly on Monday, but managed to close the trading day at $50.04. Tuesday morning the price fell to $48.47 in early electronic trading.
The really bad news is the price that Plains Marketing is offering to pay for crude oil produced in the Bakken shale play. Williston Basin Sweet (equivalent to WTI) fetched just $33.44 a barrel on Monday; Williston Basin Sour fetched just $24.33. No other grade of crude on the Plains price bulletin was priced lower than Williston Sour.
In our earlier look at the top producers in the Bakken, we noted the added transportation costs of $19 a barrel for Bakken crude headed by rail to the east coast and $11 a barrel for crude headed to the Gulf coast by pipeline. Adding the transportation cost to east coast refineries to the posted price of $33.44 gives a price per barrel at the refinery of $52.44. Because east coast crude is benchmarked to Brent, not WTI, the price paid was 1.2% below Monday’s closing price of $53.11 per barrel of Brent.
Back in the 70s everyone wanted govt. action to lower energy prices. Now they want govt. action to raise prices. Go figure.
Cheap Oil Costs 756 U.S. Steel Workers Their Jobs
U.S. Steel (NYSE:X) will idle two plants that serve the oil-and-gas industry and lay off 756 workers due to falling crude prices, an indication that companies outside the energy sector are also feeling the pain.
The layoffs and temporary suspension of plant operations begin in March, affecting 614 employees in Lorain, Ohio, and 142 in Houston. U.S. Steel disclosed the layoffs on Monday, the Pittsburgh Business Times reported.
Both plants produce tubular steel, which is used in drilling wells.
A small event but it will trickle down and put others out of work also
Energy will see big paycheck layoffs that will be in the 10s of thousands
Which will create thousands of events like the one outlined above.... and like I said that will trickle down to all sorts of service jobs
Good thing everyone is saving $35 a month at the pump
This doesn't even begin to address the impact of lower commodity prices and eventually lower production on revenue and EPS of companies across the board
Not to be political but the administration has to use whatever influence it has to stabilize energy prices before it triggers a DEEP recession.
That's 5.7% from the same period one year ago, for 5.7% annualized. EPD is not increasing it's distribution by 22%/yr.
Just in case you haven`t noticed oil is off roughly 60% the market is selling off and EPD is holding up quite well considering. All I see is a great buying opportunity.