What does exporting a very light oil have to do with becoming energy independent? The winners on this are the producers, processors, and exporters (of which EPD is only 1 of about 20 companies). It will also give incentive to produce more NG to use at home becasue NG producers will now have a market for their production. The only loser is refineries who now will need to compete with product that will command a world based price.
The effect on the general population would be zero to a bit positive. Zero in that prices for oil based products should not change and positive in that thousands of good paying jobs in the USA will be created. Those people will pay taxes and buy things creating more jobs.
That's a bit off base.... while you are one of the "wealthy" people as an owner of EPD who will become wealthier... the Nat Gas Producers have been struggling for years with the cost to produce exceeding the commodity a good deal of the time.... the depressed Nat Gas prices have been a boon for Americans on the lower end
This will now create an environment where the Nat Gas Drillers will be able to profit off the liquids and most probably increase the supply of the dry gas we use in our homes which will keep those prices steady
This is a huge win for the American economy and don't underestimate it being released at the same time the downward revision in the 1Q GDP was released... these exports will have a very positive affect on US GDP for dozens of reasons
Proving once again that the the US isn`t serious about becoming energy independent. Losening the rules on exports makes a handful of people even wealthier at the expense of Millions of Americans and their Families. Money trumps anything and everything as always.
Better Buy Now: Enterprise Products Partners vs. Magellan Midstream Partners
By Aimee Duffy | More Articles | Save For Later
June 23, 2014 | Comments (0)
Believe it or not, there were some American energy stocks that performed quite well before the oil and gas boom started. Magellan Midstream Partners (NYSE: MMP ) and Enterprise Products Partners (NYSE: EPD ) have been rewarding investors for over a decade with their distributions and unit price appreciation. Shedding their general partners in 2009 and 2010, respectively, they are two of the very few master limited partnerships that don't pay incentive distribution rights to a general partner. They're reliable winners, only question is, which one should you buy?
Actually MLPL has had cappital appreciation over 28.5% per year for the last 4 years since it's inception in July of 2010. The dividends have been increasing on top of that at a 15% clip year over year also, nothing better in the market than that hands down!!!
EPD is rapidly closing on the Target Price of $77.
It reached this today and TP has been raised to $78.65. NG is becoming a large factor in fuel business, EPD will do nicely with their pipe lines and huge storage.
payouts. The answer is MLPL which mimicks the Alerian infrastructure index by 2. The current yield is almost 9% and the capital appreciation has been almost 25% on top of the payouts. EPD is the largest holding in this index with about a 10% stake,followed by KMP and PAA. Check it out over the last 4 years you would of made a lot more money than just owning EPD.
Don't forget that nearly all of the Class 1 railroads are working on modify their locomotives to run on natural gas and oil. Union Pacific is using the principal of a tank car full of LNG connected between two locomotives. Run the trains between Los Angeles and Chicago, refilling at each end. Norfolk Southern has 2 switchers hooked together with the engine removed from one loco and a big tank of compressed natural gas in its place.
Baffling!.....EPD and MMP are two very good companies, both with BUY ratings and nice yields yet nobody wants to exchange information?
* Enterprise Products : Jefferies raises target price to $76 from $75; rating hold
* Enterprise Products : Global Hunter Securities starts with buy; $83 target price
If your thinking of adding, look at MMP with greater near term growth, smaller co with extreme potential built in from first qter. growth.
I like both, yet MMP will out perform yet EPD is still the "man", growing and growing.
Both are hiting all time highs 6-2-14
You people should follow my example, stick with what's working, and stop thinking about selling.
A good plan....That's what I've been saying about EPD for years...
Looks like EPD broke out of the recent tight range to a new all-time high today (Friday, May 30, 2014.) I've given up trying to guess the top. I'll let you know what the top is after it happens. It seems as if whenever I sell at what looks like a "top", the stock goes higher. Then, I'm sitting on the outside watching it go still higher and waiting for an opportunity to get back in. By the time the pullback comes, it's usually higher than where I sold. I've missed the dividends (distributions), paid a capital gains tax, and have nothing to show for my efforts. My conclusion is that it's better to just sit back and relax until the fundamental picture changes. IMO, EPD is in the right business at the right time in the right place, and there's no reason to get out. As long as the company continues to pay an ever-increasing distribution with sufficient coverage to be comfortable, I'll just go along for the ride. My only regret is that I don't own a whole lot more than I do. Instead of looking for an opportunity to sell what I have, I'll look for an opportunity to buy more. I've been in this game for nearly 60 years, and I've seldom regretted owning stocks. However, I've very often regretted selling them. You people should follow my example, stick with what's working, and stop thinking about selling. You can learn a lot from my mistakes.
Haliburton is reopening their offices and yard in Rock Springs. Assume SLB will follow. Something is going on in the Rockies WY,CO,NM,and UT. Could it be that Obama has rescinded or cancelled the 'Impact Study' on the damage to the Sage Brush, Jack Rabbits, and Prairie Dogs!