I'm in the same camp and I do not think you are missing anything.Be patient and buy on the dips.Price volitility in oil has far less effect on EPD than shale exploration companies.
My strategy has been to put in open buy orders in well under the market, and then just leave them alone. The units sometimes trade pretty wildly thereby giving you the opportunity to pick up bargains when you least expect them.
Good morning - I've got EPD (long time), KMI (sorta long thru KMP), WMB, and FISH as pipleline plays. Seems they are moving in concert as oil prices go up and down. I think since they're all componenets of various ETFs they're going to be volatile as long as oil is volatile. I've been adding on the dips like yesterday and trying to ignore the ups and downs because I do believe in the long term business plan (+I really like dividends/distributions). Am I stating the obvious here or am I missing something with the mostly fee based pipelines? Thanks for any input and good luck to all of us!
The slide in oil today was blamed on a big supply glut, but I have a feeling it's only temporary rather than another big move down in price. Refiners usually make the changeover from heating fuel to gasoline around now, and that means a shutdown of refineries. During that time, they stop buying crude, so the supplies build up. Once the refineries start up again, the price will bounce back. That makes this a good time to be buying pipelines. The unit prices moves in sympathy with crude, but there's no real short-term connection. Gasoline and heating oil have been moving up in price because they're both in short supply due to the shutdowns. The refiners are happy to get more for product already in inventory and be able to buy crude more cheaply while they're shut down. Buy the dip.... you'll be happy you did.
TurboTax is more reliable than a CPA. That nice CPA office hires a bunch of HR Block rejects to do tax returns:) Also a CPA is not a certified in any way as a income tax expert. To get a income tax expert you need a Enrolled Agent. A very few CPA are also Enrolled Agents.
Agree re: Turbo Tax. But even that product can find itself in a loop, what with the complexities of these partnerships.
toolbag1223...I'm with you. I do not understand all of this. I have noticed that when some news event happens to one of the large positions in the Alerian MLP ETF the other holdings tend rise or fall in sympathy with that news. By the way EPD is the largest holding in the Alerian MLP ETF. JMHO
Wish it were true. To stop the argument they can charge themselves the same big as fee as BP:)
EPD has about 10% of export dockage in Houston area and about zero elsewhere. No worth a discussion
Several oil companies including BP are complaining to the FTC that Enterprise Products Partners (EPD +1%) is trying to dominate the exporting of U.S. oil, after it found a way around a decades-old legal ban, WSJ reports.
EPD’s $5.9B purchase last fall of rival pipeline and logistics firm Oiltanking Partners gave it control of the single largest oil-storage operator on the Gulf coast at a time when space is at a premium, and oil companies that use the Oiltanking terminals on the Houston Ship Channel complain that EPD has started charging a per-barrel loading fee that raises the costs of their exports vs. EPD’s own shipments.
EPD’s role as an exporter has put it in direct conflict with logistics clients, some of them say; “It prices us out of competition relative to them,” says an executive at a company that has been questioned by the FTC.