Hach Again today Reuters has an article that is under yahoo EPD banner. It is alittle towards 2020 area and lays out a China not Europe for Propane-Butane LPG I ring the bell for the LPG NGLS LNG export revolution for EPD NGL/TRGP ETE ETP MMP It is really who has the docks-ships-propane-butane-NG etc pipeline to them It goes along with bigger Panama Canal
Oh, the white house understands but are so in the pocket of the greens they cannot make any move before the midterm elections.
MMP got five analyst firm price target increases today. Their presentation was incredible.
Actually the next big thing may be interrelationships between E&Ps and pipeline/G&P MLPs like the Devon/Crosstex deal (now known as Enlink). This deal is an industry game changer because unlike the Anadarko/Western deal Anadarko sells its midstream at top dollar. Devon is going to let the MLP develop as much of its future midstream at much lower ebitda multiples which in time accrue to the shareholders' benefit.
For those interested the highest price target for MMP is $80 by Credit Suisse.
Nymarv: you are absolutely "Right On"...what the WH doesn't understand is that the USA GC refining complex is a National Treasure that should be strengthened with Keystone and everything else we can do as a country. You going to build a refinery in Venzuela,Argentina,Nigeria, or anywhere in between? And there hasn't been a new refinery built in the USA in 30 years...sort of like the USA nuclear industry after three mile island. Just ship us your crude, and we will export all the gas,diesel, etc etc that you need from the Gulf Coast. It's an opportunity for jobs,growth that you don't get a chance at too often..I buy my fruits,fish at Costco coming from South America knowing that gas,propane, diesel are being bought from us. My units in Targa,OilT, MMP, DPM et al are gearing up for the New Petroleum Age as well. One intriguing. Play I'm keeping an eye on is just what is going to happen in Mexico across the Rio Grande from the Eagle Ford action..you can't tell me that the oil and natural gas run out at the US Border. It makes a lot of sense just to extend the USA pipes across the border and process the condensate,NG,NGL etc on our GC,too.....
Hach.I have made a statement recently that the next stage of the mlp revolution is exactly what you surmise. First it was pipes-then it was oil-then NGLS-then and presently EXPORT as new docks,splitters are presently being planned and built.
I like MMP but it doesn't have the highest distribution growth rate. Try WGP and TRGP. The stocks of both have increased considerably in the past couple of months.
The fact that MMP can grow its distribution by the highest rates in the sector (estimated growth 20% in 2014 and 15% in 2015)... higher interest rates hurt but maybe hurt less as investors see a distribution growth rate that can keep up with or exceed increases in interest rates. That makes it possible for MMP to take less of a hit than other MLPs.
Significant move to high yielding investments. REITs, BDCs, MLPs, preferred stocks - everything for 4 days now. All because of Yellen and her speech. The only problem is at the lsightest hint of interest rates moving up then down we go.
There is still a correlation between MLPs and interest rates. This rise has little to do specifically with MMP. As to a split - as other have said - Who cares? - I certainly do not. My original 400 units would be worth about $300 each. no difference in what they are worth. No value created in a split unless you need more shares/units for liquidity. MMP already has plenty of that.
The last split was after they were at $80 for a few days. I don't know if they will split again at this price point. I do know that splitting again so soon after the last split means they have been growing nicely.
Everyone knows that splits don't create value, but I enjoy owning those companies who do split as they are seriously out performing the market. So give lawman a break!!!
It's really neat to see Magellan trying yet another new business area. Recall that Magellan was strictly in refined product pipelines,storage tanks,and terminals...then came the move into crude oil pipelines and storage. Yet both are similar in that they are passive in nature ie there is no processing involved...So now Magellan is making a big leap forward IMO by adding a big processing unit, the condensate splitter, at its' Corpus Christie facility. Sure, storage and pipelines are part of the deal. However, building and running a processing unit is a bold change for Magellan. Note the timing too: Second half of 2016 commercialization. What this means is another jump in DCF after the contributions in DCF from the Longhorn expansion in 2014 and BridgeTex in 2015. This is mgmt planning/execution at its' best. I see no reason that Magellan will not be over $100/unit in 2017.
I'm delighted to read your note about getting into MMP..my experience was much the same..I was looking at some storage tanks near our town and wondered which firm owned them. Finding Magellan on the Internet I said, "Why not" bought a few units..then a bunch more...My wife calls her new Lexus "Magellan"...as for me I think of that TV commercial that talks about "gelling"...we're definitely "Gelling!!!"
IMO, There is no way to try to time an MLP. I'm sure some people do but as much as I dislike buy and hold, my MLP's are in that category ... although I will add to positions at times using some technical indicators.
I bought most of my shares in April of 2009 and never plan on selling. Selling to get in a lower price would only help the government with all the taxes I would have to pay. My comment to saving was more along the lines that if some one was interested in buying, it would be worthwhile to wait as this is usually the time in the quarterly cycle that MMP goes down in price. As I told my friend, who I help invest, who complained last quarter when MMP had lost $3-$4 per unit, don't worry it does this every quarter and when the distribution is announced, sets a new 52 week high, usually a few dollars higher. I don't see any reason for this to not continue for the next two years.
I sold out today. Look to re-enter at a lower price. Meanwhile enjoying MWE and NGLS rally. I agree with savings. Cheers.
I agree. I see MMP dropping to $66-$67. It will then set a new 52 week high of +- $72 after increasing its distribution $.025 - $.03. Nothing new about this as it has been doing this for over a year.