Not at crude storage at Cushing is dedicated to crude deliverable against the CME contract. Total shell capacity for crude is a little over 70 million barrels, storage at Cushing as of last Friday was 48 million. With 20M/bbls of storage left we are getting close to a problem with an expiring contract possibly having some issues with serious volatility. A problem will come in advance of storage totally filling. The April-May spread spiked today and it will most likely widen further.
yahoo is messed up for ARP. However, you can back door your way in by typing ARP into the field 'get message board for' which you can find at the top of this page.
I'd have to go back and calculate the max # of units MEMP could buy back any given day as well as the number of days MEMP traded under say $16.50 during the period to see how much they *could* have spent to buy back units on the cheap. Just a WAG, but retiring $41 million worth seems like they were decently aggressive at first blush.
From Platts today. I am skeptical that this will actually happen, but news like this can shake the market and drive prices down.
Holly Frontier expects Cushing crude storage to be full in eight to 10 weeks: CEO
New York (Platts)--25Feb2015/433 pm EST/2133 GMT
Holly Frontier expects crude oil storage tanks in Cushing, Oklahoma, to reach capacity in eight to 10 weeks as flows into the oil hub are set increase by about 4-6 million barrels/week, a company executive said Wednesday.
I'll take my chances with MEMP because they are so well-hedged. Far better and longer than any other upstream MLP's. And don't forget that they still have plenty of buying power left on their repurchase authorization.
I personally don't believe oil can stay below $50 past mid-year, which could still mean some rough months ahead if Cushing fills. The big debate right now is-- when will oil production roll over?
They are well hedged, but not forever. One has to guard against the idea that MEMP is without risk. They don't have much of a buffer with DCF around 1.0. I have to believe, if the commodity returns to the lows, or worse, this price level won't hold.
Ditto on the $17.50 calls, wish I had waited a bit though.
If oil prices start sliding again, we might be able to rinse and repeat on the covered calls. Nat gas is in the toilet as well.
Of course, none of this means diddly to MEMP since they are so well-hedged, but its price still seems to move with oil and gas prices.
Traders are watching the Baker Hughes rig count like a hawk. If another big drop is reported tomorrow, oil could turn on a dime.
Spot month crude futures over 2nd month spread soared to well over $2. We are going to see Cushing reach shell capacity soon for CME deliverable oil. When that happens, the lows for crude will most likely be taken out, perhaps by a lot. That is going to put a tremendous amount of pressure on oil related equities....this won't get a pass.
If these analysts had more than sh t for brains, they would have known all along that MEMP's distribution was never in danger of being cut.
Back in Dec when MEMP authorized the big repurchases, these bimbos should have seen the light. The fact that they are now "getting on board" the bandwagon is not a good sign. It's the Johnnie- come- latelys who are buying now.
I'm blown away by the fact that MEMP received multiple upgrades (ie. JPM and Barclays) and price target increases (ie. MLV and RBC Capital) this week, especially at a time when energy prices continue to be in such a funk. Impressive and well-deserved indeed.
Sentiment: Strong Buy
Really? I was bummed they didn't use more. So far MEMP is holding up, it and EROC are the only ones up this morning. EROC turned in very good numbers, and I've revised my outlook on their 2015 distributions to stable. I'll put out some numbers after the call this afternoon.
Yeah, Anton, Cooper is obviously a refugee from Aberdeen. A Scot in Texas, Houston has to be a culture shock, ever been there? What a dump. Sorry.
Valid points. However, I would buy back the shares when the prices go down. I wonder what price MEMP paid when they bought the shares back. I was watching Cramer show and he was saying that return on investment exceeds 15% even at the current oil price. This is because the day rates have fallen so much.
Why? (1) Reducing the number of shares outstanding would improve the distribution coverage figure; (2) the interest charged on the money used for the buybacks is perhaps much lower than the current 12% yield (so seems like a reasonable way to save cash); (3) below 20 is still an attractive price for MEMP.
Why buyback when the stock is high? Use the money to other good use . The oil price does not want to go down no matter what the inventory levels are.
Thanks griffin for taking time to incorporate the latest guidance on your DCF projections. Downloading now.
Happy to hear they have used 41m out of the 150m already. So many companies issue these buybacks but never use them. Hope MEMP now holds off to see if they can buy back units cheaper than $18.
Yeah, and if prices are still in this kind of hole in 2016, that will mean a lot of distressed sales in later 2015, and MEMP is a big player there. Interesting, LGCY managed their covenant problem and although they accepted less room on the line, they still have tons of liquidity, so put them in there with MEMP and EVEP (likely) as MLP's that can dramatically alter their outlook coming out of this. LGCY did not mention the 2015 distribution yet, their numbers will be awful this year, so it needs to come way down in price before I'll be interested.