Suggest those on this email chain review the other email chain here regarding the BENTEK analysis
my take on the BENTEK analysis from the other email chain here follows
(you can see my analysis of rail as alternative transportation mode there as I am not repeating it here)
A new local pipeline serving only the Marcellus field will face siting and eminent domain issues for its main trunkline and as EP has aptly noted would require FERC approval unless of course that pipeline never left the state of Pennsylvania and did NOT interconnect with another interstate pipeline. FERC has no jurisdiction over solely intrastate movements of commodity despite the very old Supreme Court decision in Wickard v. Filborn (think I have it spelled right)
Once a progenitor has hurdled any of the above main trunkline issues, then it faces a multiplicity of similar siting and eminent domain issues for each of its small feeder/spoke lines connecting the specific Marcellus production field to the trunkline. There is already significant local opposition to certain extraction methodologies to boost Marcellus shale production and such local opposition would then make local siting and eminent domain issues quite "exciting."
An alternative to such local feeder lines for bringing Marcellus gas from field production site to trunk line and ultimately to market could be trucks carrying compressed natural gas. However, the weight and therefore ultimately the efficiency of such trucking movements would be limited by the bridge formula that controls truck movements on the interstate highways. Of course not every movement would be on the interstate highways but many state and county engineers heavily rely on the Interstate bridge formula when setting their standard for the state and local highways where these trucking movements might otherwise occur,
How efficient and whether such trucking movements would become the rate setter at the lowest marginal cost is highly debatable.
Schaeffer the analyst has raised an interesting economic consideration. However while perhaps being in theory economically competitive, I am not convinced that once all the associated engineering costs are factored in that Schaeffer's alternative local pipeline is as viable as his analysis concludes.
I read an article today suggesting that so much nat gas is being produced in so many areas that gas is being used "locally" and this will reduce the need to transport so much gas on long distance gas pipelines. Thus, less expected revenue.
Makes sense to me. Factual--heck I do not know.
Long term , plans and works are going full blast
now for the U.S. to export N.G.L. to asia and
china. Canada wants to build a pipeline to
Kitimat BC for exporting oil and natural gas liquids to China and Asia. Pipelines are cheaper
than trucks and rail. EOG home page has the
best maps of all the big oil & gas sites in U.S.
There is a shortage of pipelines in U.S. & Canada. Thousands of miles of pipe are needed.
Take that to the bank.
Off topic- but THANK YOU!!!!!
How nice it is to have an INTELLIGENT conversation on a stock message board. On others, you have to wade through all the doom and gloomers as well as those who seem to have some sort of vindetta against the company, their product or service, or those who support the company.
Thank you, all!
I have about 7 dividend paying stocks, all did great in 2011. All suck wind so far. The trend is obvious, away from last year's winners that pay dividends. Don't know why, but there is no reason to think that KMP is suddenly a poor investment just because the calendar now reads 2012.
Don't know why? imo, it's bcse no one wanted to sell winners last yr, and are rebalancing their holdings now, taking profits in 2012 vs 2011. The divi stocks and MLPs were winners in 2011.
JMO, and based on the Dec run ups in a few pipeline MLPs, this was expected. Not fun, but expected.
Look at ECT, there's a hurt, but based on their last disti, it's real cheap. I need to do some homework, there's no activity on that MB to help me, so I need to read some filings...
Mutual and hedge funds bought heavily into the 2011 winners in December so it would look like they had been in great stocks all year when they their issue the annual report. A yearly event known as "window-dressing." Prices are correcting back to normal value now that the calendar has turned a page. No worries.
Whereas I like Huntsman, his tax ideas may cost me. He mentioned doing away with advantages for oil distribution and this link may mean MLP could change.
The chances of that are way less than his chances of becoming pres, imo....
Remember that the same laws that are used in pipeline MLPs apply to about 100K or more small businesses. Making an exception for pipelines would be tough, changing the law would be impossible.
Not saying zero chance...just very low.
A $1 correction is hardly "falling apart", when it was up about 10% in the last 30-35 days. KMP, and all MLPs, are long term plays that will do well as long as LT interest rates stay low.
The "downgrade" wasn't really a downgrade, I see it as TP just acknowledging the run up was great, and enough for a while. Q4 was a great Q for MLPs, Q1 will not be great, many will have holes to dig out of, like SXL.
Hole to dig out of? SXL is up way more than KMP.
KMP was downgraded or the hold neutral (not a great rating) was reiterated by a few rating agencies.
Though I like Yahoo finance pages for certain reasons (comparable (multi-stock charts being able to be refreshed in tact - without having to re-do all of your set-up), I like the Google finance charts too (maybe better) because it marks when important news comes out about the stock and gives immediate links to the articles. It helps me to understand (a bit more) why moves are happening.