Staggman, I agree with your observation concerning "world governments are starting to take a more active roll in the manipulation of the global markets...!" Our son and his family live in Manama, Bahrain (6 years), A daughter and her family in Zurich for 6 years and a daughter and her family in NYC for 6 years. They provide me with good insights as to how the global economy views the U.S. And, thankfully, our grandchildren will grow up more well versed in global economies and politics than a youngster that will never get out of the U.S.
hrbart...Mark make very good points and so did you...fact, releasing 60 million barrels of oil when there is not a shortage will keep the price of oil from increasing or maybe bring it down a couple of dollars...! I think we all agree that it will help keep fuel prices down a little bit more during the summer driving season...! I would also like to note that this time it was a sale of oil and not a loan...! My opinion is, that world governments are starting to take a more active roll in the manipulation of the global markets...!
If ever there was a good entry point for EVEP this is it..around and under $50 for a stock that will be at $60 or above this Summer when the rubber hits the road. Dad will succumb to the kids (as usual) and go by car to stay in the Tee Pee Motel or see "South Of The Border" on 95 where Bullock and Afflec filmed a movie.
Nothing wrong with being enthusiastic over your stock...however, I've held EVEP for several years and this is probably the only post of mine you've seen.
"Keep in mind that EVEP owns 150,000 net acres and 80,000 royalty net acres in this emerging shale play. Assuming that the partnership is able to monetize its 150,000 net working interest acreage for $5,000 per acre, and acquire new acreage for a 6.5x multiple of EBITDA, we forecast that such a transaction would boost EVEP's distributable cash flow (DCF) by $2.70/unit, or an 88% increase to our 2011 DCF forecast. Further, the CEO bought stock last week in the open market, which supports our thesis that the stock price pullback was not driven by any pending operational/fundamental news. Said weakness provides a compelling entry point."
john, glad to have you aboard. My son is making me take him to some concert in San Antonio this weekend so I'm familiar with your reference. That being said, I don't see any increased driving demand pushing up the price of oil and thereby the stock price of the E&p MLPs like EVEP. The play with EVEP is the possibility of an announcement of a deal for their Utica shale deposits.
Susan, this constant hourly update of your picks when they happen to be going your way is really tiresome. VNR is now down. Where was your update yesterday when EVEP was up $2 and your BBEP was up 26 cents?
I don't follow VNR that closely, but did read that they raised their distribution last quarter and have a good DCF ratio. They yield more than EVEP right now, but if you look at the various charts, EVEP has outperformed them. Of course, past performance is not a guarantee of future performance and I believe VNR may be smaller than EVEP so they may be able to grow faster. BUT, and this is a big BUT, does VNR have an asset like the Utica shale? My guess is no.
There are many good investments in the MLP area (weren't you saying the other day that they all could fall another 20-30%, so doesn't that go for VNR too?) so there's no need to bet it all on any one company. Even among the different shale regions, the companies will still have to execute on their plan and their profits may also depend on when they got into a particular area and how much they had to pay to get there.
Don't forget that VNR has a proposal to acquire ENP (which I do own just for the yield) and they may have to raise their offer to get that through the conflict committee and then address ENP's deferred maintenance issues. If ENP gets acquired by VNR, I will end up with VNR shares so I am happy to see them perform well.