keep this stock above $30 or not? Dont look very promiseing with the price of oil and gas, maybe if the lobbyist quit blocking NG for Interstate trucking fuel will help but that is just wishful thinking, Your thoughts?
APL does not move with commodity prices as much as other MLP's. Best hedged are APL and LINE. Thats what makes this stock so attractive. Just look at the buying volume towards end of day and ended up positive!
Suggest you take a look elsewhere for the least commodity exposure in the pipeline/midstream group. APL has lots of both KW and POP contracts and is making little on POP and is negative on some of the KW so is bypassing pass as the cost to process is not worth the recovery. Hard to compare APL with LINE as different commodity.
For little commodity exposure look to BWP - about 90% FERC regulated pipes and RGP which is over 80% fee based gathering and processing.
APL is doing better with its hedges - the last big set almost bankrupted the company! - and trying to get neutral but that will not happen until all fee based. That is the reason for Cardinal.
There is buying out there but one ofr more big sellers keep popping up. The close today wil be interesting. EPD and other still significantly down with large blocks still hitting on the sell side. We are not quite done yet.
"Big Pump" ???? What are you referring to? The price is down as there are one or more large institutional players selling MLPs - not just APL - and this should end by the end of this week. Has little of nothing to do with commodity prices, but rahter locking in either profits of losses under 2012 tax laws.
NG prices are holding just fine. Oil a bit weaker, but APL I hope has gotten their hedges in place to take most of the commodity pricing out of the equation. I get that KW and POP contracts are not good right now, but then they never were except when NG was over $6. Not likely to see that for a VERY long time. The Cardinal buy is fixed fee and so it is accretive.