In some cases price is important. SE is one of the largest marketers of NGLs in the US. Through SE and all of their JVs and MPLs they are spending millions in the new shale plays to get at the NGLs (Gas with liquids has been selling in the $8 - $10 range not $2 like dry gas). Listen to their recent webcast to analysts. They have a host of major projects running out for the next 5 years. In this business revenues follow the CAPEX and a pipeline does not break ground until in most cases the pipeline is sold out.
One of the things you may or may not know about Enbridge is that it is really 3 companies, ENB, EEQ & EEP. EEQ & EEP are limited partnerships that are about 83% & 66% owned by the public. ENB controls the whole operation. They also have an investment company, sort of like a fund that only invests in oil and gas infrastructure that is part of the ENB empire. It gives them a lot of differnet ways to raise money. The link below is an analyst's presentation given by EEP. You may want to go thru it all; however, slide 3 shows the relationship between ENB, EEQ & EEP. In the webcast on their site they talked about the investment company.
Hi RGCH and good evening to you. Its still am here in Wash. State. We are located just across from Victoria, on the Olympic Peninsula. I,m retired up here from the Bay area, CA.
Nice to have that town house in that area for vacation and besides like you mentioned, your youngest and his family enjoy it.
Thanks for your reply, and your comments regarding SE, ENB, and KOG. Have been reading the latest annual report from ENB and their position for the future. Its no wonder their PE is so high. Their future looks very bright indeed. I think they may go sideways for awhile(their stock that is)
Likewise SE. Have been reading up on them. They mentioned their activity in the northWest Canada, and their new infrstructure near Kittimat(sp?)(SP?)
Guess they are getting ready for the new pipeline and will be getting some of the action?
I bought another 500 shares of se this am to take advantage of dividend.
KOG has been a bit nerve wracking, but I do agree with you RG that it will be ok eventually in another few months when they can get things straightened out.
Good luck to you and your family.
Tks agn for your time and info.
Been away to my Pocono's house. I lived in NJ for most of my life and we bought a rustic townhouse at Big Boulder Ski area and Lake. When I bought the property values were way down. My youngest son and his family use it all the time, so I don't drae sell. Also gives me a jumping off place for my NJ friends.
Both SE & ENB have run up a lot. I know ENB is really a great company but the PE is thru the roof. I also like Electric and gas utes and bought some OGE and WEC. OGE has a limited partnership that owns midstream assets in Oklahoma besides a gas and electric utilities. WEC is a gas and electric utility in Wisconsin.
Kog needs a few good quarters of results. They had probelms with the liners in some of their lateral wells and closed other wells for maintenance work over. Hard to get work over crews in ND. All the other Bakken drillers have the same problems. They will be fine.
First day of trading was Jan 3, 2007
I was not an owner then and have no idea why it was so high. For years there were people on the board complaining about the price and how they took a beating. I always liked nat gas pipelines and utes and when the price plunged took a hard look at SE. They were just investing too much money to not become very profitable. My understanding is that most of the pipelines are sold aout way in advance of ever breaking ground. Many have more demand than they can supply. SE also has that big gas distribution ute in So. Canada.
I started inesing in SE during the 2008 downturn. It had been spun off from DUK at a very high price and really crashed. I think the spin off was at $29. rgchjr
As I recall the spin off price from Duke was $20.95. SE has done fairly well.
Thanks for your comments and opinion. As of now I have 2k in ENB, 3k in SE and a bigger stake in kog, and I plan on staying put for a good while!
Good luck to you
I started a weight loss/cleansing diet yesterday. supposed to a 10 deal. Think I'll be lucky to last 7 days but will play it by ear. The wife passed a remark about my gut getting pretty big and she was right. So here I am ha ha
Best for now
I started inesing in SE during the 2008 downturn. It had been spun off from DUK at a very high price and really crashed. I think the spin off was at $29. I started buying in the teens both on the way down and back up and my avg price for 1000 shares is around $18. I only have 400 shares of ENB that I bought in the low 30's after I had completed my SE purchases. I beleive there are some analysts that think ENB has more growth than SE. Both are investing for the future in all facets of pipeline and midstream activities. Both also have about 1.2 million gas distribution customers in southern Canada, so they are also a utility.
I had a discussion with a friend of mine, who owns most of the same stocks that I do, and we felt that we were in the middle of a commidity bull market and that all forms of energy would be in the shortest supply. A very high persentatge of our investments are in something that has to do with commodities and energy in particular.
As a result, I really like these pipelines. Another inr\teresting pipe company is TRP which is about the same size as ENB. There is also all the kinder Morgan companies. A lot to choose from.