nice quarter. all divisions operating the way they should. kudos to our management team however couldnt break out individual barge numbers. liked what i read hachio any thoughts. oh i feel by end of year at this rate with steady .01 distribution increases per quarter we could be at 35.00 per share by years end. just a thought dont shoot the messenger. liking our little gem more and more. good investing dreiser139
Hi,Dreiser: I thought it a solid quarter with nice things happening in crude oil logistics. The increase in trucking crude was significant as was the integration of the purchased GOM pipelines. The BAC/ML guys noted that GEL matched their expectations and bumped their GEL PO to $34/unit as a vote of confidence. They also noted..."GEL should provide solid cash distribution growth over the next few years.." predicted distributions for '12/'13'/'14 are $1.86/2.04/2.24. +9-10%/year. The two GEL projects I'm really impressed with are a) the Eagle Ford Shale/TX City waterfront/barge tie=in for crude shipments to storage facilities like SLX's Nederland and b) the pint sized, mini refineries that GEL picked up in Eagle Ford and Wyoming. To see a MLP in crude oil logistics and sulfur recovery actually buy a couple of baby refineries is kind of neat IMO. GEL will obviously bring crude into the refineries and take out refined products,too. And knowing $ focus of the GEL guys there has to be a lotta $s in this unique MLP biz model somehow! I added more units last month and will continue ramping up. I think your $35/unit PO is right on with $50 possible in 2015.
hachio i definetly agree with everything u said.however there must be a market for our services and products. i feel this will always be true for oil. nat gas another subject. with this weakness in price and storage bursting at the seams and with us heading into the summer season ,ie,less gas use i have no knowledge in this short time span what will happen. in particular with mwe. however mwe and ngls are stellar performers with excellent management so whatever happens ill ride that matter out. with nat gas this cheap my feeling is that it will become by necessity the fuel of choice for the future.those are my thoughts at this time. always nice to hear from you. saw your post on the mwe board and also read arbtrd after yours. im more of a glass full guy and agreed more with your post. mwe management imho would not have made this .03 increase if they felt that there future was slowing down or their markets where shrinking. thats a smart team there. with me its all about management and time will tell who is closer to the truth. good investing dreiser139