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Energy Transfer Equity, L.P. Message Board

  • bidwillie2 bidwillie2 Apr 9, 2011 9:33 AM Flag

    LDH closes in May-Raise that ratio!

    In an "Executive Decision" segment, Cramer spoke with Kelsy Warren, chairman and CEO of Energy Transfer Partners (ETP_), a natural gas pipeline company that recently acquired LDH Energy Holdings for $1.35 billion.
    Warren explained that after decades of trading in tandem at a 6:1 ratio, oil and natural gas prices have diverged in recent years, with oil heading higher while gas prices fell.
    However the price of liquified gas products has kept pace with oil prices, which is why Energy Transfer Partners made its move and acquired LDH, a company that primarily deals with liquified products.
    As a result, Warren said ETP expects to pay out $1 to shareholders for every $1.05 it generates in revenues, and the company expects to raise that ratio once the LDH deal closes in May.
    When asked about our nation's policy towards natural gas, Warren said America would be foolish not to endorse the cleaner burning, domestic natural gas over high priced, dirty foreign oil. He said our country just hasn't been thinking clearly, but hopefully that will be changing soon and more and more members of Congress begin to recognize the potential of natural gas.
    Cramer continued his recommendation of the Energy Transfer Partners.

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