MEP is the best play on NGL recovery. NGLs have been up 50% since their lows early this year, but can easily do another 100% from these depressed levels. An extra catalyst: for the first time in history, the U.S. just started exporting ethane to Europe, and these exports are scheduled to expand dramatically now that the ships have demonstrated that it can be done with no problems. Enterprise, the giant MLP, has a 50/50 joint venture with the tiny (under $1B market cap) MEP called the Texas Express. Its a big natural gas liquids pipeline (in Texas, of course). Small effect on Enterprise stock price, big effect on MEP's. Meanwhile, ethane prices are making new highs daily.
On the one hand, you're right. However, don't forget that the cost of this nice reward is a large dose of risk. NAT is the owner of all these ships no matter what, and if charter rates (which are beyond their control) crater, then all these ships turn from assets to liabilities overnight. Its a tightrope act, as rates go up and down by huge fluctuations (can double or triple or drop 70% easily), but the ships, with their capital costs are always there. Historically, for the fleet owners, greed has been their own demise. ln attempts to capture more market share they order more ships to be built, and one morning they wake up to find the market is flooded and rates collapse. Feast and famine.
WOW $2.00 - you're making me salivate! Please sell me your shares at 2.
Do you have any, or just teasing?
I have real shares (settled more than 3 days ago, so I'm assuming they are real) you can have the first 100,000 at $9/share
got more. This time I had to pay 5 cents above ask but the main thing is that I got real shares (fills) at a great price. The fake "bid" and "ask" don't matter, what matters is to get those shares. I just hope that later they don't report the as naked shorts and retroactively cancel my buys and take away my shares. I guess after 3 business days (settlement) I really have the shares ?
Excuse me for being naive. Who are the guys from Bayonne, and what does "Tell me to look for $18/sh' mean ? Does it mean "don't sell under $18 because it will get there next quarter for sure" ?
Personally, I thought we were going to break 10 this morning. Unfortunately a Marketing VP from MEP just resigned to go work directly for Enbridge, and that spooked some sellers. Again, I'm too naive to see what's so bad about that. That's probably another $100,000 to $200,000 less per year that MEP has to pay in salaries, and will come directly out of Enbridge's pocket from now on :)
Since last quarter; Crude oil almost doubled and NGLs are up 50%
Hard to get a better scenario for MEP. You may ask why do we are about oil ?
Because for any of our smaller customers, Natural Gas is a small part of their business (even though it is 100% of our business with them}. If oil is too low, they can go out of business, and then we lose their gas business. Strange, but that's how it works, and tha's why when oil is at its low end, MEP price is affected by oil prices.
NG is also up over 25% in the last 3 months, but the frac spread is rich, with ethane prices going through the roof, as you correctly pointed out, guru. MEP should be at $12/unit easily.
I got an interest payment a few days ago and they told me 5 percent of my remaining bonds will be redeemed for cash in July 1
5 percent of our bonds will be bought by WMIH at 100 cents on the Dollar in 30 days
They also paid the 13 percent interest yesterday
Things are looking good
Now we just need the common to go to 6 Dollars
That will come too
there is already a thread on this where we discussed Suezmax and Panama Canal Expansion
prodution in nigeria is cut in half
Suezmax are widely used for the nigeria to continental europe route
my guess - oil will rise a bit and Suezmax charter rates will drop a bit
No, NAT pays the bunker fuel. I've seen this explained in their annual report. Also, each quarterly report has the following "disclaimer":
Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand in the tanker market, as a result of changes in OPEC's petroleum production levels and world wide oil consumption and storage, changes in our operating expenses, including bunker prices, drydocking and insurance costs...
and this statement appeared in last year's quarterly report:
In the last six months bunker prices have fallen by more than 50%, impacting our results positively.