Own positions in both and am definitely interested....and was pleased with MWE's strong position in the Marcellus/Utica...given the economic times we will not have a lot of competition trying to out hustle MWE in those two shales...and with assets in place it would be great if drilling down another thousand feet or so unlocks yet another production zone! Thanks,Nymarv..and good investing to you!
What's interesting here is that 1.Saud's are facing a decline in oil reserves 2. Domestic spending is skyrocketing and 3. They instead of the USA suddenly have to finance military action in Yemen...and the dumb bunnies are driving the price of oil down? At the Saudi production rate of ten million barrels/day think of penalizing your treasury of $500 MILLION PER DAY. Or $15 BILLION//month...incredible.....Waaay past time for a Saudi production cut.
A good start, but is kind of a mini-plant compared to Shell etc which require like 50,000 barrels/day of ethane and $5Billion or so...the good news are that infrastructure requirements are a lot smaller and construction times are several years less...I note that Gov Kasich of Ohio is moving towards entering the Prez race partially on energy job creation in Ohio..were e to win, Keystone approval is a lock!
Fun to note Jim Cramer of "Mad Money" pumping MWE,MMP,and EPD...that all three have no IDRs going to GPs, are solid performers, and are well positioned for any energy turnaround may help them avoid the Cramer cratering after pumping..We'll see! (Disclaimer: I have sizeable positions in all three..and I agree with Nymarv that MWE,MMP,and Targa are M&A candidates..and I have positions in Targa LP and Targa GP,too).
I agree with you. This is IMO one of several signals that the GC natural gas liquids line will not be built anytime soon...other signals are 1) MWE building the third 60,000! B/d fractionator 2) Targa buying APL...recall that Targa was lined up to do the GC fractionation..the APL acquisition means Targa doesn't need Marcellus/Utica liquids 3) SXL talking PDH plant at MARCUS Hook..Marcus Hook 800 acre refinery site...plenty of space...EPD opening PDH plant at Mont Belvieu in the next year 4) DPM starting to ship Butane from Hampton Rds..supplied from MWE.and 5) you think Hillary is going to block Keystone.? Let us laugh! Kinder shipping natural gas North to get ready.....
Today's announcement by MMP and Trans Canada covering a nine mile JV pipeline link between Trans Canada's Houston crude tank farm and the MMP crude distribution network in the Houston area is another score from the BP assets picked up by MMP...this link brings in the Cushing/Houston Keystone Pipeline connection shipments to Houston area refineries. It also means that crude shipments on MMP's Saddlehorn Pipeline under construction will be able to flow from Colorado to Cushing to Houston for distribution...a beautiful,organic, "Ka-Ching" ,toll booth contribution to us unit holders....Cool!
Had to smile about EPD buying our OilT,Nymarv...once the acquisition closed EPD imposed a "dockage fee" of $1/barrel on all of OILT customers including BP...the rationale given that "all services must be paid for"....pzzzzed off #$%$ cats are howling! Thanks for comments!
As we think about and discuss the leading MLPs for our near term investment future I did want to note a couple of observations for you...The first is that MMP is going forward with the construction of the Saddlehorn pipeline, an $850 million,400,000 bb/d crude oil pipeline from the Niobara play in MNorthern Colorado to the Cushing,OK, crude oil tank farm, the world's largest...there are several really important factors here...MMP's partner here is PAA, which bought out OXY's half of the MMP/OXY 300,000 b/day BridgeTex crude oil pipeline from the Permian basin to Houston. Purchase price for OXY's half was $1Billion. So, together MMP and PAA are suddenly partnering on $4Billion in crude oil pipelines. And PAA and MMP between them own 30+Million barrels of fully booked crude oil capacity at Cushing...one can speculate that financially solid MMP/PAA just might work together on additional crude opportunities pushing aside weaker competitors..The second observation is that both MWE and TARGA now represent primo targets for the big hitters like EPD,ETE, Kinder etc..and I own bunches of MWE,TRGP,and NGLS partially for that reason...However, with yesterday's closing of the purchase of APL by Targa, methinks the best combination of them all would be a merger of Targa and MWE...excellent geographical balance, tons of fractionation, excellent export facilities on the GOM, and terrific presence in Eagle Ford,Bakken, Permian,OK,Marcellus and Utica...Let me note,too, that I have positions in MMP,PAA,DPM,GELand EPD,too, so I am REALLY looking forward to seeing how all this shakes out! Best Regards