You have to wonder why so much gasoline is being refined. Is demand for gas picking up with lower prices. This market is going to start looking forward pretty soon..
It was an interesting oil report. Oil imports are rising. What does this say about US production (starting to shrink)? You have to wonder if the refiners are trying to get their hands on a much cheap oil as they can store right now.
If oil stays below $60 for an extended period of time, the long term consequences are it will sky rocket back to $120 because too much supply will come out of the system. It's not a light switch that can just be turned back on once it comes off line.
The whole fricken country is in a deep freeze.
I hope they can take advantage of opportunities like this. I'm just not sure what flexibility they have to buy back debt on the open market as an MLP.
Right. I assume all the remaining 2014 hedges are cashed out and will show up on this quarter's income statement. I believe that can't be included in the DCF number based on the whole HedgeEye SEC fiasco, but have to be called something else, even though it has been historically distrbuted (I can't remember what LINE management agreed to with the SEC)..
Thanks. I actually read the same when I searched on how hedges are handled in general accepted accounting procedures. How do you know how to estimate the hedge book value. Do you take the current distribution times the number of outstanding shares times the reported hedge ratios to figure this out? Thanks.
Does any know if the value of the hedges shows up as other current assets on the balance sheet? They are currently listed as worth $275M, so this seem like about the right number.
Mixed EIA report this morning. Crude inventories fell, total petro products up a little. If I was a short, I might be getting a little nervous that the supply /demand situation is starting to show signs of a correction. Gas demand up. These stocks will turn before the price of oil turns in anticipation.
You should read the press release and not the headline. I believe they declared 4 different dividends/distributions to be paid in the month of Jan (not distributions for the next four months).
Oil can print $20 and it makes no difference to BBEP's earnings with the hedges, unless it stays down. So who cares. A fast hard spike down in the price of oil followed by a quick recovery would be a good thing..
That pretty much sums it up for all the shale plays. The market is currently betting that the hedges don't go out far enough. It's not clear and the market punishes uncertainty. Rigs shutting down left and right. Hard to understand how the supply/demand won't balance out pretty quickly. The other uncertainty is how well the shale plays will do if oil only recovers to around $70 a barrel long term.
Last month was announced early. They usually announce at end of month. They announced on 29 Oct 2 months ago. Should be any day.
Totally agree there. Buy back debt while it is on sale in the open market.
You have to believe that a rapid fall in oil prices is better than a slow one. This way they make a killing on the hedges before they expire and the week players get shaken out quickly to take supply out of the market. Ultimately a fast decline in oil prices will lead to a quicker recovery which is what LINE needs. The current decline means nothing to near term earnings. I just hope they are taking advantage of their discounted debt.