epholder - You missed the point! When RK rolled up everything into KMI he guided a $2,00 dividend for KMI at YE 2015. I get it that nothing is guaranteed, but if KMI did not raise to the announced amount that RK stated would happen in several interviews then KMI would and will be hammered. You are splitting words - certainly things change, but oil was heading down in 2014 and one should not give guidance and reaffirm that guidance unless you are pretty darn sure it will be met. Did you miss the press releases that a couple months ago still showed lots of excess cash flow?
I came out that panic selling caused institutional owners to sell because of leverage credit issues. Combined with public selling of anything energy related and you have panic selling. Of course followed now by 6 big up days for MLPs.
The drop was a combination of forced fund liquidation and panic selling for anything associated with oil. That EPD is about 85-90% fixed fee and almost totally NG has no apparent meaning. Now we are going to hear the revenues are down by 50%. Does it matter that revenues when you transport gas for a fee mean nothing. EPD technically buys the gas, transports it and then sells it back tacking on a transport fee. The buying and selling of gas net each other out. No profit or loss, but $$ amount is 50% lower this year. transport fee is the same.
Stupid people not looking at the real picture.
The problem is RK promised to do #! when he rolled up everything into KMI. With KMP holders already smarting from the tax bill any change in the promised increase in KMI dividends would not be received kindly!
Do not count on my comment here. ETE is doing a complete hybrid type of company. Have never seen ANY company organized that way before. I do not own WMB so do not follow other than as a point of interest in how Kelcey is "simplifying" the structure of ETP! LOL
The ETC dividend will be exactly that - a payout from a C corp. The taxable status should be mostly considered a return of capital because of depreciation and you will get a 1099 and not a K-1. As the years pass and depreciation is used then more and more will be taxable. I assume it will be similar to KMI before and PAGP.
The UBTI issue for someone that holds an amount like yours is probably not the direct UBTI on line 20V of your K-1. The issue is that according to the IRS ax code when you sell the recapture of depreciation is ordinary income and thus UBTI. This will be significant $$. I understand it has never been collected for individual taxpayers and the IRS currently has no way to track this. It is, however, if effect and the IRS could mandate additional reporting by the MLPs and begin to collect it at any point in the future. The IRS is currently only going after large nonprofits and such to collect. I would be very cautious because the first rule of investing is not to put a tax shelter inside a tax shelter.
This is really sort of a silly thread IMO. How much of EPD, ETP business is oil? Well under half. EPD is under 20%. They do not care what happens to oil price as the simply transport it and separate NGLs for NG so it can go thru pipelines!
fountain - In Arizona Arizona Public Service has built 4 NG plants as peakers. Not base load. We have a huge difference between peak and base load due to air conditioning demands in the summer. The beauty of these plants is they can flow power to the grid almost immediately. Have to think other areas like possibly Texas where base and peak loads vary by a large amount would build similar plants. Also California - if you can built anything there LOL.
Is there any point in positive PR right now? Do you seriously think that there is anything Ampio can say today that would make a difference? Either they get positive resultsand Ampion is either partnered or sold off and AMPE holders make lots of money or we do not. Really quite simple. The problem is that saline has a positive effect on all knee patients and particularly those that are KL-1 and KL-2 because of its lubracative properties. saline however doe not provide long term benefit.
All depends on your timeframe. IF - and only if - Marathon does what it promised then the merger will be a good deal 2020 and beyond. That said Semple already promised growth ahead of distribution growth and the investment grade will be worth some 2% when interest rates normalize. The current drop in price is lunacy and only panic selling. Reminds me of 2008/09. Am guessing things begin to form a floor in the next few months. We must go ahead as breakup fee it too large. There are some screaming buys out there right now. ARB
Solar and wind are increasing by about 5-10% a year. In my grandchildren's lifetime it wil be important and significant. not today or 10 years from now.
If ETP was an oil company would agree. It is mostly NG pipelines and fee based. The selloff has no basis in fact. Simply panic selling of anything energy related.
Are you saying ETE stock is doing well? Think your thoughts are misplaced. ALL MLPs and especially those in upstream are destroyed right now. Just like 2008 only for a different reason
diverse - Your comment is showing you do not understand the market and what price moves mean to EPD. Looking at a daily movement is a complete waste of time. Only takes a headline or a large fund liquidating EPD to move the price 30 or 40 cents either up or down.
The real question is has anything fundamental changed with EPD? They are mostly NG and have fixed fee deals on well over 75% of their mileage. EPD has little to do with oil and other than propane exports owns little in NG. The market is reacting as if EPD is not going to have NG to transport. This despite the simple fact that NG usage continues to rise in the US and we are getting ready to export NG as well. Throw in ethane industrial usage here will go up by over 1BCF a day by mid 2017 and the naysayers simply do not get it.
People are quite simply selling anything and everything related to energy. Even if those companies have little or no commodity exposure!
Some wrong info here. ETE has proposed issuing ETC shares. Nobody at ETE has suggested rolling ETE into a C corp. Doing that would be a disaster for Kelcey personally. ETP is not part of the WMB buyout.
As for the Obama proposal for 2016 to end MLP structure - you heard it here first. I have not heard anything about this and I can guarantee that it is dead before arrival. Last I looked the Republicans controlled congress and with 60 votes needed in the Senate not likely to get anything passed unless and until one party controls everything!