Reduced guidance on distribution for 2016. Going to issue a ton of units to MPC for the new marine dropdown. Refused guidance for 2017. Stuttered and stammered through the conference call. It was an terrible call with information not provided. Wonder if they have any idea where they are going.
Thus they project 12% for 2016 and nothing beyond any longer. Just silence.
MWE/MPLX does get effected by product as when products are worth little they do not process say for ethane. Also many contracts in TX and OK they get a % of proceeds or even worse pay for the energy value they take out (KW contracts) and today are losing money on these today. Last, volumes are dropping in some areas because producers are not shipping and in NE there is not enough takeaway so producers are only receiving about 50% of spot market.
Thus the significant training that AMPE did prior to this trial to attempt to reduce the subjectivity of the ratings. This according to AMPE and suggested by the FDA. Guess soon we will see.
EPD is NOT buying back any units! They clearly stated that the GP agreed to reinvest $100M into new units. The GP would also decide in early February about an additional $100M being re -invested just like they did for the last 10+ years. FYI it is the Duncan Family Trust doing the reinvesting of their distributions
Not sure what exactly you are asking. There is NO direct effect of a failed ETE/WMB merger on ETP. ETE would collect $750M. ETP is mostly in different areas than WMB/WPZ. A company going BK does not mean it disappears. ETE would simply restructure and unit holders would probably be wiped out, but it would continue thru a BK. Actually a disaster with ETE would be good because think how profitable ETP could be if it paid no $$ to ETE!
The deal is accretive to ETE because they are paying about 80% in stock and only $6B in cash. The price today is good for ETE. Cash lined up. WMB has cash flow.
Duncans have bought between 500M and $1B worth of stock every year since late 1990s. They own some 35% of EPD. Important but not real news. It would be really significant if they stopped buying as EPD would then need to go to the market more for secondaries as Duncan family reinvests all distributions
Old news - The Duncans have been doing this with EPD for over 20 years. Their support is important but the real news would be if they stopped buying!
William - OK - EPD got both a storage fee, a loading fee, and a dockage fee that total around $1M. They can load at this time 2 or 3 ships a week as they have no more dockage space. Not sure this will make a huge difference. They make far more per cargo on propane because they fractionate it. Also I did love the press release saying a ship this big in size was going to Switzerland. No sure possible, but who knows.
B&W - We are now down $3.25 in 5 days from your posting price. Things are ugly. ETE probably of the GPs among the worst. Thoughts?
Lan you are rude and an idiot! Simple question and one with a simple answer - it is a GP. Thus the volatility as most GPs are leveraged compared to the LP company.
Close - The custodian files the return and bills your IRA. Also to determine if filing is necessary you add up positive numbers from line 20V of the K-1. Negative ones do not count. ETE historically has not had UBTI, but some 15 years ago had a huge positive number in the $4 per unit area. There is also probably recapture of depreciation on a sale. IRS currently cannot track this and only collecting from the big players. It is VERY VERY complicated.
Yup. Again that is what it always was. Sort of laugh about Zertane which even MM did not really want. We are heading down the home stretch on both Optina and Ampion. Need just one to win the race and they are most likely sold.
Wouldn't that be sort of at the end of a trial. Any news now would be either selling out or a trial failure. Neither likely for a couple of months.
MM stated that they were proceeding slowly to make sure doc training was up to snuff, patients were appropriate for the treatment and all trial protocols were going to be followed 100%. No issues other than time here.
Hmmm. EPD is about 90% NatGas related. Thus other than LNG prices being tied to oil, do not care about oil price and there is little correlation to EPD profits and oil pricing. The problem today is simply lack of confidence in the MLP model. Cannot do anything about that.
For the pessimists it is great as some MLPs are cutting or eliminating payouts. I agree with you that it is business as usual. EPD is well and conservatively run and should pricing issues abate - read 2017 - then EPD can either choose to expand faster or more probably do that plus pay a special distribution as they did some years ago. Stable is good!
i'm going for a nap now!
Dennis - EPD has the capacity that is not already contracted for 1 cargo in December, 3 in January and only 2 in February. They already were exporting "light oil" at about 2 cargoes a month. I stand by my statement that EPD until they complete more dockage has little and in some months NO additional capacity. Your post is confusing. No argument they will be first as contracts are already in place. However, NS has dockage that is not contracted and can handle more crude exports for the short term.