These E&P MLPs need to be opportunistic and buy back shares at these prices even if it means shutting in their wells and cutting distributions to shareholders. These yields are yields private investors in private drilling partnerships get; not public partnerships.
If these E&P MLPs have to start hedging future production at these levels there will have to be distribution cuts and that is the fear and uncertainty driving E&P MLPs down right now.
If we reverse to the high $60s low $70s a lot less pressure will be in place but right here, right now, if there is no sense of decent worldwide economic growth the future hedging programs are going to be very ugly and not in line with the price of oil an E&P MLP must have in order to maintain present dividend levels.
Dividend does not look stable to me when you take into account the large fee income the last two quarters versus fee income going forward. I own it, have been hit hard, but will hang in and I am assuming a dividend cut to $1.20 which looks more closer to stabilization without too much reliance on fee income.
PWE's balance sheet cannot sustain any period of weak oil prices. Novice investors look at today's drop as overdone? Best to look at the last time oil suffered a significant drop at a time there were so many E&Ps chasing after property and bidding for them out of control.
Now, Aubrey McClendon's new venture may be at risk.
The winners will be the vulture investors that pick over the carcasses of small POS E&Ps like PWE.
Only fools will get sucked into this negative feedback loop. The real winners are ALWAYS the consolidators like Blackstone and KKR and other investors that will pick over the graves of the weakest players. While I joke about PWE because I sold way back when the first announcements about the change to Canadian tax laws spelled the beginning of the end of these marginal players like PWE.
It saddens me that so many got sucked into a PWE who has one of THE worst 5 and 10 year charts in the industry and today's beat down being so much more than other E&Ps is clearly a sign that PWE is most likely done and will be forced into a consolidation or BK IF the trend in oil holds for as long as 18 months which is looking more likely now.
And here all of you fools have kept believing in POS stocks like PWE. If you want to own E&P then own best of breed, not worst in show like PWE. Marginal players like PWE will have to be acquired but you will more likely than not see take-under pricing because debt is fixed and forever and the underlying trend in oil prices going lower is in the process of killing off marginal players like PWE that is always too many days late and too many dollars short.
Cut capital to maintain dividend? That is the ticket to disaster or are you all so delusional that you cannot see from any five year chart these clowns have produced nothing in the way of return because high yield has been trumped by lost capital.
Your mommie's can run your money better than you clowns can.
I think in part is part of a plan toward long term simplification of the ETE structure. After the KMI announcement the thought was ETE would be next because reducing their borrowing rates would be so compelling that they would have to match KMI move for move going forward.
Insiders have been buying down on PWE from the high teens. Just because they are insiders doesn't mean (in this case) they have a single clue.
What is the matter with you people? NO ONE can buy COCO assets without first putting the assets into BK.
Banks who bailed out businesses during the crisis only to find out later the government was wiling to go after the ultimate buyer of the bank for fines, penalties, etc. learned a hard lesson and COCO has so many levels of potential litigation BK will be needed to get an absolute handle on exposure to various litigations pending and unknown....
You are all on a fool's errand if you think shareholders will see anything from a sale and Wall Street is correctly pricing COCO reflecting those facts.
MLPs require investors to be more sophisticated but as of late many newbies are lost and have been to quick on the sell trigger when the markets went down. For me, the general partners cratering in this last down market phase made for incredible opportunities to add to my positions. I have had MMP since the day they announced buying their GP and two analyst firms downgraded that day saying it was not a good move to buy their GP for 11x ebitda. We would learn later that 11x ebitda was a steal and is part in parcel why MMP is able to outperform so many other MLPs.
This is one to hold to the end of life. MMP's asset footprint. Awesome. BPL is the only other major petroleum based MLP and its asset base in the northeast is slow to no growing while MMP's gulf assets are in the highest growth area and set to play big in the exporting of oil which may be a step closer as a result of TUE's election.
Do not dismiss the possibility of a future in which sand less fracking is invented. Waterless fracking is on the way in. The driving force is the industry that does not want to be held hostage to a need for water or sand and having to pay high associated commodity costs.
These commodity-based MLPs have not ended well when new technologies eliminate the need for said commodity. Be very wary over the mid-term because I believe sand less fracking is in the works and on the way.
You don't need two separate BDCs. Higher costs to shareholders for management and other fees and frankly investing in CLOs is so passé now for most better of breed BDCs.
You are all delusional if you think PWE will EVER make any come back. Stock over $25 a few years ago.... can't you figure out management screwed too many pooches too many times having lost 85% of value?
Look at a five year chart. What in god's name were you thinking when you look at all the other energy related stocks like MLPs that have doubled, tripled, quadrupled and doubled or tripled their distributions to shareholders. Lick you wounds and like Gordon Gekko in Wall Street....... "dump it!".
SJT is best of breed. ECT is a POS. Stop dreaming that an upgrade for SJT means good things for ECT.
ECT was a speculative fraud that suckers have bought all the way down the hill.