It ceases to amaze me just how much people are spending on pets these days. When I was a kid pretty much the only time our pets saw the vet was when it was time to put the animal to sleep. Pop quiz... who owns Purina?
When an animal doctor looks at you with a straight face and informs you that your cat needs a kidney transplant do you think that's not being exploitative?
Who's outright asking the US to be the world's policeman? Go ahead and cut your defense budget... it's ridiculously high anyway.
Maybe LO will pay it... maybe not
@@@@GREENSBORO, N.C., May 14, 2015 /PRNewswire/ -- Lorillard, Inc. (LO), the third largest tobacco company in the United States, announced today the declaration of a quarterly dividend on its common stock in the amount of $0.66 per share. The dividend is payable on June 10, 2015 to stockholders of record as of the close of business on June 1, 2015. If the transaction is completed after the record date, Lorillard will pay the dividend to stockholders as of the record date. If the transaction is completed on or before the record date, the dividend will not be paid.
You're looking at a decade to implement safer tank cars and auto-braking. And neither is really a done deal with lawsuits and talks with government still ongoing. China has slower growth but it's still 7%. As long as GDP grows, railroaders will grow along with it.
From the same news report...
@@@The countries recently harmonized their 2025 phase-out of older, puncture-prone tank cars that carry oil and ethanol. Unlike Canada, however, the United States will require upgraded braking systems by 2023 on trains carrying flammable liquids. The rules come after the 2013 explosion of an oil train in Lac-Mégantic, Que., that killed 47 people. This year, there have been five oil-train fires in Canada and the United States, including two involving CN. CN’s Mr. Jobin said the company supports the move to better tank cars, but opposes the requirement that locomotives and unit trains be fitted with electronically controlled brakes because of the “complexity and cost” involved. He said the braking systems would have “little impact” on the outcome of a derailment and that he hopes future talks with the U.S. Department of Transportation will result in changes. At Calgary’s CP, the railway tested electronic brakes on two coal trains in British Columbia for four years beginning in 2008 before abandoning the technology because it was unreliable. “They had mechanical delays more often than conventional brakes and the delays lasted longer,” a company spokesman said.Meanwhile, the American Petroleum Institute went to court this week to block the U.S. rules on hauling flammable liquids by rail. The group, whose members include Canadian oil producers Cenovus Energy Inc. and Talisman Energy Inc., said in a petition to the U.S. Court of Appeals that the new tank-car and brake rules are “an abuse of discretion, or otherwise not in accordance with law.”
So there is news is out tonight on the Globe&Mail. CNR sees slower than expected growth of oil-related shipments, but they are sticking with the full year guidance on oil for now. The thing is... 40000 carloads is a drop in the bucket (less than 1%) compared to Grand Total 2014 carloads of 5.70M. Sounds to me like the news reporters and analysts are struggling to explain the big drop in railroader stocks.
CNR's data I posted previously does show a slight slowdown with Q2 To Date showing a ~1% drop in traffic versus last year. But CNR's YTD total traffic is still up a healthy 5.5% vs 2014. CNR is now down 9% in a few days. I bought more shares today.
@@Amid a plunge in shipments of oil and frac sand by rail, Canadian National Railway Co. is casting doubt on its forecasts for growth in its energy-related shipments. Luc Jobin, CN’s chief financial officer, said unless energy-related shipments pick up in the second half of the year, meeting the 2015 forecast of 257,000 carloads will be “challenging” after a drop in oil prices that has prompted producers to slash production and staff. “It’s softer than we expected,” Mr. Jobin said at an investors’ conference in Boston on Thursday. CN is not altering its guidance for an increase in energy shipments of 40,000 carloads over last year’s 217,000, but Mr. Jobin said the company will need to see rising volumes in the third and fourth quarters if it is to hit the target, which was lowered in April. CN’s Calgary-based counterpart, Canadian Pacific Railway Ltd., has said “for now” it is sticking to its energy-products guidance. Railway stocks have tumbled this year amid the slowdown in crude shipments and tepid growth in other lines. Total overall traffic carried by CN and CP this year on their North American networks is up by 5 per cent compared with the same period last year, according to the Association of American Railroads.
26%?? Does the RBC analyst use some sorta New Math? I only see a drop of 1% in PetroChem Q2 to date. And the sub-segment Petroleum Products is +1.1% Q2 to date and +6.0% YTD.
Petroleum & Chemicals
Quarter 2 to Date
% Var (1.0%)
Year to Date
% Var 2.9%
@@CN’s shipments of petroleum products have fallen by 26 per cent in the first five weeks of the latest quarter, Royal Bank of Canada analyst Walter Spracklin said.
Coal. This particular commodity comprises roughly 15% or total traffic. So why are coal shipments down? Apparently, congestion is a problem at least for US mid/west operators. I am adding to my CNI long position on this pullback.
@@February 06, 2015 TREVOR GRAFF The two largest rail companies serving mines in the Powder River Basin aren’t carrying as much coal as they used to. By some estimates, rail congestion cost miners in the basin between 20 million and 25 million tons in missed shipments during 2014.We’re competing with oil from the Bakken and other commodities from across the country,” said Travis Deti, associate director of the Wyoming Mining Association. “The railroads are working to deal with that, but it has certainly had an effect.”BNSF, which experienced the majority of the problems, spent $5.5 billion to expand terminal capacities, purchase 600 locomotives and hire more than 6,000 people to boost relief crews across the United States in 2014."We still have work to do," said Matthew Jones, BNSF spokesman. "Rebuilding coal stockpiles will occur throughout 2015 and in some cases into 2016. ."Yet the problem remains far from resolved. Peabody Energy, the largest coal mining company in the U.S., reported rail congestion cost the firm 2 million tons in Powder River Basin shipments during the third quarter alone.Rail service has improved of late, but recent history has left the utility wary. Coal deliveries were first snarled in the latter part of 2013. The polar vortex hit soon after, prompting worries that Minnesota Power's coal reserves were insufficient to meet the heightened demand for electricity. The cold snap passed without major incident, and rail service began to improve throughout the spring only to falter again over the summer.Mining companies are mildly optimistic rail conditions will improve further in 2015. But many companies say increased capacity won't happen overnight and filling back contracts could well into 2016
3) Play specific updates
-ECA drilled its first multi-well pad in the play. Although volumes were affected by weather, the Q1/15 exit of
37.9 mboe/d was 22% higher than in December. It continues to target annualized volumes of 45–50 mboe/d.
-Drilling & completion (D&C) costs on a ‘$mm/1,000 feet of lateral’ basis fell to $1mm from $1.1mm in 2014
(with a line-of-sight to ~25% in horizontal well cost savings).
-D&C costs on a ‘$mm/1,000 feet of lateral’ basis fell to $1.33mm from $1.48mm in Q4/14, and $1.54mm in
Q3/14 (with a line-of-sight to ~20% in well cost savings).
-ECA indicated that it is seeing promising early results from new wells in an area called Graben. It continues
to guide to annualized volumes of 49–57 mboe/d.
-D&C costs on a ‘$mm/1,000 feet of lateral’ basis fell to $1.7mm in Q1/15 from $2.4mm in 2014.
-ECA drilled its lowest-cost well to date in Q1/15 ($3.2mm, 6,800 feet), in addition to drilling the longest
lateral ever drilled in the play ($3.5mm, 9,350 feet).
4) $1.2-bln U.S. ceiling test impairment charge
-Given lower benchmark prices, ECA booked an after-tax impairment charge of $1.2bln on its U.S. proved
reserves (no play-by-play disclosures were provided).
-Given the nature of the impairment, the market not surprisingly looked through it.
From the TD report
@@@Event Encana Corp. (ECA-N) posted a strong quarter with our expectation of much ‘cleaner’ quarters to come (in the absence of additional M&A activity). At US$60/bbl WTI, ECA is guiding to an incremental ~$225mm in 2015 cash flow which would increase its guidance to ~$1.6bln–1.8bln from current guidance of $1.4bln–1.6bln (associated capex budget of $2.0bln–2.2bln). For full details on what higher oil prices could mean for the funding outlook, please refer to Exhibit 2. Our target price increases to $16.00 on these better than expected results.
1) Strong results (in spite of M&A ‘noise’)
-The cash flow beat relative to our estimate was driven by 1) higher-than-expected production (in part related
to the timing of recent asset sale closings), and 2) lower-than-expected Canadian natural gas operating costs
($0.35/mcf in Q1/15, vs. a range of $0.52–$0.59/mcf for the trailing four quarters — in part explained by
divestiture activity). Management indicated that $0.35/mcf is indicative of what future costs should look like.
-Q1/15 total ‘Oil & NGLs’ production averaged ~121 mbbls/d, up 13% from ~106 mbbls/d in Q4/14. The
Permian was the primary driver of this increase with volumes averaging ~27 mbbls/d, up 93% q/q from Q4/14
(note that this reflects only a partial contribution from Athlon, with the deal closing in mid-November).
-Q1/15 capex of $736mm (-$102mm net of asset sale proceeds) compares with 2015 guidance of $2bln–
2.2bln. We highlight the concentration of spending with 29% of this total invested in the Permian (and another
27% in the Eagle Ford).
2) What do higher oil prices mean for the funding profile?
-At US$60/bbl WTI, ECA is guiding to an incremental $225mm in 2015 cash flow which would increase its
guidance to ~$1.6bln–$1.8bln from the current guidance of $1.4bln–$1.6bln (associated capex of $2bln–
$2.2bln). In comparison, we estimate $1.8bln in cash flow at US$60/bbl WTI (Exhibit 2).
And TD analyst kept a hold and raised his price target from 15 to 16. I guess the TD analyst must be clueless compared to the RBC guy huh...
@@@@Encana Corp. (ECA-N, ECA-T) US$13.87
BUY (Unchanged) Target: US$16.00 (Prior: US$15.00)
Permian, Eagle Ford Showing Signs of Additional Upside
It's a shame that Platou Tank Fixtures site is no longer updated. It was very useful to see the rates for each ship as they were booked for voyages.
I already told you why it's so much better.... try reading my post again. And like all technology, prices drop as the products go mainstream. Oled displays are a simpler design with fewer components than lcd screens and ultimately will be cheaper to manufacture, and much much cheaper if/when issues related to inkjet deposition are resolved. Keep your head in the sand pal... sooner or later you'll have to come up for air.
EU has been imposing duties on steel imports. First it was stainless steel. NExt it was electrical steel. Now it appears the scope is widening to more general types of steel. USA will likely follow eventually.
@@'EU duties on steel from China and Russia' BRUSSELS (REUTERS) -
The European Union is threatening to impose duties on imports of steel from China and Russia, because these countries may be guilty of dumping cheap steel on the European market. This was announced Thursday. The European Commission has started an investigation into the alleged dumping of certain steel products from China and Russia. The investigation follows a complaint from the European steel industry association Eurofer, which was filed in April.
The EU imposed earlier provisional duties on the imports of stainless steel from China and Taiwan for alleged dumping practices.
And another one. Shire is currently trading at 5270 pence today on the LSE. Big boys all saying buy SHPG (SHP). Meanwhile K.Bass gets repeated opportunities to grow his short position.Stay tuned for the USPO to issue their decision sometime late summer on whether the petition will be allowed to proceed.
@@Shire : *MORGAN STANLEY RAISES SHIRE PRICE TARGET TO 6000 PENCE - 'OVERWEIGHT'
05/13/2015 | 03:46am US/Eastern
What a silly comment to make. Define necessary.
Black and white video was quite acceptable before color screen technology came out. CRT technology worked just fine before flat panel LCD screens were developed. Why did people buy DLP systems... did they really need such a large image size? Who really needs 4K UHD resolution? Why would anyone want an OLED TV just because it does not suffer from viewing angle, contrast, or pixel switching speed issues that LCD displays have? Regarding prices, watch over the next few years as OLED screen prices drop below those of LCD units... will you still keep buying LCD TV's then?