I thought it interesting that all the Paris terrorists (I think) are French citizens and have lived in or near France for years.But most had traveled to/from Syria in recent years. Presumably refuges could be terrorists in disguise, however almost anyone with a passport can "visit" our country (such as the 911 terrorists)...20,000,000 foreign visitors last year. We are trying to plug a little hole and ignoring the much larger one.
We were on an Italian train last fall, between Milan and Genoa, and sat in a compartment with three young (mid 20's) Syrian refugees...two guys and the wife of one of them. They recently left Turkey and were headed to Norway, which was granting them entry.. One spoke very good English. Syria, they said, has many wonderful people but its impossible to live (and work) there today. It will be an "adventure" they said...no job waiting there, they don't speak Norwegian, etc.....but very grateful for a fresh start.. By comparison most of us have it easy here, that's for sure.
Those preferred shares may be a very good deal now...yielding well over 10%. Usually preferred dividends are paid after bond interest is paid and before the common dividend.
Schwab analysts said their customers seem "really pessimestic" these days. And the pessimism is affecting stocks. The S&P 500 is essentially unchanged this year after gaining 212% since the 2009 lows. In recent months there has been a $125 billion drop in equity funds and a $95 billion gain in bond funds. The reasons: China, Putin, and European immigration concerns, among others.
They referred to Canada as "one giant leveraged energy stock'. They recommended investing in Japan..."a giant tech and financial sector stock". Overall they do not believe a US recession is imminent. The high level of pessimism is unwarranted, in their view.
I thought you were implying the MLP rollup was step 1 of RK's master plan to privatize the company,,..that he realized oil prices were dropping and would drive down the stock price. Then steps 2, 3, and 4 (dividend cut, slash backlog, reduce goodwill).. You seem to be backing away from that theory in this post.. I thought it was a pretty good theory.
I'm not 'continuing to defend RK. I don't even own KMI. In fact, I never bought it. Originally I owned units in Compano. I ended up with KMI wihen KMP bought it. I was disappointed when that happened because I really liked Compano.. I sold KMI a couple months ago to pay for a trip to Europe. Glad I did!
A very interesting theory...drive down the stock price and take it private at a big discount. If he cuts the dividend, lowers the backlog, and writes off goodwill, surely that would drive share prices even lower.. Is RK capable of such a clever and self serving plan? , I was always surprised the major private stockholders went along with the MLP plan because of the huge tax consequences. Were they in on the "conspiracy" too?
Oil began to drop in June 2014, shortly after it hit $106. By July it had dropped to $100 and not much later the MLP plan was announced. (in September?) Did RK anticipate the drop in oil prices and the impact on KMI? How could he have known the Saudi's would allow prices to drop so far? It seems very unlikely. Isn't that the
flaw in the theory?
You might be right about thr CIC "breaking any law he doesn't like". I've heard others say that too. But they never say which laws. Please list 4-5 examples of broken laws...more than 5 if you have time.
I recall, when Gadafi was ousted in Libya Trump said the US should take over their oil industry. Maybe make Libya our 51st state! And, I presume, move the Libyans onto reservations.
A few days ago I mentioned a Seeking Alpha article theorizing that Big Oil (Texas, etc) is conspiring with Saudi Arabia to force down oil prices. The reason, according to the writer, is to ruin the fracking oil companies which are.mostly smaller highly leveraged companies. It seemed like a far fetched conspiracy theory. Hmmmm. Maybe not. Why not? Because big oil wants to buy (get control of those valuable properties) at big discounts. For example, Occidental recently sold their Bakken holdings at a big discount. Who was the buyer? A Texas company.
According to a SA writer low oil prices are due to US "big oil" producers conspiring with Saudi Arabia to harm the oil fracking producers who are mostly smaller companies that profit from fracking only if prices are high (because fracking wells have a shorter lifespan). Personally I find it a "stretch" but it's possible I suppose. I wonder if the rig count decline is concentrated in fracking zones.
In today's news...a plan to sell a significant chunk of the SOR between 2018 and 2025. Both parties and the WH agree...which is shocking. The reason...the recent dramatic increase in US oil production makes the US less vulnerable to events overseas. The article also mentioned other countries increasing their own reserves, especially China.
This illustrates why RK wanted to switch from a MLP to C-Corp. Doubt this sort of thing would be possible with an MLP. For income investors it sounds like a good deal during this period of low oil/gas prices. Plus, if DCF gets a lot worse, preferred stockholders are paid ahead of common holders. Common holders, including RK, are getting burned here I guess.
I wonder what, exactly, a "long term, fee based agreement" means? Is the fee based on the volume of oil gathered or a yearly fee paid to Continental for the gathering rights to the acreage? But regardless, I don't see a significant short term impact on KMI if the acreage value drops. KMI doesn't own or lease those acres and gathering pipelines are not built until producing wells are completed. Lime Rock Resources may develop new wells just as quickly as Occidental.
Doogoo1 needs to explain how this hurts KMI.
Was there acreage included in the deal? If so, how much? A Jan 2015 article listed 1225 miles of oil pipelines, the 485 mile Double H pipeline, and 1800 miles of gas gathering pipelines plus gas processing facilities. It didn't mention any acreage.
Presumably these assets serve producing oil and gas wells. To what extent low oil/gas prices impact producing wells is unknown (to me anyway). I would imagine...not much.
Good question. It reminds me of issues raised by the oil wells in Iran developed by Western companies prior to 1951. Who owned those wells...Iran or the West? The freely elected president of Iran (Mosaddegh) believed the oil wells belonged to Iran and the industry should be nationalized. The ever resourceful CIA stages a coup, the Shah of Iran is installed, and the West stays in charge of Iran's oil industry. Eventually the Shah is overthrown and replaced by Kohmeni, a muslim extremist, and the Western companies flee Iran.
I just read that new applications for jobless benefits hit a 42 year low. Unemployment rate is pretty low too and markets near all time highs. Makes one wonder why the Fed is waiting to raise rates.