The natural gas is reinjected in the field to get rid of the gas as so much is produced along with the oil. Oil wells there produce oil, gas and water. Water is reinjected too. The gas helps the oil production however so much gas is reinjected that it becomes a nuisance to get rid of it. The amount of gas produced and reinjected is incredible.
Foxy, The board is full of Puttin and Callin by folks that have no idea of the Oil Bidnis!! The Oil MLPs prices simply responding to the Price of OIL (About $50 today). If it goes up, MLPS skyrocket, if down, who knows. If MLPS hold distributions, they are gold mines. If half distrs they are half gold mines!! I think VNR is good at $20 with $50 oil. No more than $20 for a year. I hold some VNR cheaper, some higher priced, I only want the Huge Distribution for now.
Your liberal Econ Teacher will NOT teach you anything re Taxes on your earnings!! Take time to learn this yourself on the internet. VNR is an MLP wherein the 17% distribution (not Div) is almost tax free. XOM has a 3.3% div taxed at 15% min. Bonds and banks interest is taxed at income rate, Fed 28% ++, Ca 9.5% every year. Make money by watching taxes. Your liberal Econ teacher only wants you to pay more taxes.
This oil price situation is tricky to call as it is not normal supply and demand. Technology is driving car milage up, fracking, etc. OPEC is getting killed as they need higher prices to pay their country's bills. Long term oil should be up. VNR is in good shape to make $, Divs, etc. The big Divs are great!!
Them "Dead Cats" can sure make money. My buy of $13.34 on Jan 20 pays a 18% plus div monthly. If its cut 50% it still great. Plus a big % gain to date with more to come. Glad you are still in school with a typical liberal econ teacher - My MBA helps me - keep studying, you will need it.
Oct VNR report was 70% Natl Gas, 15% oil, 15% NGL. Natl Gas down to $2.93 from $4.25 (30%), Oil down from $100 to $50 (50%). Lots of VNR natl Gas hedged at about $4.25 for 2015. At Worst VNR should be down about 30% from Mid 2014 $30 per share. About $20 per share looks good to me. I did ok on my $13.34 per share buy last Wednesday.
VNR turned to mostly gas with some oil. Previously it was mostly oil. Price should not be following Oil drop. I bought More VNR today. I missed the big drop yesterday as was out of town. You need to check write-ups on VNR, I think you will be surprised. I was. Got a great distribution this week.
I have been watching and owning this for years (AMBC and AMBCW from owning Mini Bonds) I expect settlements from JPM and BAC to make this really pay out. NO NEWS!! Anyone finding anything. Thanks
The Chairman is no fool and would not put those $$ out to buy his stock if he thought the dividend was going down. He owns so much of the stock vs a normal US company he is like the only shareholder. I am sticking with the Chairman.
I have not done a detail check on AMBAC in awhile so have some level of guessing. I think AMBAC is holding back on info and will suddenly show its results once the dust settles on the BK forced on them by the IRS and the JPM and BAC lawsuits. Common sense says the housing market has done great, a huge problem in 2008 for AMBC . All of their investments have increased in value, again a correction from the 2008 problem, not turned sour. Insurance coverage problems seems to be OK. AMBAC has about $4 BILLION in tax loses going forward. I will look again when I get a chance but I still hold lots of AMBC stock.
Seadrill's Chairman and largest single shareholder just bought 2 million more shares this summer at about $26 per share. His single holdings are immense. I have a hard time believing he would agree to cut the dividend, about $2,000,000 per quarter on the new purchases alone. I bought Seadrill (at less than $26) as he bought Seadrill.
However, it the dividend is cut 50% its still about a 9% return with dividend taxes. Still a great deal as someone below notes.
AMBAC has major lawsuits against BAC and JPM worth far more than the current Book value of AMBC. When these settle you will see AMBAC soar. Read the history of what is going on with AMBAC vs flapping your internet typing jaws.