The combination chemicals are of least concern when considering the ratios compared to the amount of fresh water used. They would be even more diluted in an aquifer. The greater concern is a surface release, e.g., a HCL tanker upset posing a threat to unprotected personnel in the immediate area of release. On the surface, some of the ingredients by themselves prior to mixing and pump down the bore pose the most risk. When handled by competent personnel, using the appropriate engineering controls, the risk is minimized.
SXL is really not in the retail business. Retail falls directly under ETP. SUSP and Sunoco, Inc.
Since SUSS is now owned by ETP, the retail side (SUSS and Sunoco) will be combined one day (drop-downs) to SUSP providing ETP IDR advantage.
In regards to sand side of the business, I prefer HCLP over EMES. Couple of observations. For one compare the 10-Qs for HCLP and EMES, and the conf. call transcripts for Q-2. Now for new consideration, I noted on the HCLP board a few weeks ago that the two are about equal with HCLP having an edge. For one the rail service, both at processing and/or mining site, and at the terminus. However on the transport side, HCLP has the upper hand and it shows for one, HCLP production costs are lower than EMES. Take a look at the latest presentation of each; EMES shows trucks to the processing plants, HCLP has rail at the mine sites (for one conveyors Vs. trucks), FOB plant or customer e.g, Mingo Junction OH where both deliver to, or D&I terminuses (HCLP dedicated). I would say the largest, best positioned in Wisconsin are Sibelco Group (Unimin Corp) and Badger Mining. Fairmount (not public yet) has one deep mine. You’ll note the rail advantage with these businesses also. Badger has two good presentations you should Google: WISCONSIN’S SAND INDUSTRY: THE FACTS, THE FICTION, AND THE FUTURE by Bruce A. Brown March 13, 2014 and What’s Happening with the Sand Supply? By Sara Joyce. To confirm, check sites with Google maps, and you begin to get the reality.
C corp basically means they are paying taxes, MLP, S corp. if you will, means unit holders pay the corp. taxes. SLCA & EMES have other sand and refined products business respectively, HCLP assumes only frac sand business. You are a "passive" partner and taxes are very much different.
Noted in local paper today that Shell has filed with Corps of Engineers for new Ohio River docs. RRC appears to be stepping up super wet drilling from what I could see tonite. Marv, keep the sand units, alot like I have never witnessed before being trucked in.
Thinking originating at either MWE Cadiz or Hopedale. Also like the additional redundancy this could add for MWE should Mariner West go down, again. Liberty via Majorsville already tied into Hopedale.
I see this is the same original D project. Should be a boost to Dominion Midstream Partners which should include Blue Racer and Cove Point.
I suppose D then cancelled its Southeast Reliance Project.
Your argument over office rent is pointless, and in fact contrary. $249 per month IMO is very reasonable, and to be expect, for a very young business; keeping SG&A under control. What would you prefer $2,500 per month in relation to current operations? Would that really improve or be beneficial to the business and balance sheet? More than likely even fortune 500 companies could reduce SG&A/G&A expenses if they chose more modest corporate facilities.
They appear to be growing, of interest are pgs. 62-67, 87-88, 94-97, 111-112 pretty much sums up some the numbers of concern. One thing I noted CONE will not handle the PGH Int. Airport or parts of Moundsville production. The Anchor system is handling decent condensate and ethane with MWE. Not really overly excited about it without any guestimate on offering price. It’s no EQM. Any thoughts?
The sand stays in place or it should, it is not recovered. Otherwise the opened fissures that allow for product to flow, will close up for the most part and one just spent 6-10 million on a well for minimal and most likely no return. The fluids are recovered and appropriate disposition as required. There are a lot of other variables in well performance, with a lot of good science going on behind the scene. E&P deserves much more credit than it gets.
There is a difference between the two. HCLP is strictly in the frac sand business. EMES on the balance sheet has sand, fuel segment, and then corporate. Regardless of not having any distribution rights, they do have a Sponsor, Insight Equity, that requires a return on their investment. I would argue that both are about nose-to-nose on the sand side of the business, with HCLP slightly ahead on “sand” side in revenue, EBITDA, and cost per ton basis. Another observation I think EMES 10-Q and presentations, are somewhat ambiguous and lacking detail versus HCLP’s , as well as other MLPs for that matter. For example, dist. coverage ratio HCLP at 1.53 (they like most provide data – and I run the numbers myself); EMES, they provide nothing; you have to figure it out yourself, (my est. 2.18x). What surprises me is EMES does not talk about targeted coverage or allude to anything about it other than - going to raise it. The subject or question is not brought up by the conf. call analysts. I mean the initial impression EMES 10-Q 44 pages versus HCLP - 458, makes me wonder – slaphappy.
Back to the shipping, from what I could locate, VLCC requires about 60-74 feet draft and I could only suggest Louisiana Offshore Oil Port (LOOP) as one possibility.
Another twist is the announced building of a second Suez Cannel announced this August. The new channel would parallel the current one having a total length of about 45 miles. The Suez Canal Authority notes about 5 years to complete, but Egyptian officials are shooting for 3 years. Specifics for the new channel over the existing not known by me, but I understand that VLCC sized ships cannot use the Suez. However, assuming going through the Suez to India’s Port of Katch as the terminus, the route is about 15,368 nautical miles and 24 day trip from Philly port. GOM route is about 17,739 nautical and 28 days. The difference is 4 days and 2,372 nautical miles less from the Philly port area. So using VLEC makes sense economically make up for the longer trip around Africa.
Pretty much the sand stays between the fractures, otherwise the fractures would essentially close back up and nothing would flow once pressure is relieved. About a year or less ago E&P has been using newer lateral designs to increase well performance. This includes new as well as re-work previous drilled laterals. One part of the improvement is the amount as well as the type and mesh or size of the sand. I would suggest you review see HCPLs Q-2 August 5th presentation, slide 15, and get a copy of the quarterly earnings transcript. Those can be found typically on seeking alpha, you can sign up to get an account to see the complete transcript. Also from the customers, that is E&P, viewpoint in regards to how much sand is used. For example, see RICE August 11, 2014 presentation slide 19 will show tonnage per lateral length.
Another big component is getting the product to the customer. Rail logistics plays a big part as does FOB customer or plant etc. On the rail side, I recommend you visit the Midwest Association of Rail Shipper site, see the July 15, 2014 presentation by Rick Shearer form Superior Silica Sands the sand unit of EMES. That should keep ya busy for a while.
In regards to being stupid, perhaps you can kick yourself again, I don’t know, but did you buy the other week when the price was down to just above $3 to reduce your cost basis, or start a new position? The stock is up over 100% since then. Keep your attention on the business operations (current and projected growth rates, for example), and take with a grain of salt what folks have to say on the board.
On research, bold type not required: I prefer the quarterly conference calls, the Q&A and such. From there, one can get a wealth of information, explicit and implicit. Then compare presentations and variables. When Mr. Semple notes “the Marcellus Shale continues to represent a once-in-a-generation opportunity for MarkWest,” and RRC, “for investors who stated that we have resource life of 100 years today, we believe we can drive that down to about 30 years in the next few years, and we should generate a lot of value pulling that forward.” Comments like these, with a proven track record, gets my attention and should run chills down your neck and back. So, once in a generation, and pulling value ahead by perhaps 30-40 years, implies huge going forward growth that we can participate in now. I truly believe these two business leaders mean what they say. Final note on understanding the business, that is focusing on a few, not being directed by your superiors to follow a multitude. We had a lightning strike that took Liberty partially out for a month. The analyst questioned what was the impact, financially. Mr. Semple noted, none, because we’ve built a redundancy into the system. To build a redundant system in SW PA and WVa. takes a lot of work and forethought, for one because the terrain itself is unforgiving. But they have done it and continue to do so. Constantly routing out any insidious and latent conditions/threats to the business, I like that. EQM appears to have it, but it is just too expensive for me now. I hope them well on the Mountain Valley project. I always like an upgrade, that is after I bought.
Now on the India side, this new business to me confirms from discussions I have heard regarding the new leadership of India (mostly from the John Batchelor radio show), that is a man with a business growth agenda for the country. Seeing an opportunity and is taking advantage of it. Does not surprise me at all. This coming week, I look forward to BFB qtr data.
I would assume these ships would originate in the GOM, not sure the Hook could handle such large ships even after dredge work. Who’s ships I don’t know. I assume from what I read, GLOG was LNG only, not sure of GLOP agenda. Perhaps BG. ASC which I sold, does do chemical hauling, not sure of their agenda on US takeaway. They are building there fleet also. One would think one or more of these would want part of that business. Having that said, I think EPD did a great job with the ATEX utilizing existing right of way and turning existing assets around. SXL has a challenge going forward with ME-1 and 2, and it appears to be mostly on the eastern side of PA getting me a little frustrated even though ME-1 is going into the ground now where required. Happy with the crude side of the business. The big question is how will the ETP Bakken crude project impact SXL. Oh also noted that PAA announced a crude line also yesterday.
Mumbai, August 20, 2014: The Shale Gas industry, in North America has grown
exponentially in the past 5 years. As a result Ethane has become the dominant feedstock
for crackers replacing liquids. Reliance’s investments in Shale Gas and its existing
crackers portfolio in India are a natural fit for sourcing Ethane from North America and
shipping it to India to attain long term feedstock competitiveness.
Reliance is implementing a project to source 1.5 MMTPA of Ethane from US to feed its
crackers in India.
Reliance has now executed storage and capacity agreements for liquefaction and export
of ethane with a North American Terminal, which is expected to commence operations in
the second half of 2016.
For the purpose of transporting liquefied ethane to India in a safe and cost efficient
manner, Reliance has ordered six state-of-the-art Very Large Ethane Carriers (VLECs)
which will be the largest vessels ever built in the world. The ships are expected to be
delivered starting last quarter of 2016 in synchronisation with the readiness of terminal in
Reliance is also building a world-scale receiving and storage facility in India for liquefied
ethane and pipeline to deliver ethane to our crackers.
Reliance will be upgrading its crackers to maximize cracking of Ethane, have maximum
operational flexibility and capability to optimize feed stocks with complete control of supply