From the cc on NGL's (the main culprit according to the Merril Lynch article)
Good things are also happening outside of the Appalachian Basin. Looking across the U.S., the oil rig count is down about 60%. There's a lot of associated natural gas with oil, and the associated gas now accounts for a significant portion of total U.S. gas production. Per flow data, it appears that the gas from some of the key oil basins may have peaked in April. Since the associated gas is very rich, about 40% of all NGLs come from this source. Therefore, the NGLs from this source should follow the trend in associated gas.
If it gets down to 35 ish, then I'll put in my last buy. Otherwise I'm sitting tight with what I have. I will be holding this thru at least the end of 2017. Via the cc:
Spectra's Uniontown to Gas City project coming online Aug 1, Sept 1 will move about 170 million cubic feet per day net of our production from the local Appalachian M2 markets to premium Midwest markets…..
Mariner East I coming online late Sept this year (commissioned few weeks after that) capacity is for 20,000 barrels of ethane and 20,000 barrels per day of propane……….
Spectra's Gulf Markets Expansion Project start-up is targeted for the fourth quarter of 2016 and this will move 128 million cubic feet per day net of Range's gas to the Gulf Coast……..
End of 2017, Range has participated in several pipeline expansion projects that will allow Range to move an additional 900 million cubic feet per day of Range's gas to the Gulf Coast, Midwest and Canadian markets.
This would help take supply offline……….what the Saudis wanted.
Credit Suisse analyst John Edwards downgraded the companies to Underperform on Friday pointing to its potential inability to fund growth by taking out more debt. He writes Friday:
Given LINE’s 2016 Debt/EBITDA leverage 5x, raising additional debt to finance growth also appears challenging. We struggle to visualize accretive transactions with LINN’s current capital structure and don’t model any future distribution payments given the leverage.
Via Yahoo profile for LINE…...
Linn Energy, LLC, an independent oil and natural gas company, acquires and develops oil and natural gas properties in the Unites States. Its properties are located in the Rockies, the Hugoton Basin, California, east Texas and north Louisiana, the Mid-Continent, the Permian Basin, Michigan/Illinois, and south Texas. As of December 31, 2014, the company had proved reserves of 7,304 billion cubic feet equivalent; and operated 19,591 gross productive wells. Linn Energy, LLC was founded in 2003 and is headquartered in Houston, Texas.
From the Earnings call…...
The first leg of the Spectra's Uniontown to Gas City project is anticipated to commence on August 1, and the second and final leg is projected to start up on September 1. This will move about 200 million cubic feet per day gross or about 170 million cubic feet per day net of our production from the local Appalachian M2 markets to premium Midwest markets. Under current strip pricing, this should increase our realized price by approximately $1.00 on this production.
Just a big game. On one hand Goldman Sachs comes out with their list of buyout targets (RRC included) while the other hand is probably telling clients and insiders to dump the stock. It's as if this company is going to Never Never Land.
Ok, sold out at 70.92 just now. cost basis of 69.77 excluding commissions for my 2 buys at 71.77 and 67.77.
Will buy back when back down to the 67's again.
Good Luck All.
There is a new Seeking Alpha article out about the Utica. It is PRO now, but will be available to all in a day or so. The title is "EQT Corp: The Dry Gas Utica Is A Diamond - No Longer In The Rough And, As It Turns Out, As Big As The Ritz" .
The link is this http://seekingalpha.com/research/3775371-richard-zeits/4212365-eqt-corp-the-dry-gas-utica-is-a-diamond-no-longer-in-the-rough-and-as-it-turns-out-as-big-as-the-ritz
Would be good if the insiders stepped up to the plate and bought some shares……….perhaps that would be indicative of a bottom or at least not far from it. I did accumulate some at 41.57 today, but I also accumulated at 50.57 a couple weeks ago thinking that was close to the bottom.
Ok, bought a little more at 41.57 just now. Obviously wasn't the low before, but should be pretty close to it.
Look at ExxonMobil 6.08/4.94
They could buy RRC and lower their bev cost by over 2 bucks.
Actually just doing a short term trade on my wife's shares and hope to sell around 55 ish. My shares are for longer term.