Should we expect 2014 distributions to be 30 cents per share as apparently his latest on is going to be? Thanks for any insights. If 30 cents is a reasonable expectation, isn't that a pretty low return for investors?
Any idea where the lowest entry point might be? Perhaps below $20.00 when people on the West coast wake up to the news of such a tiny distribution and sell like those on the East Coast and midwest?
Crude oil inventories rose again today and some analysts say WTI will be in the $80-$85 range by the end of this calendar year (2013). Perhaps these factors are driving the stock price of Legacy down?
Does CVRR have any government contracts that constitute an appreciable slice of its revenue? If so, perhaps investors are unloading with breathtaking speed because they anticipate reduced government spending will impact CVRR earnings. Is this a possible explanation?
Yes, I'll describe. The moniker "Tea Party" describes a tiny minority of elected Representatives who have repeatedly demonstrated to severely injure the United States Government and to cause a catastrophic default for the United States Treasury Department unless their demands are met. That "my way or the highway" behavior with the threats of economic violence (shutting down the national government) and economic terrorism (allowing a catastrophic default which would bring the World Economy to its' knees) is in keeping with fascist thinking about how to take power, despite being in the minority.
In my opinion you should be censured for propogandizing fascist ideology on a financial message board.
A fantastically informative presentation by Cary Brown and Dan Westcott. Here are a few pieces of information from it.
1. "We're 92% hedged on the oil side through 2014.
2. Think of us as a long-term oil play, but hopefully insulated against short-term ups and downs.
The words in the title of an article on Seeking Alpha today about CLMT. Overall the article depicts a very dismal outlook citing huge RIN expenses etc.
grungemusic3001, You post is the first I've heard of any Saudi plays on nuclear. Also, aren't all, not just some, of Japan's nuclear reactors off line?
Thank you rrb1981. I love their hard working conservative values!
Thank you for informing us of this increase. Seems to this amateur that LGCY has significant upside production potential. Since the Concho aquisition haven't they mostly bolted on mom and pop wells? Also, itsn't LGCY's team quite masterful at increasing overall amounts of oil pumped from old wells? Thanks for any insights anyone would care to lend.
This morning Rich Kinder and his team stepped into the boxing ring for round 3 with Hedgeye's Hockey Captain. At the end of the round Kinder Morgan knocked out the adversary and the fight is over.
From Seeking Alpha today--Japan's only working nuclear reactor is going offline for a checkup, leaving the country without nuclear power for just the third time in four decades, and with no firm date for restarting.
No I wouldn't because I prefer the stability their hedging strategy provides, even though there have been and will be again times when rising energy prices would have led to higher distributions. I also own Legacy Reserves (LGCY), which has far fewer hedges and think it's good to be diversified.
ronharv, Yes, those are the existing futures prices for oil alright. However it's extremely unlikely oil prices will be on a descending path for the next 6 years for a large number of reasons. Here are just a few.
1. By the end of 2016 OPEC will likely have exported 1/2 of all the oil it ever will.
2. Between 2010 and 2020 the world's population is estimated to increase from 6.8 Billion people to 7.6B. That's nearly an additional 700 million people who will be requiring oil based products.
3. Between the years 2004 and 2012 the world's largest oil companies (Oil Majors) daily oil production fell from 10.8 Million Barrels/day to 8.0Million. That's a 25% drop despite much higher oil prices over the same time period.
4. The Chinese Middle Class is estimated to grow from 200 Million people to 600 Million people between the years 2012 and 2022. That's an average of 40 million people per year and you can expect India and others to see increases as well.
5. Global true crude oil production is very unlikely to ever exceed 76 million barrels per day again regardless of the price per barrell. America's energy boom is merely offsetting reduced production elsewhere in the world.
In MHO if you're in LINN, you're very wise!
Good Luck to all longs.
The fight in Las Vegas tomorrow night isn't really "The One". The bout between Kinder Morgan and Hedgeye is truly "The One" now that Hedgeye has lost the bout with LINN Energy.
Reporting from the "ring" on Wall Street, Round 1 went to Kinder Morgan when Rich Kinder purchased $18M of stock with his own money. With 27 minutes to the Round 2 closing bell, it's highly likely Round 2 will go to Hedgeye with KMI's price at $35.00 a share.
Note to KMI shareholders. This looks like a replay of the LINN Energy takedown strategy by Hedgeye. Are you prepared to go through months of torture, or do you think it's time to lift the telephone and call the SEC?
If you would watch the interview of Kevin Kaiser you would see and hear quotes like: "They're financing maintenance"; that distribution is not safe in the future"; "a house of cards means something that has an unstable foundation"; "I think at some point this distribution gets cut and it's not safe". If you're a mom and pop investor and hear such scare tactics many panic. This clearly already happened to many mom and pop LINN Energy investors. It's sad of course, because the mom and pops were massacred in LINN and odds are many will never return. Very very sad that there is no institution regulating these tactics being employed by those willing to scare little guys to make their 2 + 20. Just MHO.