MLPs derive their future growth from the assets they acquire over the resource rich areas. Likewise, EPD is in continuous process of expanding its pipeline network across the U.S. With the start of 2014, the partnership delivered $2.3 billion worth of projects which includes ATEX ethane pipeline, Front Range pipeline, and Mid-America pipeline expansion. The ATEX pipeline which became operational at the start of the year has an initial capacity of 125MBPD, which will be expanded to 131 MBPD by 2018. This pipeline provides ethane access to majority of demand in the U.S. Similarly, the partnership also has several projects worth over $2.5 billion, which are expected to be operational during the current year.
Having huge reserves of natural gas with a vast exposure to NGLs allowed the partnership to extract in demand hydrocarbons such as ethane, propane and butane. Prices for these hydrocarbons are weak at the moment; however, strong demand from Asia is expected to push the prices for Ethane up over the next few months. The excessive supply in the domestic market has forced the prices to fall in the short-run. Though, the higher propane prices and development of petrochemical facilities at the Gulf Coast should shift the demand for ethane by 600,000- 750,000 barrels per day over the next few years. The prospect of export will allow the company to extract more from the NGLs segment of the business.
Europe is also an important market for the export of these hydrocarbons - at the Barclays Investment Grade Energy and Pipeline Conference, the company identified European market as one of the several opportunities for growing the U.S Ethane industry. EPD also estimates to attain huge profits from ethane and naphtha price spreads, contributing to an advantage of $600 million per year for a 1.5 billion lb/year cracker. Naphtha holds a 70% weight in the current feedstock mix of Europe, which posts a huge growth opportunity for ethane to be replaced with naphtha.
Gray, you will have to forgive the Chicago Clan for they as witnessed in the past tend to confuse things or it is just part of their plan to mislead, distort, or actually lie about what goes on in the real world. Those who feel that they need to do this are classified as in your classification status #$%$ DUMMY. This can be brought on by several medical issues, drug addiction issues, or class envy issues. While I consider the majority of their issues to be of the Class Envy variety, there is also the possibility that drug usage is a contributing factor.
Crazy People do Crazy Things
Enterprise Products Partners Is A Good Pick In The Energy MLPs Sector
Apr. 17, 2014 7:37 AM ET
The partnership's coverage ratio of 1.5x gives it room for future growth in cash distributions.
New projects will start to add to the cash flows over the next 2-3 years, allowing the partnership to grow its cash distribution.
The exports of hydrocarbons will play a vital role in supporting the prices in the local market as well as growing the revenues of the partnership.
Enterprise Products Partners (EPD) is unmatchable in terms of geographic diversity, midstream assets and exposure to a wide range of petrochemicals. EPD has also shown phenomenal organic growth over the last few years and has outrun its competitors by a huge margin. Moreover, the partnership is also an attractive deal for the investors due to the substantial growth in cash distributions to its unit holders over the last years.
While everyone's investments are the result of personal opinions and DD it does not hurt for someone to be alerted of a positive event. I suppose there could be a reason someone is fearful of this information getting out, or heaven forbid investing in it. We all need to keep in mind that it is their decision. You see I am only personally accountable to my investments only. If you cannot be accountable than maybe you should be investing your money in that Mason jar buried in the back yard.
For a master limited partnership ("MLP"), distributable cash flow [DCF] is the critical figure to pay attention to. Most investors in MLPs are income investors who are focused on the distribution. DCF is the amount of cash an MLP generates and can pay out. If an MLP is consistently paying out more in distributions than it generates, that distribution could be in danger. Fortunately, KMP continues to robustly grow distributable cash flow and can continue to increase its distribution.
In the quarter, DCF was up 26%, but this figure is a bit misleading for investors. As Kinder Morgan pays out virtually all of the cash it generates, it needs to raise capital, via debt and equity issuance, to invest in growth projects. These projects increase KMP's distribution, but they also increase the unit count. Compared to the first quarter of 2013, the average unit count has increased by 19%. Capital issuance does drag on growth, but these projects are consistently accretive. To factor in changes in the unit count, investors should focus on DCF per unit.
This figure was strong, with DCF per unit coming in at $1.55 compared to $1.46 a year ago. As a consequence, KMP was able to increase its quarterly distribution to $1.38. This figure is up 6% year-over-year and $0.02 from the fourth quarter of 2013. With these results, KMP is poised to deliver on its guidance for a 2014 distribution of at least $5.58 this year. I continue to expect a payout of $5.59, plus or minus $0.03 this year. While distribution growth is slower than it was a decade ago, it should continue to be 5%-7% over the next three years thanks to growing US energy production and an impressive projects backlog.
I refer to the Dividends as FREE MONEY!
Have a Great Day
Other people who do not belong to the Clan which is a group of ID's created by the same person to mislead, and lie about what the others are doing. They are a close knit group and invariably share the same chair all the time. They provide inaccurate information concerning their investing skills and promote those skills through the misrepresentations brought forward BY AN INDEPENDENT POSTER who has posted some of their indiscretions and false statements as to their validity. These ID's believe that plastering the message board will make them successful. The question is what kind of success are they looking for? It appears that they are part of the grammar /spellchecker experts who in order to change the subject will change it through their various discoveries. How do they become experts? Well naturally they PRACTICE. You can find their numerous practice sessions almost daily, unfortunately they fail to even catch many of them, because they assume them to always be correct.
Although I cannot currently verify their many mistakes, one individual has posted many of their mistakes for all to see. Fortunately for them his reviews are not really devoted to grammar/spelling, but appear to be confined to their investing prowess, and for that he apparently gives them a failing grade.
Investing in MLPs
The first MLP investment started in 1981, with Apache Oil Co. Shortly after, other energy and real estate MLPs emerged. The goal was to raise capital from retail investors by offering an affordable and liquid security.
In 1987, Congress passed laws to clearly define MLP investments, which created the rules they operate under today.
To qualify as an MLP, a partnership must receive at least 90% of its income from qualifying sources. These sources include natural resource-related activities such as exploration and development, mining and production, processing, refining, storage, transportation, and marketing of a natural resource.
MLPs are traded on stock exchanges just like stocks. But instead of shares, you own units. And instead of dividends, you receive distributions.
Unlike with dividends, the majority of the income that unitholders receive is not taxed as income when received. Instead, it is considered as a reduction in the cost basis, creating a tax liability that is deferred until the units are sold.
Therefore, investing in MLPs for the long term can mean avoiding paying taxes on 80% to 90% of the distributions received.
4/16/2014 10:59:33 BBEP BreitBurn Energy Partners Shares Up 10.5% Since SmarTrend's Buy Recommendation (BBEP)
4/16/2014 10:42:36 EPD Enterprise Products Partners Up 13.8% Since SmarTrend Uptrend Call (EPD
Real-time: 9:45AM EDT
NYSE real-time data - Disclaimer
Currency in USD
Wonder what happened to all the pumping of how good it is......er WAS!
Probably got caught because they do not know how TRAILING STOPS WORK
At least that is what Gray indicated....LMAO
Targa Resources Partners LP (NGLS) declares $0.7625/share quarterly dividend, 2% increase from prior dividend of $0.7475. Nice since I own 2000 shares.
I wonder if I have to write a Business plan to buy a share of stock? LMAO,LMAO,LMAO,
He will continue to be a loser all his life, even in the here-after if there is such a place. And for us God Fearing people there is. We will let him pay the TAXES that we have avoided, we will let him support the welfare cheats and the other Bernie's that roam the world
Have a good night while I continue to make money on a stock according to you he thinks I do not own.
WORKS FOR ME as it's all about who finishes in first place. We already know Notsosimple11 beat him as it was POSTED.
I liked the last part about him having his YO-YO restrung........VERY TRUE!
A company organized as a master limited partnership does not pay corporate income taxes, and profits are reported to limited partnership investors to include on their personal tax returns. For many MLPs, there are sufficient tax write-offs so that investor will have little or no taxable income to claim from MLP holding. Distributions paid by an MLP classify as a return of capital and are not taxable income. ROC payments reduce the cost basis in an investment.
If you do not UNDERSTAND, REFUSE TO UNDERSTAND, OR OTHERWISE PREFER TO PAY INCOME TAX TO THE GOVERNMENT AS PART OF THE REDISTRIBUTION OF WEALTH YOU DO NOT NEED TO DO ANYTHING.
There are those like ME who for-what-ever-reason believe that if one can see a tax advantage to in fact pay less taxes and it is legal, one must use it. While it is still your decision, you should always KNOW as much as you can before making that decision. Now if your accountant knows absolutely nothing about MLP's and how they work, he should be FIRED!
Inflation protection. Over the long haul, dividends have handily outpaced inflation, potentially providing retirees with a growing stream of income. Consider some numbers based on data from the website of Yale University economics professor Robert Shiller.
Over the past 100 years, the dividends from a diversified collection of U.S. stocks would have grown an average of 4.4% a year, easily outpacing the 3.2% average inflation rate. Even as you collected your dividends, your shares would have been climbing in value, notching price gains averaging 5.6% a year.
Favorable tax treatment. While interest from bonds is taxed as ordinary income, qualifying dividends are taxed at the long-term capital-gains rate. For everybody except those in the top federal income-tax bracket, that will mean paying 15% or less. One caveat: While dividends from most blue-chip U.S. stocks should qualify for this tax treatment, you may find that dividends from some U.S. stocks and foreign shares are taxed as ordinary income.
This information is to be used solely for informational purposes only.
INVESTMENT DECISIONS ARE STRICTLY YOUR DECISION AND YOU SHOULD ALWAYS USE D.D. WHEN MAKING THOSE DECISIONS.
Have a Great Day!
Thanks for the support but as always they step into a pile of manure as they chase the dream of success. If there was any argument about what I do, how I do it, or why I do it; those without the knowledge to put the facts together are playing in the weeds. I see that you were able to again define their thinking as to what they think I am all about. What is it with this BUSINESS PLAN? This is just an example of the definition of STUPID as one can imagine. I have the money! OK. I am not presenting an idea or business venture to anyone. I do not have to write, compose, or present a business plan to anyone. Early in my life I had to do those things but only on 3 occasions, and on all 3 occasions I was able to secure the financing or the support needed to pursue the project. While everyone may not agree, the purpose of a business plan is really only a sales document where all aspects of the plan are discussed from what it is, the anticipated funding needed, what the projected customer base is, projected revenue from the venture, and competitors. Personal References while not part of a plan, can be provided as part of the Q & A period of the presentation. They are normally researched before hand by the prospective financial sources, along with any other success stories. Based upon what you posted it appears again that as usual they have never provided a business plan or actually was part of the financial side of a new or continuing proposition.
My view is to really let them complain about things and let others draw their conclusions. The DUMMIES will continue to have Negative comments but that is solely to placate their other ID's and actually means little if anything. Some who may be interested will understand that their lack of knowledge about any aspect of a prospective idea or plan are just senseless comments being made.
Energy Transfer Partners Has Turned Into An Attractive Investment Opportunity
Apr. 11, 2014 5:23 AM ET
According to the recently published Oil and Gas: Master Limited Partnership Report by the Wall Street Transcript there is great anticipation for corrections in MLP stocks in 2014.
The U.S. Federal Energy Regulatory Commission is approving more natural gas terminals as gates to the natural gas exports markets.
Energy Transfer Partners L.P. received a permit to construct a 23-mile long pipeline connecting Hidalgo County in Texas and the city of Reynosa in the Tamaulipas State of Mexico.
The company has a target cash distribution coverage ratio of 1.05× and has a dividend yield of 6.76% that is higher than the industry and sector averages.
Zacks Industry Rank perspective regards the company’s stock as a great pick for investors and the company has been seeing upward earnings estimate revisions by analysts since the past month.
According to the recently published Oil and Gas: Master Limited Partnership Report by the Wall Street Transcript there is great anticipation for corrections in MLP stocks in 2014. The report considers the growing demand for midstream assets and the initiatives for U.S. energy infrastructure enhancements as the reasons behind the bright prospects of the MLPs serving in the industry. Energy Transfer Partners, L.P. (ETP) is one of the largest U.S. publicly-traded Master Limited Partnership "MLP" holding companies that operates and holds a portfolio of energy assets related to oil and gas transportation and storage.
Russia Unrest Could Be Good For U.S. Oil Companies
Apr. 8, 2014 10:17 AM ET
The United States is poised to be a major player in global oil production in the coming decades.
One big problem with that trajectory is the ban on crude oil exports, which companies get around now by refining crude and then exporting it.
It is possible that Russian President Putin’s annexation of Crimea, and saber rattling against Ukraine, could push the U.S. to approve oil exports.
The whole U.S. oil sector would stand to gain from this, and it could strengthen the basis for TransCanada’s Keystone XL project.
Have a great day, all!
Bill, they are essentially non-players in a big-player game of investing. Every avenue of investing is an adventure that results in unknown events that must be addressed. While they worry about you, me, and others who share a similar way of investing that we use, they are completely lost. I am not sure how Gray invests, as he has never revealed a lot about his assets, or how he invests. He has taken them to task on their lack of reasoning for their attacks and has pointed out the misleading articles and lies put forth y a group on AMATEURS, who as in the past exposes their inexperience and naiveté approach to investing. Their exposure to the real world came as they touted the BAC investment but shut up about it during the 13% slide. While they will be again touting BAC when the bank regains their footing, like us or I should say at least me; as I took advantage of the recent slide of EMES to enrich my position. According to Gray they do not understand trailing stops, how to use them. We are not ashamed of our investing skills and understand how the markets work. We know that when a stock recedes (and they all do) that we treat it as an opportunity and most of the time the opportunity is successful. They are afraid to admit to a failure, even if it is temporary, or as in the case as exposed by Gray afraid to discuss the actions on a 13% of BAC. There are reasons for that as it makes them appear to be WEAK. When you are WEAK you lose. (When you lose you get BODY SLAMMED by a 400 lb. Lowland Gorilla) LMAO,LMAO,
We had to also get a PLR from the IRS to be #$%$ured that the proposals would not generate more issues down the road for Tax purposes. Since we are not going to be an MLP, we just wanted to be sure.
Looking forward to the upcoming markets #$%$ earnings are again upon us. The big payday's are coming.