I just sold half of my Apr 25 call options. Sitting on the other half and a pretty healthy supply of Jul 22.50s. Solid Company. And I do think the potential is there for an XOM or similar big boy to try and pick them off, in fact, that speculation might be causing part of this run?? I have a kid teaching in El Dorado, and 3 grandchildren there. I wonder about the MUR pledge to pay substantial college costs for the El Dorado graduates? I wonder if that is a trust that would out live a take-over or merger?
I don't think you can say Chicago has had a cold winter, in fact the opposite is I believe the truth. I don't have Chicago handy, but I do have Minneapolis, and this winter was through yesterday, 13% warmer than the 10-year average.
Jay, I've watched the upstream pipelines for years, and dealt with them with respect to purchasing capacity. The one thing that hurts with lower prices is this: Say your volumetric 100% LF rate is $.25 per MMBtu, then when prices for the NG commodity are at say $6.00, the folks moving the gas aren't bothered much by that quarter, because it's a small piece of the delivered price. But when suddenly gas is at $1.75, and your still trying to contract to move it at a quarter, the folks suddenly want to drive a harder bargain because that quarter is a much bigger piece of the delivered price. So they quote one pipe against another, and one of them discounts, and suddenly instead of getting a quarter, you're getting $.20. And the next customer does the same thing, and the Company that lost based on a $.22 bid, now drops to $.18, and so on, and so on. That's where the lowering commodity prices do hurt your business in the pipe area. But nothing even close to what's happening to the producers. I think KMI has been overly punished on the price side. I'm sitting on 4,000 shares at a weighted price of $27. So I have a long way to go to get back to even. But I think when folks see a few quarters with good results, we'll be back into the $30's before you know it. My one regret is that for the damned dividend, I bought 2,000 of those shares at about $36. Literally, if I had waited just a month, my weighted price would be closer to $19.