Looks like the rumor was squelched after the market closed but seems a good chance it will be acquired, it is now in play as they say. Markwest might be another good one for growth and the possibility that it will end up being acquired, although saw that someone thinks they might acquire TRGP. MWE is an LP so the tax issues.
I still like PAGP, it is an LP but has chosen to be taxed as a C corp and the div should be a return of capital for a few years. Seems it could end up with a bigger player, KMI, EPD...
Board is annoying now. TRGP, haven't looked at it closely recently, but would say that it is probably not a buy now, but not sure I would sell it either. It has been a great play, don't think it is driven by speculators. One that I have been buying in the past few days is PAGP, the GP of PAA. Should grow 25% a year for the next few years. Still think WMB is a great bet, might get to a 3% yield, not unreasonable for a pure GP, PAGP is at 2.5% now. WMB could be $80 by the end of next year. PAGP could be close to $50 end of next year, $29 now. The infrastructure companies should continue to do well with $100 oil and low interest rates.
Bought more yesterday and today. WMB was my biggest position and I think PAGP could be a great bet over the next few years. And they could easily do a big deal at the PAA level that would move the GP up substantially. End of 15 div rate of a dollar at 2% yield, $50 stock. That's without a big deal. Will buy more with weakness.
WMB is now showing opening at $53+, I think $54 to $56 today feels about right, 15% growth to 17 gets you into the $80s. May not be 20% that PAGP or ENLC gets but still a good run for a stock that was selling in the $20s when they spun off WPX. Do agree it's not a great deal for ACMP but probably not much can be done. WMB already owns 23% and Global Infra owns 27%. PAGP grows 20% while PAA grows 10%, WMB is growing 15% while WPZ could do 12%. You can argue the relative values but WMB does well. $3.25 at 4% yield is $80, that's not an unreasonable assumption. Probably the bigger factor is interest rates in 17. But a 15% grower with the 10 yr T note in the
Great deal for WMB, $2.24 div for q3, that's more than guidance for '15. And $3.25 for '17, at 4%, $80 plus. At 3%, $100 plus, ENLC and PAGP, both of which I own, yield is less than 2% for ENLC and around 2.5% for PAGP, so 4% is not unreasonable and 3% for a pure GP with an LP growing at a 10% clip could get a 3% yield valuation. Time will tell but again, a great deal for WMB. Also own ACMP to a lesser extent and it's been a great run from the $20s. This is the problem with owning an MLP without the GP, at the mercy of the GP.
You obviously didn't read the release, the next quarter dividend increases 32% to $2.24 annualized, that's well ahead of the 15 full year guidance. This stock will be $80 to $100 in three years, easily.
I bought a bunch today, same thing, waiting for a pull back, but after listening to the analyst pres, this might be the best energy infrastructure co over the next few years.
This offering was a non event for the co value. Was a great buy opp at $33. If oil prices hold up, this will be over $40 by year end.
Was going to post that, have you heard anything on the CEO issue. Seems that could give a boost too. If oil holds up, $60 seems an easy target. Wonder how they got to $70.
This is a $40+ value, will take a few months for the market to figure it out. Even with the gassiness of the assets bought, the price was cheap. And TMS well results from other operators coming soon.
CS raised target on BCEI to $66. A great deal. See $5.34 eps in 16, this could be a triple digit value in a couple of years. Good read through for PDCE on the down spacing. A CEO announcement could move it up more. I would bet the interim guy gets it. This deal probably seals it . Still think a merger with PDCE, 170k acres in one of the best plays, would be impressive. Thousands of wells.
cbd, couple of new targets, they are consistent and seem reasonable based on production guidance. Not sure there is much downside.
Sanchez Energy : Canaccord Genuity raises target price to $41 from $36; rating
Sanchez Energy : MLV Partners raises price target to $41; rating buy
Playing around with value for SN, if 60k boe/d end of 15 exit rate. Market cap of $1575mm, debt and pref to end of 15, $1750mm. At $80k /boe/d, $4.8 billion less $1750mm, $61 per share. And the TMS 40k acres could be a big deal. Guess they are self funding next year with around the same capex. Only neg is returns are less than some of other plays, maybe 40%. A cheap stock.
Was off line today, stock backed up some, don't know what was said on the cc but 60k boe/d end of next year with potential in the TMS, seems if there are no holes in the EF acreage, this should be a $40 stock fairly soon. Nice day for BCEI, haven't seent the details but shows the lack of a CEO has not bee a deterrent so far. And well results, should satisfy some of the doubts about downspacing, I never understood the concern. The Wattenberg Niobrara will probably end up one of the best plays.
cbd, check out SN, they bought 100k acres of EF from Shell today, price looks great, projecting 60k boe/d end of 15. Current EV is $1.9 billion plus the $640mm purchase, don't have to sell stock to finance. And they have 40k acres in the TMS. Deal numbers look great.
This may the best deal I've seen in a while, projecting 60k per end of 15, $2.6 billion EV now. At $65k per boe flowing, the stock should be $40 minimum. Could be a bigger day tomorrow than a couple of dollars.
Thinking about the upside/downside, if oil goes to high $80s, 15% downside, if it stays at $100, 50%+ upside. Guessing oil movements short term are next to impossible and longer term is problematic, but seems like a good long term bet at the moment. The emerging markets probably still hold the key. And the rest of the world can't seem to add reserves at near the price the US can.