Anyone who has held and sold this MLP since it went public has made a bad decision. Not only are they going to pay Uncle Sam a big capital gains tax next spring they are missing out on a nice distribution which is heading to $10 next year. Wall Street icon Peter Lynch in his book, "One Up on Wall Street", advised to let your winners run. That was the way to achieve what he called ten bangers and achieve true wealth.
ACMP is a limited partnership. Unit holders have no vote or say on this transaction. The only ones who have any influence are the independent directors.
NEW YORK, May 25 (Reuters) - Chevron Corp is making the oil-rich Permian shale formation a top investment priority, aiming to turn its West Texas acreage into one of its top five assets by 2020, Vice Chairman George Kirkland said in an interview. Because Chevron chose not to sell its Permian holdings during low prices of the 1980s, it already was sitting on land prime for hydraulic fracturing and horizontal drilling, but the slow development was a frustration for analysts. More than half of Chevron's 1.5 million Permian acres don't require royalty payouts to landowners, an advantage over rivals like Pioneer Natural Resources and Concho Resources . That will help boost returns as Chevron looks to lift Permian production 67 percent to 250,000 barrels of oil equivalent per day by 2020.
In the long run this correction is a good thing. It flushes all the week hands so the next run up will be that much stronger. Analyst are forecasting a $10 distribution next year putting the current yield at 13%. More new wells are be fracked every year and existing wells will need to be refracked after they peter out. There is no end in sight for sand demand.
U.S. crude production climbed to a 28-year high last week as the shale boom moved the world’s biggest oil-consuming country closer to energy independence.
Output rose 78,000 barrels a day to 8.428 million, the most since October 1986, according to Energy Information Administration data. The combination of horizontal drilling and hydraulic fracturing, or fracking, has unlocked supplies from shale formations in the central U.S., including the Bakken in North Dakota and the Eagle Ford in Texas.
“This is an incredible phenomena that looks set to continue,” John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy, said by phone. “There’s a long way to go before we explore and exploit all of the shale deposits out there.”
There is a new investor presentation on the ACMP web site today. Also look at the WMB presentation dated May 14, in particular slide 76. On the surface it appears WMB is a little better buy here if you believe their forecasted growth for WPZ. However, that remains to be seen. WPZ always manages to shoot themselves in the foot with their fires and explosions. For now, I'm sticking with ACMP.
Despite official predictions that the U.S. energy boom will pop like a bubble in the next 20 years, people engaged in drilling for oil and gas—from the financiers to the frackers—see no end to boom times or low gas prices, industry insiders said in Chicago Friday. “It’s amazing how much is out there, and we have very high confidence on most of these plays that they’re going to be very long lived,” said Robert Beck, who explores for Anadarko Petroleum Corp. Most shale oil wells today start strong but taper off quickly compared to conventional wells, and some cease production in 7.5 to 8 years. But drilling technologies are evolving quickly to change that, said James King, a vice president for well competition with Baker Hughes, an oilfield services company.
New technologies are likely to be employed re-fracking wells that seem depleted to current technologies. “There’s nothing to keep you from fracking the same well a second time or a third time. As we go back to fracking these existing wells, what we might find is that we’ll have more patience and spend a little more money on the science up front to determine where to stimulate an existing well, and so we’ll be able to bring wells back on at least as strong as they were originally.”
The US Environmental Protection Agency lowered the amount of cellulosic ethanol required in 2013 to the amount actually produced, relieving refiners and importers of the need to buy credits to cover shortfalls against the earlier mandate.
The adjusted volume is 810,185 ethanol-equivalent gal. The earlier requirement, published on Aug. 15, 2013, was 6 million gal.
I feel most investors are now buying for growth here and not for current yield. With the growth projects in development analyst are forecasting quarterly distributions of $2.50 by next year so I don't think it matters if they distribute $0.97 or $1.03 for the next couple of quarters.
Is there a 15% dividend holding for US owners of COSWF shares? Are US holders of COSWF shares required to file a Canadian tax return? I remember owning PAA shares years ago and having to file a Canadian tax return.
I get email updates from seeking alpha for news form the stocks I follow. Here is the entire message:
Emerge Energy Services (EMES +5.6%) is upgraded to Outperform from Neutral with an $85 price target, up from $50, at Baird as EMES increases production capacity by almost 70%.
Baird sees substantial, high probability distribution growth potential from $110M in new facilities coming on-line from now through Q1 2015, which have under current sand pricing scenarios the ability to produce more than $10/unit in distributions. Despite an enormous run, firm sees further upside potential as mgmt increases production capacity by almost 70%.
Shares have surged 18% this week and 54% YTD.
One thing that got my attention in the Baird note was: "new facilities coming on-line from now through Q1 2015, which have under current sand pricing scenarios the ability to produce more than $10/unit in distributions."
I was expecting a bump to $6/unit distribution within a year, but $10 was not an expectation
U.S. shale boom is just beginning, ConocoPhillips CEO says-should be several decades left of successful energy production.
ConocoPhillips Chairman and CEO Ryan Lance believes that the U.S. is only witnessing the beginning of the shale revolution. "What people are learning is we've only scratched the surface on what technology can do to improve that outlook over the years. This is a layer that is going to last for quite some time," he said
I listened to the conference call and am convinced this should be a $75 to $100 stock in a year. Four new sand mines are in development. Two new processing plants are being built which will more than double their sand sales. Sand sales prices are increasing than EMES has 25 customers for their sand including 11 of the 12 largest buyers in the market. They feel they will be the largest supplier before the year is out with their growth plans. Listen to the transcript and see if you disagree. Analyst upgrades are on the way.
There is a new SA article out today that falls under the Seeking Alpo category. Anyone who tries to evaluate MLP's using EPS shouldn't be investing in this class of securities.
The median price target for 17 brokers in the survey is $156. The risk/reward is all to the down side at these share price levels.