The one analysis I've never seen for EPD is a Commodity Price / DCF sensitivity analysis assuming different price points for the key commodities EPD, transports, stores, produces (in some cases) and markets.
Yes -- that would be a good thing.. Create jobs, lower gas prices and pump up the energy stocks.. Win Win Win..
Also that was his first direct purchase over last 12 months..
With the prospect of lower oil and natural gas prices for a prolonged period -- Doesn't that dramatically change the value proposition for alternatives -- Am I missing something. ?
Yes -- bought more today -- when the export ban gets lifted EPD is going to fly!! The shale oil is much higher grade than Brent -- So when the ban gets lifted the shale oils will trade at a premium to Brent -- Brent will fall as well as gas prices and 1 Million jobs in the good ole US get created... Win Win Win... .
The big problem with wind is that where it is generated (the middle of nowhere) -- is not where it is consumed (major cities = east and west coast... Cost too high to get from one point to the other..
We need to pass that bill.. Both Senate and House are in favor of lifting the ban.. If the IRAN thing passes then US would be only country that can't export crude oil. I see a deal --- the democrats get the IRAN thing and republicans get the export ban lifted.
Lifting ban creates jobs and would be huge boon to EPD..
I don't have a crystal ball -- but I really don't think that OPEC want's Brent below $55-60 or WTI below $50. As I understand it at WTI at 60-70 is around break even or minimally profitable. The heavy oil sands in Canada also are unprofitable when Brent is below 60. The Saudi's don't want Brent at 30-35 -- they can accomplish their objective (shutting down US production) by keeping oil at 50-60. Any thoughts ?
EPD has been able to maintain DCF in as commodity prices fall. This from COO in the Q1 2015 conference call.
"For example, in the first quarter 2015, primarily as a result of lower commodity prices, our revenues were down 41%, to $7.5 billion, but our costs and expenses were down by 44%". ( DCF was up 4% from prior quarter or q1 2014. )
Good luck -- you have more courage than I 17 of 18 analysts rate EPD strong buy and 1 a rates EPD a hold.
Guess I'm holding here..
Anything related to oil, natural gas getting clobbered.. Should have bought Google last week..
This is a great company -- essentially a monopoly play.. just way out of favor...