too much production, way too much hedging,now the hedges expiring... production high and prices fall..... now companies such as range stress than operating cost are dropping so they can keep producing and this keeps nat gas and nat gas liquid prices very low... similar story in shale as companies say operating efficiency and technology allow for them to keep producing and then prices drop.... low prices also lower the value of proven reserves..... write downs to follow....
only if there is fraud....yeah the unit price has been crushed in the mop selloff but cep/cmlp has the distribution covered with the merger
That $70 number is the problem. oil today at $48 and look at the futures for 2016 and 2017 and 2018.... all in the $50's... LINE can't hedge at $70..... nat gas below $3 isn't helping and nat gas liquids have crashed and supply continues to be built...
Oil and nat gas stay this low for a year and this is dead money.... LINE and others like SD BBEP EXXI etc all need to keep drilling to service the debt.... supply ample and prices stay low, only real hope is EURO gets stronger and dollar weaker..
the last few quarters ATW reports great number and the stock rallies for an hour and then craters.... its a great company in an industry that going thru a recession, rigs contracts reset much lower... I'd love to buy it too but with the whole sector crashing its not worth the risk
KMI bought out its MLPS, ETE trying for WMB, now Markwest .... I know Crestwood not in the same quality but at $4.18 its way too cheap, the asset base generates significant return at this price... as long as the smart money is buying out these MLP's I will wait and hold
copy and paste in browser, nat gas liquids propane and butane are not talked about a lot so this is a good read
I read it, pretty much a re-hash of the most recent quarter where they said results will be better in the 3rd and 4th quarters... still maybe declaring the distribution early or maybe some buying by management would instill some confidence
ATW has newest and most advanced rigs... but it doesn't matter.... everything oil related continues to get sold from XOM CVX to HAL RIG ATW RRC ..... everything even best in breed......gets sold..... I'm not trying to pick a bottom.. too painful