With the 9th containership out of the picture, the direction they are heading is the direction dry bulk takes them. That could do a 180 at any time.
Got lots of XOM. Will try to add if it goes lower later this qtr. I want to be a shareholder when they pick up the pace on acquisitions. Capex will continue to shrink to preserve share buybacks and keep the dividend increasing.
I'll have to disagree on the outlook for SDRL and offshore drilling. A video clip from Bloomberg discusses the earnings reports of XOM and CVX and a common theme of the majors is continued reduction in capital spending of which offshore drilling is a big part. SDRL in particular has a dozen or so rigs under construction and rigs with contract expirations coming at a steady pace for another two years. I was looking at SDLP but decided against it.
I sold NMM and MEMP today, in addition to LNCO yesterday. Put some of the proceeds into MMP which has a solid distribution with quarterly increases. Goes ex-div next week. Also bought more NTI and GLOP. May also add to my TGP if it dips further.
Not much news from the board's KMI cheerleader. Still my #1 position but not adding. It's a steal at $35, IMO. KMI has a huge backlog of projects in the works so the dividend will grow... frequently.
Hope I didn't panic sell. Hard to not stick around for that dividend but I admit to feeling spooked by the Linn dividend being eliminated. I expect NMM will keep their dividend through 2016, as promised, but after that, all bets are off, IMO. Don't need that.
Out of NMM this AM. NMM has been a favorite for years but the conference call was a disappointment. Not exercising the option to acquire their 9th containership is a real negative. I have to disagree on the forward outlook. That 9th containership was a big piece of their pro forma cash flow estimate for 2015 and 2016 so without it, distributable cash flow will not cover the distribution. The presentation highlighted dry bulk more than in the last one... may work out but pray hard.
Got out of NMM this AM. Overall, I may have broke even or a little under. The conference call was not impressive. The first caller zeroed in on the company's not exercising the option to acquire their 9th containership from MSC, as did another caller. Didn't answer the question with any clarity. Talked in positive terms about dry bulk... we know how that can go. Not going to hang around and see a distribution cut in 2017. I expect there will be chances to trade in a lower range, say 9.50 - 10.00.
you mentioned you were thinking of selling NTI. Any particular reason. Problem with it or just taking a profit? I am thinking of buying... I have a hunch they will surprise to the upside based on a higher gasoline margin. As if I know what I'm, talking about. May sell out of MEMP and buy NTI or maybe ALDW to replace the dividend.
Added CPLP yesterday and may add more today. No guarantee, but Wells has it in their "secure distribution" group of MLPs.
Sold LNCO. Can't spend a zero dividend. Not that you couldn't see it was coming. Not a case of deer in the headlights. More like Alfred E. Newman. I want my Berry Petroleum shares back!
Maybe LINE and CHK are just clearing the decks, setting things up for a sale to a big fish. Wait, no. That would be in the interests of shareholders, not management. What was I thinking?
As I understand it, SFL gets a straight payment on rigs leased to SDRL, something like $250K/day on a UDW rig. SDRL contracts with an oil company to drill and takes anything over that. My understanding also is that he payment from SDRL to SFL is guaranteed, regardless of whether not the rig is leased at an excellent rate or if it is idle. SDRL is supposed to take the risk but who knows what's in the fine print or if SDRL is unable to perform on a lease.
Personally, I said I was stuck with LNCO. Otherwise, I don't remember anyone that was still saying "buy LINE." Lots have been saying, buy the midstream MLPs and still do (me for instance). And yes, we all know you sold LINE at a great price but just when was that? 4-5 years ago maybe? Heck, I sold Calpine above $50 back around 2000 and it went BK about a year and a half later.
'cept, when a rig stands idle, does SFL continue to get the same payment from SDRL. It's supposed to be guaranteed but just what does that mean, really? Could use a little more light on that.
IMO, XOM is #1 and SU is #2 because of dividend coverage. RDS would be my #3 based on its position in the world LNG market.
I'd like an update on the last containership acquisition (MSC Renee). It is supposed to join the fleet during Q3. It won't be a done deal until it's a done deal.