ETE will get a 1.5 Billion payout. Use this money to buy the WMB debt. Keep in mind after WMB announces the settlement the debt will be trading at about .65 cents on the dollar. With the current debt load that WMB has and the market conditions it is just a matter of time before they declare bankruptcy. Then ETE can cherry pick the Transco pipeline for even less.
GLTA and happy Friday
undervalued company in a undervalued sector. 12 - 24 months from now this will be a lot higher in price and in the mean time pay a great dividend
The only thing that takes this trade much lower is a world event like China banks imploding or other geopolitical pressures that will hit ALL stocks
This is a great sign and the market over reacted to the CFO leaving. It also did not help that the 8-K was as vague as could be. Especially when he is the one that orchestrated the merger deal..... lot's of unknowns but way to much value to sit on the sidelines and watch
payment is not to ETE.... thats not what I am saying. I am saying it will shake the industry
Maybe when CHK misses a 500 million dollar payment next month..... we shall see
sure hope you don't need to turn on lights or heat your house or cook any food.
I plan on doing all of those things and realize that it takes energy to do them
Oh yeah.... and get a GREAT dividend to wait for the price to go back up
World markets in turmoil, sounds like a buying opportunity to me. I would like to see the $12-14 range so I can dollar cost average down. I don't think that the US will use less energy and this specific company is well positioned.
I am only investing money I don't need for a year or two and think the return here will far exceed the return in most other investments
looks like there is a polar vortex hitting most of the US in the next few days. Even Florida will be in the 30s and highs in NYC around 0
I see demand for oil and gas
why would nat gas contracts not be renewed? The power plants still need to make electricity, the homes still need heat, people still need to cook. More and more things are using nat gas everyday because it is cheap and clean compared to most options. Ever notice how many city buses say powered by natural gas? Lots of school buses and trash trucks run on nat gas as well. It is so much safer and less expensive to move gas through a pipeline then by rail car or truck. Food for thought
Seams like they need each other. WMB can just tell CHK that they won't move the product unless they get the price they ask What can CHK do? Okay move it by train and that cost money or ??????
How much downside compared to upside??
ETE can cut the dividend as long as ETP and SXL don't . Think about it... we can have a 5-7% dividend and a health company or get greedy today and have little tomorrow. I like long term payouts better
does it matter? with nat gas being around $2 it is just a matter of time. We need higher nat gas pricing to make things better or the sector is or the entire sector is on borrowed time
Next month CHK needs to come up with $500 million for a debt payment and may not be able to pay it.
IF this happens WMB will get killed and bring ETE down with it. This will be a short term opportunity but may be a great time to pick up more shares.... let's watch and see. This could be one of the big reasons WMB stays in the deal.