You are wrong. Never trust Yahoo Finance info. Look at the EPD website where they show that in fact the distribution was adjusted for the 2-1 stock split back in 2002.
Upstream: ARP, EVEP, BBEP, VNR, LNCO, AR(not an MLP), warrants and preferred on MHR (not an MLP)
Midstream: APL, MWE, EPD, EPB, WPZ, MMP CMLP
GPs: ATLS, TRGP, WGP PAGP
Frac sand: HCLP
stagg, I haven't heard much about NSLP. There's been a ton of MLPs that have come public in the last year and the sector has really caught fire. I'm not sure it's because investors are on board with the energy boom or if they are just chasing anything with yield that is not related to mortgages or lending where a surprise hike in interest rates (like last year's taper tantrum) may have scared some away. Doing a quick look, it looks like NSLP's fields are mostly in OK and not in one of the "hot" shale plays like the Permian, Eagle Ford, Bakken or Marcellus/Utica. However, one of their presentations mentioned a high % of liquids in one of their recent acquisitions. It is the high liquids concentrations that are benefiting explorers.
I have so many MLPs and so many e&p MLPs that it would take a lot for me to invest in another unless I got rid of one of the ones that I own (BBEP, VNR, EVEP -- I also own some LNCO). Some have commented that prices are getting a bit lofty in the space, so that may mean that NSLP has some room to catch up.
Good luck if you invest in NSLP. I'll have to keep an eye on it.
Stagg, I'm back after a weeks vacation.
As I said, I was initially attracted to the oil and gas MLP sector because of the growth prospects and the yield. I've learned a lot from many of the postings on the i.v. board and the many company presentations. There are lots of ways to play the different shale regions and the different subsectors. Liquids are being moved overseas and chemical companies are building plants in the US to take advantage of the cheap and plentiful natural gas. This is a long-term story.
The one issue is that the stocks with the best prospects have been bid up and aren't cheap.
I've read some good things about MEMP. They just closed a very large acquisition of some 900mm so they will need to raise a significant amount of equity and term the debt out. Most MLPs try to use a mix of 50/50 debt and equity, so by that metric they would need to raise some 400-500mm. At $22 per share that's some 18 mm shares. The current spo is about 8.6mm shares. I think the need for equity is going to weigh on the shares for a bit of time. Some think that they will announce a dividend increase soon, but I wonder if they could afford that now with the new share issuance.
William, this offering has been anticipated as MEMP made a 800-900mm recent huge acquisition that they put on their credit line.. I would have expected that they would have needed to raise some $400mm in equity and the balance in debt (most MLPs try to use 50% debt and 50% equity to fund acquisitions). I could be wrong because I don't follow this that closely, but I would expect that they still need to raise another 200-300mm in equity after this offering.. Looks like they had about 60+mm shares prior to this spo, so that means at least another 10 mm shares to go. The possible future issuances may keep a lid on MEMP shares in the short term.
Other posters have been very positive on MEMP and this acquisition.
Stagg, as we have seen over the last few years, it is very difficult to try to time a correction. However, that doesn't mean that they won't come. But with so much money floating around, it usually is something out of left field that sparks the correction. Today, it could be the problem with a bank in Portugal. Of course, the answer to solve this problem, will be more money thrown at it by the world's central banks. There are seasonal things that can cause corrections, like the need for funds to book profits so that their bonuses can be paid, illiquidity that occurs in the summer when trading desks are thinner and most importantly, the trading computers that do most of the trading all of a sudden reacting negatively.
Remember back in 1987 when the crash was caused by "portfolio insurance" that was supposed to prevent a crash?
We could get a little bumpy here. IMO, the news out of Portugal points out that nothing has been fixed. The banks in Europe are still insolvent and nothing has been done to fix the problem other than driving the price of European debt up so that their banks could make a profit trading it. Did everyone see the yield on the Spanish 10 yr was around the same level as ours? Yea, Spain is in the same shape as the US.
The stock has been on a tremendous run since last year when it traded below $55. It is due to take a break. The entire MLP sector has also been on a run. Since breaking out of its sideways trend last year, the stock has gone up in a nice upward sloping channel, occasionally hitting the top end of the channel, then correcting back into the channel. It has not even tested its 50 dma throughout this entire move up, although it is now getting close. The next distribution, which should be a nice increase, will be announced soon and the reaction to that news (is it already priced in?) will say a lot about the future direction (more sideways or onward and upward).
Well it doesn't lie in the longer run, but it is prone to fake moves at the hands of the robot traders. The question is whether the next economic stats will push the yield below the lower support around 2.47%. That level has held, more or less, on 4 occasions going back to Jun 2013.
PAGP announced an increased dividend. 7.5% over last quarter and 23% over the initial rate. I chased it last week and will be looking to add more if it goes a little lower.
The MLPs have been strong over the last few weeks so they should be pausing and pulling back a bit. But the distribution increase announcements are coming.
That has to be the silliest post of all time. Why would CHK spend money that it doesn't have to buy CHKR shares that are trading for more than they are worth? You might think that they would do so in order to get the 23% "dividend" except that that dividend is not going to continue at the present rate forever. You say "that is what appears to be happening" but if CHK was buying any shares of CHKR under Securities Exchange Act rules they would have to report those purchases within 2 days. The fact is that CHK is carrying its 23.6 million units in CHKR at $174million (see their 10-k). Do the math.
Gambler, I understand where you are coming from, but I disagree. The economy is just not strong enough despite headline news of jobs (the bulk of job gains is still part-time). Plus there is still no wage inflation. We will see when the next economic reports come in. High food and gas prices will keep the consumer under wraps.
I agree the Fed is in a box of its own making. Inflation is up no matter what the adjusted stats say. The Fed says they want inflation, but once inflation starts, you can't stop it unless you jeopardize the entire economy with a recession.
happy 4th to all.
Stagg, I think rates will decline again after this recent increase, once it becomes apparent that the economy is slowing again or at least not growing fast. Goldman just cut their Q2 GDP forecast. Plenty of articles on different blogs that look into the different reports and provide a less than rosy view of the economy.
Sarge, a couple of points. First, the headline numbers always move the robots that trade Treasuries. The 10 yr jumped but ran into resistance at the 200 dma at 2.69%. We will see next week if the market really believes that the jobs number means the economy is getting stronger. The jobs number included a DECLINE in full-time jobs and an increase in part-time mostly low wage retail and hospitality jobs. The participation rate is still at all time lows. And the birth-death model added 121,000 jobs (yes the BLS is not real actual job info, but a model). With rates increasing, one would have thought that the nonagency mREITs would rise, so this tells me that the story of a stronger economy has some holes, although the initial rise did hurt agency mREITS somewhat.
I think interest rates remain in a range. Strong economic stats push rates toward 3%, but weak stats push them back down. The next GDP estimate is due at the end of July. The leading indicators number is due in mid-July. Read an article yesterday that said there was a lot of inventory accumulation in the first quarter that is not being worked off, thereof producers will have to cut in upcoming quarters.
I am looking to add more WMC, maybe around $13.50 if it gets there or if rates get closer to 2.8%. Also going to add some closed-end muni funds in here as they dived with the jobs number and are now approaching oversold RSI levels.
Jack, you are right and you didn't even mention the stats that showed full-time jobs fell while part-time jobs increased. Then there is the birth-death model adjustments which added 121k this month. But as I predicted, the 10 yr rate initially rose from this headline and ran smack into resistance at the 200 dma at 2.69%. We will see if the market really believes the jobs report indicates a strengthening economy. WMC is holding in there considering the headline news.
I've owned AR since last year. Should have bought it when it came public in the $40's. Because I also own EVEP, I was following news on the Utica/Marcellus shale area and they were always mentioning Antero as having huge acreage with great potential. AR should get a pop when they bring their midstream unit public as it will bring out the value of that unit. Not sure if AR will spin off the remaining amount that they own. You can view their S-1 to see the growth in the midstream unit. My one concern is that the entire midstream sector has gotten very popular and the IPO price might get pricey.
SArge, the Elba Island news was already well-known and revenues from it are still a ways off. EPB got oversold after their distribution guidance was flat. They got a bump from all of the LNG news because of Ukraine and all of the other LNG plays. But MLPs move based on distribution growth and EPB's will be flat. Still, you get to collect a good coupon while you wait. But it's not going to be a rocket like the gp's that I have mentioned.
Don't know if you saw this, but there's an item about Antero's (AR) wells in the Utica. Mentioned as among the best. They are IPOing their midstream unit, probably in August. The midstream unit has a water disposal operation for fracking. Their growth will be huge. Don't know what the initial yield will be yet, but don't let a small initial yield stand in your way.