question in the debt and interest rates. I think both mwe and ngls can get to investment grade on secured debt in late 2015 which should give them time to have done some more low interest rate refi's and new issues
we all have different time horizons. mine includes both mwe and ngls, ngls for 2014, 2015 and 2016 and mwe for 2015, 2016 and 2017. both make for a strong CAGR overlap
from earnings release. interested selection of wording. "Project development costs are being partially funded by a potential shipper." Does that mean MWE (if so why did they not say it) or a producer who would be the shipper and will fund some of the conversion costs for a lower tariff. very interesting
"KMP and Targa Resources Partners also continue to pursue a possible joint venture to construct new NGL fractionation facilities at Mont Belvieu, Texas, to provide services for producers in the Utica and Marcellus shale plays. The facilities would provide fractionation services for customers of the Utica Marcellus Texas Pipeline (UMTP), which was announced in the fourth quarter of 2013. The pipeline would have a capacity of 150,000 bpd expandable to 400,000 bpd. The UMTP open season closed in late February and discussions are continuing with potential shippers during the summer. Project development costs are being partially funded by a potential shipper. The proposed UMTP would involve the abandonment and conversion of over 1,000 miles of natural gas service on TGP and building approximately 200 miles of new pipeline. .."
Marcellus, Utica and SW
Hi breakem. In cc they indicated 2nd quarter is typically their weakest quarter with wholesale margin shrinkage and 4th and 1st are strongest. Their go forward plans are also positive. DPM is one of my larger positions but what caught my eye was the Mt Belvieu volume shortfall and who it was withhen some are volume strong.
CC indicates liquidity ratios if good which is a positive. They use a Trailing twelve month paid ratio for coverage which was 1.1 which is positive but quarterly .88 was lower than prior year for second quarter which did bother me.
which is equivalent to a 75,000 bbls day of fractionation
-Targa says Mt Belvieu trains 5, 6 and 7 still available to fractionate. details posted on investovillage mlp board
On GC splitter will move forward
"...In the Heather field, capacity limitations at the Mobley gas processing plant have restricted the 8-well Mills-Wetzel pad #3 from producing at full rate. This issue is expected to be resolved late in the third quarter of 2014...".
which seems to be a contradiction to other Mt Belvieu players
from today press release
“Earlier this year we outlined our growth strategy to reach our goal of doubling the company’s size by the end of 2017,” said Barry E. Davis, EnLink Midstream’s President and Chief Executive Officer. “These are exactly the types of projects we identified that will help us reach our objectives. Our strong asset base in premier oil and gas plays along with our focus on establishing long-term, fee-based contracts creates an extensive pipeline of opportunities. We look forward to continuing to execute our growth strategy to create value for our unitholders, customers and employees.”
I think some one wanted to hear some firm contracts on S. Texas, but wisely Management did not respond to the sarcastic baited question at the end
from earnings release-this is the ways to grow. they need to expand add other producers and double this target
"...Pioneer Natural Resources, Inc. ("Pioneer"), a 27.2% partner in the WestTX system, continues to be the largest producer on this system and the contract between APL and Pioneer was recently extended 10 additional years through 2032 and includes additional acreage dedicated from Pioneer. The Partnership expects processed volumes on this system to continue to increase through 2014 and beyond as Pioneer, and the Partnership's many other producer customers, continue to pursue their drilling plans over the coming years in the Permian Basin. The previously announced 200 MMCFD Edward plant is expected to be complete in September of 2014 and the previously announced new Buffalo plant, an incremental 200 MMCFD cryogenic processing plant to be located in the northern part of the system, is expected to be complete in the second half of 2015. These two plants will serve the increasing activity in the Permian Basin and will be fully integrated with APL's WestTX gathering and processing system, increasing the processing capacity in the Permian Basin to 855 MMCFD in 2015. Management currently expects to install a new 200 MMCFD cryogenic processing facility in each of the next five years, along with all necessary infrastructure, in support of the current production plans of the Partnership's producer customers in this area...."
I suggest VNRs yield may now be too richly priced against the other E&P mlps for a continuing overage ratio below 1 with the caveat VNR includes significantly more proportionately in maintenance capital, which reduces DCF which minimizes near term distribution growth opportunities, than most of the other mlps, but probably still supports some what of a comparative premium yield
Eagle Ford net production in the second quarter of 2014 averaged 12,300 BOEPD, up approximately 12% from its first quarter 2014 average. The Company is running a single-rig program to develop its West Asherton field and Fashing area. Production is expected to grow approximately 39% year-over-year. Newfield expects to drill about 20 wells during 2014.
forgot to mention I also hold a much smaller position in Linn so I could get the Houghton play. In my 25 years in E&P I found over the long run it is better to be roughly commodity balanced with a little heavy on liquids, so in the three MLP holdings composite I would say production wise I am approx 55% to 60% liquids and 40% to 45% dry gas
I hold both bbep and arp. from a balance perspective. They a hold a composite portfolio that encompasses some of the better US conventional fields and still keeps me in commodity balanced so get a better overall balance holding both
jim thanks for timely and informative post. coincidental but my personal mlp weighted average target is a 6% current yield with a 12% cagr target