We are going to have to deal with the corrupt elite of Mexico.
Holding our marine for their vanity.
50,000 Mexicans dead due to an uncontrolled border and drug.slavers profiting on it.
Corruption so the people do not have opportunity.
Now we send these corrupt elites our Obama discounted natural gas and our jobs.
We are not helping Mexican people live in the hope of a lawful republic by allowing these exploiters to dress up their corruption in bogus racism
I listen to an American dare say the Servants Heart when it comes to public service.
Is there any greater service than surrendering personal individualism to safeguard our Constitution and therefore way of life?
To willingly go into harms way so expecting American mothers are not the front line in airplanes? Not if it is in their power to take her place.
There is and was the American infantry officer who ran into direct fire across an exposed bridge to pull an Iraqi woman to safety.
It is more than power, training and odds. It is the Servants Heart.
Obama is off making himself even smaller in front of totalitarian Chinese collectivist elite. Just as he did not go to Gettysburg. A Providence which American people join together in ritual as a expression of thanks and affirmation.
Franklin D. Roosevelt’s D-Day Prayer
for at least throwing a few spitballs at ISIS with lower oil prices.
A surplus and lower prices also hurts ISIS revenue.
MOre problematic for America is the oil boom alone has held our economy above water and avoided the Obama recession.
Which of course is magnified by the economic slowing already occurring around the world.
The instability Obama's childish passive aggressive emotional based politics imposes on the world.
Jon did a perfectly timed piece on the Republicans addressing Global Warming. Some of their statements and questions were silly.
But the facts remain
No temperature change in a generation
There was massive falsification, manipulation and dissembling exposed from the climate change - political crony capitalist - primitive religion alternative reality complex
The massive deception was not exposed by the peer review process but rather trained economists reviewing the data and bogus methods
All the climate change - political crony capitalist - primitive religion alternative reality has done and now demands increases co2 and destabilizes the free world. Corn ethanol any one? If these deludes will not address something so clear what does it tell us of their intellectual and/or character condition?
As for precession or the earth wobbling. We have entered a period of precession cooling. Which is why the academic fad of 50 years ago was an ice age. Went well with the claim the world can not grow enough food for us all.
The primary determinate of global weather is the sun and its relative activity.
Then comes volcanoes and other less explosive venting.
Unfortunately what we have trying to take control of energy policy are cold hearted collectivists, corruption profiteers and the truly primitive religion deludes. With the intolerant collectivist academics serve as high priests of science. Which is why coal companies can not get the contrary work done by the scientific method published. Which yes does scare a reasoning person to the core.
The answer all mature honest Americans can agree on it our natural gas. The onshore natural gas ices can be developed by using co2 to displace the methane. So there is not hundreds of years domestic supply but rather thousands.
Certainly masses of pot smoking deludes having a tantrum and trashing New York city with their muchie debris is not productive behaviour or action. It is simply a self absorbed tantrum.
Look I am invested in the pipe lines running the ng pipes to Mexico. Should be stopped right now.
Yet another demonstration of how weak Obama's secular religion as politics is. The one world insanity he follows is the most delusive.
Shame Obama has never been honest about his beliefs and attending agenda. Of fundamental transformation of America.
Powered by the least aware and the ability to micro target their emotions.
Yes it looks like a great deal. Oil at California prices. Certainly the team has done a great job of cost effective production increase with Midway Sunset. Maybe even an opportunity for natural gas in excess of EOR requirement at Midway.
We will need additional color. But investors buying LINE and waiting out Obama should be very pleased.
Hedge Eye was more than a great deal off on their asset valuation musings. Question is where the 26 year old wunderkind should have wore the cup.
"A Harvard Business School expert attributes the current trend of entrepreneurial attrition to a combination of big firm dominance, backed by all-time high monetary fluidity to buy up small-sized corporations, plus the affordability of super-lobbies, who are effectively managing Congressional legislation and White House executive initiatives.
Tragically, such pregnant initiatives as soaring federal minimum wages, plus such staggering new benefits as Obamacare, and overtime for salaried employees, will likely further discourage the innovative spark that has created the underpinnings of America’s employment heavy independent businesses now and in the future."
It is true. America can not even end thee insane mandates for completely defective corn ethanol Even when the law itself requires it.
A big reason large companies are keeping record amounts of profits? They are focused on efficiency as they do not have pricing power. Which increases the barrier to entry. It is a symptom of the Progressive secular nihilist belief the rest of humanity should consumer less. The best way to achieve this is to artificially by political mandate increase the cost of food and energy. Then tack on huge minimum wage increased based on emotion.
Like old tired Progressive Europe, no one sneaks up on the lumbering progressive businesses. No Walmarts or Costcos. No Starbucks getting an absurd price for coffee mainly because of a positive culture.
Corny Willie, House of Saud has massive financial reserves. So they have the capacity and financial strength to either increase or decrease production of oil at the margin of demand to change prices.
Unlike poor hapless, naive and dogmatic Progressive Obama, they understand their Kingdom is at total war. Any longer range strategy is suspended by the critical immediate.
The variable the world is worried about is economic growth and oil demand. China is slowing and clearly unstable. Germany is sputtering with the debacle of the GW religion on the cost and stability of electricity being a determinate co-efficient. Not the determinate but a key co-determinate.
Europe has shown enough common sense to lift their bans on Canadian sand oil. Unfortunately Obama's illegal blocking has cost America jobs and economic growth. Loss of American opportunity thanks to no one but Obama and Progressives.
The core of the problem is two more years of hapless and disengaged Obama. He dreamed of America's fundamental transition to a collectivist welfare state. Now his bumbling has made him a war time leader. So he would like all spoiled children disengage by taking his ball home.
The best solution is to simply send in the Marines. Sweep forward and force the terrorists into the cities. Then have the Kurds, Iraqi army and hopefully Sunni tribes eject the terrorist from their cities.
Any idea that this ISIS can be managed for two years given the wild uncertainty it creates is so delusional only Progressives could attempt to implement it. These clowns can be easily crushed. A 10,000 emergency reaction force Obama ran away from, can be left in place.
Yes, ending the insane and evil at this scale corn ethanol mandates is necessary to remove a huge amount of uncertainty holding our economy back. The expectation that the American President will do the right thing in a crisis has been shattered by Obama and Hillary Clinton.
Corn ethanol, the ignition source for all this.
Given the economics of shale and oil sands, the incremental supply requires at least $80 a barrel.
Shipping crude by rail can be up to twice as expensive as by pipeline, roughly $14-$21 per barrel to the Gulf Coast. But just a small volume of such shipments could help avoid the short-term supply overhangs that have burdened the market for years.
It really is not possible to list all the economic inefficiency Obama is imposing mostly through regulatory uncertainty.
Mr. Hamm is correct. This is just delaying the onset of American free market economics building a rational market for oil One in which the power of Saudi is greatly dimensioned by market response.
Obama is not achieving anything with all this dishonest dissembling. Except delaying the natural tendency of the American economy to quickly adjust and adapt. Then get back to growing.
How strange it is Obama gets credit for lower oil prices by complete international failure. Primarily by running the Climate Control scam to prove what remains of his base are unreasoning and therefore functioning as thoughtless automatons.
BUt the big payoff at line is the natural gas. About 5.6 mcfs equal the BTUs in a barrel of oil.
Which means the cleanest possible energy source in the world sells for less than $25 dollars a barrel. But only here in America. Everywhere else the price is directly to the oil BTU content.
It takes intelligent people like Ms Powers to go on with her delusions about panels of Progressive academics; who do not value personal integrity, gifted authority over her reason and thus common sense to hold our economy down. The key to the Obama uncertainty is the lawlessness he is allowed by a dishonored press and academics of no virtue. Which is why Obama uncertainty can hold our economy to population growth despite emergency printing .
If business was certain Americans of integrity like McCain or Romney would win in 2016, the capital investment race would begin right now. Natural gas at an 80% discount to oil and twice that for the insane Progressive 'alternative energy troughs'. Plus all the free ethane you could want for a decade at least.
Amazing thing. Just six years ago Obama and the Democrats would rule American forever more. Now the Republicans have decisive majorities in both houses despite the people still being mad at them.
Yet, Pelosi and Reid who brought the impossible fall of their political party still control it. Even as it is clear they no longer have the intellectual capacity to do so.
Man if Reagan had all the Providence dumped on Obama! BUt given all the Providence the good news is an average run of the mill honest person will look like a hero.
American natural gas is worth far more than it sells for. We just need leadership that desires full employment and rising wages. - Ms Powers Pebble in the Sky
It really is not possible to overstate how much dysfunction Obama's passive aggressive politics and unscience EPA have created in our economy.
As the Great American CEO at EPD says, everything exported from America should be solid. In other words processed into value added products by high wage American jobs.
Charlie Rose was interesting. Old news editors with no training in and clearly no interest in learning pronouncing the Obama economic performance excellent. That economics was a question of general emotions rather than opportunity and positive incentive.
Powerful minds in a perpetual childish state. Big name editors no less.
No problem. Hire lunatic Kruggerman to dissemble and as he has a collectivist prize, they know economics.
The Progressive condition really is breathtaking to observe.
Since the completion of the Trans-Alaska Pipeline System in 1977, the government of the state of Alaska has been reliant on taxes paid by oil producers and shippers. Prior to 1976, Alaska's personal income tax rate was 14.5 percent—the highest in the United States. The gross state product was $8 billion, and Alaskans earned $5 billion in personal income. Thirty years after the pipeline began operating, the state had no personal income tax, the gross state product was $39 billion, and Alaskans earned $25 billion in personal income. Alaska moved from the most heavily taxed state to the most tax-free state.
The difference was the Trans-Alaska Pipeline System and the taxes and revenue it brought to Alaska. Alyeska and the oil companies injected billions of dollars into the Alaska economy during the construction effort and the years afterward. In addition, the taxes paid by those companies altered the tax structure of the state. By 1982, five years after the pipeline started transporting oil, 86.5 percent of Alaska revenue came directly from the petroleum industry.
The series of taxes levied on oil production in Alaska has changed several times since 1977, but the overall form remains mostly the same. Alaska receives royalties from oil production on state land. The state also has a property tax on oil production structures and transportation (pipeline) property—the only state property tax in Alaska. There is a special corporate income tax on petroleum companies, and the state taxes the amount of petroleum produced. This production tax is levied on the cost of oil at Pump Station 1. To calculate this tax, the state takes the market value of the oil, subtracts transportation costs (tanker and pipeline tariffs), subtracts production costs, then multiplies the resulting amount per barrel of oil produced each month. The state then takes a percentage of the dollar figure produced.
Under the latest taxation system, introduced by former governor Sarah Palin in 2007 and passed by the Alaska Legislature that year, the maximum tax rate on profits is 50 percent. The rate fluctuates based on the cost of oil, with lower prices incurring lower tax rates. The state also claims 12.5 percent of all oil produced in the state. This "royalty oil" is not taxed but is sold back to the oil companies, generating additional revenue. At a local level, the pipeline owners pay property taxes on the portions of the pipeline and the pipeline facilities that lay within districts that impose a property tax. This property tax is based on the pipeline's value (as assessed by the state) and the local property tax rate. In the Fairbanks North Star Borough, for example, pipeline owners paid $9.2 million in property taxes—approximately 10 percent of all property taxes paid in the borough.
The enormous amount of public revenue created by the pipeline provoked debates about what to do with the windfall. The record $900 million created by the Prudhoe Bay oil lease sale took place at a time when the entire state budget was less than $118 million, yet the entire amount created by the sale was used up by 1975. Taxes on the pipeline and oil carried by it promised to bring even more money into state coffers. To ensure that oil revenue wasn't spent as it came in, the Alaska Legislature and governor Jay Hammond proposed the creation of an Alaska Permanent Fund—a long-term savings account for the state. This measure required a constitutional amendment, which was duly passed in November 1976. The amendment requires at least 25 percent of mineral extraction revenue to be deposited in the Permanent Fund. On February 28, 1977, the first deposit—$734,000—was put into the Permanent Fund. That deposit and subsequent ones were invested entirely in bonds, but debates quickly arose about the style of investments and what they should be used for.
Agree. Asset values were definitely on he high end of public statements of analysts. The cash flowing assets are really prime mature assets, This will stabilize LINEs credit metrics and the transactions in total have added a nice pad to DCF coverage.
Hedgie Eyed and Barrons were totally and utterly wrong on their asset valuation claims. Even the Market Realist fell into this hole. Using backward looking accounting rather than forward modelling as valuation.
Unfortunately the oil and natural gas markets are slightly backward to flat. As LINE needs the surety of a full extended hedge book to mitigate the outsized leverage or debt. It really is stunning that Obama could manage worst American recovery ever and pair it with the world instability policy failure. A level of world instability to witnessed sense 1938.
The only event keeping Obama's twin complete failure from collapsing into a world depression is the Providence of the American oil and natural gas boom. Which the Obama regime has used ever passive aggressive tactic legal and lawless to thwart, EPA falsification of fracturing well pollution any one?
The good news is Obama's absolute mismanagement has coiled the American economy with vast growth potential. From stunningly cheap and clean natural gas to clear capital under investment to corn ethanol to record low labor participation. The American economy has not had such massive potential held inert by delusional government policy post FDR 1938.
Further normal American economic growth and resulting power would mitigate and make manageable the current chaos.
Based on backward looking accounting figuring under the concepts of accounting conservatism with asset valuations.
The shales which were sold were high capital intensity with a wide variability in expected well production. So it is of course incomplete reasoning to assume the production was all DCF.
LINE is converting non cash generation prospect shales into currently cash production assets. Further it is consolidating low cost natural gas holding around Hugoton and adding all oil EOR. Mature assets with highly predictable low decline profiles necessary for effective price hedging. But this is a lock the cash flow or operating cash flow business model. So in additional to price certainty it is also necessary to have stable and understandable operating costs.
LINE does have to much low cost debt. The flat to backward futures market pose a significant challenge. This sis a major repositioning which carriers uncertainty.
But it is silly at this point to claim the EV let alone debt to EBITDA coverage is not improving in size and dependability/predictability.
The yardstick which is missing is a good PV10 estimate after all the asset repositioning.
What management is establishing is a margin of safety around the distribution and therefore the company. This is what i most value. For one day not soon enough Obama will retire. Then if we do not lose our minds again and elected Hillery or Warren, a combination of at least normal economic growth and export will lift natural gas and ngls -especially American ethane - toward the known world values.
Plug that into valuation and we get a wildly different valuation.
We really need to get the delusional and dishonest Progressive environmentalist neo-orthodoxy fundamental primitives out of the way of honest rational reasoning in policy.
Natural gas into American economy. Completely defective and wildly polluting corn ethanol out.
Opie real investors are collecting a 9% distribution to wait.
Aware Europeans are desperate to have the national and economic security of American energy.
I know the OLB has trouble with reality as it goes against the flat earth dogma of primitive self absorbed freedom of expression.
If the Obama SEC had not wildly abused their power with the timing and absurd duration of the 'put' investigation, Sand would have been correct. We would already have an increased distribution and likely a regular annual increase.
The market missed the value of the BRY shale and management at LINE did not. Simple as that.
Talk about a chip. A big fresh smelly dgs fed one, packed with dangerous pathogens. Been a while sense it was repeated how dangerous Dried Distiller Grains from ethanol tailing are. Due to dangerous bacterial like e coli feasting on the energy even a bovine cow can not digest.
It is kinda of a catch 22 here. It is better from a cost of capital function to add some more cheap borrowing. But to offset the perceived risk it is necessary to allow the additional DCF to go to coverage. Lowering future external capital needs for organic growth.
Imagine if America had a rational administration who said look at our vast supply of natural gas. Hey business, we want you to use it! We are even going to reduce uncertainty and cost by doing rational tax reform. Lowering marginal rates by taking out the Progressive corruption! First one on line gets the most free ethane.
American economic potential really is startling. At the same time using our natural gas will greatly lower c02. America already has achieved a massive reduction as the Obama regime does everything they can to step on it.
Americans are going to need shades. If we don't become deranged and elect a corrupt Hillary delude.
Under Progressive or central collectivist national 'planning' around the world, there has been a systemic misallocation of investment capital to secular religion dogma. Magical energy and can not be sustained by the math social justice spending orgies.
So we arrive in the final two years of the Obama dream time running head long into the reality Progressive dogma has wrought on America and therefore the world.
As America has two more years of hapless Progressive Obama, I would not expect oil prices to return to $100. That would take economic growth. Growth that will not be coming with the Progressives increasingly shrill Global Warming is the only true religion.
Certainly social instability could lead to government collapse in Iran and Venezuela.
The Sunni OIl states have prepared their budgets for $80 oil. They probably do need $90 to $95 long term. BUt then when like SA you hold the third largest foreign reserves in the world rather than being a Progressive debtor, you can afford such strategy.
All things considered LINE made some great trades. All the high cost shales for low production cost ng and ngls. Which of course Ron^3 and the rest of the olb hated at the time. There is also the low cost oil EOR properties.
Lower gasoline prices are a huge kick for consumer health and economic growth. Maybe Republicans control of the Senate will clip Obama spread economic and all other types of uncertainty wings.
Ebola really? Grand theoretical academic statements about racism while a law breaker ran lose in our communities? Blame on the line care takers for racism when the protocols prove ineffective? Thank God for the American willing to give his blood to save others and that he must have a good donor type.
Hayek was and is of course correct.
It is not the end for line. But market is likely right about a distribution cut. Wait for the call.
Market valuation is full. Economic growth is slow and slowing around the world. Obama humble American policy has unleashed instability around the world.
BUt the potential of the American economy has never been greater. We start normal growth and we will pull China, Japan and Europe along. As we always do.
All which is required is to give the Progressives a time out. Focus on economic growth. It is not rocket science. Even the great Goolsbee of Chicago knows it. He just doesn't want to admit it.
More than doubled with the corruption of the corn ethanol RFS 'Law'.
Problem Stag monster has created for American farmers is that the Brazilians can double crop. Along with 'irrigation'. On top of this they are only now getting the best send technology. Also they can not yet but will be able to get their crops to world markets.
The Progressive political corruption pimps have created a real mess for American farmers. The thing which truly increased production cost was the explosion in land rents on the excess profits from the Progressive political corruption. Enabled by the dishonesty of the collectivist environmentalists.
But with this Progressive mandates insanity hand over rural American we will not benefit from a normal investment cycle. As food goes to completely defective political corruption of corn ethanol first, low prices could change on the weather.
So corn farmers are just going to damage themselves further if they try to keep this corn ethanol corruption in place.
Something to consider. McCain would have followed the law and cut the mandates. Americans would have lower food prices and the Middle East would probably not have exploded on the food riots.
Never send a Progressive to do a mature person job.
Destroy American MPG and engines for completely defective and therefore insane corn ethanol mandates, Opie.
Canadians clearly like us to handle their massive new oil supplies. Even with Obama abusing power like a third world country. A country without a long traditional of equal justice rather than the rule of men - under colour of their defined social justice.
YOu seem to have missed on an American energy board that additional supplies have brought the cost of oil down to Americans. What Progressive claimed was impossible - but then any one keeping score can not find a single instance where they were correct - and conservatives figured SA would not allow.
LNCO is nothing but a unit of line partnership in a c-corp wrapper.
At some point if there are earnings it might face the problem of double taxation.
Most likely LINE will not generate a taxable profit for some time to come.
In which case LNCO is the better option. Dividends will be return of capital until until you basis is used up. If you sell it is a long term capital gain. While LINE like must partnerships is something you keep and hopefully will to the offspring who get a full step up in basis. -No ordinary gains. Further taxes after the basis is used up are still qualified for the lower rate.
So LNCO is simpler and more liquid. A good rational case can be made that it should sell for a premium to the partnership based on the current internal tax ramifications along with the greater liquidity. Not to mention no partnership tax reporting and no worries about UBTI in a tax deferred retirement account.
Maybe - maybe LNCO could run into a 'problem' if a c-crop is acquired with a large amount of retained earnings.
So lNCO at a discount is an easy choice.