come on man the oil action is a coordinated play against russia. Obama probably in cahoots with the saudis. Low price on gasoline looks awfully good to mainstream america and we know Obama hates domestic energy companies.
One minor improvement ... we need to stop importing oil. Happy with exhanging resources with canada and mexico, but we need to be at least import\export neutral for all domestic energy
The short puts means they were sold for the cash. Just like the short calls which were sold for cash. Its what pays for the collar.
short put option strategy is a low risk way to raise cash for buying hedges. If they are done correctly the risk of losing $$ on the bottom range of the collar is very low. The hedging power is limited to the difference between the long and short put. There is no actual loss from the put spread if oil settles below 72.
The Bloomberg aricle is sensationalizing the short put option for the sake of a headline.. They forget to mention that a short put can be rolled down and out with time until they are below the price of oil. This works fine as long as they are not overextended with short puts and continues to bring in more cash to pay for more hedges.
For linn energy I believe that they are savvy enough and have enough discipline to manage the hedges.
nobody can say anything until the oil price stabalizes. Until then expecting crystal ball forecasting is absurd.
Somehow Linn energy has managed to trade away most of their permian properties at the peak of permian pricing Just In Time!
Looks to me that while linn energy has its problems, mgmt is currently at least one step ahead of the market.
It depends on when and what the shares will be used for. If its used for accretiive growth I am all for it. I'm in Kinder cause RK is creating a major domestic empire. If you don't want growth and worry about dilution then consider bonds.
note that this is a shelf registration and not an immediate secondary ofering, so one really has to wait before judging.
cannot compare EEP directly to KMI
- EEP is a limited partner and has a K1. KMI is a c-corp with a 1099.
- KMI is an integrated energy infrastructure company, EEP is a limited partner, need to also include the GP in any comparison,
- KMI now pays qualified dividends ... does that matter to you ?
From a more fundamental basis my opinion is that the kinder morgan is far superior to enbridge. When I think of KMI i think of Richard Kinder, when I think of enbridge I think of older pipelines that keep leaking, with a canadian heart. Although it may not matter, I also still have a bad after taste of the canroys after what the canadian govt did to one of their primary industries.
Nonetheless, I started building an EEQ position since I am now out of KMR. At least with EEQ I won't get caught with an unruly tax burden like the KMP holders did in the KMI merger. The benefits of compounding without immediate taxes are too valuable to pass up.
considerinng atls\apl is following targa\ngls why would they want to opt out ? On their own they will struggle while the energy market stays bearish on all energy stocks
I saw that ... doesn't mean he is not hedging with some trgp shorts or short calls.
I wanted to short trgp as a safe way to accumulate more atls before the last big drop but missed the trade....
actually more likely to be flagging which is very bullish ... ripe for a breakout.
a double top followed by a failure\down shoulder is bearish.
nitpicker you can't stand the fact that a lot of people have a really low cost basis.... and that in retrospect KMP was the wrong investment.
Your an idiot, trying to mask the fact that you lied to prove a point. I simply pointed out the mistruth.
Many kmi holders have a very low cost basis.