PSX is not adding the debt to the c corp it is to the MLP. PSX has excess cash flow and has been reducing debt over its short life. It is down to $6.2 billion the same as the beginning of 2013. Debt to equity continues to drop as retained earnings increase capital. Midstream is also an area that includes NGL's and terminals to increase exports.
Tail winds from low gasoline prices and low heating prices for heating oil, natural gas and propane. Henry Hub natural gas is down to $2.87 from over $4.00 for the close in futures month. Propane is one of the natural gas liquids found in many shale gas fields. This is like a huge tax cut and while some folks may save extra money or pay down expensive credit card debit a certain amount of the wind fall will go into retail and restaurants.
How do you get those numbers. Diesel averaged about $3.80 a gallon last year being around $4 for 8 months and is now $3.20 national average. That is only a $.60 savings. Diesel is not in over supply like gasoline because demand is high but you can only get so much out of a barrel of oil and then it depends on what oil is used as input to the refiner. An additional 35% of any savings gets chewed up in all kinds of income tax. There will be some gain from lower pricing but not as much as you may think.
This stock is only about $6 from its all time high. That is $6 on a $113 stock not a $30 dollar stock. Even if you bought at this years average price you have to have a gain of $20. You would almost have to try and be an idiot to not have a gain in this company. Furthermore, they make tons of money, laid out increasing earnings to 2017, PE based on average analyst's estimates is reasonable and have maybe the best pipeline in the biotech industry. Did I miss something.
Distillates, which include fuels like heating oil and diesel, are also an important group of fuels for transportation and heating purposes. They too require crude oil to be processed.
So, distillate demand and inventory levels for products like gasoline drive crude demand and crude prices. Energy investors closely watch distillate inventories, as they offer a handy snapshot of distillate demand and supply trends—particularly near and during winter, when heating demand can drive energy demand. Distillate stocks increased by 2.3 MMbbls (million barrels) to 123.8 MMbbls. But inventories still remain at the bottom of their five-year range.
Diesel production and demand
Distillate production increased from 5.21 MMbbls per day to 5.23 MMbbls per day last week. Demand increased from 4.24 MMbbls per day to 4.3 MMbbls per day in the prior week. While both production and demand increased, changes in exports could also explain the inventory build.
An inventory build is bearish for distillate prices, which in turn is a negative for major refiners like Valero Energy (VLO), Phillips 66 (PSX), Marathon Energy (MPC), and HollyFrontier Corp. (HFC)—and consequently also for the Energy Select Sector SPDR ETF (XLE), which holds a lot of these refiners.
Outlook and international demand for distillates
In its latest “Short-Term Energy Outlook” report, the EIA writes that it expects US distillate consumption to increase by 120,000 bpd (barrels per day), or 3.1%, in 2014 from 2013, reflecting colder-than-average weather as well as economic growth. It then expects distillate consumption to increase an additional 90,000 bpd, or 2.2%, in 2015.
US refineries also export considerable amounts of distillates, including diesel, to developing countries like China, India, and Brazil. Economic conditions in these countries affect diesel demand and thus affect diesel prices.
Analysts expect distillate production to grow by the end of 2014. Refineries have been constructing new capacities to produce more distillates than gasoline in anticipation of strong global distillate demand growth from these countries.
NEW YORK (MarketWatch) -- Andy Murray, the world’s number six-ranked men’s tennis player, will soon share something with fellow athletes Lindsey Vonn and Tom Brady: an endorsement deal with Under Armour Inc.
The Baltimore company UA, -0.13% which has more than doubled in size the past three years and overtaken Adidas AG to become second-biggest provider of U.S. athletic apparel after Nike Inc. NKE, -0.18% said Murray will wear its apparel and shoes and appear in marketing campaigns under a four-year deal aimed at boosting its international presence.
Company spokeswoman Erin Wendell declined to specify terms of the deal or say whether Under Armour will design a signature collection for Murray, who was previously with Adidas AG ADS, +1.49% Murray, a Scot, in 2013 became the first British male in 77 years to win the Wimbledon Championship. Murray is the 2012 U.S. Open Champion and won a gold medal in the 2012 Summer Games.
Under Armour, which was founded by former college football player Kevin Plank and was originally known for its compression shirts for football players and other athletes, has expanded its products to basketball sneakers and baseball cleats. On the apparel front, it has unveiled a full collection of athletic clothing for both men and women. Its celebrity endorsers aren't just athletes. Supermodel Gisele Bündchen appeared in a campaign to promote its women’s collection.
Under Armour sales are expected to top $3 billion for the first time this year, according to FactSet. Nike, in comparison is more than 10 times its size. But analysts have said Under Armour has become a formidable threat to Nike and has adopted a similar endorsement strategy to the one credited with spurring growth at its bigger rival.
As Under Armour expands internationally, signing Murray will raise its profile, analysts said. Under Armour’s sales outside of North America totaled just 5.9% of its 2013 sales. In contrast, Nike generates more than half of its sales overseas.
With chips powering everything from smartphones to cars to lighting these days, demand for these electronic brains is running high.
So it should be no big surprise that half the Nasdaq stocks making the Spotlight screen in Monday's issue are chipmakers. Most are extended beyond their buy points, but NXP Semiconductors (NASDAQ:NXPI) remains in striking distance.
NXP belongs to the fabless semiconductor group, which ranks No. 8 among the 197 industry groups tracked by IBD, up from No. 30 six weeks ago. Fabless chipmakers design processors for customers, then outsource the manufacturing to a third party.
The Dutch chipmaker's semiconductors are thought to be used in Apple's (NASDAQ:AAPL) iPad and iPhone 6 models and for its Apple Pay app, which lets consumers use their iPhones to pay for items at certain retailers.
It's also a big player in China, which accounted for more than 40% of revenue last year. NXP recently said China Merchants Bank adopted its mobile payment solution. Chinese research outfit Analysys International has forecast the mobile payment market in China will reach $117 billion by 2015.
Last month NXP paid an undisclosed amount to buy Quintic, a maker of chips used in sports and fitness apps, human-interface device apps and smart app-enabled accessories for smartphones and other devices. Chipmakers have been jockeying for position to stay atop the rapidly growing Internet of Things field, where market tracker IDC expects spending to rise 14% to $1.7 trillion in 2015.
NXP hasn't made much headway since breaking out past a 73.92 buy point of a cup-shaped base Nov. 6 in average volume. Two weeks ago it pulled back to its 10-week moving average, where it found support. The stock is 3% above the entry.
Its Accumulation/Distribution Rating of B+ indicates more net buying than selling by mutual funds. Yet daily upside volume has been light since the breakout.
5:16 pm Dominion acquires CID solar facility in California; terms not available (D) :
Co has closed on the acquisition of the CID Solar Project near Corcoran, Calif., in King's County, from EDF Renewable Energy. The companies announced the purchase and sale agreement in June 2014. The 20-megawatt (ac) facility completed the conditions of the acquisition and closed on Dec. 11, 2014. It commenced operations on December 22. The project provides power to the San Francisco-based electric utility Pacific Gas and Electric Company (PG&E) under a 20-year power purchase agreement. Terms of the CID transaction are not available.
Not enough shares in individual investor hands for it to make sense. Having more shares increase costs and not worth it for so few people. According to STATS on Yahoo for REGN it appears that about 45,000 shares out of 101 million or .0.45% are not owned by insiders or institutions.
The utilities are telling us that we will revert to long term rates that have dominated since 1900. It was the inflation in the late 1970's - early 1980's. Because of that rates were abnormally high between 1970 and 2000. A chart of that period looks like climbing up a mountain on one side and going down on the other. From 1925 - 1965, a period of 40 years the 30 year Treasury was over 4% for only a few years in the late 1950's.
The yield on Vectren at $48 is 3.4%. I doubt you will see this in a 5 year CD in the next 10 years. Plus since Vectren finally got rid of the businesses that were constantly losing money (commodity related and coal mining) it looks like we may get decent dividend increase going forward.
Dunkin' Donuts debuts new Chocolate Croissant and Tomato Mozzarella Supreme Bagel
Special Twitter Sweepstakes gives fans the chance to win Dunkin' Donuts coffee for a year
PR Newswire Dunkin' Donuts
2 hours ago
CANTON, Mass., Dec. 29, 2014 /PRNewswire/ -- As 2014 comes to a close, Dunkin' Donuts has introduced two new menu items to help keep on-the-go guests running into the New Year: the Chocolate Croissant and the Tomato Mozzarella Supreme Bagel. Dunkin' Donuts today also launched a special New Year's themed Twitter sweepstakes to help coffee lovers brew a very happy start to 2015.
Dunkin' Donuts' new Chocolate Croissant features flaky croissant dough with chocolaty filling, served warm, and available nationwide at participating Dunkin' Donuts restaurants. The new Tomato Mozzarella Supreme Bagel is a plain bagel with mozzarella cheese, tomatoes and herb topping, served whole and warm, and available at select Dunkin' Donuts restaurants. Both new items are available beginning today and through early 2015.
To welcome 2015 and celebrate Dunkin' Donuts' Dark Roast Coffee, the brand's bold new brew introduced in 2014, Dunkin' Donuts has launched a special New Year's Twitter Sweepstakes. Beginning today and continuing through Wednesday, December 31, followers of @DunkinDonuts will be asked a New Year's themed question each day, and all who tweet an answer using the special hashtag #DDNewYearSweeps will be entered to win one of three daily prizes of
Investors should also take a look at ConocoPhillips (COP) (down 1.1% on the year). Despite trimming next year's budget to offset weak oil prices, these cuts won't be at the expense of growth. Conoco still projects reaching 3% to 5% growth for its oil and gas output in 2015. And this should bode well for the stock, which has a consensus Buy rating from 23 investment analysts polled, according to CNN Money.
Optimism about the stock has to do with the company's ability to boost its bottom line despite weak oil prices. In its third-quarter, despite weak revenue, Conoco still grew net income by 8% year over year and grew earnings-per-share by 8.5% year over year. What's more, the company pays a yield of 4.05%, topping both Exxon and Chevron, which pay yields of 2.85% and 3.57%, respectively.
� An increase of approximately $0.5 million (2.0%) for WEPCO's Downtown Milwaukee (Valley) steam utility customers for 2015, with no rate adjustment in 2016.
� An increase of $1.2 million (7.3%) for WEPCO's Milwaukee County steam utility customers for 2015, with no rate adjustment in 2016.
These rate adjustments are effective January 1, 2015. In addition, the authorized return on equity for WEPCO and WG was set at 10.2% and 10.3%, respectively. The PSCW also authorized an increase in WG's financial common equity component to an average of 49.5% compared to the current 47.5%, while WEPCO's equity component will remain the same.
On December 23, 2014, the Public Service Commission of Wisconsin ("PSCW") authorized rate adjustments related to Wisconsin Electric Power Company's ("WEPCO") and Wisconsin Gas LLC's ("WG") requests to adjust electric, natural gas and steam rates. The PSCW approved the following rate adjustments:
� A net bill increase related to non-fuel costs for WEPCO's Wisconsin retail electric customers of approximately $2.7 million (0.1%). This amount reflects WEPCO's receipt of system support resource payments from the Midcontinent Independent System Operator that are higher than WEPCO anticipated when it filed its rate request in May 2014, as well as an offset of $26.6 million related to a refund of prior fuel costs and the remainder of the proceeds from the 1603 Treasury Grant WEPCO received in connection with its biomass facility. This $26.6 million is being returned to customers in the form of bill credits.
� An electric rate increase for WEPCO's Wisconsin electric customers of $26.6 million (0.9%) for 2016, related to the expiration of the bill credits provided to customers in 2015.
� A rate decrease of $13.9 million (-0.5%) in 2015 related to a forecasted decrease in fuel costs. WEPCO will make an annual fuel cost filing, as required, for 2016.
Natural Gas Rates
� A rate decrease of $10.7 million (-2.4%) for WEPCO's natural gas customers in 2015, with no rate adjustment in 2016.
� Rate increases of $17.1 million (2.6%) in 2015 and $21.4 million (3.2%) in 2016 for WG's natural gas customers.
I see two main reasons. First, over long periods of time dividends on stocks have exceeded the 30 year bond due to risk in equities. This was fine until the mid to late 1960's when inflation forced the 30 year up to a high of 15%. Volker forced rates down in 1981 - 82, but it took many years to get rates down to around 4%. Today they are very low due to the great recession and its after math. Same thing happened in the 1930's and 40's. Even WWII could not force long rates over 4%. The days of CD's paying interest of 3% on 5 year CD's are over, unless we get inflation which is unlikely. We are in the middle of a great commodity bear market on top of individuals losing trillions of dollars in wealth do to the housing bust so inflation will be low for a long time
Second, utilities with significant natural gas assets will do well. Pipelines need to be built in order to transport natural gas from new sources to where it is used and gas mains need to be replaced nation wide do to a lack of investment. Revenues are based on a return on expense including depreciation plus a return on capital. While the cost of debt is down equity is up. Rate making is very political state by state but investment has been put off so long there is no other choice. Same thing in the electric plant plus when you replace a coal plant with gas the undepreciated coal plant assets remain on the books and continue to be in the rate base plus continue to be depreciated. Just look at how large the CAPX programs are in these companies.
The transaction was the reverse, Duke spun off spectra. The price used to calculate gain and loss is $19.25 and for Spectra is $ 27..75. Proration was based on the day before the split using WI prices. So since the beginning of 2007 the stock has really not gone up much.
However, In the depths of the great recession, March 2009, SE closed as low as $13. During that down cycle is when I bought all my shares. I started buying around $16 when it was still on the way down. Continued to buy in 100 and 200 share increments going down and back up into the lower $20's. At the same time I bought VVC (my local gas utility) WEC and some other utes and pipelines which I have swapped into Dominion and KMI. I also kept my PSX from the Conoco/Phillips spin which owns the other half of DCP midstream. Prior to the 2009 downturn I sold non dividend stocks, because they always take a beating in those down drafts, and had money to buy. Still got wacked on the core stocks that I retained but they kept paying dividends and have all come back.
I like anything that has to do with natural gas infrastructure and that pays and increases dividends every year.
If you are answering messnervan about California, it is impossible for them to be down quarter after quarter. They just opened the stores and therefore in CA there are no comps.
I think they are the largest company in the Refuse space. I really do not think a company that does not know this business would want to own them. It is not a company you add to a portfolio of other businesses because it is so different. CEO's have tried that before and it never works. Takeover by private equity would not be in the cards because WM has way too much debt. I do not think this company could handle a leveraged buy out.
This article was on Seeking Alpha - 12/22/2014:
Report: Oxy Petroleum in talks to buy Permian Basin shale explorer
Occidental Petroleum (OXY -0.6%) is in talks to acquire closely held shale explorer Three Rivers Operating Co. II at a price below $20K/acre, Bloomberg reports.
A purchase of Three Rivers' owned rights to 82K acres in the Permian Basin would cement OXY’s dominance in the area that is the most prolific U.S. crude region, and would be the company’s first significant acquisition in more than four years.