The Brent / WTI spread is back to $9, plus PSX does not have to front as much for the raw commodity due to stronger dollar. Natural gas used to power the refineries and CPChem crackers is reasonably priced. Midstream build out continues as oil found in tight rock continues to expand. Cash flow should be unbelievable.
The deal is based on WLL price, so if WLL skyrockets like you say, so does KOG. If you were to chart KOG vs WLL, they are both up about 300% from the time KOG went public. Divergence was during the 2009 drop when KOG took a big hit due to financing issues. If you bought KOG in that trough you are laughing all the way to the bank.
Point and figure chart shows the back of the downward slope has been broken. WE need a few more positive days to confirm an up trend.
The Board of Directors of Cummins approved an increase in the company's quarterly cash dividend on common stock of approximately 25% to 78c per share from 62.5c per share. The dividend is payable on Sept. 2 to shareholders of record on August 22. The Board of Directors has also authorized the company to repurchase up to $1B in shares of common stock upon completion of its current $1B share repurchase program.
Not a new rule it is an exemption for a specific type of hydro carbon which is lightly refined. The main reason that it was approved is because gulf coast refineries do not like condensates and therefore the increasing production would have accumulated in storage tanks. I also read that the refinery out put from condensate does not produce the same amount of clean product. PSX has been exporting this stuff for awhile after some refining. There is also only 1.5 million barrels a day produced and not all of it will be exported. This is not a game changer as crude cannot be shipped out of the US.
Unless you are trading or want to buy more on a pull back, who cares. Looks like the kind of investment to just tuck away, listen to the quarterly conference calls and give them a chance to build into new locations. They did have some restaurants in Boston, Atlanta, Hampton Roads VA, Portland OR and Foxwoods resort in CT. But all closed. They currently operate in CA, NV, AZ, TX & UT. I live in Indiana and there are lots of TexMex here. Maybe opening restaurants in one's & two's does not work. Duncan Donuts seems to open clusters when going into new areas. Regardless, this type of food is widely eaten in the US and i expect that I will do very well with this invetment over the next few years.
Gettysburg is a vacation place and lots of people like to hit the discount mall when they are there. Would expect a crowd. I have a vacation house in the Pocono's in PA and go to the Tannersville store at the Crossings. I will be out there in a couple of weeks. Time to start buying Xmas presents for the grandkids. Last time I bought the low white socks with the logo on the back and they are awesome. To parody the Hair Club for Men commercial. I don't just own UA stock, I am also a customer!!!
Both companies are doing well for a number of reasons. First, COP is all about drilling and consumes tremendous amounts of capital. One could say that that part of the company should have been doing well. But it was bloated with way to much property that they would neve get to drill on or spread resources way to thin. Whoever assembled all that property had to be a knuckle head. PSX part of the business was an after thought. However, the shale drilling revolution for both oil and gas has put all of their businesses front and center. There is a re-industrialization of America, especially on the gulf coast. We have a certain amount of luck here. Yes there is some skill to picking good stocks, but luck also plays a big part in getting good returns. I feel good at having bought COP before the split because many pundits felt that the two separate companies would unlock more value than as one. However, hitting things just right where PSX was able to take advantage of what is happening in chemicals and midstream was a stroke of luck.
By KEN SHREVE, INVESTOR'S BUSINESS DAILY
Posted 06/30/2014 05:30 PM ET
Waste Management's (NYSE:WM) business is trash, but it also develops waste-to-energy and landfill gas-to-energy facilities in the U.S.
In 2013, the company created more energy than the entire solar industry in the U.S. It made 9.82 million megawatt hours (mwh) of energy, compared to 9.25 million for the U.S. solar industry.
After organic material decomposes at its landfills, Waste Management takes the methane that the material creates and makes energy out of it. Its subsidiary Wheelabrator Technologies also converts trash to thermal energy via 17 waste-to-energy plants.
In late April, the company reported first-quarter profit of 49 cents a share, up 23% from a year ago. Sales edged 2% higher to nearly $3.4 billion.
Eighty percent of Waste Management's revenue came from its collection and landfill segments. Recycling revenue fell slightly to $374 million, but cardboard recycling business remains strong due to the e-commerce boom, in which most everything is shipped in a box.
The Wheelabrator segment brought in $230 million, up 12% from a year ago. The revenue breakout for the methane-energy business could not be immediately obtained.
Second-quarter results from Waste Management will be out July 29 before the open. After 23% year-over-year growth in Q1, analysts polled by Thomson Reuters expect profit to rise 9% to 59 cents a share and sales just over 2% to $3.61 billion.
In May, the company announced a quarterly dividend of 37.5 cents a share. The annualized yield is 3.4%.
In late May, the company's stock cleared a cup-with-handle buy point of 44.60. It is trading tightly, holding above the buy point, and is still in buying range.
Phillips 66 Positioned To Take The Lead In The U.S. Oil And Gas Boom - this article appeared in SeekingAlpha today (7/28). I copied over the summary only.
This article looks to address the criticism and misinformation targeting the shale gas and oil industry in the US.
Midstream oil and gas majors are best placed to take advantage of the opportunities presented within the US oil and gas industry in the coming decade.
Phillips 66 has pivoted its business to take advantage of the next stage in the US shale oil and gas boom.
I listened to today's webcast and operations seem to be going well all over. I have invested in other Bakken companies and HK is knocking the ball out of the park up there. The ip rates are monsters. Since the rocks in El Halcon and TMS are similar, I would expect both of these areas to really start contributing. Been buying during this last down turn.
Company is still ramping up. Maybe someday way off in the future. Right now they need the money to develop their Colorado property which can be another big winner. They do not talk about it much but they also have property in West Texas which is the latest hot play. If you want dividends buy COP, MRO or OXY. The personality of WLL is growth through the drill bit. The KOG deal was too good to be true and has synergies.
It was undervalued coming out of the spin off. Many thought that the E&P company would be where all the action was and that PSX was just another up and down refiner. They did not look at the Chemical and midstream JV's or the other assets that PSX received. No one thought that there would be an MLP, even though it had been brought up by analysts and the current management did not rule it out. Finally, the advent of using advantaged crude in coastal refineries was something that no one could have foreseen. When you put it all together you have a company that can do the 4 most important things. 1. Invest in growth capital projects 2. Retire debt. 3. Pay a dividend and increase it at least once a year. 4. Buy back stock - at least enough to make up for options awards and more if possible. If a company can consistently do all four then it is printing cash.
Nearly one in four Wisconsin employers plans to increase staffing in the last three months of 2014, up significantly from the share that planned to add jobs a year ago, a newly released survey by Milwaukee's ManpowerGroup shows.
At the same time, fewer employers intend to decrease staffing, yielding an even stronger year-over-year hiring picture, the survey indicates
I listened to the first half. especially the DNKN store roll outs in CA, TX, & Manhattan, NY. Strategy looks sound. Traders jump on snippets of news. I am a long term investor and have been very successful over 40+ years. When this stock sold off awhile back I bought some because of the up coming expansion plans. My wife and I also love the coffee. I think we keep them in business with our coffee purchases. And of course our grandchildren like the donuts.
MADISON, WI. SEPT. 16, 2014 – DuPont Nutrition & Health (DuPont), a leader in specialty ingredients for food and dietary supplements, is expanding its manufacturing facility in Madison.
The first phase of the expansion includes a new milling, blending and packaging line for live bacteria cultures; and the second phase will increase the fermentation capacity for cultures, which are used in yogurts, cheeses and probiotics, among other products.
The company’s facility, located on Agriculture Drive on Madison’s southeast side, currently employs more than 200 people. It has added over 20 jobs in the past 12 months and expects to add at least 12 more with the new capacity. The first part of the project is complete and the second phase is expected to be finished by mid-2015.
The Wisconsin Economic Development Corporation (WEDC) has authorized up to $140,000 in state tax credits over the next three years for the company. The actual amount of credits received will be contingent upon the number of jobs created and the amount of capital invested by the company during that time.
“WEDC is pleased to be able to assist a global company like DuPont with its expansion in Madison,” said Reed Hall, secretary and CEO of WEDC, the state’s lead economic development organization. “The expansion will enable DuPont to install new equipment that will help position the company for future growth.”
“We produce cultures and probiotics that are used by our customers to make cheese, yogurt and dietary supplements. Our ingredients protect the quality of the food and provide healthy and nutritious foods for consumers,” explained Eric Hohol, site manager for the DuPont Madison facility. “This expansion is indicative of our company’s growth in the food space, as well as the collaborative partnership we have with the state of Wisconsin.”
DuPont Nutrition & Health addresses the world’s challenges in food by offering a wide range of sustainable, bio-based ingredients and advanced molecular diagnos
Where did you get the 31% ROE number. In Yahoo stat it is 14..62%. The refining business makes up a huge % of the company and the returns are about 10% which is an industry leading number. The insiders are buying because the company is in a growth mode led by midstream and the chemical JV. I believe in the next 3 years all of their businesses collectively are investing $12 billion and 75% is growth capital. Over the next few years free cash flow will increase significantly. They have said they will raise the dividend double digit % every year plus buy back stock as long as they consider the market price lower than intrinsic value. Today only 15% of cah flow goes to dividends.
One more 60 cent dividend after this. They typically raise the payout in early December. Last dividend increase x-dividend date was 12/04/13. The average growth rate for 2013 to 2015 is about 7%. I would think they could raise the dividend 4 or 4.5 cents per quarter. This would be about 68% of 2015 consensus estimate. Cash flow is about 2X the earnings, so they still have plenty of money for growth projects.
I actually bought some more shares yesterday after the recent sell off.