I've owned this for a while from Inergy. Of the energy assets spun off SPH turned out to be the best. When I listened to the Crestwood conference call things didn't sound real bad and I've considered adding but it just keeps getting hammered up and down.
A major part of their business is fertilizer and transportation which is unrelated to the price of oil. In the end earnings will determine the share price.
Just use your cash 10.77 share to buy another MLP and the distribution will be more than KMP plus it will grow faster. The deal 2.1931 KMI shares plus 10.77 cash is more than current price of KMP stock so look for the price to return to highs or possibly to $100.
Most of the land is only valuable for the timber. Located in unorganized townships and the like only accessible seasonally by dirt logging roads. Once the timber is cut then it takes years of growth to be viable again.
I believe ERF has a lot of shale locations to drill which have shown good results. PWE has been dumping shale assets and going with conventional enhanced recovery.
If Rosneft gets control of Seadrill then the Russian drilling locations will get top priority which might be good for SDRL shareholders but not the free world.
UBS putting it on the buy list doesn't help much. When oil prices go down the MLPs are usually hit even though they aren't effected. The prices usually recover as they get near the time of declaring distributions.
The big boys have been scarfing up the cheap mlps to add to their pipeline systems. XTEX which has been a dog was bought by Devon to add to their new MLP.
Morgan Stanley estimates earnings for CNP in 2013 is 1.27, in 2014 is 1.36, in 2015 is 1.43, in 2016 is 1.52. Credit Suisse panned CNP with estimates of 1.22 in 2013, 1.31 in 2014, and 1.45 in 2015. Apparently CS missed that CNP is receiving 59% of the limited partnership.
Someone keeps buying the GOODP preferred at absurd prices. They must think its google or have no idea how to place a limit order. The preferred is callable at any time at $25. Last trade was $28.55.
Another issue with the MLPs is that they tend to be volatile from day to day and I can't understand the reason but have to live with it. They were almost all down yesterday and are almost all up today. With the MLPs I second the idea that the small investor shouldn't trade them buy buy and hold and enjoy the distributions.
Why not just avoid holding MLPs in the IRA. It isn't like there is a shortage of stocks available. I've had good luck with SE and CNP which build pipelines and are C corps.
I'm still totally confused as to what the status is of the Texstar merger. I believe it was completed in Dec. from the press releases. I emailed the company to try to get a clarification about what's going on.
It would seem the TexStar issue is material and should have been dealt with in a separate press release. I don't know how they can back out of an acquisition without paying a substantial penalty unless the acquisition is based on the value of NS stock.