Nustar Energy (NS) is a midstream name that has oil pipelines, terminals and storage. The shares have dropped 43% in 2015 and recently changed hands around $34. The company has maintained a quarterly distribution of $1.095 a share (13.4% yield) since 2011.
While Nustar's dividend has been consistent over the past four years, we believe that readers should not expect that trend to continue in 2016. The company is seeing lower EBITDA from its pipeline and marketing business lines. As a result, management can only cover the payout this year by tapping its credit revolver by a couple of hundred million dollars.
The same will be true for 2016, including some expected equity dilution. In the meantime, Nustar's credit rating is already in junk status.
What will happen to the pipelines ?:
Ford to Spend $4.5 Billion in Electric Vehicle Development
The company aims to bring 13 new electrified vehicles to market by 2020
Updated Dec. 11, 2015 5:03 a.m. ET
Ford Motor Co. said Thursday it plans to roll out a more capable electric version of the Focus small car next year, the first of 13 new electrified vehicles it committed to develop in the next four years under a $4.5 billion investment......
I have been looking at GM and F . Looking at the charts I was thinking F around $13.00 and GM around $30.00 . But in this market I feel like I may be catching that falling knife , again . I'm in F at $13.65
Well best of luck to you .
Book price is around $17.62 But I just sold and took a lost .They can't do away with coal over night , but it's going just the same . Why did I sell then ? Google and read .
With Coal Industry Under Pressure, Some See Long-Term Decline
By JOHN SCHWARTZDEC. 2, 2015
Well best of luck to all .
Google this, "Coal is in trouble, and that could be good news for a warming world."
The representatives of nearly 200 nations who are gathered in Paris to discuss ways of limiting climate change by cutting greenhouse gas emissions will be talking a lot about coal.
The ministers who preside over the International Energy Agency recently cited phasing out inefficient coal-fired power plants as one of the biggest, most cost-effective ways to reduce greenhouse gas emissions. Burning coal produces nearly twice as much carbon dioxide as burning natural gas, according to the United States Energy Information Administration.
Meanwhile, a wave of a half-dozen bankruptcies has hit major coal companies, including Alpha Natural Resources, which sought bankruptcy protection in August. Arch Coal warned last month that a filing could come soon.
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In the United States, environmental regulations like the Obama administration’s controversial Clean Power Plan are only part of the industry’s challenges.
The rise of cheap alternatives like natural gas, as well as wind and solar power, has had a far greater effect on coal’s fortunes. Plummeting coal prices and business decisions by the companies to take on debt have also weighed down the industry. In addition, campaigns by well-funded activists have helped to reduce the number of coal-burning plants in the United States...........................