Will ConocoPhillips Benefit From Freeport LNG's Export Approval? [View article]
TwistTie: Remember the original objective of Freeport LNG was importing LNG, not exporting it. The GP was likely formed (I am guessing here) to maximize the profits of COP's other businesses: in the import case that would have been the marketing of natural gas to domestic buyers. Now, in the export case, I would assume the COP board members of Freeport LNG will work to enhance COP's sales of natural gas to the end consumers who are buying the exported LNG.
This is a quite complex arrangement. While talking to a spokesperson, I got the understanding that the LNG export plant acts kind of like a toll booth. The actual end consumer buying the LNG is responsible for the commercial deal to buy the natural gas that will be sent to the plant. Note the "tolling contracts" on this webpage:
Kazakhstan will decide by July whether to exercise its option to buy ConocoPhillips' (COP) 8.4% stake in the huge Kashagan oil field, which has attracted interest from companies in China and India. The government has a right to buy the stake, which it could sell for ~$5B, as part of an international consortium developing the field, or to decide on a buyer. [View news story]
The Kazak's have already made statements indicating they do not want to increase their stake in the field. The big question in my mind is who buys COP's interest: India or China:
Exxon Mobil: 4 Reasons To DRIP This Company [View article]
Why DRIP an oil stock with the lowest yield in its peer group and that spends twice as much on stock buybacks as it does on dividends? XOM spent $20 billion on buybacks in 2012 and only $10 billion on dividends.
If you want to DRIP a stock, DRIP Chevron's $1/share/quarter dividend.
Phillips 66's Midstream Business Is Poised For Impressive Growth [View article]
Thank you Abby. No, PSX shareholders will not get shares in the PSXP MLP. But PSX shareholders will get a tax-advantaged distribution stream spun off from the MLP. More about the MLP's overall benefits to existing shareholders can be read here:
Will ConocoPhillips Benefit From Freeport LNG's Export Approval? [View article]
I agree thomst04 and after thinking about it some, I am kind of relieved COP isn't on the hook for some of the estimated $10 billion in construction costs of the LNG trains. To put that in perspective, that is twice the ~$5 billion COP will realize from monetizing its stake in the Kashagan field.
Will ConocoPhillips Benefit From Freeport LNG's Export Approval? [View article]
Hi John and thank you. I agree - DOW should hire Stuart to monetize their LP position. Isn't it ironic that a company like DOW, such a vocal opponent of domestic LNG exports, has a limited partner role in an LNG export terminal? The shale revolution has certainly be a huge disruptor.
Will ConocoPhillips Benefit From Freeport LNG's Export Approval? [View article]
Yes Marine85 - and your excellent contributions on SA are well known. At least by all 3 of your followers. I wonder ... instead of simply leaving nasty comments, will you ever try *reading* an article and offering something constructive?
Will ConocoPhillips Benefit From Freeport LNG's Export Approval? [View article]
As disappointed as I was that COP won't be benefiting from this plant (at least not directly through distributions), I am somewhat comforted that the company won't have to shell out some of the estimated $10 billion the liquefaction trains will cost. COP has other places to deploy captical which potentially have just as good (or better) returns with perhaps lower risks.
Will ConocoPhillips Benefit From Freeport LNG's Export Approval? [View article]
Very interesting idea Stuart...you're a natural deal maker! Maybe the estimated profit potential shown in the article will help value Dow's slice of the LP. Nice comment!
Will ConocoPhillips Benefit From Freeport LNG's Export Approval? [View article]
You are correct BAHAMAS and that is consistent with what I said in the article although I suppose my wording could have been better. Basically, you need to be a shareholder of record on Friday to capture the dividend.
Will ConocoPhillips Benefit From Freeport LNG's Export Approval? [View article]
As explained in the article, the origins of the general partnership was for imports, which obviously don't matter today. Freeport LNG will be basically a toll-way for foreign customers to buy US produced LNG. As explained in the article, COP does not have an equity stake in the LNG export terminal, and will not be receiving distributions from LNG export activity.
However, I think there is a good chance COP could be a supplier of natural gas to the plant.
Will Permian Basin Royalty Trust Finally Reap The Benefits Of Fracking? [View article]
Yes - a very good report! Thanks for pointing it out - somehow I missed the press release.
Oil production was up from 82,774 to 93,451 (12.9%) Realized prices were up from $78.60 to $85.44
As a result, the distribution was $0.088/share up from $0.061 in the prior month. Looks like the additional cap-ex for new frack jobs may finally unleash the resources on PBT's leases and exploit the nice increase in reserves. Stock is now trading at $13.21, up 7% since this article was published in late March. You are right dreverts - this report bodes well for the future. Thx for the post.
Will ConocoPhillips Benefit From Freeport LNG's Export Approval? [View article]
This is a quite complex arrangement. While talking to a spokesperson, I got the understanding that the LNG export plant acts kind of like a toll booth. The actual end consumer buying the LNG is responsible for the commercial deal to buy the natural gas that will be sent to the plant. Note the "tolling contracts" on this webpage:
http://bit.ly/10TRQXO
Kazakhstan will decide by July whether to exercise its option to buy ConocoPhillips' (COP) 8.4% stake in the huge Kashagan oil field, which has attracted interest from companies in China and India. The government has a right to buy the stake, which it could sell for ~$5B, as part of an international consortium developing the field, or to decide on a buyer. [View news story]
http://seekingalpha.co...
Exxon Mobil: 4 Reasons To DRIP This Company [View article]
If you want to DRIP a stock, DRIP Chevron's $1/share/quarter dividend.
Phillips 66's Midstream Business Is Poised For Impressive Growth [View article]
http://seekingalpha.co...
Will ConocoPhillips Benefit From Freeport LNG's Export Approval? [View article]
Will ConocoPhillips Benefit From Freeport LNG's Export Approval? [View article]
Will ConocoPhillips Benefit From Freeport LNG's Export Approval? [View article]
Will ConocoPhillips Benefit From Freeport LNG's Export Approval? [View article]
Will ConocoPhillips Benefit From Freeport LNG's Export Approval? [View article]
Will ConocoPhillips Benefit From Freeport LNG's Export Approval? [View article]
Will ConocoPhillips Benefit From Freeport LNG's Export Approval? [View article]
However, I think there is a good chance COP could be a supplier of natural gas to the plant.
Will ConocoPhillips Benefit From Freeport LNG's Export Approval? [View article]
Will ConocoPhillips Benefit From Freeport LNG's Export Approval? [View article]
Will Permian Basin Royalty Trust Finally Reap The Benefits Of Fracking? [View article]
Oil production was up from 82,774 to 93,451 (12.9%)
Realized prices were up from $78.60 to $85.44
As a result, the distribution was $0.088/share up from $0.061 in the prior month. Looks like the additional cap-ex for new frack jobs may finally unleash the resources on PBT's leases and exploit the nice increase in reserves. Stock is now trading at $13.21, up 7% since this article was published in late March. You are right dreverts - this report bodes well for the future. Thx for the post.
Will Permian Basin Royalty Trust Finally Reap The Benefits Of Fracking? [View article]