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Michael Fitzsimmons

 
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  • Phillips 66 Partners: Details On The MLP's IPO [View article]
    You are probably right. If so, I am looking forward to seeing a roadshow presentation. With interest rates so low, and Bernanke saying yet again it will be sometime before they rise, high yielding and tax advantaged MLP's still seem quite desirable. I wouldn't be surprised if the extra 2.3 million shares are scooped up in this offering.
    Jul 15 06:25 PM | Likes Like |Link to Comment
  • Phillips 66 Partners: Details On The MLP's IPO [View article]
    No, you will not.
    Jul 15 05:23 PM | Likes Like |Link to Comment
  • Whiting Petroleum (WLL) closes the sale of its Enhanced Oil Recovery projects to BreitBurn Energy (BBEP) for net proceeds of $836M. The company also updates Q2 guidance saying production exceeded the high end of its previous outlook at 8.5 MMBOE, an increase of 15.7% Y/Y. Shares -3.25% AH after the update. (PR[View news story]
    Shares down 3.25% in after hours? I think that is bogus...google finance currently showing down $0.07 after hours and I am surprised it is not UP considering the Q2 production beat and the cash infusion from this sale.
    Jul 15 04:22 PM | 1 Like Like |Link to Comment
  • Whiting Petroleum: $860 Million Asset Sale Not Yet Reflected In Share Price [View article]
    Note Whiting closed this sale today and updated Q2 guidance:

    http://yhoo.it/15z1Mco

    Production in Q2 exceeded the high end of guidance in Whiting’s April 24, 2013 news release primarily due to increasing production at its Redtail, Hidden Bench, Missouri Breaks, Sanish/Parshall and North Ward Estes projects.
    Jul 15 04:19 PM | 1 Like Like |Link to Comment
  • Phillips 66 Partners: Details On The MLP's IPO [View article]
    More on the "right of first offer" in the PSXP prospectus, which has to do with the Sand Hills and Southern Hills pipelines I recently wrote about here:

    http://bit.ly/15yYDJr

    From the latest prospectus:

    "Right of first offer assets

    Phillips 66 has granted us a right of first offer on its one-third equity interest in Sand Hills, which has placed into service a major 720-mile NGL pipeline that provides new NGL transportation from the Permian Basin and the Eagle Ford shale area to markets on the Gulf Coast, and its one-third equity interest in Southern Hills, which has placed into NGL service a converted refined petroleum product pipeline that extends more than 800 miles from the Midcontinent region to the Texas Gulf Coast."

    So, if you put my previous comment together with this one, it seems to me there is a very good chance PSXP could buy the 1/3 interest PSX has in both these pipelines. This would be a natural fit for PSXP to own, assuming they can meet PSX's asking price. It would also increase the tax-advantaged distributions PSXP would feed up to PSX shareholders.
    Jul 15 04:03 PM | 1 Like Like |Link to Comment
  • Phillips 66 Partners: Details On The MLP's IPO [View article]
    nicthu: Good questions. Here are some excerpts from the "Use of Proceeds" in the latest prospectus:

    "We (PSXP) intend to use the net proceeds from this offering for general partnership purposes, including to fund potential future acquisitions from Phillips 66 and third parties and potential
    future expansion capital expenditures."

    and

    "We expect to use the majority of the retained net proceeds from this offering for potential future acquisitions, such as the potential acquisition from Phillips 66 of our right of first offer assets."

    Additionally, it seems to me I remember a conversation about this on a conference call and PSX management making it clear that PSXP was designed to be a growth vehicle and that it would retain the proceeds, as well as its ability to tap capital markets, in order to grow organically.
    Jul 15 03:59 PM | Likes Like |Link to Comment
  • Phillips 66 Partners: Details On The MLP's IPO [View article]
    Good question Ruralist: unless I missed it, the actual date PSXP will begin trading was not in the latest prospectus. That said, I think you can buy shares now by contacting one of the managers for the offering, which can be found in this press release:

    http://yhoo.it/18jThaY

    I suspect once a large percentage of shares are spoken for, and first trade date will be set. If anyone knows differently, please leave a comment and educate me. Thanks!
    Jul 15 02:52 PM | Likes Like |Link to Comment
  • Phillips 66 Partners: Details On The MLP's IPO [View article]
    I should have mentioned this from the prospectus:

    "We intend to make a minimum quarterly distribution of $0.2125 per unit to the extent we have sufficient cash at the end of each quarter after establishment of cash reserves and payment of fees and
    expenses, including payments to our general partner."
    Jul 15 02:48 PM | Likes Like |Link to Comment
  • Phillips 66 Partners: Details On The MLP's IPO [View article]
    Thank you heglimp. I haven't been able to get a link to the SEC filing yet, but here is a link to PSX's SEC filings webpage that I am monitoring:

    http://bit.ly/YBtcLu
    Jul 15 02:43 PM | Likes Like |Link to Comment
  • Exploding The Natural Gas Supply Myth: An Interview With Bill Powers [View article]
    Poppycock: "supply in the United States is rolling over" because operators have shut-in wells and moved rigs to drill for oil and liquids, not because of a lack of resource.
    Jul 15 01:29 PM | 10 Likes Like |Link to Comment
  • Canadian Heavy Crude Prices Are Rising: Suncor Rakes In The Dough [View article]
    I totally agree with you.
    Jul 15 11:58 AM | Likes Like |Link to Comment
  • Canadian Heavy Crude Prices Are Rising: Suncor Rakes In The Dough [View article]
    I will concede that, my point was Ari acts as though I make these numbers up out of thin air, yet they are company numbers that are reported quarterly and yearly. It is not in SU's best interest to "fudge" the numbers as some are implying.
    Jul 15 11:58 AM | Likes Like |Link to Comment
  • A $200 Million Compressed Air Energy Storage Contract Boosts Dresser-Rand Group [View article]
    I am bullish on Brent (and WTI) in the long-run. I don't make predictions based on short-term oil prices.
    Jul 15 11:56 AM | Likes Like |Link to Comment
  • Western Digital Corp: I Spy An Opportunity [View article]
    Here is the IBM webpage for disk storage systems:

    http://ibm.co/18Y0Nrv

    It is not clear to me who actually makes the drives in these systems, but note that IBM sold its hard disk drive business to Hitachi back in 2002. I assume most of that business is now owned by WDC:

    http://bit.ly/18Y0Nrw

    I would think this would put WDC in an excellent position to capture IBM disk array product business.
    Jul 15 08:49 AM | Likes Like |Link to Comment
  • A $200 Million Compressed Air Energy Storage Contract Boosts Dresser-Rand Group [View article]
    I think the company's stock will move up because of earnings. Next EPS report is due August 2. I also think they are on track to land another CAES contract this year - they mentioned two CAES projects could close in 2013 and have only closed one has so far. As for a dividend, the company doesn't pay one now and I don't expect them to institute one anytime soon. I also don't expect P/E compression unless oil prices fall substantially. Currently, the energy infrastructure group, whether it's upstream production, midstream (pipelines), or downstream (refineries), is humming along quite nicely and that translates into good growth for DRC. As for a price target, my original article said DRC could double in 2 years (8 quarters). I'll stick with that unless I see the earnings not coming thru as I expect. We'll see on Aug 2.
    Jul 14 04:56 PM | Likes Like |Link to Comment
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