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Michael Fitzsimmons  

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  • Why Buffett Should Buy Phillips 66 [View article]
    No doubt, -XL is certainly a political football. But there was some local resistance to it in Nebraska as well, including the some local Republicans.

    With respect to Valero, note that the vast majority of their refining capacity is on the Gulf Coast (TX, LA). Many of those refineries are configured to run heavy crude, so they have a big-time interest in getting more heavy from Canada to the Gulf Coast.
    May 23, 2015. 06:08 PM | Likes Like |Link to Comment
  • Rose Rock Midstream: Cushing Storage Assets Will Provide Reliable Income For Decades, DJ Basin Pipelines Will Provide Growth Kicker [View article]
    Yes, me too :D
    Have a great weekend.
    May 23, 2015. 05:06 PM | Likes Like |Link to Comment
  • Rose Rock Midstream: Cushing Storage Assets Will Provide Reliable Income For Decades, DJ Basin Pipelines Will Provide Growth Kicker [View article]
    Btw Pablo, I hope you noticed that I currently do not own shares in Rose Rock so I am not trying to "sell you" on the company, just trying to be objective and answer your questions. It is on my watch list.
    May 23, 2015. 04:45 PM | 1 Like Like |Link to Comment
  • Rose Rock Midstream: Cushing Storage Assets Will Provide Reliable Income For Decades, DJ Basin Pipelines Will Provide Growth Kicker [View article]
    Hi Pablo: first off, if you look at the Q1 EPS report (and I failed to mention this in the piece, but meant to), the previous Class A and subordinated shares have all been converted to common LP units now. So, much less complicated reporting and distribution from here on out. Secondly, it is not necessarily a bad thing that the GP's IDRs are setup to give them 48% of the distis above the top-tier threshold (which has been already been attained) from here on out. One could make the case that this is exactly what the "incentive" rights are meant to do: motivate the GP to grow the partnership's distributable income. That obviously will work out well for the LP unit-holders as well. Further, owning such a large share of the LP units also means the GP's long-term interest in the partnership are fully aligned with that of the public common LP unit-holders. I view the large ownership by management as a positive, not a negative. The only way I would change my view is if the GP wasn't strong and there was some concern they would dump ownership. But SEMG has delivered strong performance over the past 5-years and appears to be a solid GP.

    Btw, the "Q1 2015" earnings link in this article was broken when I clicked on it to answer this question (concerning the share conversion). I have submitted an edit to fix it, hopefully that will be done soon. Thx for your patience!
    May 23, 2015. 04:27 PM | Likes Like |Link to Comment
  • Why Buffett Should Buy Phillips 66 [View article]
    Hi Jess - yes, certainly across the oil & gas industry management has been pushing for -XL to be completed for years. Here's an article I wrote way back in 2013 wondering, with the buildout of other pipelines and rail capacity, if -XL really mattered much anymore:

    http://seekingalpha.co...

    While certainly it would lower transportation costs (and is safer and more environmentally sound) as compared to rail, what we are discovering is that refiners really like the logistics of point-to-point delivery by rail. As a result, rail capacity has continued to flourish. That said, oil sands volumes continue to ramp up and certainly -XL would be a big sigh of relief in terms of volume exit capacity. I do think the pipeline will eventually get built. I just don't think in the short-term, and over the last few years, that the media hype really matched the big picture impact.
    May 23, 2015. 04:11 PM | Likes Like |Link to Comment
  • Why Buffett Should Buy Phillips 66 [View article]
    Hi Jess - If you are talking about Keystone-XL, at this point I believe it is largely irrelevant. PSX has been able to source all the heavy oil from Canada it wants through other pipelines and by rail. Would -XL be nice to have, sure. But I think the industry stopped betting on its completion years ago.
    May 23, 2015. 10:41 AM | 1 Like Like |Link to Comment
  • PetroQuest: A Fresh Look At Thunder Bayou After The Crash In Commodity Prices [View article]
    You're welcome and a nice hot summer would help too! We'll get some extra demand from coal plants shutting down, but nothing like a nice big sun in the sky to get AC units running.
    May 23, 2015. 08:41 AM | Likes Like |Link to Comment
  • PetroQuest: A Fresh Look At Thunder Bayou After The Crash In Commodity Prices [View article]
    Hi woodland - defintely, but the question is when? We're pretty much right on the 5-year average in storage and production actually fell .22% in the last report I read. The EIA expects industrial demand to rise 4% this year. But of course the big catalysts are LNG exports beginning later on this year, and picking up in 2015 and the massive build-out of additional chemicals capacity on the Gulf Coast which will be coming on line over the next couple years.

    After having a nice gain in PQ shares, I held on and now have a loss. But I think it would be foolish to sell at the current price because I think the company has the liquidity and production to see it through this period of low gas prices. I hate to predict commodity prices, but I'd be shocked if we don't see $4 gas sometime in the next 12-24 months. If there is a hot summer, we could see it sooner rather than later. But so far the weather has been very mild pretty much across the whole nation.
    May 23, 2015. 08:40 AM | 1 Like Like |Link to Comment
  • Energy Recovery: Fresh Water Is Being Taken For Granted [View article]
    I agree with tromur. These are "mission critical" components and the cost to shut-down a desal plant, repair a broken part, and restart is not insignificant. One reason ERII owns this market is because of the outstanding reliability of the PX devices.
    May 22, 2015. 06:39 PM | 1 Like Like |Link to Comment
  • Transmontaigne Partners Posts A Solid Q1, Yields 7%, New Contracts At Higher Rates, And Excellent Growth Prospects [View article]
    I agree. Also, note TLP"s terminal capacity is either maxed out or almost maxed out in all regions except the "River", which has another 1 million barrels of opportunity. Hopefully we'll see an some announcements that those barrels have been contracted too.
    May 22, 2015. 12:13 PM | Likes Like |Link to Comment
  • Transmontaigne Partners Posts A Solid Q1, Yields 7%, New Contracts At Higher Rates, And Excellent Growth Prospects [View article]
    Hey Pablo - I noticed on a new presentation given yesterday that TLP says BOSTCO is now fully contracted out. See slide 5:

    http://bit.ly/1LsVjFp
    May 22, 2015. 10:10 AM | Likes Like |Link to Comment
  • Transmontaigne Partners Posts A Solid Q1, Yields 7%, New Contracts At Higher Rates, And Excellent Growth Prospects [View article]
    Hi Rick - yes, the current yield is quite acceptable and as you mentioned, odds are very good for a bump in the distribution this year.
    May 22, 2015. 09:56 AM | Likes Like |Link to Comment
  • Rose Rock Midstream: Cushing Storage Assets Will Provide Reliable Income For Decades, DJ Basin Pipelines Will Provide Growth Kicker [View article]
    Hi Dirk - I saw your piece but I didn't want to read it prior to writing mine for fear it might affect my thought process. But I did just read it - nice work! I wish I owned some maybe if dips under $50 I'll pick up a few shares. You're right though, it's relatively unknown consider the strategic assets in Cushing.
    May 21, 2015. 08:28 PM | Likes Like |Link to Comment
  • Rose Rock Midstream: Cushing Storage Assets Will Provide Reliable Income For Decades, DJ Basin Pipelines Will Provide Growth Kicker [View article]
    Congrats on your success!
    May 21, 2015. 08:25 PM | Likes Like |Link to Comment
  • Rose Rock Midstream: Cushing Storage Assets Will Provide Reliable Income For Decades, DJ Basin Pipelines Will Provide Growth Kicker [View article]
    Thank you Kal - I didn't know much about Rose Rock until I was reading an article that listed them as one of the top storage providers at Cushing. Most of the other names were big and well known. That motivated me to take a closer look at the partnership and I liked what I found.
    May 21, 2015. 04:51 PM | Likes Like |Link to Comment
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