Seeking Alpha


Send Message
View as an RSS Feed
View 7iron10's Comments BY TICKER:
Latest  |  Highest rated
  • Investors give big thumbs-down to Energy Transfer deal for Williams [View news story]
    FCF can also be misleading in the midstream sector. The trend is to pay out distributions from FCF and fund growth-capex from issuing shares/debt. Every one of these companies operates with significant debt and many steadily increase number of units outstanding. ~~just the way it is
    Sep 28, 2015. 05:14 PM | Likes Like |Link to Comment
  • Williams Cos, Energy Transfer Equity to combine in a $37.7B deal [View news story]
    Ya, those WPZ shareholders must be thrilled watching their units crash another 11%...
    Sep 28, 2015. 10:15 AM | 5 Likes Like |Link to Comment
  • Williams: Negative Implications Of Chesapeake Deal [View article]
    You keep using this wording, "How many other customers will get fee cuts?", hinting that WMB is giving something away without reciprocation. It's not a one-way deal - it's a mutual agreement between parties, both of which receiving something from the other in turn.

    Other customers can request lower fees all they want. Fact of the matter is they're locked into contracts and its up to WMB as to whether or not they'll modify them.

    It seems obvious you do not trust WMB management. That's your prerogative. To date, they've been quiet. Quiet does not mean untrustworthy.
    Sep 14, 2015. 07:23 AM | 1 Like Like |Link to Comment
  • Kinder Morgan, Inc.: Come On, Admit It, This 6% Yielder Is A Steal At $32 [View article]
    KMI, CVX, BP, they are all not covering their divided/capex with FCF. Your difference? KMI's profits didn't crater 90% with the crash of oil...
    Sep 1, 2015. 06:45 PM | 12 Likes Like |Link to Comment
  • The Kinder Morgan Equation Isn't Adding Up [View article]
    World depression? Way too earlier to be screaming this noise.
    Aug 25, 2015. 11:55 PM | 2 Likes Like |Link to Comment
  • The Kinder Morgan Equation Isn't Adding Up [View article]

    Again, I'm not dismissing their debt at all - I've acknowledged its scale. I am, however, skeptical of the notion that it is somehow crippling their ability to do business.

    On the contrary, with the current backlog in capex, business is hardly affected.

    A quick reference to the most recent 10Q shows interest is amply covered, dividends are covered by cash flow (to the tune of 500mil extra coverage), debt is again, covered by long-term, stable, cash-generating assets, and their short-term liquidity situation is fine (revolving credit facility and commercial paper program). 3bil in debt is due in the near term. Ok, covered.

    So again, where is the crippling problem? I'm willing to meet you half way and say the debt is something to keep an eye on, but to insinuate anything else, currently, couldn't be farther from the truth.

    *Small position in KMI (I own larger positions in more conservatively run MLPs)
    Aug 25, 2015. 10:31 AM | 3 Likes Like |Link to Comment
  • At the open [View news story]
    Wow - opening bell: complete, utter panic. I think I saw MDT down like 18% at one point lol...
    Aug 24, 2015. 09:44 AM | 2 Likes Like |Link to Comment
  • The Kinder Morgan Equation Isn't Adding Up [View article]
    While I don't disagree that they have a lot of debt, you mind proving just how 'overwhelming' it is? Taking into account current capex, expected earnings growth, rate hike consequences (if any in near term) - I'd love to see this...and I'm talking numbers here, not some conjecture.
    Aug 24, 2015. 03:34 AM | 12 Likes Like |Link to Comment
  • 2015 Exposes Shaky MLP Fundamentals [View article]
    I thought this was obvious, given my first post, but:

    I'm arguing against the premise that WMB, a company NOT in financial distress, would sell itself for bear market-based prices.

    As if ETE is going to somehow be able to come in and scoop up the company with a lower offer.

    If the offers from the auction process do not truly represent the value of the company, in the interest of the shareholders they (
    WMB) will continue on ahead with the WPZ merger.
    Aug 19, 2015. 07:02 PM | 1 Like Like |Link to Comment
  • 2015 Exposes Shaky MLP Fundamentals [View article]
    As is the entire market. Your point?

    WMB isn't hurting - neither is WPZ. They're not 'distressed'. Any sale to ETE at a lower offer would not only not be in the best interests of the shareholders, it would be ludicrous at these levels.

    If acquiring parties cannot make an offer truly representing the value of WMB and its assets (read, refusal of first offer), they'll go ahead and aquire WPZ, as was the original plan.

    Your court, 'grasshopper'.
    Aug 19, 2015. 04:24 AM | 1 Like Like |Link to Comment
  • 2015 Exposes Shaky MLP Fundamentals [View article]
    "ETE may get it at a reduced price in the end. If Danielle's article is correct, it could be worth a lot less than ETE offered. "

    ....What are you even talking about? Their first offer was shot down. Does shooting down the first offer and then stepping back for a reduced price make ANY sense?

    The comments in this thread are laughable at best - people who did not understand their investments, scared witless in a bear market, and now digesting this article like it's the holy gospel...priceless.
    Aug 18, 2015. 04:33 AM | 2 Likes Like |Link to Comment
  • Kinder Morgan Is On Sale Again With A 6% Dividend [View article]
    While simplistic in my approach, I still stick with it. Notice I mentioned nothing of short term gains/pain.

    I think it's worth emphasis, once wells are drilled and in production, bankruptcy or not, that well will stay in production. Rates may be renegotiated, lowering margins, but I can't see this having overwhelming effects on the midstream operators. And the moment the price of oil starts approaching profitable levels again, production is back in full force - there's just too much money to be made now on shale drilling. Again, mid-long term trends are healthy for the midstream industry.

    *I do not invest in the new, smaller players (whatever companies this author listed...). I stick with established, diversified heavyweights. My biggest worry is a stagnation in distributions and the more than likely shock to the share price in said scenario.
    Aug 17, 2015. 08:08 AM | Likes Like |Link to Comment
  • Reuters: U.S. set to approve landmark crude oil export swaps with Mexico [View news story]
    All this talk about polluting the Ogallala aquifer in Nebraska...Christ - take a look at the pipeline mileage already built and operational in Nebraska.

    Some of these people seem to live on another planet, where their cars and houses are powered by good intentions and fairy dust....

    I truly wonder if the average citizen knows just how much oil affects their life on a daily basis, from power generation all the way down to the plastic that permeates our lives.
    Aug 17, 2015. 07:54 AM | 5 Likes Like |Link to Comment
  • Kinder Morgan Is On Sale Again With A 6% Dividend [View article]
    Well, until bankruptcy hits they pump like crazy to make interest/debt payments - money in transporter's pockets.

    They then go bankrupt and someone scoops their assets up on pennies on the dollar. Eventually these assets will be put back in production - money back in transporter's pockets.

    So you have to ask yourself one, simple question: mid-long term, are you bullish on natural gas/oil? Anyone with any semblance of knowledge on our modern society should be able to answer that question with ease.
    Aug 17, 2015. 01:15 AM | Likes Like |Link to Comment
  • Kinder Morgan Is On Sale Again With A 6% Dividend [View article]
    Correct me if I'm wrong, but in your scenario profit is contingent upon holding the stock. Say you buy the warrants now at X price and sell into a rally at Y (Y-X>commission) - profit? If it looks like KMI would continue the run, hold the warrants?
    Aug 16, 2015. 11:57 PM | Likes Like |Link to Comment