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  • Confessions Of A Retired Energy MLP Investor  [View article]
    MLP's should be part of your 15%-20% alternative estimate portfolio for raising interest returns on overall investments. Note that oil and gas investments should be with your main diversified portfolio that you redistribute based on market conditions.

    The problem with pipeline MLPs is that they have invested in energy products and taken on too much debt to pay distributions. The MLP line should be transportation on tariff based lines and not equity shared product ownership in hydrocarbon products. The tax consequences of having to trade MLP's makes it a poor investment when fluctuating energy prices cause the equity price to fluctuate. The tax consequences dissuade the investor from selling out of the investment when energy prices drop. Energy prices are cyclical and will continue to go up and down, sometimes to extremes as we see today
    Jan 24, 2016. 12:07 PM | Likes Like |Link to Comment
  • What To Expect From BP?  [View article]
    Any company that hasn't destroyed the Gulf of Mexico
    Jan 1, 2016. 04:06 PM | Likes Like |Link to Comment
  • What To Expect From BP?  [View article]
    BP has been selling non core asset since the BP Amoco Merger ARCO purchase...which is more like 15 years. Thosne downstream assets they sold would now be core assets.
    Jan 1, 2016. 04:04 PM | 1 Like Like |Link to Comment
  • What To Expect From BP?  [View article]
    I agree that BP would be a great investment under current circumstances except for one variable, their management. I often have the urge to purchase BP stock for the price and dividend, but have stopped and reminded myself of the management gap.

    BP has had so many systemic errors in the last 15 years including the corrosion issue with the Alyeska pipeline, the Texas City explosion, Thunderhorse and finally Macaundo, to name most, but not all disasters.

    One of these may have been an unfortunate circumstance, but the series of events shows a systemic corporate environment of unnecessary risk taking to save money in an arrogant fashion. IMO, the only thing that saved BP was the ability to sell assets and the relationship between the US and British government

    BP eliminated a number of mid-level managers, but the same skeletal upper level leadership still exists with the DNA of John Browne. They will continue to sell assets and gain cash flow through hydrocarbon sales. I question the recent DVN shale purchase as a recent bad business decision, but this is another topic.

    I would advise shifting oil investments to CVX, COP and other stable oil companies maintaining management with a proven track record of developing oil projects with a proven track record of safety and integrity.
    Dec 31, 2015. 10:54 AM | 3 Likes Like |Link to Comment
  • Blood Is Not Flooding The Streets Yet, Not Adding To BP Stake  [View article]
    BP may be a good near-term dividend play that provides a relatively conservative oil play with limited upside compared to more direct shale plays, but what about the investments that will provide greater upside. What company will benefit by developing Iran's infrastructure. What company has the least debt and best assets for when the upturn finally occurs. These are the type of I'll be seeking.

    In terms of electric vehicles, natural gas will still be powering the electricity for those vehicles if they gain significant traction. Hydrocarbons will be around for a long time.
    Dec 20, 2015. 12:25 PM | 3 Likes Like |Link to Comment
  • How To Retire At 60 With A Million Bucks  [View article]
    Thanks,

    The pension has an inflation adjustment each year. I plan on buying higher risk with proceeds from the fixed income. For example, I will start looking at MLPs and dividend paying stocks in the near future, but I will maintain the fixed income principle if possible.

    The house rents for less than market value, but I have incredible long- term renters. I will eventually sell and perform a 1031 exchange to a more expensive area in CA with higher rent potential for the same amount of principle.


    Dec 13, 2015. 09:24 PM | Likes Like |Link to Comment
  • How To Retire At 60 With A Million Bucks  [View article]
    I have a defined pension plan, IRA locked in fixed income from 8 years ago until 2032 and a rental house. They each equate to about a third of my income and combined produce around $80k in income without touching principle (except defined pension plan ends at death). I'm currently looking for another investment property in a resort area where I plan to live for a few years and am in college workign on a CPA certification. I probably won't work for anyone in six months, but will contract, if I like the gig.

    College is done for kids, divorced and can still get a date, but fixed to prevent accidents.

    I don't plan on knowing the definition of retirement
    Dec 13, 2015. 04:21 PM | 1 Like Like |Link to Comment
  • The Impact Of Oil On BP Shares  [View article]
    BP sold a lot of it's downstream operations which would have helped it through the current low oil prices, e.g. Carson refinery where gasoline is $1.00 higher than the rest of the country. This is where management should have defined integrated oil company...Rockefeller got it.

    As referenced above, management is short sighted and the calls are still made by the same select group in London even though they have a US CEO. BP can carry the dividend with oil cash flow. The problem will be are they investing in future growth.
    Dec 5, 2015. 12:50 PM | 3 Likes Like |Link to Comment
  • My Open Letter To The Board Of Directors Opposing The MarkWest/MPLX Merger  [View article]
    I'm familiar with MWE and I feel the marketing plan is excellent under growing conditions. However, under current conditions, the plan to appease various business models to accommodate differing customers, significant debt and some upper management without significant depth makes this a losing independent entity. If I hadn't sold my shares last year, I would have voted yes.
    Nov 11, 2015. 09:29 AM | 2 Likes Like |Link to Comment
  • Can You Trust The Energy Market Rally To Hold?  [View article]
    Kartik,

    You are spot on. I always look at basic fundamentals and as long as the Saudis are not signalling higher prices, it will consist of lower prices. IMHO, the recent rally is because the Russians are strongly in the Middle East and their goal is higher prices as is Iran's.

    Russia is overproducing to maintain cash flow as are American producers.

    I'm watching to see if Russia and Iran can intimidate Saudi to become more flexible in their stance. Without the US involved, that is a possibility. BTW, there is interesting information on the Saudi King and I'm watching if there will be a policy change....check the news for details.

    For our own self interests, North America produces enough oil for the US and I don't want to invest American lives and resources to protest cheap oil for Asia. Higher oil prices are just as good for the US as the Middle East now with our increased production. As long as we can keep our pride and Neocons in check, I'm with Trump on this one. Let the Russians get in the quagmire.
    Oct 11, 2015. 10:48 AM | 5 Likes Like |Link to Comment
  • MarkWest's Ability To Grow Through, And Withstand, The Oil And Gas Downturn  [View article]
    The entire energy industry needs a big shake down before we see who is left standing. Based on asset revaluations for loans in this debt heavy industry, there seems to be a slow decline in equity prices. We are below break even pricing for the majority of assets and banks should be calling in loans. It's obvious they're hoping for higher prices soon to save the industry.

    MWE has a complex business model and it's difficult to determine valuation based on sharing assets movement ownership in some cases. There's also the issue of lower volumes coming from their geographic areas of operation. There could be some downward pressure on this issue for the reasons listed.
    Sep 28, 2015. 01:20 PM | Likes Like |Link to Comment
  • Casinos love $2 gas  [View news story]
    Las Vegas Casinos are one market. The more regional casinos have a few things going for them. Cheaper gas prices allow for more disposable income along with less expense to get to the casino. (a perceived difference). Also, if you go to some regional casinos, you see a number of retirees. The baby boomers are retiring in droves and looking for entertainment. In addition, the rest of the country is stll enjoyment cheap gas(2.10 to 2.20 in Colorado)

    I've also been looking at the suppliers. There is some consolidation going on and a transfer from old technology slots to more interactive video gaming. Understand what your investing ina nd stay away from Macau and Trump.
    Feb 28, 2015. 08:34 PM | Likes Like |Link to Comment
  • Vanguard Natural Resources: Some Candid Words For 2015  [View article]
    Good Info

    Thanks
    Dec 31, 2014. 09:36 PM | Likes Like |Link to Comment
  • Vanguard Natural Resources: Some Candid Words For 2015  [View article]
    Right....and NGL prices were the VNR excuse for reduced earnings one of their last quarter because the NGL wasn't wasn't hedged. I haven't heard anything about NGL prices and VNR since. BTW..I'm not sure if you can hedge NGL...but you can hedge the major components including Propane.
    Dec 30, 2014. 09:02 AM | Likes Like |Link to Comment
  • Vanguard Natural Resources: Some Candid Words For 2015  [View article]
    Good Article....what about buying the preferreds? The distribution cut will hit VNR, but what risk is attached to VNRBP, etc, besides total liquidation?
    Dec 30, 2014. 08:41 AM | 1 Like Like |Link to Comment
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