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  • Why I Don't Care About No Stinkin' Oil Rig Counts [View article]
    Given his/her background, commentator 7422981 is entitled to considerable credibility in this space.
    Elliot Miller
    Oct 4, 2015. 02:20 PM | 1 Like Like |Link to Comment
  • What Happened In September: 6 Things Only People Who Followed MLPs During The Financial Crisis Will Remember [View article]
    Ms. Halmo:
    Somewhere supply-push and demand-pull create an equilibrium. Also, it should be emphasized that if capital markets restrict funds available then growth will slow and such capital will no longer be needed, and at some point another equilibrium will occur.
    Elliot Miller
    Oct 3, 2015. 08:16 AM | 1 Like Like |Link to Comment
  • Enterprise Products Partners: This 6.5% Yield Is A Steal For Income Investors [View article]
    For sure the Duncan family believes the title of this article. With today's distribution announcement of a 5.5% increase, they are using the distribution reinvestment plan to bring their investment in EPD common units to $200 million this year.
    Elliot Miller
    Oct 1, 2015. 12:58 PM | 1 Like Like |Link to Comment
  • MLP Investors, Are You Getting Nervous? [View article]
    Probably CSI Compressco is the most concerning, because it is also in manufacturing and has overseas operations, and its compression activity near the well head at lower horsepower has been weak. Exterran is the largest and has the advantage of large size and the most diverse non-manufacturing compression operations and a sponsor in Exterran Holdings that is supportive. On the other hand Exterran does have significant smaller horsepower units at the well head, which is a negative, whereas USA Compression has only larger horsepower units not at the well head but in the midstream and in gas lift. USA Compression has also been the most rapidly grower of the three. I believe that USA Compression is the least exposed to losing customers because its large units are much stickier in the midstream than the smaller horsepower well head units used by Exterran and CSI Compressco.
    Having said the above so far I have not sold any of my units in any of the three.
    I hope that this is helpful.
    Elliot Miller
    Oct 1, 2015. 08:59 AM | Likes Like |Link to Comment
  • MLP Investors, Are You Getting Nervous? [View article]
    You didn't lose if you haven't sold.
    Elliot Miller
    Sep 30, 2015. 02:49 PM | 2 Likes Like |Link to Comment
  • MLP Investors, Are You Getting Nervous? [View article]
    MLPData and Commentators:
    I believe that the decline in MLP unit prices has been exacerbated by significant redemptions of open end mutual funds owning MLPs. In order to meet the redemptions the funds need to sell units as best they can, which often means dumping them and rendering price declines more exaggerated than normal.
    Elliot Miller
    Sep 29, 2015. 09:17 AM | 5 Likes Like |Link to Comment
  • Natural Gas Breaks Support [View article]
    There are several long term factors which will strengthen gas in the future.
    1. Starting at the end of this year Cheneire's first train ought to become operational with others to follow, including Dominion's liquification plant in the future, starting the process of serious LNG exports above and beyond the one Alaska facility now functioning.
    2. Growing NGL exports by Enterprise and others.
    3. The Gulf Coast petrochemical plants under construction should start to become operational in 2017 using gas as a feedstock.
    4. Pipelines to Mexico should be completed by 2016/7 increasing our gas exports there.
    These factors are all more long term than are relevant to traders, but to long term midstream investors such as myself, they are reasons to stay invested and collect the distributionsm in the meantime. Just as Mr. Hecht quotes Yogi Berra, I quote Mayor LaGuardia: "Patience and fortitude and fate will come your way." Patience is an investment strategy but these days it can be a painful one at times.
    Elliot Miller
    Sep 28, 2015. 08:50 AM | 3 Likes Like |Link to Comment
  • Crude Oil Dead At $45 [View article]
    Mr. Hecht:
    Thanks for an interesting analysis.
    Rationally, if WTI sells at a premium to Brent that should augur badly for the midstream as imports will be cheaper for refineries than domestically produced and transported crude. It might help those heavy in storage but hurt those in pipelines. However, given the length of pipeline contracts that impact should hit only those pipelines with expiring agreements.WTI at a premium to Brent ought to also negatively impact crude by rail since imports at many refineries are by ship. Whether this in fact occurs --or whether WTI will sell at a premium to Brent-- remains to be seen.
    Elliot Miller
    Sep 28, 2015. 08:34 AM | 2 Likes Like |Link to Comment
  • An Analysis Of Southcross Energy's Complex Equity Structure And Its Possibilities [View article]
    I owned Crestwood several years ago. I was favorably impressed with Thomas Lott's September 11th Seeking Alpha analysis of the pending merger and its favorable impact on CEQP, but so far I haven't acted on that impression. If you haven't seen Lott's article it's well worth reading.
    Elliot Miller
    Sep 27, 2015. 08:30 AM | Likes Like |Link to Comment
  • Martin Midstream Partners' Bonds Yield Over 8.5%, Mature February 2021 [View article]
    I have a substantial long position in the common units at $32, with a 10% yield. I prefer the common units tot he bonds not only because of the higher yield but because of the tax deferral aspect of the distributions and the fact that when they reduce basis to zero then distributions are taxed at long term capital gains rates, whereas bond interest is taxed as ordinary income at one's highest marginal rate.
    Elliot Miller
    Sep 25, 2015. 11:12 AM | 3 Likes Like |Link to Comment
  • An Analysis Of Southcross Energy's Complex Equity Structure And Its Possibilities [View article]
    Munger Fan:
    I thought that I should reply to some of the points made in your Comment, although I certainly won't adopt your unpleasant tone.
    There are many MLPs with series convertibles. Those of SXE are again not unique to the industry. SXE's company structure is certainly far less complex than that of many MLPs, including those of Energy Transfer Partners and Energy Transfer Equity.
    I don't know why you would state that I put "100% of [my] faith" into management's projections. I never said that I did. It is, however, a relevant and important consideration. If you like to write about facts, as you say you do, I don't see how you can ignore the goals of management, which are facts to be weighed in any intelligent decision.
    My reference to the Gregory fire was because you emphasized the lack of capacity utilization at SXE's facilities, including Gregory, without noting that the Gregory plant is temporarily incapacitated and is undergoing repairs and expansion. I agree that the $500,000 deductible is immaterial; that was precisely my point.
    I do not expect a new management team to revive the 75% loss in market capitalization, since price declines are based on investor sentiment--often fueled by negative articles on Seeking Alpha by shorts -- and by fear, and other irrational considerations, rather than the underlying functioning of the company. For that reason I don't expect the change in the presidency of Enterprise Products Partners to revive its irrationally lost market cap either, and management does not get any better than at that company.
    By the way, if you are a fan of Charles Munger you ought to adopt his civility.
    Elliot Miller
    Sep 24, 2015. 09:16 AM | 2 Likes Like |Link to Comment
  • An Analysis Of Southcross Energy's Complex Equity Structure And Its Possibilities [View article]
    And don't forget the infrastructure needed to export gas to Mexico, which is being developed. When that is operational it will help stabilize, if not increase, the Henry Hub price. And Very Large Gas Carriers are now being built for shipping LNG.
    Elliot Miller
    Sep 23, 2015. 08:21 AM | 1 Like Like |Link to Comment
  • An Analysis Of Southcross Energy's Complex Equity Structure And Its Possibilities [View article]
    Before you sell, consider the following:
    This is not a "great analysis". It's not even a good one. It fails to disclose many material facts.
    1. The structure of the partnership and its units is not unique or even unusual. In fact, it is pretty standard for MLPs. The typical MLP documents provide for the same relationship of the general partner to the limiteds as the SXE agreements.
    2. The structure is no more complicated than many other MLPs. There are three private equity company owners of the holding company (Holdings) which owns the general partner, and two others (including GE) have made a $200 million investment in SXE preferred units in Holdings.
    3. The three private equity companies which own the common units are very supportive of SXE. On August 19th the company issued a release of which the author is either unaware or chose to ignore (perhaps because he is short SXE units). In that release the three private equity owners indicated that they are committing another $175 million to Holdings, of which about $50 million will be made available to SXE to pursue its commercial operations, and the balance will be either made available to SXE or will be used to enhance the assets of Holdings in preparation to commence drop downs of assets to SXE. The private equity firms anticipate drop downs every six months or possibly more frequently, and most important, the private equity companies will not be paid in cash for the drop downs: rather they will receive common units in SXE which they will accept at a value ABOVE the units' market value, which will help deleverage SXE's balance sheet. In addition, the release states that the private equity owners anticipate that by year end there will be 1x DCF coverage even if no more gas is added to the company's systems. These investors know far more about SXE than the author does and they are putting hard cash on the line in support of SXE.
    4. The author either does not know or has chosen to ignore the fact that many months ago the Gregory facility suffered extensive fire damage, which is now being repaired. The cost of the repair, over and above the deductible (which I believe, but am not certain, is $500,000) will be covered by insurance. The Gregory plant will not be completed until 2016 because it is being enhanced and improved as well as repaired.
    5. Operationally the company has engaged a new management team, to which it continues to add even through yesterday. Recently, it hired a new vice president of operations whose job it is to increase the volumes of gas gathered, processed, fractionated and marketed in the company's systems.
    It surprises me that SA permits an article such as this to be disseminated with so many material facts omitted.
    I have a large long position in SXE.
    Elliot Miller
    Sep 22, 2015. 08:04 AM | 4 Likes Like |Link to Comment
  • Is It Time To Buy The Heavily Shorted Enbridge, Inc.? [View article]
    In which currency are distibutions made from the income fund and the MLP? I assume the latter is USD and the former is CD. I also assume that there is a Canadian withholding tax deducted from distributions from the income fund. These facts may be relevant to some investors.
    Elliot Miller
    Sep 19, 2015. 01:48 PM | Likes Like |Link to Comment
  • USA Compression Partners - Excellent Opportunity To Purchase Shares At A Great Price Point [View article]
    Unlike, say EXLP, USAC's gas compression is mostly midstream at the gathering and processing points and not at the well head. However, USAC acquired the gas lift business a year or so ago, to assist in crude production. The thought was that apart from being a profitable stand alone business it would allow cross selling and other sales opportunities.
    Elliot Miller
    Sep 15, 2015. 08:58 AM | 3 Likes Like |Link to Comment