Seeking Alpha

RossA

RossA
Send Message
View as an RSS Feed
View RossA's Comments BY TICKER:
Latest  |  Highest rated
  • A Closer Look At Enterprise Products Partners' Q2'14 Distributable Cash Flow [View article]
    It split 2:1.

    As to distributions, EPD retains a large amount of cash to help fund growth. This is very different from other MLPs which pay 90% of their cash then issue new units to fund growth.
    Aug 23 10:50 AM | 1 Like Like |Link to Comment
  • A Closer Look At Enterprise Products Partners' Q2'14 Distributable Cash Flow [View article]
    Cmon, bernief. EPD bought back its IDRs several years ago.
    Aug 18 05:38 PM | 4 Likes Like |Link to Comment
  • Time To Sell Enterprise Products [View article]
    EPD's distribution is low only because it retains a large amount of cash for future investments. In the last quarter, it paid $82mm in distributions and retained $25mm. If it emulated other MLPs and paid out 95% of its distributable cash flow, it would be paying 5% instead of 3.8%. But it would be raising equity more often.

    It is also far more than a pipeline company. Processing natural gas and associated liquids is a fast growing business, as are exports of propane, butane, and, soon-to-come, ethane. The two leaders are EPD and TRGP/NGLS.
    May 25 04:05 PM | 1 Like Like |Link to Comment
  • Energy Transfer Partners: How LNG And NGL Will Drive This Company Ahead [View article]
    Thanks to Mr. Ortt for his attention and replies to our comments. Perhaps he can answer my further questions.

    It appears to me that ETE changed its mind about dropping the LNG project into ETP. I wonder if they now think they didn't charge ETE enough....Anyway, they are buying it back and intend to drop it into a new MLP to be formed this year. This is strange as a GP normally prefers just one MLP due to the way IDRs are calculated.

    Somehow I doubt that these financial maneuvers are intended to benefit ETP investors. No matter how "accretive" ETE claims they are.

    Can anyone explain why they are switching the LNG project from one MLP to another?
    Jan 31 11:28 AM | Likes Like |Link to Comment
  • Energy Transfer Partners: How LNG And NGL Will Drive This Company Ahead [View article]
    As I understand it, ETE is buying back from ETP the LNG project which was previou sly dropped to ETP. It seems they will form a new MLP later this year and drop the LNG project into it. Is this confusing? Hell yes! (I only have one Ph.D).

    Im staying away until they finish wheeling and dealing. Life is too short.
    Jan 26 09:53 AM | Likes Like |Link to Comment
  • Energy Transfer Partners: How LNG And NGL Will Drive This Company Ahead [View article]
    Mr. Ortt needs to research his comments more carefully. If he wishes, he can find me easily enough.
    Jan 25 06:45 PM | Likes Like |Link to Comment
  • Energy Transfer Partners: How LNG And NGL Will Drive This Company Ahead [View article]
    I thought ETP was selling Trunkline LNG back to ETE. These kind of dealings between MLPs and their GPs are frequent and demanding on investors.
    Jan 24 01:48 PM | 1 Like Like |Link to Comment
  • Lobbying fight to lift U.S. oil export battle gaining momentum [View news story]
    Sorry, I meant 4 million.

    Some ethane is exported to Canada: from the Mariner West pipeline and from North Dakota. Shipping ethane is hard; though that will start in '15 (Mariner East). Most of the exported porducts diesel, gasoline, propane and butane.Natural gas to follow in '15-'16.
    Jan 9 09:49 AM | Likes Like |Link to Comment
  • Lobbying fight to lift U.S. oil export battle gaining momentum [View news story]
    Current exports of hydrocarbon products are 4 billion barrels per day.

    So current law is just a giveaway to US refiners.
    Jan 8 05:26 PM | 1 Like Like |Link to Comment
  • Shell (RDS.A -0.5%) reportedly is pitching its floating liquefied natural gas technology directly to the government of Mozambique after failing so far to gain a foothold in East Africa, one of the world’s hottest energy plays. Shell's presentation to Mozambique's president during a U.K. visit suggests it is seeking ways to bypass the companies which have made gas discoveries in the country, Anadarko (APC) and Eni (E). [View news story]
    Why would Mozambique agree to this?

    A shore LNG facility offers jobs, investment, taxes, boodles,etc. Whereas an FLNG would be built elsewhere, mobile in case the government changes and possibly staffed by foreigners.
    Jul 26 03:18 PM | 1 Like Like |Link to Comment
  • Ned Davis Research finds MLPs in a familiar bind: They look rich by historical standards but not relative to income investing alternatives. Judging MLPs just by distributable cash flow, their 6.85% average DCF yield is well below their long-term 9.2% median, which would make MLPs “dramatically overvalued." NDR's favorites on a pullback: ETP, OKS, EEP, EPB, ACMP[View news story]
    Compared to CD returns, MLP returns are high, not low.
    May 15 05:17 PM | Likes Like |Link to Comment
  • Top 15 Oil Exploration and Production Companies Focused on North America [View article]
    How can this "analyst" leave out Cenovus?

    It should be in the top 5.

    He also missed Crescent Point. Yuck.
    Feb 3 03:34 PM | Likes Like |Link to Comment
  • Penn West Energy Trust: My $50 Price Target [View article]
    PWE would be an excellent acquisition. I conservatively value 200mb/d at $15B, just about their EV. Plus they have $5B in tax pools which, for the right Canadian company, could be as good as cash. Plus loads of undeveloped land and an oilsands play. However, there are few Canadian companies that big.

    Could a US company use the tax pools?
    May 22 10:08 AM | Likes Like |Link to Comment
  • Chesapeake Boosts Forecasts on New Discoveries; Analysts Too Conservative [View article]
    CHK's 2006 profit had huge gains from hedges: of the $3.61/sh, $2.17 were from hedges. Stripping these, I get $1.44/sh from normal activity and, applying a 50% production increase factor, $2.66/sh in '08.
    Mar 27 08:39 AM | Likes Like |Link to Comment
  • Why Is Diesel More Expensive Than Regular Gas? [View article]
    The market distorts this diesel/gasoline question by the way fuels are priced and taxed: by the gallon (or litre in Europe). By volume, diesel gets more mileage because it is heavier and has more energy. Once you commit to pricing by volume - but only then, diesel gets better mileage. This is compounded when there is heavy taxation by volume, as in Europe. This leads European drivers to prefer diesel since the taxes are then spread over more miles.

    Next, refinery limitations come into play. Since the U.S. taxes less, US drivers prefer diesel less than Europeans. Refinery runs typically produce both diesel and gasoline; so diesel is shipped to Europe and gasoline to the U.S, In the latter case, it is ofter European refiners who ship gasoline to the U.S.

    So I think the "let's dieselize" adhderents are not fully informed.
    Mar 14 11:33 AM | Likes Like |Link to Comment
COMMENTS STATS
15 Comments
9 Likes