OIL SUPER-SPIKING

Oil going for 6 up record closes and since last Thursday when crude was being given away at 111 we have shot up to 125 and change this morning...up 2 dollars as of this posting. Stock market going to open down hard by at least 120 points. Not a pretty start out there. MLP will get pulled along for the ride of course.

Earnings news from Cheniere Energy (LNG) which for now we see only headline flashes but the sec filing has this about Cheniere Partners (CQP).

For each calendar quarter through June 30, 2009, Cheniere Partners is expected to make quarterly cash distributions of $0.425 per unit on all outstanding common units, as well as related distributions to its general partner, from restricted cash and cash equivalents. Through June 30, 2009, we anticipate receiving $4.8 million per quarter out of the total $11.4 million quarterly distribution. After June 30, 2009, a distribution reserve established in connection with Cheniere Partners' initial public offering is expected to have been depleted, and Cheniere Partners will rely on the receipt of operating revenues from Sabine Pass LNG's TUAs to fund future quarterly cash distributions to us and other unitholders. Sabine Pass LNG is not permitted under the Senior Notes indenture to make cash distributions to Cheniere Partners if it does not satisfy a fixed charge coverage ratio test of 2:1, calculated as required in the indenture. When Cheniere Marketing makes its capacity reservation fee payments under its TUA of $250 million per year in addition to the TUA payments of $250 million aggregate payments by Total and Chevron under their TUAs, we anticipate that the fixed charge coverage ratio test will be met and we expect to receive, subject to declaration by Cheniere Partners' board of directors, approximately $254 million per year from Cheniere Partners in distributions on our common, subordinated and general partner units, as well as an additional $18 million of management and service fees. Until such time, we may not receive distributions equal to the amount of our TUA payment.

So at least for 1 more year CQP will be okay on distributions. Still i think there are better places for your money given the risk.

Not much else happening company news wise this morning. Nothing on the upgrade downgrade list. Nat gas is up with oil along with gasoline. BTW i saw 4 bucks a gallon for regular last night. Glory and praise! Where or where is the top?