LET THE EX-DISTRIBUTIONS BEGIN!
And they do begin today as a few mlps make the distribution official for the holders of record and more to come over the next few days. We also have earnings this morning from Holly Partners (HEP) whose stock price has been decimated in the last few weeks trading under 29 at one point. Also Teppco posts its numbers this morning. Enbridge Energy Partners (EEP) put up excellent earnings and boosted the distribution and guidance yesterday. All very good reasons for an mlp to trade close to its 52 week low and a 9% yield!
Constellation Energy Partners (CEP) has gone from near 50 to 15 in the last many months. So this morning at 1:38am Lehman Brothers cuts Constellation from outperform to market perform. You have to love this. You think maybe the janitor found the list overnight and under the cover of darkness sends out a press release hoping no one would notice? The stock at 19 is sitting 31 points below its 52 week high and now they cut it to marketperform? Dear Lehman, they try so hard.
Waiting for Valero earnings (VLO) this morning as what they say could have impact on mlps that have been victimized by the spike in oil last quarter. Calumet Specialty Products (CLMT) for one has been heavily impacted by the squeeze in margins. Nustar (NS) and the like probably another victim. If they have favorable things to say about the outlook it could move those mlps. I took a flyer on Calumet yesterday for a short term trade.
Crude flat to a little higher this morning as it continues to not do very much lately on the upside and seems to want to correct further. 125 is holding for now. Nat gas flat as well. Stock futures have turned higher after yesterday's debacle. Not sure what to look for today after that nice outperformance surprise by mlps. Lets see if we can make it 2 days in a row.
BTW Holly Partners (HEP) forecast distributable cash flow to increase in the futures. We'll see what the market does with this.
joseph cioffi's Source Page - Associated Content
8 comments:
The play available on Calumet isn't solely based on the margins. What happened is they were close to violating their covenants; hence, the stock was decimated over that fear (it yields 13.3%).
The real story is that since they declared the dividend for this quarter, it implies they passed this quarter's test. More importantly, the way their convenants are calculated, they have a very low risk of ever violating them again. The stock will only continue to rise at this point, especially once the conference call occurs.
So I guess that Lehman liquidated its position in CEP and wants to buy back in.
As usual, we get the rally, with no follow through...i'm sure by the end of the week we'll be back to the lows...same ol' thang...
My screen shows low or normal volume on CEP. Its down, but not with a huge amount of selling. Perhaps, all the selling is finished?
With regards to CEP, we can only hope it is "sold out."
I would have thought the abitration win would have lit a spark under it.
Interesting comments on the TPP and NS calls regarding SGLP/SemGroup. Both companies commented that they are "monitoring events" and both agreed there are assets they would love to get their hands on "if they became available"
I think this bodes well for SGLP as its assets are "in demand" and should smooth the liquidation process of the parent. The bad news is that drop down opportunities have diminished significantly.
Art Cashin's crystal ball was right on target...
Trying to figure out what kind of environment we need to rally these MLP's. If energy rises, financials fall and cap market fears grip them. If energy falls, they seem to trade with the royalty trusts. Hmmm. Maybe a tender offer would wake someone up.
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