NAT GAS UP BUT
MARKETS IN TURMOIL
MARKETS IN TURMOIL
Natural gas is rallying this morning probably due to Hurricane Ike strengthening and taking a northward jog which brings it closer to the rigs in the NW Gulf of Mexico. But on the otherside of that equation we have crude down a little this morning so its not reacting. In fact 100 bucks is just a handful of ticks below us. And we have stock futures down hard in the pre open as we near 11,000 and an eventual breakdown there. Lehman is still out there justing waiting to head to zero. Its all lovely.
No corporate developements this morning and nothing on the upgrade downgrade list. I posted some insider buys last night and the ones for E V Partners were pretty substantial. But with no sign of a bottom and no sign even of a dead cat bounce for MLPS its all pretty hopeless.
Finally i posted this poll last night. Its the same one so if you've voted on it...no need to vote again. But if you haven't please do. I'm trying to get a feeling for sentiment and so far when you check those results it has turned decidedly negative. Maybe thats what we need.
joseph cioffi's Source Page - Associated Content
4 comments:
DENVER, Sept. 11 /PRNewswire-FirstCall/ -- DCP Midstream Partners, LP (NYSE: DPM) (the Partnership) today announced it has entered into an agreement to purchase Michigan Pipeline & Processing, LLC (MPP), a privately held company engaged in natural gas gathering and treating services for natural gas produced from the Antrim Shale of northern Michigan and natural gas transportation within Michigan. The sellers are two privately held companies.
Under the terms of the acquisition, the Partnership will pay a purchase price of $145 million, subject to certain customary post-closing purchase price adjustments, plus up to an additional $15 million to the sellers depending on the earnings of the assets after a three-year period. The Partnership intends to pay for the acquisition with debt under its existing credit facility.
"This acquisition provides accretion and future growth opportunities for our unitholders," said Mark Borer, president and CEO of the Partnership. "These assets have an attractive position in an active drilling area and provide opportunities to pursue additional service links in the midstream value chain. This acquisition allows us to further diversify our operations in a new geographic area while adding 100 percent fee-based revenues to our contract mix. We're pleased to continue to execute our growth strategy to deliver value to our unitholders."
The Partnership is purchasing 100 percent of MPP which owns five limited liability companies.
This is just a slaughter. The carnage in the sector will keep alot of investors away for a long time. Once burned, twice shy.
TAKE A LOOK AT A CHART WITH DVY(THE DOW DIVIDEND PAYERS)ALONG WITH TYG(A CLOSED-END MLP FUND). EERIE CORRELATION!
IS THE MESSAGE THAT NOBODY TRUSTS DIVIDEND PAYERS?
DAVE
do we see support @ 240?
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