Tuesday, December 16, 2008
Hiland Holdings (HPGP) Horrors as it sinks under 2.40 on no news. Markwest (MWE) under 10 dollars now and down 1. Could be year end dumping from individual accounts. Or is it the distribution cuts that seem almost certain to come next month? MLP index now unchanged on the day. Fed decision imminent.
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joseph cioffi's Source Page - Associated Content
5 comments:
If nat. gas prices stay at current levels then I don't see how MWE could avoid a cut. I think that CPNO could maintain the current dist. longer.
Bruce
market is definitely pricing in distirbution cuts for many of these issues. Watch CEP thursday. If they pre announce a cut and what the reaction is to the stock price..that should tell us something about whether these stock prices are headed even lower.
CPNO, NGLS, and WPZ have been swirling the toilet. 23%, 30%, and 19% distribution respectfully. Due to NG prices, forced selling, end of year rebalancing...any insight from the more experienced crowd?
They are all G&Ps with exposure to nat. gas prices. If current prices persist, all will eventually have to cut their distributions. The question is whether they can maintain their distribution long enough for nat. gas prices to rise to a level which supports the distribution.
In the meantime, they are cutting back on capex which may hurt future growth. This is particularly the case for MWE if they decide against excercising their option for their 10% piece of the MEP project. As a long-term holder of MWE, I would prefer that they cut the distribution and not pass up on good long-term opportunities.
Bruce
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