Markets overall have just turned higher after being down all morning. Dow is up 10. MLPS are unchanged as a whole.
Targa Natural Resources (NGLS) is buying notes in the open market and since they are trading at a huge discount...will continue to buy back notes. Makes sense to me. The stock is up 70 cents. Energy Transfer Partners (ETP) is up 1 and some change and leads the winners list. Nustar (NS) continues to claw higher as it nears 44 and its up 75 cents.
Dragging the mlp index and today's biggest loser is Kinder Morgan (KMP) which is down 1.46. It just priced an offering of shares today.
Crude down just under 2 dollars on the OPEC cut which was priced in but energy stocks are firming up in here as they diverge from crude. Nat gas is down 15 cents.
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- joewxman
- a meteorologist with a knack for trading and investing in MLPS! I also like horse racing, enjoy cigars and a good port wine.
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5 comments:
Joe. Here is a link to a Reuters article on the KMP offering:
http://www.reuters.com/article/marketsNews/idINN1649923420081217?rpc=44
Highlights: 10 years, 9% interest, BBB rating (this is the lowest investment grade rating). Seems like a high interest rate to me and a low rating. Is this common for MLP notes?
Thanks,
JCarr
Joe. The link in your post concerning the KMP offering notes $500M in debt (the link in my comment above) and $200M in 2.9M additional shares. That doesn't seem to make sense, as $200M divided by 2.9M shares comes out to $68.96 per share (if I am wielding the calculator correctly); and KMP is currently trading at $46.75 per share. Am I missing something?
Thanks,
JCarr
you are right...marketwatch must have screwed up somewhere. i'll dig around or wait for the sec filing and post the link.
as to your first point..that rate for kmp is probably the best any mlp can get these days if they can get anything at all. I thought the targa news was interesting in that they are buying back notes on the open market at a discount which is a great way to use cash and reduce debt.
found out in the filing its 3.9 million shares
actually 3.9 puts the price at around 51 and change so that doesn't make sense either although its better than 68 bucks. i'll keep checking. Unless its 200 million minus fees.
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