PLAINS ALL AMERICAN DOES ANOTHER OFFERING!
I was at work last night on my walk and when you walk many things cross your mind. And one thing that crossed it was trying to remember the last time i bought stock to see it go down the next day by a couple of points. Well i get home last night after picking up shares in Plains All American (PAA) yesterday at 48 and see the news of a stock offering. The stock of course is down at 46.50 this morning. Oh well...i should have been thinking about the last time you bought a stock to see it up a couple of points the next day. As for the offering when you have the stock price power..why not sell shares!
The mlp index continues to behave nicely and the technicals look like they are about to go to a short term buy again in here as we straddle the movning averages and hold...and then follow the market higher. Noticing some shares for sale below the close on Nustar (NS). No news and no trades so far. Could be a downgrade but i dont see anything on the list yet. I dont see much else going on here this morning
Stock futures are a touch higher. Energy is higher including nat gas which is going for 3 up days in a row after 20 of 21 down. Maybe we can get futures back over 3 bucks.We'll keep our eye on the tape for any breaking headlines.
Stock futures are a touch higher. Energy is higher including nat gas which is going for 3 up days in a row after 20 of 21 down. Maybe we can get futures back over 3 bucks.We'll keep our eye on the tape for any breaking headlines.
joseph cioffi's Source Page - Associated Content
1 comment:
Joe,
I found the following discussion over on a Yahoo MLP board:
Shut-in wells seem to have stopped the increase in NGstorage levels:
Comments from a small driller
We have approx 30% of our NG production curtailed for the month of Sept. Will do the same, most likely, for Oct of it closes below $3. We are little guys, but i suppose the big guys are thinking the same way. We have some fixed price gas contracts in place, so once we have produced the volumes that have were fixed at the higher prices, we start curtailing.
I think many on this board understand how devistating sub-$3.00 NG is on cash flows. But if you don't, let me explain. Remember, the wells that we are producing that were drilled in 2007 & 2008 were drilled at premium prices. Drilling costs were ridiculously high, therefore, NG prices below $3 just crushes the economics of those expensive wells.
We are able to produce gas very inexpensively due to our low overhead.. However, we do not have the cash flow to drill nearly as many new wells. If we intend to drill, we will have to drill them the old fashioned way; other peoples money. That's ok with me, but on a personal level, I've been doing it too long with in-house money to desire to drill with others money as most of the time they really do not understand the risk. And, by the way, risk is misunderstood in this new economic environment anyways, so why the heck take the risk??????
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