Rapid U.S. production growth is looming.
In the announced merger between Sunoco Logistics and Energy Transfer Partners, the seeming winner in this transaction is Energy Transfer Equity.
Recent rig additions could weaken the recovery's strength.
We are decreasing our fair value estimate, and caution investors to be prepared for further volatility.
In isolation, this will be a valuation tailwind for our coverage, but in most cases it will be modest.
The oil giant has capacity to protect its payout, but if oil remains below $40 a barrel through 2017, it may need to dial it back, writes Morningstar’s Stephen Simko.
The stage is still set for a long-term recovery, but near-term risk is elevated.
There are still operators with solid balance sheets, strong distribution coverage, and low costs of capital.
We applaud management's efforts to focus on the balance sheet, but we are placing Kinder under review until we re-evaluate our fair value estimate.
All signs point to a brutal near term but a meaningful long-term recovery.