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Strategies & Market Trends : Value Investing
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To: E_K_S who wrote (51843)7/7/2013 9:45:09 PM
From: Spekulatius1 Recommendation

Recommended By
E_K_S

  Read Replies (3) of 78686
 
OKE and OKS (the MLP twin used for dropdowns from OKE) are some of the companies in the NG sector. I think they are better than WMB/WPZ. They do have some sensitivity to NGL prices though, because they have extensive NGL midstream operations that are somewhat margin sensitive. This is the reason for the lower earnings this year. Before investing in OKE, I would like to see a higher yield (in excess of 4%) though. I owned OKE briefly in 2008 but chickened out and sold. I wish I bought back earlier though. I think they have a great business model and it's solely build around NG and NGL.

Message 24991674

FWIW, earnings is not the only metric to look at for OKE, the cash flows from OKS, IDR from the same, and the earnings from the operations that have not been dropped down to OKS yet (which they do opportunistically) are just as important, since they determine the capacity to pay dividends and do buybacks.
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