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Strategies & Market Trends : Dividend investing for retirement
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To: Steve Felix who wrote (16528)8/7/2013 5:18:24 PM
From: E_K_S  Read Replies (2) of 34328
 
I like all those future growth projects. I may need to step up and start my position on any further sell off. What's good, is they are committed to building out these new projects using relatively a historical low cost of funds (ie CAPX). These capital assets should spin off good revenues in the future which is why I like to buy and/or accumulate shares now.

Did you hear anything about their hedges. This is really where the surprises come in if/when they bet the wrong way. That's why MDU as a JV partner could be very beneficial. They operate an E&P division where I believe they have or will have some producing wells that will be used as the feedstock to one or more of their refineries. Not sure if the long term plan is to integrate their well production into the refineries but it makes a lot of sense if they did. When the JV was first announced that is one of the synergies that came to my mind. MDU also has a lot of pipeline and storage assets which CLMT needs. In fact MDU has one of the largest storage (underground) infrastructure in the U.S. which are all linked together w/ company owned pipeline assets.

So maybe, the MDU JV is testing the waters for something much bigger in the end. I would like to see CLMT obtain some gathering assets and/or pipeline assets at/near the well heads. It seems like they have a lot of the pieces already for a very efficient well to end user processing and delivery system (especially when you look at the combined assets of CLMT & MDU).

Remember, MDU's main business is as a regulated utility and their dividend history is very good. If/when a CLMT/MDU deal is done (just my speculation), that potential dividend stream will be sweet.

Thanks for the update.

EKS
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