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Strategies & Market Trends : Value Investing

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To: E_K_S who wrote (55509)	6/25/2015 7:31:56 PM
From: Spekulatius	Read Replies (1) of 78717

I added more OKE today at $39.5. The WMB offer from ETE clearly shows the high value of a GP. OKE/OKS owns nice assets, which includes assets build around the NGL value chain (which currently has depressed margins because NGL are anchored by crude prices). I do think that the growth projects (which are mostly fee based rather than margin based) and a partial recovery in crude prices should improve OKE/OKS profit enough so they can keep the distributions going. OKS does not want to issue much equity at current depressed prices, but I figure they have better credit rating (BBB) than most other pipeline companies, so they can get away with issuing mostly debt for a while , before they get into trouble and they investment grade rating get's threatened.

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