Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (51845)	7/25/2013 10:14:22 PM
From: E_K_S	Respond to of 78688

ONEOK Inc. (OKE) -NYSE 53.77 Up 10.94(25.54%) Oneok to Spin Off Gas Distribution Business Into One Gas Oneok Inc. (OKE), the Oklahoma-based operator of natural gas pipelines, said it will spin off its utility business, sending shares up the most in more than four years to lead the Standard & Poor’s 500 Index today.The new gas distribution company, to be called One Gas Inc., will deliver the heating and power plant fuel to 2 million homes and businesses in Oklahoma, Kansas and Texas, Tulsa-based Oneok said in a statement today. Oneok will remain the parent of Oneok Partners LP (OKS), a master-limited partnership. So will the new company One Gas Inc now look to expand and do several acquisitions that will eventually be dropped down into the MLP? Seems like if they expand their distribution arm to the West Coast, they could eventually export some of the processed NG to Japan through one of those new port facilities being constructed in Oregon. It looks like this is the first phase of an extremely large build out to move that shale gas out to distribution channels and perhaps even to an export port facility to LNG tankers. I will continue to add to the position as well as look to other candidate stocks that fit the expansion model. Lots of potential value as capacity and distribution channels expand for this processed gas. EKS

To: Spekulatius who wrote (51845)	1/10/2014 1:47:59 PM
From: E_K_S	Respond to of 78688

ONEOK Partners, L.P. (NYSE: OKS) - Peeled off my high priced shares for small profit (about 50% of position) @ $50.86/share Targa Resources Partners LP (NYSE: NGLS) - Started new position from OKS proceeds @ $49.95/share NGLS is another NG gathering and midstream property that has a similar profile as OKS but according to the Citi report posted has a better upside (16.4% upside). I will add back to OKS if I can buy shares in the $47-$48 price range and stated distributions are at a minimum of 6%. NGLS has two business operations: NG Gathering and Logistics Here is a link to their operational Map: I see this trade as a lateral move w/ no new funds but rather increasing the overall basket "capital gain" return. I maintain the current income as long as their stated distributions remain unchanged. EKS

To: Spekulatius who wrote (51845)	6/18/2015 9:19:25 PM
From: Spekulatius	Read Replies (2) \| Respond to of 78688

Bought some OKE at $39, yielding in excess of 6% now. This is now a pure GP/MLP hybrid pipeline NGL infrastructure play. The market is concerned about OKS (the MLP that is driving OKE's results) not covering it's distribution. This is due to lower earnings depressing OKS NGL processing margins. My thought is that OKE may be cheap even though the dividend could be cut and is very cheap if it isn't. I like the company had the GP business model and I think eventually that this will recover, especially if crude prices recover. This may be a better crude recovery play than E&P's since it pays a nice dividend and they have proven to be good capital allocator so over the years unlike. Most E&P. FWIW, I did buy some APA as well at $57.7 because I like what the new CEO is doing.