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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: research1234 who wrote (198188)	3/8/2018 3:45:49 PM
From: Elroy Jetson	Respond to of 206223

I'm just saying you need to use your common sense. From past experience I know you're smart enough to understand this. That's not hostile, just take a moment and think about it. One container of natural gas may not be identical to another, but they're fungible. This means one container of LNG or natural gas can always be delivered instead of another, with a price adjustment if there's a difference in the BTU value. Let's say that it costs Dominion $1.50 per million BTU to compress natural gas into LNG. Let's say that's $0.50 of direct cost out of pocket and $1.00 to pay back the capital investment. Even though the reverse, turning LNG into natural gas, is far less costly - it's still associated with a cost. If a customer of Dominion wants to export LNG from Cove Point, and another customer of Dominion wants to import LNG, Shell sells the LNG which was coming to Cove Point elsewhere and the natural gas sent to Dominion's pipeline to be exported as LNG is merely sold to retail customers here in the US, without needlessly spending an extra $0.50 per million BTU out of pocket at Cove Point. Why would Dominion spend $0.50 per mBTU in energy costs running compressors, when they can save the energy and avoid the wear and tear on the compressors? Dominion would never simultaneously import and export LNG from Cove Point.

To: research1234 who wrote (198188)	3/8/2018 4:05:38 PM
From: JimisJim	2 Recommendations Recommended By research1234 sm1th Read Replies (1) \| Respond to of 206223

Either way, I prefer owning D (and have for years) because it is a regulated ute that also owns all of these other assets and operations (pipelines, LNG, etc.)... because it is a regulated ute, it is quite stable in terms of revenues... because it has these other things going on, it has real revenue growth now that they've finished the major infrastructure building/buying to support the pipeline and export sides... in the meantime, at current prices, its dividend is yielding 4.5% (my yield on cost is north of 8% as I bought it substantially cheaper and have enjoyed it's annual divvy increases, too)... one of my favorite stocks in terms of income, increasing income, total returns and safety.