Anyone own or looking at mlp's, blood in the street sector

Watch they might not be able to maintain their dividend. I would be very careful especially if they have a lot of debt. I think oil will fall further.

If I didn't have all my $ in opko I would buy VDE (Vanguard Energy ETF) if it drops to $70 or less. The demand for oil looks like it could drop but the pumping is going to slow down drastically as some of the small guys go bankrupt and the big guys keep dropping rigs. 

The wmb ete merger will not close before Match 16.  This deal will make ete : "  Energy Transfer Equity will create the world's largest energy infrastructure group and the third largest energy franchise in North America. "  


www.fool.com/investing/general/2015/12/14/energy-transfer-equity-lps-best-move-in-2015.aspx?source=eogyholnk0000001&utm_source=yahoo&utm_medium=feed&utm_campaign=article

4 Insiders are buying in the face of the Nat gas, oil glut, all this month:


On Dec. 4, Group CFO Jamie Welch bought 50,000 shares at an average price of $15.75


On Dec. 9, Director and 10% owner Kelcy L. Warren bought 2,485,000 shares at an average price of $16.62. The price of the stock has decreased by 19.74%. On Dec. 7, Director K. Rick Turner bought 5,000 shares at an average price of $12.9. The price of the stock has increased by 3.41%. On Dec. 4, President John W. Mcreynolds bought 84,667 shares at an average price of $16.14. The price of the stock has decreased by 17.35%.

Well ( umm, pun ) WMB hit a new low, 15.49 down from 61.38, talk about blood.  Their debt was downgraded to one level above junk.  The ETE merger looks in jeopardy.  ETE was to pay 8.00 in cash plus X shares, not sure ETE can now raise the 8.00 in cash, their credit has been downgraded also.  ETE hit two new lows this week as oil tapped 29+ for the first time.  Oil closed at 30.44.  Ete hit single digits 9.74 on 1/8, on 1/12 hit a second new low of 8.28 putting the yield over 12%.  Should close in the 9.45-9.75 range.  These are two of the largest mlp's, combined the largest pipeline in world.  

Though these are toll roads for energy, a portion, about 20% is tied to oil/gas prices.  The real jeopardy is the financial outlook for the E&P companies.  If for example CHK went BK, it directly impacts these companies.  If say chk can no longer pay for transporting their gas, it could impact WmB's revenue, and their ability to service debt.  

Still like both companies, but then I like homeless hairless dogs riddled with fleas figuring hair grows back, fleas, well flea dip does wonders.  

Picking the right oil/gas plays + patience = 10 bagger.  

Maybe even less don't know how much junk debt they have and how old those pipelines are

Serpent, the vast majority will not CUT dividends.  A nat gas  MLP has contracts based on volume of gas flowing through their pipe, or oil if they have both.  Regardless of price of oil or gas, the contract is a set price.  Pipes last DECADES, and it is rare for a pipe to spring a leak, unless it is deliberate.  A few mlps own the oil and gas they transport, so revenue can fluctuate a little, but most own none of the product.  So these 20 year contracts get paid the same regardless oil at 20 bucks or 100.  What could hurt them is when E&P companies go BK, and gas oil flow gets interrupted and a contract becomes void.  This said, if they made 1.00 at 100 dollar oil, 1.00 at 50 oil, they make the same 1.00 at 20 dollar oil. The profit from that 1.00 has to be handed over to unit holders.  Most will not cut dividends.  NOW, KMI is a GP, and no longer a true MLP, they can keep profit, and raise and lower dividends, a different animal.  ETE is a GP too, but my favorite GP, I doubt they cut but they could.  The pure play MLP's not so likely to cut anything, and some might be forced to raise.  The first major mlp, paa,  announced no cut a few days back,div .70 yield about 14%,  likely the same for most in the sector, and a spike for sector next week.  The vast majority about 85% announce divi's next week or following week.  I expect 2,3 cuts, a dozen raises, 30-40 unchanged.

Amlp Alerian mlp at 8.8 with more than 14 % dividend. Wonder how low oil will go? Maybe see if big buy blocks are there. If oil goes to 25 might be less risk to nibble