+ Watch BWP
on My Watchlist
The Company is engaged in the interstate transportation and storage of natural gas.
Interesting move to cut the distribution by so much when DCF isn't falling by nearly as much. I'm guessing BWP thought if they cut the distribution only by as much as DCF would've fallen, units would've tanked, and then they would've relied on incredibly dilutive equity raises to raise capital for upcoming growth projects (in order to decrease leverage to 4x). It all makes sense, but it's not surprising at all to see the units tank as a result. Yield seekers saw a massive cut in the distribution, which typically signifies distress at the underlying entity. MLPs are not simple businesses to understand for the everyday investor and I doubt a lot of people were intimately familiar with the specifics of BWP's inner workings. Now that we've both purposeful and indiscriminate selling as a result of the distribution cut, I think units represent a bargain. I'm not overly bullish on BWP's prospects, but I do believe that distributions per unit will come back up to where distribution coverage is closer to the 1-1.1x level and I think DCF itself will grow in the long-term, even if it remains challenged now. Giving this a green thumb just because of the depressed price - it's actually not one of my favorite MLPs. In general, I like MLPs with large backlogs of accretive growth projects compared to their EV or market cap - that's a quick way to determine whether the partnership has great assets. This is assuming an MLP with accretive growth projects will attempt to execute them pretty quickly, while keeping leverage and investor appetite for units in mind.
Glad I didn't have Real $ on this pick - woof, woof.
Sell-off looks to be excessive.
BWP's numbers are terrible to me. A dividend and debt that are not supported by earned income among other things.
Stock is down from earlier in 2013. Great buy right now with fantastic dividend!
Pick up for sold 8% div yield.
Just jumping on the bandwagon here; undervalued on chatter. I'm looking at this to run up 20-30% over next 12-18 months.
tracking fool energy recs
Big barriers to entry from competition.
building out to a major shale area
BWP offers a great yield more than twice what the S&P 500 is paying right now. It will have more challenging time raising future distributions, but its relatively new assets are positioned to generate predictable cash flows. In my opinion the stock is not expensive, and if natural gas prices don't plummet further and/or interest rates increase significantly, then BWP is a good addition to a diversified yield portfolio.
Mike Olsen piggy back. If the dividend is for real (it appears to be) then its a great CAPS pick. Every year your starting base falls, and if the stock holds steady or rises then you rack up the green points. See SSW.
Cheap price. Smart backing and a tail wind coming from cheap natural gas make this a nice play.
Low natural gas prices will not in the short term lead to higher demand (Say's Law), but will over a longer time: > 1 year. So, BWP will maintain its demand and pricing, but not increase either for that time. However, good distribution will you wait. I'm waiting for a little better buy price.
Nice dividend and insider buying indicates some good quarters are coming up..
Over 50% insider ownership, which seems unusual. Good solid dividend. Maybe buy a few shares?
pick source: dwot2 outperforms and 1 underperforman opportunity in energy right now to go long and as a hedge an opportunity to short corn commodity priceslong: CQP, BWPshort: CORN
New CEO Stan Horton was CEO of Enron Transportation Services Company. BWP is selling common stock to retire old notes and revolving credit and (Oh My!) they had a fire at one site. But still increased the dividend.
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