NORTHERN TIER ENERGY LLC
Oil prices crashed recently as investors placed further bets on a slowing global economy, especially after what is happening in Europe and China. The black gold was down $3 a barrel for the month of April. The verdict may not be out as yet if the call regarding oil prices is correct, and instead of breaking heads about it, investors would do well to focus on undervalued plays which are more »
In 2012, legendary investor Carl Icahn bought more than an 80% stake in CVR Energy (NYSE: CVI) because he wanted to take the company private. Due to lack of potential buyers, however, he cancelled his plans. Since then, there's been no looking back for CVR, as shares have doubled in the last eight months.
In January, CVR announced special-shareholder dividends worth approximately $480 million. About that time, and in more »
On Dec. 13, 2012 Phillips 66 (NYSE: PSX) announced it intends form a master limited partnership (MLP). Management indicated it will file the required S-1 paperwork with the SEC early in 2Q13. It is currently on schedule for a 2H13 IPO.
The MLP is structured in the traditional way. Phillips 66 would be the general partner, have incentive distribution rights and make quarterly distributions to unit holders. It more »
Now that Hugo Chavez has passed away, people have begun to question the short and middle-term performances of oil prices. As you know, Venezuela is an OPEC member and known for its U.S. unfriendly politics. Although oil prices have shown a little distress shortly after Chavez's death, things are pretty normal now. There are a few factors that make Venezuela a minor figure in pricing oil. Venezuela’s more »
Outlook Remains Positive for 2013
Energy Master Limited Partnerships started off exceptionally strong in 2013, although the main contributing factor could simply be a resolution to the fiscal cliff impasse and investors’ interpretation that the deal reduces MLP taxation risk. Despite this strong early year showing, I believe MLP's fundamentals remain solid for several factors.
- With low interest rates and paltry economic growth, MLP yields remain among the most more »
Each one of us dream of sitting on our seats next to the fireplace talking to our grandchildren when we are retired, while our investments are filling our pockets. That is one sweet goal of every of us, and it is never unachievable. It's all about knowing where to invest for the latter part of your life.
For me, one of the best ways of calculating fair value estimation more »
High yields can be found in MLPs (Master Limited Partnerships). Usually structured around a particular qualified business (often energy-related), MLPs do not pay a corporate income tax, as they pay pass profits on directly to the shareholders (technically unit-holders) on a quarterly basis. These payments, however, are not technically dividends--they are distributions, and as such have a special tax status. Unlike dividends, a large percentage of these distributions are considered more »
Northern Tier Energy (NYSE: NTI) is a variable rate MLP with a refinery in St. Paul Park, MN. It can exploit the difference between WTI and “north of Cushing” crude, primarily from Bakken oil shale. There is little to no organic growth opportunities so owning the shares is a bullish play on Mid Continent (MidCon) refining margins. Earnings and cash flow move in step with these margins along with dividends more »
Northern Tier Energy (NYSE: NTI) is an energy company involved in various downstream businesses, including refining, pipelines, and retail marketing. The company recently conducted an initial public offering (IPO) and offers a play on this sub-segment of the energy complex.
Initial Public Offering
Northern Tier Energy IPO’d in July 2012, selling 18.68 million common units at $14 per share. The company received net proceeds of about $245 million more »