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   Technology StocksKMI- a fallen high dividend yielder - for how long?


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From: E_K_S1/22/2021 12:20:53 PM
   of 138
 
Even without Keystone XL, U.S. set for record Canadian oil imports

By Nia Williams, Devika Krishna Kumar

4 MIN READ

CALGARY/NEW YORK (Reuters) - The Keystone XL pipeline project may be dead, but the United States is still poised to pull in record imports of Canadian oil in coming years through other pipelines that are in the midst of expanding.

FILE PHOTO: A depot used to store pipes for Transcanada Corp's planned Keystone XL oil pipeline is seen in Gascoyne, North Dakota, January 25, 2017. REUTERS/Terray Sylvester
U.S. President Joe Biden canceled Keystone XL’s permit on his first day in office Wednesday, dealing a death blow to a long-gestating project that would have carried 830,000 barrels per day of heavy oil sands crude from Alberta to Nebraska.

Environmental activists and indigenous communities hailed the move, but traders and analysts said U.S.-Canada pipelines will have more than enough capacity to handle increasing volumes of crude out of Canada, the primary foreign supplier of oil to the United States.

Currently, Canada exports about 3.8 million bpd to the United States, according to U.S. Energy Department data. Analysts expect that to rise to between 4.2 million and 4.4 million bpd over the next few years. Pipeline expansions currently in progress will add more than 950,000 bpd of export capacity for Canadian producers before 2025, according to Rystad Energy.

Canada’s Energy Regulator says there is enough capacity currently to export more than 4 million bpd to the United States.

Biden’s administration has set a goal of moving towards decarbonization and reducing the country’s reliance on oil and gas and cutting harmful air pollutants. Most of the nation’s energy still comes from fossil fuels.

“Whatever limited benefit that Keystone was projected to provide now has to be obviously reconsidered with the economy of today,” said Gina McCarthy, Biden’s leading domestic climate policy coordinator at the White House.

Even without Keystone, however, the United States now relies on Canada for more than half of its imported oil. Several of the lines carrying that crude are in the midst of expansions.

For a graphic on U.S. imports of Canadian oil surge:


Enbridge Inc’s Line 3 replacement project is in the process of doubling its capacity, which will allow it to deliver about 760,000 bpd of crude from Alberta to Superior, Wisconsin, by the end of this year.

Canada’s government is also expanding the state-owned Trans Mountain line by 590,000 bpd to 890,000 bpd. That line terminates at the Port of Vancouver, where it should be able to deliver barrels via tankers to the United States.

Meanwhile, TC Energy received U.S. approval last year to expand its existing Keystone 590,000-bpd line - located far from the proposed Keystone XL - which would add an additional 170,000 bpd into the U.S. Midwest and Gulf Coast.

“We will be over-piped assuming the other pipelines go ahead on schedule,” said Wood Mackenzie research director Mark Oberstoetter. “If you add them all up, you can make the argument KXL was not needed.”

Construction underway on Trans Mountain and Line 3 could still be held up by environmental protests, but unlike Keystone XL, both pipelines have cleared legal and regulatory hurdles.

Oil production in western Canada will rise in 2021 to a new record of 4.45 million bpd, RBN Energy estimates, up from 3.9 million bpd in 2020, most of which will be exported to the United States.

Canada is the world’s fourth-biggest crude producer, but has been grappling for years with congestion on pipelines. That caused a glut of oil in storage tanks in Alberta, driving prices down, and spurring the province to impose production curtailments to drain record inventories.

Those curtailments were lifted in November, and production has been rising ever since. Even as production is rising again, pipeline companies have boosted efficiency on existing pipelines through the use of drag-reducing agents.

“While the politics around KXL will continue to reverberate for some time, the reality is that western Canada - for the first time in recent memory - may soon reach a juncture at which it has excess oil export capacity,” Rystad Energy’s vice president for North American shale Thomas Liles said in a note.

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To: E_K_S who wrote (128)2/26/2021 1:56:36 PM
From: E_K_S
   of 138
 
Williams will unload upstream assets it gained through producer bankruptcies

Williams Cos. Inc. President and CEO Alan Armstrong reassured investors and analysts that the gas pipeline giant does not plan to retain the upstream acreage it acquired as part of Chesapeake Energy Corp. and Southland Royalty Co. LLC's Chapter 11 bankruptcy exit strategies.
Williams also disclosed that it bought out EnCap Flatrock Midstream and Oaktree Capital Management LP's interests in the Caiman Energy II LLC joint venture that owns 50% of Blue Racer Midstream LLC for about $160 million.

"They had held on to that much longer than a typical private equity shop likes to," Armstrong said. "I can tell you we were super patient. We've been wanting to gain control of that asset."

Looks like they are selectively buying BK assets on the cheap and keep those only that fit and sell at a premium everything else.

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From: miraje4/21/2021 4:58:10 PM
1 Recommendation   of 138
 
Finally, some good news from KMI..

finance.yahoo.com

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To: miraje who wrote (130)4/21/2021 9:00:23 PM
From: robert b furman
   of 138
 
Hi miraje,

The revenue from the new pipeline from the Permian couldn't have hurt either.

ir.kindermorgan.com

A great report! this should get us back in the 20's!

Bob

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From: E_K_S7/22/2021 1:14:30 PM
1 Recommendation   of 138
 
Kinder Morgan Delivers Steady Second-Quarter Earnings



-----------------------------------

Started to add to my already large position.

I believe KMI also announced an increase in their dividend.

Solid results keep the dividend on rock-solid ground
Kinder Morgan delivered a typical quarter of stable earnings and cash flow. Because of that, the company remains on track to achieve its full-year forecast, which will see it produce enough cash to cover its 6%-yielding dividend and expansion program, with money left over.


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From: miraje10/21/2021 11:01:37 AM
2 Recommendations   of 138
 
KMI down 5%. A bit overdone, perhaps? I'll just continue to hold and collect the nice dividends..

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To: miraje who wrote (133)10/22/2021 11:05:51 AM
From: robert b furman
1 Recommendation   of 138
 
Hi Miraje,

Me too.

I had actually bot to cover my November 16 puts for 5 cents as thaey had a 31 day life.

When KMI opened down I watched the RSI go very negative on the hourly and resold my November 16's for 10 cents and then sold some November 17.50's for 64 cents.

I also bought some shares @ $17.40.

Like you I thought the decline was very over done.

So far it is working.

Since Kinder reduced the desired 2021 dividend from $1.25 to $1.08. I'm hopeful we'll get there in the Q1 2022 Q 1 webcast, (effective Q2 02022). I think Kinder is conservative and wants to aim the free cash flow to debt reduction and hit that often target of debt to equity of 4.0. After that is reached, we'll aim some of that cash flow to dividend increases and possibly some stock repurchases.

As you point out, in between I'll continue to enjoy the generous dividend and supplement that with put sales. I have been selling puts going out 90 to 120 days all this year (been targeting the 16's anywhere from 90 cents to 65 cents). I've currently sold puts out into December and have a slug of 13's due in January 2022.

Hoping for a dividend increase and a stock price closer to $20.00, as the pandemic no longer threatens the demand for fossil fuels of al sorts. I think we're close.

Bob

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To: robert b furman who wrote (134)12/1/2021 9:03:32 AM
From: robert b furman
1 Recommendation   of 138
 
Hello to all on thread,

KMI is once again getting close to that &% plus yield zone.

Yesterday's close at $15.46 gives a yield at 1.08/15.46 = 6.985%

Kmi is creating excellent free cash flow and has internal funding to complete it backlog.

That backlog is alive and well as much of KMI's system is in Texas.

The following is an excellent recap on why Texas with its many shale deposits along with export capabilities to Mexico and intrastate to where the transition from coal to natural gas is a strong on going mega trend.

Most planned U.S. natural gas-fired plants are near Appalachia and in Florida and Texas

Source: U.S. Energy Information Administration, Monthly Electric Generator Inventory
Between 2022 and 2025, 27.3 gigawatts (GW) of new natural gas-fired capacity is scheduled to come online in the United States, according to our latest Monthly Electric Generator Inventory. This added capacity would increase current capacity (489.1 GW as of August 2021) by 6%. Many of the planned natural gas-fired capacity additions are located close to major shale plays in the Appalachia region and Texas and in Florida.

The Appalachia region’s Marcellus and Utica shale plays stretch across Ohio, Pennsylvania, and West Virginia. These shale plays have led the growth in U.S. natural gas production over the past several years, accounting for 34% of U.S. dry natural gas production in the first half of 2021.

Illinois, Michigan, Ohio, and Pennsylvania—states with pipeline access to natural gas from the Marcellus and Utica shale plays—account for a combined 43% of the natural gas-fired capacity planned to come online between 2022 and 2025. Among these four states, Illinois has the most natural gas-fired capacity additions (3.8 GW), followed by Michigan (3.2 GW), Ohio (2.9 GW), and Pennsylvania (1.9 GW). Natural gas transport infrastructure continues to be added to this region to increase pipeline takeaway capacity and to bring natural gas to demand markets in the Midwest, Northeast, Southeast, and Canada.

After Illinois, Florida has the second-most natural gas-fired capacity additions planned to come online between 2022 and 2025 (3.2 GW). Although Florida does not produce significant amounts of natural gas, its regional pipeline networks have been continually expanding to serve natural gas-fired generation units as older coal- and oil-fired units retire. Five new natural gas-fired plants plan to start commercial operations in Florida between 2022 and 2025: three plants are currently under construction, and two plants are not yet under construction but are scheduled to be completed by 2024.

More natural gas is produced in Texas than any other state. Most of its natural gas production comes from the Haynesville and Eagle Ford formations and multiple shale formations in the Permian Basin. As of August, 70.7 GW of natural gas-fired capacity is currently operating in Texas, and another 2.8 GW of capacity additions is planned to come online between 2022 and 2025. Growth in natural gas production in Texas has encouraged natural gas-fired capacity additions and regional pipeline expansions to accommodate growing natural gas exports to Mexico, as well as record-high liquefied natural gas (LNG) exports from terminals in South Texas and in Louisiana.

https://www.eia.gov/todayinenergy/detail.php?id=50436

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To: robert b furman who wrote (135)12/1/2021 9:15:48 AM
From: candsrr
   of 138
 
Hello to all on thread

Back at you, Bob.

Thanks for the heads-up.

I added a little at 15.50 yesterday.

I'm looking for good things from this one and XOM.

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To: candsrr who wrote (136)12/1/2021 9:29:05 AM
From: robert b furman
1 Recommendation   of 138
 
Hi candsrr,

Yup, I have sold a lot of puts on KMI out into December thru June.

15.00's are too low if/when KMI boost the dividend this next year.

Selling June puts gets the stock (if assigned) into the yield of 7.25% to 7.5%.

That yield on a company that has throttled its debt to industry norms and has known revenue growth leaning to its services.

A must have retirement stock.

Speaking of XOM, David Faber of CNBC just interviewed Darren Woods CEO of XOM. Very confident of their future including carbon capture and sequestration.

Good to see another poster over here!

Bob

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