Energy Prospectus

It "feels" like the tax loss selling is winding down. Let's hope so.

Note that Brent and WTI are now trading very close together. If Brent stays under $40, I expect an "Emergency Meeting" by OPEC.

I think you're correct. SXE is up 27% today on no news. Could also be some spillover from OKS very bullish announcement yesterday, of course. But MEMP is 12% and shouldn't be affected by pipeline fundamentals.

Take a look at what AREX has done in the last few days. I have been telling people that it is a "Screaming Takeover Target". AREX is now generating free cash flow and it has over 2,000 low-risk horizontal drilling locations in the Permian Basin.

ONEOK is a fantastic company. When I worked for Hess in Tulsa, my office was right across the street from their building. Thanks for bringing it up. I am going to add it to our High Yield Income Portfolio in the next newsletter. - Dan

ONEOK and ONEOK Partners Announce 2016 Financial Guidance. Symbol is OKS

ONEOK expects:
- Dividend to remain flat
- No cash income taxes in 2016
- No long-term debt maturities until 2022
- Free cash flow after dividends and cash on hand totaling approximately $250 million available to support ONEOK Partners
ONEOK Partners expects:
- No public equity offerings in 2016 and well into 2017
- ONEOK Partners' fee-based margin to increase to approximately 85 percent in 2016 from approximately 75 percent in 2015
- Distribution coverage at 1.0 times or better in 2016 under current NYMEX future strip pricing, and distributions to remain flat compared with 2015
- Capital-growth expenditures of $460 million, which is adequate to support continued infrastructure needs
- GAAP debt-to-EBITDA ratio of 4.2 times or less by late 2016