For Investors Only -- Some Days Just Too Much News: QEP To Spin Off Midstream Operations; ONEOK With Huge Cash Flow, Raises Guidance; Forbes On Utilities, Falling Natural Gas Prices, Stable-Rising Electric Rates - What Gives?

Disclaimer: this is not an investment site. Do not make investment decisions based on what you read here or what you think you may have read here.

I don't like grouping a lot of different stories on one post (exception: WSJ stories), but with so much news, some times  no choice.


Two readers alerted me to the ONEOK story; QEP, after splitting from Questar, is not spinnign off its midstream operations; and, the utility story in Forbes is even more interesting. I will have to read the Forbes story again to try to sort this out. It certainly contrary to general consensus.

The stories:

ONEOK: at SeekingAlpha -- press release --

ONEOK today announced that its 2014 cash flow available for dividends is expected to be in the range of $560 million to $640 million, reflecting higher anticipated cash distributions received from its general and limited partner interests in ONEOK Partners.  A Jan. 1, 2014, transaction effective date for the separation of the company's natural gas distribution segment into ONE Gas, Inc. has been assumed for 2014 guidance disclosure purposes, with the separation expected to be completed in the first quarter 2014.

The 2014 guidance also includes a projected 53 percent increase in ONEOK's 2014 dividend declared to $2.33 per share, compared with $1.52 per share declared for 2013, subject to board approval.  On a dividend paid basis, the 2014 dividend is expected to be $2.125 per share paid, compared with $1.48 per share paid in 2013, an increase of 44 percent.

The 53 percent dividend increase in 2014 is expected to consist of an initial increase to 56 cents per share for the quarter after the separation is completed, compared with the current quarterly dividend of 38 cents per share, a 47 percent increase; and subsequent quarterly dividend  increases of 1.5 cents per share in 2014. 

QEP: Yahoo!Finance is reporting --  to spin off midstream operations --

Oil and gas company QEP Resources said Monday it will separate its midstream business, QEP Field Services, into a separate company.

The move will include QEP's interest in QEP Midstream Partners. QEP said the move will create more value for shareholders and will allow the two businesses to allocate their resources independently and compete more effectively in their markets.

Midstream activities broadly refer to the processing, storage, marketing and shipping of oil and gas. Denver-based QEP also explores for oil and gas. 

I invest in neither QEP nor ONEOK but both these stories suggest how vibrant the Bakken is, and to think we are only just beginning in the Bakken. If you don't believe me, re-read recent comments by Harold Hamm, CLR/CEO.

Forbes article on utilities and roof-top solar:

The status quo – i.e., low natural gas prices and high electricity prices – is unsustainable. Consumers are expecting to benefit from cheap, abundant natural gas.

This is a very, very interesting article. I can't remember where I read it, possibly RBN Energy, but I've read the same thing somewhere else. Consumers and regulators are starting to notice that electricity rates are not falling despite falling natural gas prices. What gives? It looks like Forbes is asking the same question. And if consumers, regulators, Forbes are asking, the huge commercial users of electricity are probably asking also. What an incredible story going forward, which I've blogged about often: incredibly "cheap" energy in the US compared to what China and the EU will be facing.

I have to re-read the Forbes article: I have to get educated on the issue. I've been following Germany's problems and thought the US had similar risks; maybe not.