DAPL: to be drained. I assume pipes rust. In reply, from a reader:
The oil that has flowed through the pipeline has coated the interior surface of the steel. This pipeline, if left drained and closed, would last for several years before a rust action would occur. Also, see comments.Analysis continues: Berkshire Hathaway, Dominion, Duke. Motley Fool here:
- Dominion (D) becomes a much safer retirement holding per Motley Fool;
- Dominion (and Duke) will quit dumping good money after bad money on a proposed $8 billion natural gas pipeline; always a good thing to quit losing money;
- Dominion's balance sheet improves;
- Dominion sees $3 billion in after-tax proceeds: will be used to re-purchase stock
- D's market cap: $63 billion
- D will reduce annual dividend to reflect new reality
- payout will improve company's payout ration from 85% to 65%, more in line with industry leaders
- dividend expected to drop from $3.76/share to $2.50 share
- 2020 operating earnings will likely fall to $3.50 vs $4.50/share
- D: drops almost 10% on news; now trading at $75
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D: wow, this is a tough one. I'm fully invested, and I do have some Dominion in the portfolio but would like more at this price. I have gone through the portfolio and there is absolutely nothing I would like to sell to raise cash for additional Dominion. What a perfect situation to be in. So, we'll see.