This midstream energy company has been clobbered by low oil prices. However, if you own it, you might want to hold on and double down later.
EnLink Midstream, LLC (ENLC)
From Cotton’s Technically Speaking
EnLink Midstream LLC focuses on providing midstream energy services in the U.S. The company is involved in the 1. Gathering, compressing, treating, processing, transporting, storing and selling natural gas; 2. Fractionating transporting, storing, and selling natural gas liquids; and 3. Gathering, transporting, stabilizing, storing, trans-loading, and selling crude oil and concentrate.
The company has about 11,000 miles of pipelines, 20 natural gas processing plants, 7 fractionators, barge and rail terminals, product storage facilities, brine disposal wells, and a crude oil trucking fleet.
Update: The stock is a casualty of the Oil Crisis, and reached a low of $.93 on March 18th. It rallied back up to $4.04 intraday on June 8th and faded from there. It has reduced the dividend to $.375 per year to conserve cash, which is a 16% dividend rate based on yesterday’s closing price of $2.30. We don’t see the stock moving appreciably higher until the oil crisis abates. The lack of demand for oil is one of the results of the coronavirus pandemic.
Closing Price 6/29/20 = $ 2.30
We didn’t own the stock, but if I owned it (and I’m a gambler), I’d hold it and double up if it goes back down to $1.10- which is where it was trading in April.
Joseph Cotton, Cotton’s Technically Speaking, cottonstocks.net, 727-289-4436, June 29 & July 9, 2020
Note from our contributor:
I just liquidated, on 7/09/20 at 10:50 AM, most all of my positions because the Market is selling off, and because I think I can buy them back cheaper in the not too distant future”.