Oil-related stocks such as frack sand producers US Silica Holdings (NYSE: SLCA ) , Hi-Crush Partners (NYSE: HCLP) , and Emerge Energy Services (NYSE: EMES ) , have had a miserable six months, their stock prices punished by the near-50% collapse of oil prices. Yet three major threats could cause their share prices to plunge even further. The risk of oil prices continuing to fall, threats to existing contracts, and the risk of distribution cuts are all factors that investors need to be aware of. Let's take a look at these three factors and how they could impact the future of these companies.
Oil prices have not necessarily hit bottom - Oil prices are highly complex and unpredictable, determined by geopolitical events and any number of other variables. Long-term contracts might not be as protective as you think - I have previously pointed to the fact that 70%, 88%, and 87% of US Silica's, Hi-Crush Partners' and Emerge Energy's respective current and medium-term production is protected under contracts that extend out as long as four years. Distribution cuts could send prices crashing - Unlike US Silica, which is a corporation, Hi-Crush Partners and Emerge Energy Services are master limited partnerships, or MLPs.
Source: Motley Fool
Related Articles:
- 5 Five-Star Dividend Stocks
- 5 Dividend Stocks Delivering The Secret To Successful Investing
- Mid-Year 2014 Top And Bottom Performing Dividend Stocks
- 6 Dividend Stocks With A Low P/B Ratio
- Are Storm Clouds Gathering For These 5 High-Yielding Securities?
3 Reasons These Energy Dividend Stocks Could Plunge Further
Posted by D4L | Sunday, May 31, 2015 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
Dividends can be a tremendously powerful part of your investing strategy. Not only can they give you a continuing source of cash to reinvest...
-
The most dependable dividend stocks typically have a long track record of sustaining payouts through different market cycles. Companies with...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
-
Double your money in a short time. Few investors would walk away from such an opportunity. Of course, there's no guarantee that any inve...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.