5 Things to Know in Texas Energy this Week

The CEO of Cheniere Energy was ousted, two chemical giants became one and Kinder Morgan is weathering investor upset after a less-than-popular decision to cut dividends. Here are five things to know in Texas energy this week.

• Dow’s stock went from $55 a share to $52.42 over the course of trading on Dec. 11 when the announcement was made, showing modest investor reaction to the merger news. Houston-based Kinder Morgan Inc. (NYSE: KMI), on the other hand, faced serious investor ire after announcing it would slash its dividend payments by 75 percent. Investor frustrations fomented over an increased stake in a distressed pipeline asset around the same time as the dividend cut, as well as a third-quarter earnings call that projected confidence in dividend growth, observed Marcus McGregor, director of MLP strategy at Hartford, Connecticut-based Conning. While unpopular, the decision ultimately made sense given the market outlook for 2016, added McGregor.
• The negative outlook for next year had other energy giants making touch decision last week, as well. Houston-based read more…