What’s Wrong With Pembina, And ONEOK And…

What’s Wrong With Pembina, And ONEOK And…

After trading in the low $50s for most of February, oil's per barrel price plunged to $27 and change at one point this week, the lowest level since early 2016.. Even companies reporting strong Q4 earnings and solid 2020 guidance days earlier crashed through their 2016 lows, temporarily reaching prices not seen since 2009.. What's going on is investors are trying to price stocks for what they're likely to earn this year, should oil stay in the $20s and $30s.. And making a deal would likely trigger the mother of all rallies for energy, as it did in 2016.. But after five years of cutting commodity exposure, even a worst case wouldn't threaten either company's ability to fund dividends and CAPEX this year.. Dividend growth guidance is 9 to 11 percent annually through 2021, with cash coverage of 1.4 times.. And the companies' successful navigation of midstream troubles the past five years is proof positive they're well run.. But barring much worse for energy prices, they have what it takes not only to maintain dividends but increase them per previous guidance.. I founded and ran the Utility Forecaster and Canadian Edge newsletters before leaving to form my own publishing company,