Energy Transfer LP (ET)

[seasonedwell]

Sabine Oil and Gas is in bankruptcy and has a motion pending with a bankruptcy judge in Delaware toallow it to reject a contract with an affiliate of LNG (Search LNG and look at news). If she allows it to be rejected (which I believe will occur), it will mean that producers in bankruptcy can repudiate and negotiate down the contracts they pay to pipeline companies. I am worried this stock could be hit hard if that ruling is adverse, so I cleared out until after the ruling. It would be a major disrupter for the pipelines companies and create a big cloud over the stability of their income. I like this longterm, but it could drop like a rock if that ruling allows rejection of the contracts and result in a lot of incertainty over future income streams.