MEMP has Natural Gas Partners. EVEP has EnerVest which is backed by EnCap. LRE has Lime Rock. QRE had Quantum but was recently acquired by BBEP. I think EROC is/was a Natural Gas Partners portfolio company, but an in-house MLP like MEMP is. I think MCEP had some private equity backing at one time, but not sure they are still in. So not unique. There may be others I'm not thinking of.
Probably not, but for current shares a cut in half makes it still 15 percent, and a probable share increase, and they might maintain for 1q at current rate. all depends on future commodity prices and debt covenants.
I probably requires an infusion of capital or assets from the sponsor in order to stay within the bank credit facility covenants.
I think it is likely you will see the dividend cut in half after this quarter IF you don't see some significant move up in the commodity price. I know they could continue it longer with the hedges they have, but I think they would have to consider the longer term position if things do not get better. I actually would like to see the distribution cut, it would give me more confidence in owning more of this. Frankly, I can see much upside in the share price without the commodity moving up. All these MLPs are limited by the yield, if the distribution was halved, the yield would be 14%. I think there is a lot of doubt surrounding the current distribution rate and thus it won't have a lasting effect on the unit price. There might be upside in the units to a point representing a 13% yield if oil stabilizes and the "group think" starts flowing in that direction. Right now, too much talk about $30 crude to warrant big upside in the price of the units. All these upstream MLPs are going to be under a cloud for a while until we can find a base in crude/gas. This seems to be one of the better ones along with MEMP and EROC.
I hope ur right but, I can find only 2 more years of solid hedges, afterwards they taper off. Where do u see 5 years
Hi Perry, spoke again with my accountant, he now says a Canadian resident is subject to 39.6% withholding tax (withheld by the custodian in the US under the Foreign Partnership Tax under Section 1446 of the Internal Revenue Code). you would then need to fill out the appropriate US IRS documents to claim it.
"to all unitholders of record as of the close of business on January 30, 2015. Notwithstanding" this would make the x dividend date January 28th and the day you will need to own the stock is on January 27th……... does anyone have something different ?
Sentiment: Strong Buy
yes it is crazy!…. the thing about this stock is, it is not well known,I had to do some digging to find this gem, and I had to run the numbers several times to make sure what i was reading was correct, because it is a small co., relatively new ect…. not a lot of info on the owners that is readily available like it might be in larger companies …..just my thoughts …...nothing scientific
Sentiment: Strong Buy
True pro short sellers don't fear div payouts, esp large ones like ours. this stock is due for a bounce and I prefer a nice slow move higher than a spike and tank, aka. LINE or LNCO.
Your assuming like the rest of the street that oil won't bounce. The same crowd in 2013-2014 that said oil will never fall below 90$. myopic vision is rampant
Hedges are relatively good till 2016. After which they rapidly fall off. Only co that I know off that is protectied till 2018 is MEMp
As much as I would like to add to my LRE position, I have already doubled it to 17% of my portfolio which is probably enough already. I expect LRE to do fine. I love the Permian and Texas. They keep Obama out of there. ed
very concerned that lre will cut distributions next quarter despite the hedges that are good through 2018 the management must be running scared. the debt is not all that high, and with good cash flow secured through hedges they can hope that oil prices recover by 2017.