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Copano Energy LLC Message Board

  • jimbollini jimbollini May 7, 2009 11:05 AM Flag

    Quarterly report last evening,,,,,

    Looks a bit weak,
    Share price down some 9% this morning.
    They want to talk about TOTAL DISTRIBUTABLE $$
    I assume they can cover the distribution this qtr?
    ANY comments appreciated.

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    • From my notes on the CPNO conference call:

      Analyst: There is a fear that a distribution cut is coming due to lower EBITDA.

      CPNO: The changes in commodity prices have not effected the profitability CPNO. I think we have hit the bottom and are bouncing back from the commodity price falls. In Oklahoma the volumes are down, but if it is down in lean gas - it will not impact us that much because the margins on lean gas are so small. If the mix goes more to rich gas - that helps our margin. And if commodity prices stay low, we will make more in hedges. But the main factor - The distribution is based on liquidity. Our liquidity position is strong. And many times in the past we have made a lot more than we distributed. So we could distribute [and the board would approve] more than DCF for a quarter. Add to that, the distribution is based on the long term outlook and not just out performance in a given quarter.

    • Distribution coverage is 110%.