Anybody have a guess what the dist. coverage ratio will be for this quarter and 2011 ? I'm thinking , absent any acquistions , it'll be around 1.3(excluding capex over $12.5 million) . To me that means they SHOULD be increasing dist. for the last quarter to around $0.42 . Bt the way , I was disappointed in the first CC , they could have given more concrete answers to dropdown , dist. and personel questions .
My thoughts are it will be higher , how high depends on many things . I'd say the main thing that will drive units higher will be increased dist. along with a stable oil price and maybe a rise in NG . The real ability to raise should be provided by accretive dropdowns from the sponsor QRP . They set the bar low with guidance for $80 oil for 2011 and have IDRs that will make it to QRP's advantage to raise the dist. to $0.4725/quarter at a quicker pace than some other E&P MLPs.