Some highlights below theres alot to digest in the release. Seem like good results, management hes delivered what they promised. Lets see how Mr Market reacts.
Coverage ration is now 1.2 - 1. In an earlier conference call they I thought they said it would be sometime in 2013 that they hit this. Good news.
YOY production up 5% : drop downs and Tex La acquisition adding nicely
Dist. cash flow up 11% : yes....
Unrealized MTM loss of 13 million on derivatives
100 MMBoe of reserves
Hedges go out to 2017
Right on target. I sold some RSO the other day, and have been waiting to make sure everything is okay here before committing more capital. This report does nothing to change my mind on the stability of the company, I'm in for more. Remarkably, the pre-market is neutral on this, you might have expected a bump. This truly is flying below the radar right now, load up, it won't stay unknown forever, and it's absurd for it to yield this high in comparison to peers. It should at least be in the VNR range (which is also under-priced imo).
What does the GP have to pay for this 15% of the shares allocated to them? If the shares are being issued with no payment then the existing equity interests have suffered about a $2 loss per unit by the dilution and the same applies to the distribution coverage. I do not understand how they could do this to shareholders for what reason?
Not certain of effect on outstanding units they did say coverage is 1.2 1
On February 22, 2013, the general partner of the Partnership (the "General Partner"), elected to convert into Class B Units representing limited partner interests in the Partnership ("Class B Units") 80% of the fourth quarter 2012 management incentive fee payable to the General Partner (the "Conversion Election") pursuant to the Partnership's First Amended and Restated Agreement of Limited Partnership, as amended (the "Partnership Agreement").
On March 4, 2013, the Board of Directors of the General Partner determined that the conditions of the Conversion Election had been satisfied and authorized the issuance of 6,133,558 Class B Units to the General Partner. The Class B Units were issued to the General Partner on March 4, 2013. Each Class B Unit is immediately convertible into one common unit representing limited partner interests in the Partnership ("Common Unit") at the election of holder. The Class B Units have the same rights, preferences and privileges as Common Units and are entitled to the same cash distributions per unit as Common Units, except in liquidation where distributions are made in accordance with the respective capital accounts of the units. Pursuant to the terms of the Partnership Agreement, the Genera