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Whiting USA Trust II (WHZ) Message Board

  • ousaouparis ousaouparis May 21, 2013 11:39 AM Flag

    Xdate distribution opening loss

    Lizahang: Someone is going to have to explain the xdate distribution opening subtraction.
    1. This transaction is not shown on the “account detail of StreetSmart Edge”
    2. My case, NTI is not a US Royal Trust. The value of the MLP did not change. The MLP pays a distribution, like any other bill.
    3. NTI value is not diminished by taxes. The taxes are passed on to the unit holder.
    4. On “pay day” the, NTI will pay distribution on May 30th, the distribution will be shown in “account detail of StreetSmart Edge”
    In accounting, the premise is that all credits and debits must be accounted for. In this case the credit is shown and taxable; the debit is not shown and cannot be accounted as a loss.
    The case with a US Royal Trust is different. The distribution reflects the sale of the commodity. Therefore there will be less commodity for sale. The worth of the US Royal Trust is devalued by the amount of the distribution. The Xdate lower opening makes sense.
    This is not the case with MLP, NIT, is a refiner, it buy crude oil refined it and sell it. The MLP include some or all the refinery equipment, The MLP could show a capital loss equal to the amortization of this equipment. This is accounted in the EBITDA “Earnings Before Interest Taxes Depreciation and Amortization”, which is part of the distribution.
    My question is simple, where the opening loss has gone to? My guess is that someone is cashing in?

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