I anticipate that by the end of quarter 3 in 2012 that they will announce a tax-free trade of long-lived, developmental oil and gas properties, with an approximate 20 percent return and some drilling zone upside, properties in a basing where they have a strong presence, probably Texas and Oklahoma.
We will continue to receive a development cost-free carry with a 7.5% royalty in the EVEP utica positon retained which as wells are drilled through 2016 will generate 20 years of cash flow going forward.
I wouldn't be surprised that enervest will consolidate utica well in Ohio later this decade as they become mature from CHK. Therefore, our Ohio position will grow over the years as well.
This transaction should allow the to ramp up distributions to around $6 a unit within 18 months following acquisition. With a stock price of $80 to $120 by end of 2014.
I'm going to be patient and let the methodical and brilliant Mr. Walker do his magic.
If you are right on the 20% rate of return then you are way way low on your distribution estimate. I believe Walker expects to get at least $20,000 per acre which on your ror would be incremental cash flow of $15+ per share.