No moss grows on Ed Cohen's tree. I suspect we are about to get news from ARP on the new financing vehicle which will unleash some value for the large land inventory the company now holds. Furthermore, I suspect another acquisition is coming as well. These steps will enhance the distributions at ARP, pushing ATLS IDRs fully in the money. My guess is we will hear more about bottlenecks being relieved in APL pipelines and enhanced NGL capacity at the expense of some gas production. As we enter the second quarter, my guess is these steps will result in the distribution guidance tightening from $1.70 - $2.00 to something like $1.85 - $2.00. If we get a really good deal at ARP or raise more on the syndication side, we could be looking for a bump upward of $2.00. Regardless, the annualized distribution rate will be north of $2.00 by year-end and that is all that matters as that is how the yield is quoted for those who do stock screens.
Somethiing is going to be acquired by APL by the sounds of the last conference call. I hope it is the other processing plants that are partnered with Pioneer in the Permian. I think there is 2 plants with 235 million a day capacity and the gathering system. It would be a slam dunk as far as bolt on high growth, high margin.