They expect to exit 2014 with at least a $2.60 distribution rate. This is very different from what they said last year for exit 2013. I hope that this estimate is the conservative one that Cohen should have provided us with last year. Maybe he learned something. What is the 43.9 million dollar charge for? ATLS won't see much from APL in 2014, as they return money to APL until that target is reached.
Gang...This is a solid 7.5% dividend yielder which is one of the highest in the industry.
Add to that the results looked solid, and guidance appears conservative.
What the heck more could you want considering the tax advantages as well?
They lost 48.7 million dollars for the quarter. How many quarters will it take to go bust at that rate despite DCF. If they pay us 7.5% for next year and the stock goes to 10 because they are down 200 million over the next 12 months, they will be in big trouble. Let me rephrase that, we are all in big trouble!
They are calling for an annualized exit run rate for 2014 of $2.60 which is $0.65 per unit. Not much in distribution growth rate in 2014 from APL. However, I suspect this is an expectations game and they have probably learned their lesson. My guess is they beat this number a fair margin.......The projects they list are actually fairly impressive and they set for nice growth in out years.........
If they come through. Got to remember these are the guys that had 2 fialed buyouts before 2005. The only two failures I could find. Then almost BK over a messed up set of hedges that lost them about $400M in real money and a distribution to almost zero. Now a distribution run rate with about .015 a quarter for 2014 with ATLS "turbocharging" the distribution. Will need to do some reading/listen to the call as i worked today but things do not sound good. Things keep slipping back.
How is the market going to like this tomorrow? understand zero dist already factored in but a $2.60 run rate in 4 quarters out was not!