Don't be so harsh on vuss49. Yes, he is very negative and critical without posting any real substantial details on the contracts, (care to help us see the light vuss?), but me and vuss email often and he is not a basher type, just posting legitimate questions, although the tone and phrasing was awful indicative of someone that was trying to bash...one could have posted the questions in a more professional manner.
But to add some color to the subject, I am going to speculate that he is refering to the fact that after TMG takes physical possession of the products that then they are exposed to losses(as per the press release), although one could read into the release and surmise that maybe they meant physical loss as opposed to monetary loss(i.e, being long oil in a decling market).Something that vuss conveniently forgot to mention is that hedging can remove alot of the risk of holding oil in a declining market.
Regardless of the situation, no business is 100% safe from market fluctuations(be it commodities, health insurance, D&O insurance, fuel, rent, interest rates etc etc). Anyways, lets all remember that the total debt load at TMG is around 200 million, give or take. They should receive around 80-90 million for the linefill, which, when added to the cash on hand(around 10 million), means net debt of around 100-110 million. Then, when they IPO the MLP, all they need to do is IPO say 50 million. Remember that they will be receiving 36 million from Morgan Stanley when MS excercises those warrants. That would knock debt down to virtually nil and TMG the GP, which will most likely retain a lare stake in the MLP, can use the MLP cash distributions to delever, or they can place some of the debt of the MLP balance sheet....anyway you look at it, the balance sheet ought to be substantially better in thenext 6 months or so.
Anyone see today that KMI(which is the GP of KMP, which is the largest MLP) announced that they expect cashflow of 625 million in 2005...that is huge, and most of that is due to KMP, although NGPL does add a significant amount to that sum. Not saying I expect TMG to get to that point, but what I am alluding to is the fact that the GP/MLP structure is very rewarding to both the GP and MLP holders.
All of that being said, this is a situation where you have to have patience, just let management get the financial deals done and the prospectus written and the IPO done and then we should be able to recognize the fruits of their labor....its still early in the ballgame....