I concur with buyandwin, we have a difference of opinions, but not an acrimonious feud. I think he is a bit optimistic, while he probably views me as a bit pessimistic over MWP management ability etc. I agree that MWP remains as the one of the most promising GP's on the market, IF, they can get their act together. So long as the marketing division loses money, it essentially negates any positive ground that MWE contributes. I have been a huge advocate for buying their way out of this mess, even if it means overpaying. Kill the problem (i.e. turn marketing into a profitable to break even business and set it up so that it has virtually no chance of losing money by eliminating the keep whole contracts) and the market would reward them for being essentially a pure play on the IDRs like MGG, EPE, ETE, NRGP and soon to be AHGP and most likely the yet to be spun off GP of APL. With the resolution of the above mentioned issues/problems, MWP would be my main mule (largest holding). Right now, my wagon is being lead by Crosstex (XTXI), which I view as having perhaps one of the savviest management teams short of Richard Kinder or Dan Duncan. They have a lot of organic growth projects lined up in a time when organic growth is the venue of choice due to escalating multiples on acquisitions.
Now, back to TMG. Good news hearing about the POCC/RVEP deals. I hope TMG has better luck that the corrupt management team lead by Richter and Shore. I predicted the demise of RVEP about a year before they IPO'd. They didn't stand a chance competing with Valero LP's Dos Laredos pipeline. Valero LP got in with Pemex and RVEP got the shaft. They might have been able to make it work if: Richter and Shore hadn't been to busy shoveling money into their own pockets and if they had been able to make any accretive acquisitions. the real problem they had was that they were too small to do anything. To small to do an equity offering, to small to borrow money at a reasonable rate or through normal channels (Citi, RBC) or tap the debt market. The only chance they really had was to convince the seller to accept units of RVEP in payment. That was clearly a high risk proposition and as we can see, it never happened. Had they been able to make a modest acquisition, say a 20 million dollar deal at a 10x multiple (cash flow of around 2 million) they could have survived. Instead they blindly clung to tying to compete with a company that spent more building Dos Laredos than the combined market caps of POCC and RVEP combined.
POCC still foolishly pursues its fuel rack sales. I doubt they make enough money to cover the overhead. It remains to be seen what happens to POCC/RVEP after the divestiture is complete. RVEP clearly is the better value of the two right now, but I wonder what kind of expenses they will have. If you net debt from the proceeds and divide by the number of units outstanding and you can see the hidden value. The ? is what they intend to do with the cash, and the shell company. Redeploying the cash into a midstream asset would be nice, although they still need to bulk up to get a critical mass.