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Vanguard Natural Resources, LLC Message Board

  • davemaine davemaine Oct 30, 2013 4:42 PM Flag

    earnings out

    earnings out and the one thing I spotted was dist coverage of 1.09, and not really improving from last quarter. more info will be on conference call tomorrow

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    • Hi Davemaine:
      I'm pleased with the report.

      1) Distribution coverage of 1.09
      2) $900 M liquidity to buy moreincome producing assets.
      3) subdued report. Didn't attract day traders , so the units dropped to allow cheaper units to buy to add to my position in addition to dripping units if price remains weak on Nov 14 2013 payday.


    • It's a nice consistent report, a little subdued perhaps, I would have preferred to see a higher coverage number. But they maintained over 100% spending the minimum amount of capex, as per their policy, so a sharp rise in coverage would presumably be a fluke anyway.

      Where do we stand on acquisitions? Nothing in the release of course. "Adjusted EBITDA" was running at a $330 annual pace, and LTD is $958. If you assume they want to keep that ratio at 3.0 or below, they're basically at the limit now, which is a little sobering. Unless they can find a deal that spins off annual cash flow of 1/3rd the price, they can't finance much of an acquisition without an offering, and the unit price remains stubbornly stuck at or below the last offering price. But the pre-offering price was in the $29's, and you'd have to expect they want an offering priced no worse than the last one. A current offering would have to go out in the $27's. It's nice they have so much room in the line, but that doesn't do much good if you aren't willing to deploy it.

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