Hornbeck was really hurt by the BP spill. Reading their press release it appears they made very little on the sale... more or less recouping their original investment... choosing to focus on their upstream assets which they consider core versus these downstream assets which are now noncore to them. Let's just hope that one man's "trash" is another man's treasure as the saying goes. I believe in what GEL is trying to do so I believe GEL has found more treasure.
I,too,believe in what GEL is doing...and I applaud this acquisition! Gel is quietly building quite a presence in marine shipments of crude oil. Add in the expansion into railroad tank cars and terminals and GEL's logistics operations will pay off big for us IMO. One of these days GEL will be "discovered" !!
i have followed the gulf spill and the aftermath closely.
hos name has come up several times as being hurt business wise by the spill and this particular marine division.
basically i believe gel bought this division from hos for cost.
as for the conditions of the vesels i have no opinion.
i am no mariner.
however im sure,knowing gel like i do,that their due diligence was up to their high standards.
im quite confident that gel didnt over pay for this strategic aqusition.
im sure that this purchase will flow immeaditly to gels bottom line.
in facrt hos and gel shared basically the same market ergo gel just enhanced its fleet and can service its customers even better.
in addition im wondering if gel can handle this transaction from its revolver entirely thereby avoiding a dilutive stock offering.
either way ,imho,another superb move by gels management team.
before this move i had thought and written that gel stock price would be stagnent for a while.
based on this acquisition ,which reveals gels managent thinking ,these boys are not content to just let our gel sit still.
even if the various brokerage houses dont get it i feel investors will.
this will allow gel to increase distribution which will ramp up the stock price.
my hat is off to gel management.