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PVR Partners, L.P. Message Board

  • ee_quentin ee_quentin Oct 7, 2008 11:25 AM Flag

    What's the deal?

    My other energy dividend stocks have not suffered like this one! Any thoughts?

    The only thing worth mentioning is that my electric company (coal powered for 90%) has added a line for fuel surcharge on my bill that they have not used yet but I imagine their input costs must be getting ready to go chaotic. Might be a good sign for coal producers EPS in the near future!

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    • We are all converend about heding for firms as the counter parties may or may not be strong enough to pay what is owed. The hope is taht the careful planning for hedges is not a problem now. This is not company specific though if you look at MLP's in general. Some possible explanations (not in any priority order):

      1. Hedge funds liquidating causing larger than normal volume lately
      2. Fear of lack of hedges working as desired
      3. Fear of economic downturn pulling down prices and demands
      4. Inability to cost effectivly borrow money or get equity for expansion and maintenance plans
      5. General market interest rates increasing causing the dividend rate to rise on our stocks to reflect lower credit quality here than for GE, etc.

      Sure hope it turns around.

    • I thought coal prices had crashed to explain the recent drop in virtually all coal stocks of late.