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American Capital Agency Corp. Message Board

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  • bovisutor bovisutor Jan 17, 2013 11:43 AM Flag


    Here is some notes on NTI when I did some research back in early Dec 12.

    From the prospectus:

    "We expect within 60 days after the end of each quarter, beginning with the quarter ending September 30, 2012, to make distributions to unitholders of record on the applicable record date. We expect our first distribution will include available cash (as described below) for the period from the closing of this offering through September 30, 2012.

    We do not intend to maintain excess distribution coverage for the purpose of maintaining stability or growth in our quarterly distribution or to otherwise reserve cash for distributions, and we do not intend to incur debt to pay quarterly distributions. We expect to finance substantially all of our growth externally, either by debt issuances or additional issuances of equity. "

    From the 3Q12 Earnings release:

    "Energy LP, declared a prorated quarterly distribution of $1.48 per unit payable in cash on November 29, 2012 to common unit holders of record at the close of business on November 21, 2012"
    "Prorated cash available for distribution totaled $136.1 million for the third quarter 2012. As noted in Northern Tier Energy's IPO prospectus, the cash available for its first distribution includes cash for the period from the closing date of the IPO (July 31, 2012) through September 30, 2012"

    So the latest divy was 1.48 which cost the company 136.1M. If I prorate the 1.48 divy to 3 months the divy would be .88. 3Q12 total cash from operations was 175M (92M units out) or 1.90 per unit. That amounts to a implied 15.1% divy yield. (early Dec prices).

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    • You are misreading their last earnings announcement. If you look at their distribution calculation issued November 12, they backed out $60 million from cash available for distribution based on funds prior to IPO to reach the $136 available subsequent to IPO and the $1.48 distribution was based on only 2 months of earnings. Assuming same performance in 4rth quarter, prorate that up to to $2.24 for a full quarter.

      Sentiment: Strong Buy

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