unless they are make the assertion that this deal is going to add enough to it's earning to make a distribution equivalent to 1.40-1.60 pre-merger. I still think the stock will go up because alot of these new units are going to be locked up in institutional funds
it may actually be less since ahd is going up and the basis of the deal is $30 million which comes out to a cost basis of $11.5/share for the basis of the deal so if the stock is higher it maybe less shares
I hope we see that much but I wouldn't bet on it. We'll see what we actually own when the dust settles, but lets remember how we got into such a deep hole in the first place - hedging. So acquiring investment management assets doesn't really fill me with confidence.
And with the Laurel sale, AHD's home run potential is totally gone. We owned the IDR's and they were vast in Marcellus.... now we own some assets that have some growth potential, plus some pieces from ATLS. All that adds up to an ok distribution but nothing to write home about.
While this deal might have boosted the unit price from the 9's to the 12's, it did so at the cost of having the potential to grow to a 30 unit price in the future. And yes, sometimes a bird in the hand..... but sometimes in life you should swing for the fences! I think Marcellus opportunity was one of those times.