.......how ATLS will respond to a large accretive acquisition at ARP!! By end of 2014, we ar3 going to be looking at an annualized distribution of $3.50 - $4.00 at ATLS. Price targets are going to march north between now and end of 2014.
I'm taking the last distribution of 2014 and multiplying by 4. ATLS owns incentive distribution rights or IDRs. It scales at rising distributions at both APL & ARP. For every dollar APL and ARP earns over a quarterly distribution over $0.60 per quarter, ATLS get 50%. So, for example, should APL have a quarterly distribution of $0.70 before the IDRs, ATLS would get $0.05 and APL unit holders would get $0.65. The number is actually higher, but this is a simplistic example. ATLS is like a hedge fund where it earns a 50% carry on all incremental DCF above $0.60 per quarter.