that we as unitholders are not going to stand by and allow NGP to pillage Eagle Rock for their own selfish gain, starting with the outrageous consulting fee, the dilution and sale of more shares so they can line their pockets, and quite frankly keeping EROCs customers guessing as to what the status of the business is with NGP constantly throwing cow flop on the campfire.
Someone at SEC has to listen about the dilution, the ridiculous consulting fee for consulting about nothing the EROC management does not already know, etc., etc.
So fellow unitholders how can I raise the most hell and with what agency to stop NGP from raping EROC?
So if I buy your mineral rights for $145 million and charge a fee of $31 million, you would say " Oh yes!!!"???? What do we really get for this "fee"? Nothing of value. That is my first problem. Is management so incompetant that they must pay 20% plus fees for ideas?
It would seem the best way to combat the use of OUR MONEY against us would be to write the conflict committee. It's not a quixotic battle, the LGCY deal was torpedoed, to the great benefit of the unit holders.
Now that the Dow has run up to 10000, I think investors are looking at secondary stocks that have the type of numbers that EROC has, i.e. EPS of 3.97 and a P/E of 1.39. If P/E just went to 3 the stock would be selling for $11.97 and I don't think that is that far off from happening. Traders are looking for these kind of low numbers to jump on the stock, hence the large difference between bid and ask prices. The traders are getting the shares on spec for investors they know will materialize before the end of the trading hour. BTW we are back to 5.03 in AH trading.
you need to get more knowledge, first off the dilution is the same as if NGP could exercise their debentures that we are buying with the new stock offering so that is a wash. the only thing left is the consulting fee that they have agreed to take in stock under certain circumstances and the price they are paying for minerals that most everyone feels is a market price now. This will allow us to fund the pipeline we are wanting to put in and it should return more income at a more predictable rate than the minerals IMO. Get informed before spouting off, there is no one to report to you have a vote even if you are not informed about what you are voting for. I hope I have enlightened you some. I do not mean to make you mad. The best way to get this to go up is to do this deal. vote it down and watch the stock price go down a dollar. watch the pipeline take longer and the distributions at least a year further away than they are currently maybe 2 years. If this is voted down I want out before.
Thanks for your explanation and for calming my blood pressure down. I did not know that a new pipeline was being funded from the NGP-EROC deal. As a matter of fact, can you tell me more about it, i.e. how long it is, where it is located, is there going to be any fractunating equipment located along the route, any storage facilities, etc.