I'm interested in this MLP but with cap-ex exceeding dcf by ~30/quarter and not too many financing options, i wonder what gives? On their cc, they mentioned going to the markets but i assume more debt is out of question....is the divvy safe here....also, i can't believe all the bones are out of the closet on midstream...if production of NG is really drying up, supported by EIA, then could we see more impairment...any bulls on this one?
Nothing mentioned in the presentation about the distribution, especially commitment to raise to $1.00. Just makes me nervous. If the means were there to do it, I believe that they would have mentioned it.
Distributions around $30 million noted in this thread. DCF ~$41 million which included $8 million reduction for maintenance capital. Credit facility plus warrants cash is being used to fund capital which in turn generates dcf. Distributions do not show in their financial releases being paid out of warrants or credit facility as someone mentioned in this thread.
How will they grow in future. Just like in the past, just like all other mlps with new debt and equity
the bottom line is they are spending (capex and divs) 30mn a quarter more than they make. I find it strange that they plan on increasing dividend in this environment. The market clearly is not calling for it given where it yields today - if anything, the market is pricing for a cut. If the revolver balance was lower, I wouldn't mind. There are no more warrants to cash in and I'm not sure a debt deal is feasible in today's environment. I could see a preferred convert private maybe....
Chap, I'm right there with you. If anyone is in EROC to trade, I suggest you go pick another stock. With the div. going to a $1.00, it pays you while you wait, if it is price appreciation you are after.
I have been bullish. Covered DCF 1.4X last quarter. Seemed confident in their ability to increase distribution to $1.00. With strong coverage, I'm still pleaseed with $0.88/yr. Thinly traded price decline is simply an opportuntiy to buy.