It occured to me that sometime in early 2007, after the KMI transaction has been finalized, there will most likely be a large number of highly intelligent investors flush with cash looking for a well managed pipeline GP to invest in. I make this case because the KMI board has historically been an outstanding board where many savvy investors post. They understand the pipeline business, but more importantly they understand the MLP-GP relationship and the wonderful power of the incentive distribution rights. This will be great for us current holders because XTXI's dividend will be at or close to $3.00 and entering the next phase of growth. Yorktown will have, hopefully, by then, unloaded the 2nd to last tranche leaving little overhang on the company.
While I agree that the underlying performance of the company should push the price higher, let's not forget about the Lehman and Chieftan overhang. These guys aren't going to hld forever, especially Lehman. Probably a lot of bumps in the road for a while until we see a price well above $100. Outsized hook ups in the Barnett Shale and beating distribution targets will ultimately win the day though.