MHR would have to have all the contracts for gathering fees in place to determine the EBITDA before they could calculate a PE. My understanding is the Eureka Hunter has lots of empty capacity right now waiting on either equity gas or third party gas to show up.
do you think they are transporting gas without contracts. Most people don't calculate a PE based on EBITDA. They have some capacity which they have contracts to fill, Do you think all pipelines have no extra capacity. Are you just throwing around some big words so people will think you know what you are talking about.
Boon, How much debt would Gary put on the pipeline if he did spin it off ? IMHO, which isn't worth that much, I say about $1.5 billion. Considering the amount of ROW, location, and active gas market and unlimited growth potential. GLTALs
I have to say that I cannot put a good number on it other than to say one of the big kickers is the ROW and the river crossing under the Ohio river. That by itself could be 1/2 of the value alone if the WV wells continue to come in.
Boy trying to value a system that has a footprint in an area that could produce growth for a couple of decades...that's a tough one! Simply putting an EBITDA multiple on today's throughput could leave a lot of value on the table. Upton say's $1.5bil which come's to $15 million per pipe mile that's hefty compared to recent deals, like MWE and Summit. But how do you value ROW in an area that again "could" have double digit production growth for some time?
AH traders are as dumb as bricks---born to panic, born to retreat, born to run down what "appear" to be advantages, born to escape what "appear" to be traps-- but almost ALWAYS lots of "sound and fury signifying nothing." Now, those without experience will think they have to get to the boards early on Monday to sell out as quickly as possible so as not to drown in what "appears" to be a tsunami.
The market brings to its games people as dark, manipulative, and rapacious as anyone you would find in a terrorist cell (less murderous, however--though the tendency may be there). So--as another poster has written, ignore this---it is just one more marginal hominid attempting to feed at another's trough.