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Copano Energy LLC Message Board

  • assetflower75 assetflower75 Mar 5, 2007 7:01 PM Flag


    I am new to this stock and would welcome some perspective on their earnings report relative to expectations.

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    • Following this thread, even though it is OT for CPNO, which I own...

      Is it possible that one of the reasons DEP has been set up is to take fully depreciated assets off the hands of EPD and TPP? I believe the three entities are not members of a controlled group; that means a fully depreciated asset sold by EPD to DEP would start a new depreciation schedule at its cost to DEP. EPD would be required to pay tax on any gain, but I think much of that tax might be at capital gains rates. If you owned equal interests in both EPD and DEP, you'd pay capital gains tax on your EPD units but you'd be entitled to higher depreciation deductions on your DEP units.

    • EPCO is positioning

      DEP as the low growth, high yield vehicle
      EDP as the moderate growth, moderate yield vehicle
      EPE as the high growth, low yield vehicle

      DEP has no IDRs, but you can rest assured that Duncan got enough units in DEP to compensate him adequately!

    • I get the same impression from the reports out right now but Duncan seems to be somebody that recognizes the IDR's slow the LP down. He's involved in the 25% caps at EPD and TPP. DEP should theoretically have a lower cost of capital, so that makes me wonder if DEP is really just there for taking dropdowns. Either way I'm seriously considering taking a position...

    • Thank you for correcting me, euro. I did mean EPD.

      EPD will be passing down mature assets, but they will be assets that Dan doesn't want to get rid of.

      Kind of like buying a late model used vehicle from someone who took good care of it, but decided to get the new model because it will be covered under the new warranty. Nothing wrong with the older one.

      (I'm just guessing, of course)

    • What a quiet board
      earnings look fine
      stock has given back some must be hot money exiting
      good riddance the split should temper some of the volatility in this stock.
      be patient and ye shall be rewarded this aint a tech or bio tech stock this stock rewarded for smart management a great business model {i.e.please note no gp everything falls to the bottom mwe attempting the same with mwp in my opinion}
      and so far great distribution increases quartely im a holder for approx 2years began buying in mid 20s and am very happy
      good investing dreiser139