If they had an acceptable dollar offer on the entire package but got held up on terms-- why can they not get any acceptable dollar offers on individual parcels? What could the terms possibly be that makes an otherwise acceptable offer, unacceptable and prevents any sales of any individual parcels?
They need to give more clarity here as this opaqueness is rendering EVERYTHING Utica valueless. that certainly isn't the case.
Per their statements at the breakout session at the IPAA Conference on April 16th, they will now be selling the properties on a county by county basis ( there are 13 counties ) rather than as one total package.
Also, management stated that the cash prices being offered were not a problem; rather, it was the terms associated with the offer. Management did not specify in what way(s) the terms were unacceptable.
Management also said that they are working every day to sell these properties.
Obviously, this situation is unsettling and I am as upset as any other unitholder as to how this whole thing has played out so far.
However, shorter term, a rash of analyst downgrades is, oftentimes, a sign of a wash-out low; while, longer term, John Walker's ownership of roughly two million EVEP units gives me reason to think that he will do whatever it takes to make this Utica deal happen.
they just said on the C last friday that it will only be the "wet" properties for sale and unfortunately that is only 3 counties with tops 18k acres. They also said that the oilier window will not be sold until they "figure it out" with the help of a JV partner (read, they have to give up $$$s) and that will take a number of years ("the Balkan took seven"). I agree that the downgrades are a bit late in the game, but I'd say there is still a potential 25% downside with a secondary offering most likely....
Didn't you say a similar thing about Enron a few years ago? Management has "said" a lot of things. One big question now (as many posters have pointed out) is how believable is anything management says.
What makes it all the more bazzar is why with all the stock they bought for themselves in the mid 50's and given that deals now do exist they are not motivated to complete transactions.There must be more problems then they admit to both inside EVEP and Enervest and up to now only they know about.
MORE DOWN GRADES TO COME ?????
artist, I was troubled by the same question to the extent that I sold my last 600 shares a few weeks ago. What I think happened is that there was an agreement on price but the buyer wanted all of the shallower acreage too. I think EVEP management characterized this as a dispute over the "terms". Good luck.