Substitute just over 40 cents per quarter for the current 50 cents being paid to the ENP unit holders, and this is obviously a win. Especially when you consider that the actual cash flow capacity at ENP should be much higher if it was being managed properly (Denbury didn't do a thing), and that ENP's debt to cash flow ratio is one of the lowest of the mid caps. Speaking as a VNR unit holder, I hope it goes through.
But . . . as an ENP unit holder, this is pretty foul. VNR is using their $32+ unit price as a weapon against ENP, when in fact the massive run-up in the market price can arguably be traced to the ENP/Denbury deal. At that time VNR was trading for $25 per unit. ENP was $22 per unit before Denbury wrecked it, and that was long before the massive yield compression that occurred in the MLP space. VNR is offering little premium over ENP's price . . . in April 2010!
So I love it, and I hate it. I own more VNR than ENP, so I guess I'm in favor, but . . . it's really underhanded imho.
I think the poster that talked about bad faith had it right , what is the spring switchover , do not no the term. QE3 will be coming and oil will go up, nothing has changed we will run out of money again and they will print more . ZACK
Those VNR people seem like a bunch of razor-sharp no mercy no quarter don't let us catch you with your pants on the ground because we don't care, we're here to make money folks. I think I might sleep well at night owning a company they are running. On the other hand, does anyone remember Hiland Energy Partners? I got lucky and that bullet missed me. While I'm rambling on, what does anyone think about spring switchover, or is that taboo? Will QE2, QE3, make it a non-event? Any input welcome, especially from those much respected posters who frequent these boards, and clearly have much more knowledge I. TIA!
Yeah, maybe. But I assume ENP's board will set up an independent conflicts committee, and they may just turn it down. Obviously the market doesn't think ENP is "in play", the price didn't jump, but then, how can ENP be approached by someone else, given VNR's holding? VNR really has "them" (er, us) over a barrel.
It's pretty weird being on both sides of this thing. ENP/VNR is my second largest holding after RSO, and both of them are making my stomach churn today. Lots to think about, but in the end there's nothing really to do but hold on and take it.