In last conference call, management made mention of a new financing vehicle for excess inventory of land at ARP. Could ARP form a new MLP for these properties and form another syndication business in this new structure? Could ARP then receive the GP & IDR interests in the new MLP and then sell these interests to ATLS at some nominal price to consolidate all GP/IDR interests at ATLS? When ATLS spun out ARP, it created a 20% bump in value at ATLS immediately. All speculation but we will all be interested in outcome.
In the mean time, ATLS just continues to trend higher in up, down or sideways markets......
I'd like to see ARP simply continue to expand its own drilling in our acreage and along with that expand the drilling program to the levels mentioned in the past. If they can do another good acquisition this year to increase acreage and proven reserves that would be very nice.
I'm not at all a fan of any type of fancy financial engineering from ARP, APL, or ATLS. I would think the lessen was learned previously with the horrendous hedging that almost sent us into BK.
Not to mention I think it would make doing the tax return even more complicated than it already is.
ARP has said it has over 17 years of drilling opportunities in it's current holdings. It probably makes sense to carve out property that is not strategic and put in another entity that could develop a strategic plan to exploit. It may even help ARP stay focused on the property that has the highest returns.
I think a move like this by ARP would be a positive to the value of my ATLS and ARP holdings. Tax returns for MLPs are complicated, it's a fact of life. If you ever want to hear a sob story regarding complicated returns, talk to anyone who has owned Kinder Morgan.......