the potential for more bidders than Blacksone to step up to the plate. A fair price for the minerals business could emerge. I hope NGP gets their outrageous "Fees" shoved so far up their behinds they'll be constipated for a year...
Maybe I'm splitting hairs, and reading into this what I'd like to see....but it seems to me that Blackstone would probably be OK buying the minerals for the stated price. I think the IDR condition seems to relate more to whether or not Blackstone will backstop an equity offering.
It seems like no one wants to get involved with an equity offering when the rights are so confusing. But, if we could avoid an equity offering altogether this could be great for unitholders.
I have two questions: One is has their even been rumor of another company other than Blackstone showing an interest in obtaining the mineral rights, and has there been any rumors of a buyout of the transportation and storage part of the business?
the best way to answer the first question is that there has been no official announcement of other companies, but the board did say the NGP could submit bids with OTHERS for the mineral business. I dont think they are planning on selling the transportation part as they are planning on expanding in Haynesville, but who knows what will or can happen.
I'd like to see a clean offer for the minerals business without any of the baggage. Like I said, if EROC can net north of $150M in cash money and apply it against their debt, then management's self-imposed debt reduction target will have been met.
Why is anything else necessary? Screw NGP, start distributions again, probably around $1.50, and the minor arrearage that built up this year will be cleared off soon enough by normal growth.