On January 19, after Go was in I think their release stated "(1) Calumet is reaffirming its objective of providing all unitholders a stable-to-growing quarterly cash distribution".
The recent drop is still disconcerting, but the price has been bouncing around a lot.
Moving on up. Will parent company take it private?
Up over 20% since earnings. Is it individual accumulation with a a small float, or is a bigger player getting into the stock? Either way I am happy, although I did like being able to nibble at more shares when the yield went above 10%.
Right now MEMP is a $2.00 option on oil getting back to the $60-$80 range by 2019, three years away. If it does not, then you lose 80 cents, $2 minus $1.20 dividend. If it does, then you make out big. None of the other MLPs are hedged this well.
Yes, yes, yes. Your brokers numbers for income are meaningless.You will need to wait until you get your K1 to do the taxes, probably mid March. then you can pretty much copy the K1 numbers into Turbotax. If you buy or sell, the K1 will tell you how much is ordinary income, and you will need to change your basis on your brokerage report.
The one big thing MEMP has is that they have strong hedges for several years. Most other MLPs are hedged through this year only. Once the hedges fall out, production will drop, and the Saudis will then allow prices to go back up, probably in 2017. MEMPs extended hedges will weather them through that period.
A lot of dancing around, but during several questions, they state that their goal is to keep the distribution the same, but it is a quarter by quarter decision based on many variables, so no firm commitment.
It was a good quarter, a great quarter for a MLP. However the float on this stock is thin, the drop today is from 27,000 shares being traded while there are 20 million shares out. This stock will have big price swings, but according to the conference call the dividend will stay the same or possibly increase.
First of all, they probably cannot say anything with earnings out next week. Second of all, last month in their distribution announcement and several presentations they made a strong commitment to a steady dividend. The facts that the market is fearful and that MLPs are getting pummeled is out of their control.
That being said, certainly other companies have turned on a dime regarding distributions, but I think we are OK for the near future.