I sold my NRP bonds and stock last week because I didn't like the looks of the new loan agreement. Can't quite put my finger on it but it appears the bankster predators have placed a noose around their neck, just waiting to kill them off. The properties have value far more than the debt but that matters little. Bankers know everything and the financial system is scary. Made some nice money over the last 6 months but like most, I'm down big time. NRP seems unable to find reasonable sources of finance with interest rates near zero and assets over time that would ultimately make lenders whole. I'm puzzled, completely out but lurking.
I have accumulated PWE over several years because of the volume and quality of PWE's assets, doubling down often as the price dropped. PWE has relatively low indebtedness which will go lower as more asset sales materialize. It is helpful natural gas prices have risen dramatically which should make these sales even more valuable.
What this means is that PWE with its lower debt can successfully navigate through oil price volatility like few can. Even the BIGs like Chevron, XOM, have downside at current prices as it will be difficult to maintain the divdiend at depressed prices. With limited downside, my understanding that PWE earnings will leap with upward movement in prices which over time will be inevitable. This is a positive for those who are patient and Roberts penchant for paying a dividend will be icing on the cake.