No. Chevron announced they were selling. APL had or has a right of first refusal, but the RoR on the pipeline is very low (under 7%). Having the entire interest for sale makes it beasier. Was suprised the preferred being issued now instead of ATM. Probably a good deal as APL yields 8.3% and should be able to get an increase of about .20-30 to $2.80 area by YE 2015 with IDR waiver. This suggest preferred actually cheaper way to issue capital. Suprising part is the $250M isa so small it really does not make much of a difference.
Agree except KMI announced the drop down almost a year ago. No need to drop and it was not done at a very attractive rate KMI/KMP have their own significant problems that go well beyond Hedgeye and barrons.
They did not sue for that. They sued for damages in the implied partnership and for EPD then shopping elsewhere. ETP got award of the $3`19M for a partnership agreement that was violated and EPD won on the fraud portion. Not likely to be anything over the $319M. Legal expenses are the responsibility of each side in the USA. EPD has posted a bond - thus no interest to my knowledge - and both will continue to make lawyers rich although am sure all concerned here on retainer or eployees.
The HR Block program has some issues with K-1s. It has a drop down menu for section 13 just like TTax but has a problem with passive losses in computing the correct tax.
Couple of things. There were no added dividends paid in Q4 - this call. And will only be a few $$ paid in Q2. Wondering also how dividends paid effect earnings? The property BTE bought will be immediately accretive and BTE is also looking at getting rid of some other non-core assets. Liked the old CEO better, but BTE is operating the same conservative way as before.
The problem today is the WTI differential and difficulty in getting Canadian heavy to market. That is not BTEs fault, but rather the President of the USA. Add in another $10bbl and BTE gets rich. Similar issues for the other like producers except they are not looking to increase their dividend. Also lots of questions about Aurora. Anything australian sound fishy to most in NA.
Completely agree. This is truly a significant move. They are spending some $$ and today with all the cutbacks, Shell is not going to throw evwen say $10M away. If Shell moves forward then a lot of the picture changes regarding pipes and other companies moving to build. Chrx. thoughts?
There are not enough shares available without bidding the price up big time. A 1M share buy would move MWE about $5. Too many shares held by institutions and insiders (about 790% if memory serves me correctly).
The return on the investment was not good. Certainly easier to sell a 100% interest. Just another in a long list of poor investments unless they can sell for something north of $110M. A good investment would have earned about 15% a year. Thus 45% on $85M is about $40M less the $14M they got is about $26M.
First - WBuffett is not interested in buying a part of MWE as there is not enough liquidity to do so unless he bought out EMG.
Second - MWE is an investment in the future that is steadily moving further and further out to achieve any real growth in distributions. Until it gets its capex growth budget under 10% of EV and preferable under 5% there can be little DCF growth. The problem is the JV agreements are continuing to cost MWE money - DCP buying at a contributed capital basis - and there is both a build cost along with an 18 month ramp up that at times has been optimistic.
Is MWE a hold - absolutely. But MWE is not likely to move much in 2014-2016 because of the organic drag which is now up to some .50 per unit a year. MWE is choosing to get everything built now and wait on DCF. Good comments on the last post. I agree with B&W that a buyout would not be productive to me, but a double in the unit price is YEARS away. It is going to take 2 years of steady grwoth to return trust to MWE and its predictions and then probably two more for it to show it can do a 10% CAGR. How many are willing to wait for say 5-8 years? I would guess not many. B&W - I completely disagree with your argument as if Buffett did offer say $110 - a number what MWE would trade for if it stopped building out so fast - you could take those $$ and reinvest elsewhere. All the extra would be taxed at LTCG rates. Understand the stepup on death, but I am not willing to die to avoid some taxes. Are you?
Again a simple answer. Go to FORMS and enter the numbers from all the lines. TTax has all the lines. You just need to enter 1 and it gives you the others.
The easiest way is to simply go to "forms" and add any passive losses to the prior years carryforward amount I input the numbers manually so no override necessary if you do it that way. As to the unused K-1s - simply use delete form.
CHRX - Thank you. Good idea. The article is sort of fummy in the line that said the would use an "underground" pipeline. Wonder how many are above ground in PA/WV?
Looks like the spammers have hit MWE. The railroad is indeed a good investment, but IMO mostly becuase it provides a perfect ROW for pipes
You accumulate the passive losses because you can take them as an offset when you sell instead of paying taxes on that amount.
You move any passive losses to the prior year carryforward for EPD and then simply delete the "dummy" K-1 entries.
B/w My kids are over 50 and on their own. Grandkids thru college. Dreiser is right.
Agree. The real question that I have said over Andover is when does capex drop and we get to the .03 again. 2016? 2017? It can not continue to all back. Other places to invest.
Lots of people are now looking at two consequitve misses. Not good. .01 for a year now and another year plus to come. Growth in cagr pushed back again. Gonna be a long 2014 IMO. ARB
Very simple. The results were a lower coverage than predicted as more units out there. Agree not a time to sell. For us long term holders - time to bu more and grit our teeth