I hesitate to defend EVEP managment and I do fear what they might do with $500 million but 2 issues with $500 million yielding just $60 million.
1) EVEP claims their benchmark for projects is 20% IRR. (I agree, easier said than done) but they said it, I expect they would land somewhere closer to that number
2) You forget leverage. (though I do hope they lighten up on the debt) $500 million cash as they currently are operating would put $2B of assets on the balance sheet.
They store product not crude. Product= gasoline, diesel, etc. Their story is they seek long term contracts for storage, they don't want to play in the more lucratve short term storage market. they want to lock the customer in for 1-2 years at a time. But, I agre, they were not very enlightening. Didn't mention distribution coverage, I'll have to figure it out on my own. Said that they will discuss raising the distribution someday. They'll remain open to M&A. One analyst was frustrated they don't open up more so mentioning it is a corwded playing field for MLP's/ Yep!
It appears the 6% is safe. but their plans for the future are opaque
BPL is mostly insulated from all of this oil misery. It's only really affected when funds sell it to cover losses elsewhere. BPL slightly raised the distribution and fully covered it. The pertinent sections of the PR :
Distributable cash flow (as defined below) from continuing operations for the fourth quarter of 2014 was $160.1 million compared to $117.8 million for the fourth quarter of 2013. Buckeye also reported distribution coverage of 1.10 times for the fourth quarter of 2014.
Cash Distribution. Buckeye also announced today that its general partner declared a cash distribution of $1.1375 per limited partner unit ("LP Unit") for the quarter ended December 31, 2014. The distribution will be payable on February 24, 2015 to unitholders of record on February 17, 2015. This cash distribution represents a 4.6 percent increase over the $1.0875 per LP Unit distribution declared for the fourth quarter of 2013. For 2014, Buckeye declared distributions of $4.475 LP Unit, which represents a 4.7 percent increase over the $4.275 per LP Unit for 2013. Buckeye has paid cash distributions in each quarter since its formation in 1986.
The maintenance margin requirement on ATLS specifically will increase 25% each week until April 7 at which time it will no longer be margin eligible.
yes, TRGP has no operations of it's own. It owns NGLS units and it owns the idr's for NGLS. those idr's are like a huge management fee. TRGP gets 50% of free cash flow of NGLS above a certain level. A leveraged bet. That's why TRGP grows so much faster. Falls that much harder. See the March presentation on their website.
They borrow big for expansion??? Uhm, TRGP is a pure play GP. It has no operations and owns no assets other than NGLS units and NGLS idr's. That said, after looking at the presentation,and considering the bad timing in this market, they did it to stay under their bank covenants. Not a bad thing, They took equity they pay 3.x% dividend on and bought NGLS units that pay 8.3%. They paid down debt that have a coupon likely above 3.x%. With an aquisition, you have to evaluate is it accretive. Well, this one is easy to evaluate. You know what NGLS pays. You know what their debt pays. A simple transaction. Everything energy is selling off right now. There isn't a lot of careful DD being done. I'll pick some more up after the weekend. Right now, I don't want to buy anything for fear of this mighty US dollar. Oil goes down another buck on monday, so will TRGP.
Because they have almost ZERO exposure to the price of oil, increased storage is a slight positive for them as is increased volumes through their terminals because of increased demand.. It is an "energy" stock, but it it isn't a producer or consumer. It is an energy mover.
3rd time already. Yes TRGP is the stock I expected to get in the merger and it is the stock delivered to me in the merger. TRGP magicaly appeared in my account yesterday. No one but you was confused about what they were getting. Take the hint.
Dude. TRGP is what you will get. TRGP's LEGAL name is Targa Resources Corporation.. It is what I and everyone else expected to get. It is what is sitting in my account as we speak. this isn;t rocket science. Stop trying to make things so difficult.
I added a small amount as well. I'm not buying a lot of anything energy right now. Nibbling here and there. they have a lifeline here. Don't screw it up.
Did anyone hear what was said comparing the Parker and Nettles wells in the oil window?
I almost gagged when Walker said he was spending most of his time on the UEO sale. I had flashbacks to multiple conference calls where he said he was spending all his time on the Utica Monetization.
My ATLS shares appeared before the open. My cash and TRGP shares appeared just after lunch time.
You are the only one I know of that is confused. The terms of the merger were very clear. As for the selloff, you must not follow too many MLP's or energy names.
$9.86 218,000 shrs traded Wish I was quicker yesterday and saw the sub $8.35 offers
.1809 x TRGP
.50 x ATLS (1/2 share ATLS)
ATLS.WI closed at $9.50 on volume of 1.445 million shares