Short interest jumped at the end of April from 700k units short to 1.6 million shares short. That's a lot for a 2 week period. Don't know what they wer betting on, but I see 15-18 as being our new range for the time being. Perhaps they were expecting a dropdown/secondary.
Biggest jump on my screen this month
That hedging question by the asian chick was idiotic. It's as if she believes they can just name their own hedge price. Why aren't you hedged for $5 gas in 2017??? duh
The nettles well will not help sell the oil land. So a negative there. The positive is they got 8 other companies to share that expense.
$1 + of the "loss" was the writedown on the reserves. The oil and gas is still there. it's a paper writedown.
It all comes down to how they spend the $$ fro the midstream sale. While it warms my heart that they aren't in a rush to buy bad deals, they always seem to be 6 months late to every party. Upside is we didn't hear walker say he's spending all his time on M&A.
Neutral call. I doubt anyone expected "surprisingly" good results. there was no negative surprise. Waiting on a deal as usual (but this time at least we have cash)
"Getting rid" of the GP will involve paying the shareholders of the GP a substantial premium over the current share price for the growth they are giving up. May not make financial sense now as that will involve substantial dilution to NGLS. Right now, there is a lot of pipe and midstream being sold by the oil companies. those companies need to sell. The $$ is better spent growing the business rather than financial engineering. right now with the assets that are on the market right now.
TRGP owns no assets other than NGLS units and the IDR's for NGLS. TRGP will almost always appreciate faster than NGLS because the IDR's are paid out first from NGLS distributable cash flow, the remainder is then distributed as NGLS distributions. That's why TRGP dividends are projected to grow by 25% next year while NGLS distributions are predicted to grow in the low single digits. You are being compensated for the lesser growth with a higher distribution.
Consider LINE and LNCO (I know LNCO is not a GP like TRGP, but humor me here) LINE and LNCO both yield close to the same amount because they have identical growth trajectories. They are essentially identical securities other than the corporate structure. MLP vs C-corp. They will grow, more or less the same. Their distributions will grow the same.
TRGP, if it only owned NGLS units, would be in the same boat. But it's the IDR's that change the calculus here.
You can look at ATLS and ARP to see how the leverage provided by the IDR's work in reverse when you have a sick LP.
but in a downturn, that leveraged relationship TRGP has works in the other direction too. Though I prefer TRGP for it's faster growth, one must acknowledge that the faster growth does have risk attached. We saw some of that this winter
I'm with you. If I only looked at how much I'm up on EVEP in the last 4 or 5 months or so, hey, life is good. But looking at my experience over the last 4 or 5 years, not so pretty. I was fortunate to swallow my anger at Walker and buy when sentiment got real bad. $12.12 was my recent entry. Don't know whose decision it was, Mercer, possibly, but whoever approved the distribution cut deserves some praise. It was a demonstration that, hopefully, the gunslinger days of just say no walker were behind us. EVEP was getting no benefit for a 24% distribution.so eliminate that expense. a no brainer for most. Long time coming for EVEP. EVEP isn't out of the woods, but as they say, when you and your buddies are being chased by a bear, you don't have to be faster than the bear, only faster than your slowest buddy.
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.