Not necessarily a conspiracy theory, but an obvious side effect. KM has no real need to nurture EPB. Simply collecting cash. Raising debt/equity. Dropping down assets that fit nowhere else. When that function has been served, absorb them back into KMP.
9.3% yield to offer a bit of safety, a $33 price right now offers a good amount of upside. Survived the secondary, they have a bit of cash for acquisitions. Gas surging in price right now and oil holding firm offers some hope for further land sales. I nibbled a small amount.
I also traded some GPOR yesterday and today on some wild volatility. Kept a very small remaining position as GPOR is way cheap here as well after their own secondary. Holding some CHK LEAPS as well. E&P that have been hurt the most have snapped back fairly well in this pricing environment.
holding a smallish position in LNCO as well
But, despite my disgust with EVEP management-- 9+% yield here is fairly compelling
this week several analysts have a draw over 100. I think the reporting lags a week behind what we are envisioning it as
I missed the insider buying question-- the buying coincided with the secondary offering. Possibly to retain Walker's ownership% stake. Possibly because he doesn't want to buy on the open market with all of these asset sales or no sales pending. Regardless--he's a rich guy investing for the long term. EVEP will pay a lot of income out over the next 10 years--which is his investment horizon. The guy has a lot of other income sources to pay his landlord every month. His previous buys were in the 40's and 50's. Whether this buy is at the low or $5 from the low probably doesn't enter into his decisionmaking.
Clarification as to my feelings for EVEP-- I think EVEP is NEARLY completely safe from going out of business or cutting the distribution. My pessimism is that it might be as much as half a decade before EVEP reaches the level I last bought EVEP units at. Optimistically speaking ;-) You want something to pay you 8% and you won't need to touch principal for 10 years. Nothing wrong with EVEP as an investment. But the Utica circus brought in a lot of other kinds of expectations and dreams and they were encouraged and nurtured by management
I'm not short. Nor am I buying any more units. The units I own, I'm married to as their basis would make for a very expensive sale. My options will all finally disappear worthless (as if 5 cents is value) in 2 months. Can I speculate on a bottom? The next month is seasonally weak for MLP's. Right now oil and energy are getting quite soft. I can easily see a couple more bucks downside. I doubt we'll go through 30 without an MLP meltdown--always a possibility this time of year. Just a guess--and with EVEP I'm always wrong-- I'd say +or- $32.
Being so pessimistic, why wouldn't I short? because it's too risky when you have a company selling assets. They can come into a pot of cash overnight. I'm pessimistic, but not suicidal.
I missed the first 15 minutes, but nothing I heard after that sounded positive. Nothing particularly negative, just more long slog stuff. I was heartened for a bit when they were talking about October having been better than expected, but then they somehow ended up saying they are aiming for the low end of guidance. They definitely lost me there. I'll have to re check the transcript on that.
There seemed to be less analysts on this call than I remember. Seems that EVEP has burned a lot of bridges.
Mr walker, how much more expensive was the last secondary offering compared to how much you are holding out for in the Utica sales?
This is a bleak call. No more secondaries they say. Until they need one
Colin Eaton: Houston Chronicle Nov11:
Houston oil and gas producer EnerVest Ltd. said Monday it has either closed or agreed to seven oil and gas acquisitions worth a combined $1.4 billion since August, marking the fourth year in a row the private firm has bought more than $1 billion in U.S. assets.
And the firm has acquired around $1.5 billion in assets in three of the last four years.
“We’re one of the large buyers on the market,” said John Walker, president and chief executive of EnerVest, in an interview Monday.
Most of the firm’s deals will build its footprint in natural gas-heavy shale plays like the Anadarko Basin in Western Oklahoma and the Barnett Shale in North Texas. Even as natural gas prices sink and U.S. producers scramble to unload gassy assets in favor of oil, Walker said he’s optimistic about natural gas demand over the next four to five years.
“I don’t think any of us know” how much U.S.-produced natural gas is going to be exported or how much the power industry will switch from coal to natural gas-fired plants, but “the trend is clearly there,” Walker said.
Across the industry, private equity firms have this year turned to buying up natural gas assets discarded by U.S. producers, which are focused on higher-priced oily shale plays. Because of low natural gas prices, private players see natural gas as a better risk-return proposition, and have been fueling merger and acquisition activity this year.
The seven transactions added about 250,000 net acres to EnerVest’s portfolio and about 1.1 trillion cubic feet of natural gas equivalent in proved reserves. The largest deal, in which EnerVest paid $396 million for 95,000 net acres in the Anadarko Basin, closed in September.
EnerVest raises its own capital like a private equity firm and operates the oil and gas assets it acquires. It does not have portfolio companies, but it did form an upstream master limited partnership, EV Energy Partners, in 2006
26.05 consolidating over lunchtime. No fundamental reason for the selloff. Mis read on the oil guidance, piling onto sell on the news. Icahn was buying at recently $25. he's looking for 5 baggers, not 5%. Was a good momentum play out of the CC. Watch it firm fast in about 30 minutes. Close just below $27 today, analysts will affirm ratings overnight. May get a stray upgrade. No-one will be downgrading off of that call.
By Bob Downing Published: September 16, 2013
Ohio drillers will be required to file quarterlygnatural gas-oil production reports, starting in January 2014.
At present, Ohio only requires a once-a-year report.
That news surfaced on Thursday when Ohio Department of Natural Resources officials spoke at the Guernsey County Energy Colaition meeting. The news was reported on Sunday by the Cambridge newspaper.
Ohio had approved quarterly reports earlier, but it was unclear when that reporting change would go into effect.
Aug 31......956,257....shares short
Mar 15 ........1,220,442
Feb 28.......... 993,520
Feb 15.......... 849,424
Jan 31 ...........528,202
Jan 15............ 429, 917
Dec 31 ...........371,042