Yes, Jim, you are correct: every 3 years. This of course is for 40 per cent of thru-put so every 18 months or so seems about right.
Congratulations on your pending retirement. Atlas has afforded me an early retirement as well.
Onward and upward. All the best.
Although I hold some APL, ATLS is the play as has been argued on this board for a few years. The Spraberry/ Wolfcamp according to Pioneer is the second largest oil field in the world after Ghawar, Saudi Arabia. Surprisingly this contention by Pioneer is met with a yawn by most investors. The "Scoop" in the Ardmore is another play that will soon become better known. APL will be there to benefit.
I seem to recall that Pioneer stated they will need a new plant every 18 months in the Wolfcamp. I will have to go back to a post I made on the topic to check. In 2014 a new 200 MCF plant will be needed according to the latest presentation of May 15 from Pioneer.
P.S. I was overseas over the last month and was unable to comment on the recent threads during the run-up but of course the DCF growth estimates are gratifying.
While I believe that we are in the sweet spot of Atlas earnings acceleration, it is prudent to hedge some risk against general market conditions, overbought prices and commodity speculation. None of us is immune to the pain of seeing our account equity taking a hit. Hopefully, the hedge will serve its purpose.
I happened to be short some shares of DBC, Powershares Commodity Index. ATLS was down today 2.2% and DBC 1.7% DBC will not be a perfect hedge to your ATLS position but it will help. I will add to this short as conditions warrant. Any other hedging ideas are welcome.
Atlas has been smart in allowing others to develop drilling improvements in basins where it has interests. Your example may be another case of allowing the R&D to catch up with the acreage. The ip results from the Atlas Mississippi wells are a cut above what Sandridge has been able to achieve on average. Atlas definitely executes quite well when the ducks are lined up. I think this is one of the reasons why they have put off drilling in Colorado, Michigan and Illinois.
Bosox, just curious if you have given any thought as to an effective hedging strategy on your ATLS position. Options are generally illiquid and expensive. Just looking to mitigate an appreciable draw down in case of a general market swoon or the share price getting ahead of itself.
Enjoying the ride of course. Looking forward to some exciting news which the share price seems to be hinting at not so subtly. ATLS has always been the best way to play the Atlas story although it's nice to have a little of ARP and APL too. Very interested to understand the new fangled financing twist that management may be rolling out.
Having been a unit holder since late 2008 accumulating into 2009 it has been one helluva ride and we are not done yet. Thanking my lucky stars for the good fortune of stumbling onto Atlas (and yes I did have to ride out the share price collapse in March 2009) and wishing and hoping that management continues to plan and execute so brilliantly.
Good luck to all long-term holders and remember that a lot of folks are struggling in this economy.