That is not a true statement. I bought shares in the downdraft last FRI and I got cash on the entire transaction. It was a case where FRI was the record date immediately after Devon approved the merger. This type of transaction is much better for shareholders because it keeps those filthy risk arbitragers out of the game because there is no game for them. Thank you management for doing it the right way.
I never understood why they bought the small minority interest in the western pipeline (CVX their majority owner?). Now they are looking to sell. They may have trouble selling to anyone but Chevron. Chevron probably in no mood to buy inasmuch as they paid way too much for APL's JV interest in Marcellus.
On behalf of those of us who got in earlier because we understood what the Devon deal was going to be about thank you for supporting the stock at these much higher levels.
You got this wrong. Devon is still Devon, an upstream. Devon owns a significant percentage of ENLC, a GP which in turn owns a significant portion of an MLP, ENLK to which Devon has spun significant midstream assets.
APL has lost its momentum and the entire Cardinal acquisition becomes questionable IMO. I sold at higher prices last year after looking at Cardinal and becoming convinced they overpaid for the assets. I don't know if this quarter's results reflect this reality or if a string of other things have come together.
Baird had downgraded the MLP last week before the conference call. Then upgrades today. Why not just wait until after the cc before making any rendering one way or the other.
Corvup, the article indicated that was some of it but the blast down to the mid-$35 range was the rumor the deal had not passed. It was later in the day near the close that the heaviest volume came in which clearly was rebalancing. It is the crash earlier in the day that is questionable.
There is a report that a rumor went around the deal had failed to get a majority vote from Devon and then the cascade in XTXI. They need to find out who benefited from floating that rumor.... someone short who needed to cover. I took advantage and doubled down on shares. I had no plans to add to my position and I will benefit from other investors' fear but there are some things that happen on Wall Street that are deplorable and should be investigated and the responsible party should face sanctions or punishment.
I am betting this is a transformational deal. What I mean is other E&Ps are going to look at this as the new model for relationships with MLPs. WES has its relationship with Anadarko but it is much different and the valuation of dropdowns must be at full market. Devon can reduce ebitda multiples to a related party MLP it has a JV with... in addition, I expect Devon to "use" their MLP to do build outs of needed infrastructure rather than build it out themselves and then drop it down. To my knowledge Anadarko builds its infrastructure, holds it and then drops it down for a nice ROI. Devon may decide retaining its capital for a purer form of E&P is more advantageous.
Devon will always have a need to move more quickly than its MLP if immediate infrastructure is needed knowing they can drop it to its MLP as fast as they want.
O/T I believe investment grade status will be announced within a few days.
You should be able to have a manual trade placed using the security number. Schwab will make the trade if you call in. If your broker does not know this... time to get a new broker. You can't trade it yourself today. Your broker can... any broker not knowing this isn't worth having.
S&P covers a woefully small number of GPs and MLPs. Given the goals of the new GP and MLP I am hoping Devon which is covered by S&P gets them to look the new GP and MLP because it may serve their purpose too.
I saw your post and maybe it is Russell but maybe it was negative momentum trading... once these flash traders see blips on their screens they start driving up or down without mercy and without regard for what may or may not be reality. I doubled-down at $36.48 believing the downside movement was momentum trading and had nothing to do with the nature of the transaction or the long term outlook.
Until we get the first Devon dropdown we don't have a full flavor of what Devon will demand in terms of ebitda multiple. That will determine how accretive future transactions with Devon will be.....
Credit Suisse has $35 price target. More importantly will be the near term distribution growth which Credit Suisse is holding but Wunderlich is somewhat negative on. I am going with Credit Suisse because they were well ahead of every other analyst firm in terms of the enormity of the Devon transaction.
$2.05; not $2.00 how much more do accountants get paid to figure this stuff out to the penny? Now if I were working this I wouldn't care but I'm not so I do.
There is a $2/share payout to make the merger work.... would have preferred if they just gave us more shares but I think they were locked on the share count and the percentage split between Devon and us.
TRCD management failed the biggest test. Do a major capital raise when you are ready to place it accretively. They had to really screw up to miss this bad. I am OK but it does reinforce why I stay with ARCC as best of breed. They know how to properly time a capital raise and their relationship with GE Capital will only grow over time.
Staples is moving toward becoming a dominant internet player without bricks/mortar over the long term.