KMP and KMI are no longer best of breed. MMP has shown that acquiring your GP lowers your cost of equity so much (KMP's cost is 9% per their CFO at a conference last week) that MMP delivers unbelievable returns to shareholders.
Example is Longhorn pipeline which they bought out of BK. After initial failure running pipeline in designed direction they reversed direction. The ebitda multiple on Longhorn including purchase price and capex.... 3x ebitda!!!!. That results in monster distribution growth in addition to most of their projects which are running at ebitda multiples 20% lower than their competing MLPs are running on their capex projects.
Niska is 100% uncompetitive with this high capital cost. They cannot do 100% debt deals so NKA is stuck and is a dead money MLP. So you get your distribution yield and zero growth prospects, hardly a prescription for success in the sector.
You are forgetting to take into account expected distribution growth. ENLK is looking at high single digits or low double digits. KMP is looking at 506% growth... MEMP is a subpar MLP whose growth prospects are insignificant thus the higher yield. ENLK will get to $0.45/share eventually. They have organic growth, dropdowns from the ENLC side, dropdowns from the Devon side of ENLC and dropdowns from Devon that were retained by Devon after the merger.
I bought ENLK when it was Crosstex in DEC 2012 and have a double.... you do not have doubles in KMP or MEMP in that period of time. Always remember to consider TOTAL RETURN, not distribution yield but expected distribution growth as your guide.
Just another TYCO rolling up and writing down in order to create an impression of growing earnings.
It always ends badly.
The past will revisit you when the present short term drop in rates wraps around. You will give back your gains so quickly if you don't exit gracefully.
Too aggressive and too much acquisition. Judgment day comes when future debt rollovers start to pinch NOI.
Beat by $0.08
Portfolio yield up 0.1% that is 1/10 of 1%
NAV up $0.10 to $10.28.
For a first quarter report after becoming public and after many other BDCs have missed... this is so sweet.
Everyone remember when Tyco was thought to be the gold standard and then we found out how their accounting games and rollups demanded immediate asset write downs so they could pocket them for future offsets against tougher to compare quarters.
If this deal isn't done then when you get to comparisons on earnings year over year this thing is coming down like a stone.
You must be dumber than a box of rocks. This stock crashed today, it has been crashing and some rare earth price going up 40%. Molycorp is dead, it just hasn't been buried yet. Molycorp was predicated on a rare earth's model that crashed and burned. The valuations that carried Moly are no more.
Either way, common shareholders are going to be zeroed out. Either toxic preferred dilutes common to death or common done in BK.
You are greater fools and the best reason I know why mommy should run your money for you.
Molycorp is a dead company walking. All the debt and equity was raised based upon REE prices that will never be back to those levels again. This is akin to NAT raising equity to keep buying ships that were losing value.
In the end, management will accept an offer to issue toxic preferred stock and dilute all common shareholders to death. It is the only way out plus management which has gotten too fat, too dumb want to keep their perks so they will sell the common shareholders out for their own continued feeding at the Molycorp trough.
The Molycorp's of the world end up going for toxic preferred stock investments because of the promise by investors to keep the same fools in the management team. These reckless management teams are out to protect their pocketbook and you the shareholders will be diluted to death by the toxic preferred.
El Paso did outperform MMP but now it is beholden to the Kinder Morgan complex and it is all done now and is now relegated to being a bride in waiting for the day (if ever) that KMP folds EPB into KMP.
No doubt EPB was one of the great stories until Kinder took that story away. The story being the magnificent dropdowns that are no longer available to KMP. Now EPB is being used to undo some of KMP's problems with this recent drop-back from KMP to EPB that should have never been dropped down to KMP in the first place.
But that was then and this now and the fact of the matter is MMP is the big dog on the block now with years of superior growth ahead and EPB is now a memory and a relegation to mediocrity story.
COCO let my wife go because she was unwilling to pass students who failed because COCO was more interested in the money train that is federal loan dollars. A lot has changed by I am sure my wife was not the only one let go for refusing to play by COCO's rules.
Just a question. He recently bought $21M of ARP shares around the $20.30 range.
Where is the volume? I wonder if institutions have taken a big piece of this offering and we will go through the day with this low volume and then get an update at the end of the day. Also curious to see if underwriters take the full allotment for themselves. On the last secondary, if I recall correctly, they did NOT take the entire allotment.
Not much. Management kept deferring to the investor day which is coming up in the next week or so.... I am waiting for that assuming there will be a presentation on the website to go along with the narrative.
No changes in the dropdown cycle.... I was hoping for an accelerated schedule but XTEX's legacy capex is moving ahead and its importance appears to become more magnified as a result of the KMP JV being stopped.
Jack, that is not what happened and if you don't know what is at stake better take the time to find out.
The SEC wants off balance sheet entities controlled by PSEC or at least the SEC believes are under PSEC's control consolidated, not recorded as equity investments. This goes back to Enron and their off balance sheet entities that when finally consolidated showed Enron as insolvent. I am not saying that is the case with PSEC but I do believe if the SEC prevails we will see a consolidated balance sheet for PSEC NO ONE WILL LIKE AT ALL.
If I am right and I sold my entire 6K in pre-market this morning at $10.74 (lucky me) PSEC's ATM issuances will have to come to an end and PSEC will have to make some structural changes and perhaps revisit lowering the dividend again. This is the third quarter in a row that PSEC has not covered and the SEC revelations about accounting for off-balance sheet entities should scare every shareholder.
Clearly management's unwillingness to comply means a consolidated balance sheet presentation would not be liked at all.
Earnings have been out for four minutes now. LP had dcf coverage of 93% and the GP had 1.5x coverage. You can read the rest for yourself.