They'll both benefit..WNR for appreciation and WNRL for increasing income. Once the acquisition is completed, there is a lot of drop down inventory for WNRL. They've already affirmed 5-8% distribution growth annually without the acquisition. Also, they could drop NTI or other refiners into WNRL if it makes sense. This would follow CVR's lead.
Yeah, I'd buy WNRL around a 6.5-7% yield and watch it grow. It stands to benefit from the NTI acquisition.
They said 200 oil not too long ago. They also stated yesterday they foresee 4 rate hikes next year. They need to create volatility to make more money.
The action isn't good but the recent acquisitions will be reflected in the upcoming quarters. Why sell after 4yrs? Distribution coverage is fine and that's the most important metric for an MLP. Lower your cost basis or wait it out.
MMLP BONDURANT ROBERT D Executive VP and CFO Nov 19 Buy 26.41 231 6,093 27,231 Nov 19 11:43 AM
MMLP MARTIN RUBEN S President and CEO Nov 19 Buy 26.41 604 15,958 94,908 Nov 19 11:43 AM
MMLP BOOTH CHRIS H VP/General Counsel/Secretary Nov 19 Buy 26.41 4 107 5,036 Nov 19 11:43 AM
MMLP TAUSCHER RANDALL Executive Vice President/COO Nov 19 Buy 26.41 189 4,987 17,327 Nov 19 11:42 AM
Look at their coverage ratio..they've always held it higher than most peers in the LP space. Now growth, probably not much of that and its reflected in the 9-10% yield. They'll need more acquisitions since they don't have many options for organic growth.
MLps aren't tax free, the government still gets their money eventually. Trusts are poor investment vehicles but that's what a trust is about..eventually it'll go to 0. MLPs will be fine but you have to be selective. With UAN, its a variable paying LP for a reason.
They'll be able to buy back a lot of shares ex div on the cheap. This stock would pop if fees were reduced and they didn't make comments about throwing money out the door. Who wants to support a company that makes comments like that even if its true.
Managerially speaking, like EFC, it does make sense to reduce the dividend some and buy back shares. It'd have to be a meaningful amount though.
Hopefully the incentives are based on distribution coverage, leverage ratios, product netbacks vs industry norms, etc. Wishful thinking.
Most concerned with dis coverage and its 1.5. They've always done well at holding this up and increasing distributions, albeit slowly which isn't a bad thing.
The pipeline and energy services business posted an adjusted loss of $1.2 million, compared to adjusted earnings of $5.1 million a year ago. Earnings were impacted by the operating results of the refinery, which began commercial operations in May. The company's after-tax portion of the refinery's loss was $5.8 million for the quarter the result of challenging market conditions including low diesel and naphtha prices along with historically narrow local Bakken basis differentials. A year ago the company had a loss of $700,000 related to the refinery.