“We are delighted to further expand our strong relationship with Antero and develop additional processing capacity at the Sherwood complex to support their highly successful drilling program,” said Frank Semple, Chairman, President and Chief Executive Officer of MarkWest. “The ability to offer producers fully integrated midstream services throughout northern West Virginia and southwest Pennsylvania is critical to unlocking the abundant rich-gas reserves of the Marcellus Shale. MarkWest is committed to providing Antero and its other customers with unique solutions that are backed by our best-in-class customer service.”
Can someone smarter than me explain if this means that the Houston facility has to be enlarged or expanded to keep up with all the expansions that are coming on line as more and more projects get completed and get integrated into the ever growing system.?
Where does MWE get all the personnel to fill all the jobs and contractors to do the work and the eq
Press Release announced this morning---
MarkWest Energy Partners, L.P. (MWE) (“MarkWest and the Partnership”) announced today the completion of long-term, fee-based agreements with Antero Resources (AR) (“Antero”) for the development of an additional cryogenic gas processing plant at the Partnership’s Sherwood complex in Doddridge County, West Virginia. Under terms of the agreements, MarkWest will construct a fifth 200 million cubic feet per day (MMcf/d) processing facility that is expected to begin operations in the third quarter of 2014. Upon completion of the new plant, the Sherwood complex will have 1 billion cubic feet per day (Bcf/d) of total processing capacity.
Antero is a premier producer in the Northeast and is aggressively developing their acreage position throughout the rich-gas Marcellus. The Sherwood complex currently consists of two plants with 400 MMcf/d of capacity and is operating near full utilization. By the end of this year, MarkWest will bring online a third 200 MMcf/d plant at the complex and is quickly moving forward with the construction of a fourth plant by the second quarter of 2014.
Antero’s natural gas liquids (NGLs) recovered at the Sherwood complex are currently being delivered to MarkWest’s Houston complex in Washington County, Pennsylvania for fractionation and marketing. The Houston complex is the largest fractionation facility in the Northeast and provides extensive logistics services, including storage and the delivery of purity products to market by truck, rail and pipeline. In addition, the Houston complex offers Marcellus producers the first large-scale de-ethanization facility in the Northeast capable of producing purity ethane for delivery to Mariner West, and ultimately to the ATEX and Mariner East projects.
I just finished reading the CC transcript and I am pleased with the progress. They are cleaning up the past mess that still remains and are preparing to go forward in a more positive and profitable way. The longer that ACAS stock price hangs around the $13-$14 level the more shares they will be buying at 25%-30% below NAV. They are still making new investments including stock buybacks . So we should now be looking forward to Friday Dec 27 or Monday Dec 30 for the announcement of the ACAS share buyback for the 4th quarter.
patience will win this battle.
Acas sold down to $13.85. With a newly announced NAV of $19.54 that gave an alert value buyer a 29.1% discount to NAV. There were people who sold at that price with fear in their mind, and there were others that bought at that price with greed in their mind.. The question is who will be right in time?. In the short run it is harder to judge, but in the longer term it appears clearer that the buyers will probably prove to be right.
Is it possible that the BDC format with 90% payouts of income doesn't work anymore if a company's share price falls below NAV unless they issue shares below NAV and create additional dilution to the present shareholders? If that is true, then the current buyback is the proper option and we, as shareholders have to be value investors going forward and not income investors. Obviously we can't be everything to everybody and it appears management has taken the buyback approach while calling it a dividend. Management has evaluated the situation and if we as investors haven't, it might be time that we do. I'm not saying the buy back is wrong. I'm just saying it appealks to a different set of investors and these value investors are the ones in the majority here at ACAS currently while most of the income investors have left a long time ago. The only income investors still here, I believe are the ones from the pre 2008-9 era that have so far been unable to make a move to sell or buy and are waiting to start getting a dividend and get even.
----------At some point in time there will no longer be enough share outstanding for anyone to sell --------------
That's why they have to split the stock To get more shares available for them to buy. They didn't plan on buying back shares for 50 years either. But good company's that are growing tend to keep chasing the increasing value which keeps increasing as much or more than the share price. For example Loews (L) has been buying back 25% of the shares every 10 years for the past 50 years. Now thats impossible because there is only 100% of the shares originally. But the price keeps running ahead faster and the value keeps increasing and they are forced to split the stock to keep it in the buying range of the public and gives them the opportunity to keep buying in their quest to reach NAV.
I wouldn't be surprised that after 50+ years of buying overr One Billion shares, Loews(L) is still 30% to 50% below current NAV and growing (Both discount and NAV)
In the press release management said the current ACAS dividend policy is in effect until 2014 year end. They also said it could be changed for any reason.
Right now ACAS does not appeal to cash income investors because it doesn't pay a cash dividend.
It appeals in value investors only if it sells at a large discount to NAV which is what it does now. If the share price gets closer to NAV it has less appeal and they sell which will lower the share price and increase the discount to NAV. A small cash dividend has not helped Loews (L) and Texas Pacific Land(TPL) as they have been paying cash dividends for many years in addition to the stock buy backs.
I have written here a number of times about buybacks at other companies that have gone on for a long time. No one has commented on them or the longevity of them or the impact on the stock prices over the time of the buybacks. Maybe someone can offer additional insite on the subject of buy-backs
Loews (L) has been buying back shares for over 50 years. 2nd generation management now running the company. In that time the share price keeps climbing and they keep buying but are nowhere close to reaching the NAV . In the 50+ years they have bought back over 1 Billion shares and the price keeps going up and they have to split the shares to bring the price down and of course that gives them more shares to buy back. This could go on for another 50 years.
Texas Pacific Land Trust (TPL) was set up in the 1880's to sell their 5 Million acres and liquidate. They have been selling acreage (After 130 years they are down to about 900,000 acres) and they have been selling shares all this time which keep going up in price to where they split the stock and keep selling. A few years ago the stock reached $300 per share and they split the shares 5 for 1 and the stock is now over $90 again. This can probably go on for another 130 years.
Both company's pay small cash dividends.
Share buy backs appear to be a good money making investment for the very patient investor. How it plays out with ACAS we will have to wait and see.
I'm interested to find out what others have to say.
will probably give the accumulators the opportunity to buy another 200K or 300K shares on the cheap in the neighborhood of $2 or lessin the next few days. Everything points up and the stock apparantly is being puwshed down at the present time.
New contract awarded to ITI---
SANTA ANA, Calif.--(BUSINESS WIRE)--
Iteris, Inc. (NYSE MKT: ITI), a leader in providing intelligent traffic management information solutions, was awarded a $2.2 million contract to provide a bus signal priority (BSP) system for Torrance Transit’s Rapid Line in Los Angeles County, California. Work on the contract is expected to begin immediately.
“This project expands our established multi-modal operations throughout Los Angeles County,” said Abbas Mohaddes, president and CEO of Iteris. “By growing our nationwide presence and utilizing existing bus system technologies, we are able to provide clients with superior technology to mitigate traffic congestion. We look forward to helping improve the overall service to Los Angeles County residents and commuters.”
Iteris is responsible for the design, procurement, deployment, and on-going operation and maintenance of a multi-jurisdiction bus traffic signal priority system at 83 signalized intersections. Deployment of the bus signal priority system is anticipated to be completed within 18 months. The BSP system utilizes existing on-bus systems that incorporate GPS-based automatic vehicle location equipment, wireless bus-to-intersection communications, and advanced intersection traffic controller technologies previously implemented by Iteris under the Countywide Metro Rapid Signal Priority Program.
Kim Turner, Transit Director of the City of Torrance, added, “Consistency and implementation of a proven system is essential for the residents and transit users of Torrance Transit. Iteris has provided a proven solution throughout Los Angeles County and we look forward to continued success with their expanded solution.”
This will help going forward
------ The short view can make you play money and the long view may support your retirement------
Two understatements of the year-----
"Play Money" and "May Support Your Retirement"
Let me tell you----
1) It ain't "Play Money" and
2) IT IS an important part or my retirement.
That's assuming the Q3 ACAS's OUTSIZED purchases were really OUTSIZED. At this point in time, with the tax loss carryforward available, management has to weigh buying riskier investments with less profit potential against the shure returns of buying back stock below NAV. We are paying management to make these investment decisions for us and I am supportive of those decisions. If I wasn't I would have sold my position and moved on long ago. Those that decide to sell at these prices are providing cheap shares for others to bulk up their portfolio and for management to have the opportunity to also buy and retire cheap shares and increase the per share value of my portfolio and others that agree with my position. Last quarter "the Outsized Purchases" came to a $0.60 value accretion to each and every share I own. And that $0.60 per share was on a tax free basis to me.
ACAS isn't whispering today. It is shouting out very clearly that it is heading higher going forward. this is a $30 to $45 stock in 3 to 5 years with a $3 to $4 annual dividend. Short term it is impossible to guess the price and is not a necessary metric for long term serious wealth accumulation. Think of all those that sold on Friday looking for a cheaper buy-in price today because of the whisper number-tea leave reading-oijie board configuration and fortune cooking writings or any other nonsense.
Patience will win this battle BS won't.
If you sold the stock and bought it back in 29 days or less you didn't have to "book the loss" so you had a better opportunity to buy multiples more at or near the bottom ($0.59) and get the 33% "stock dividend" with the maximum shares and bulk up your share count and have a much much lower cost basis to break even and get maximum growth in value with the price still very low.
The opportunity was there to make Six-Seven-Eight figures . Some did-Some didn't. But you can't make money looking in the rear view mirror.
Right now ACAS is selling for $14.03 and what is the potential at this point?
IMHO in 3 to 5 years ACAS could double or triple ($30 to $45) and be paying a dividend of $3 to $4 a year.
Everything depends on market conditions. However if the market turns ugly like in 2008-9 there will still be opportunities - We just have to find them and take advantage of thee. A clue to help you---The majority of the people will be doing the wrong thing--so being a contrarian could help you make the right moves.
How long does it take to fix the overhead sign at the Randolph Vermont store? The light hasn't worked properly for over 2 weeks. The sign across the street at the Family Dollar store works fine.
It is always good to see the "sage" analysts come to the party 4 years later to tell us what we know already. The most important part of the eqation now is to have patience and let management keep buying back stock which will increase the NAV of each remaining share outstanding. The $175 M buyback last quarter is about $0.60 per share. On an annualized basis that is about $2.40 per share which is tax free to shareholders and over 17% annually based on the $14.03 Friday closing price.
Next step, we have to wait for the quarterly report and conference call. I'm looking for a NAV figure of about $20 per share. The higher the better.
In this week's Barron's an analyst projected a double in ACAs price in the next 3 years and a resumption of cash dividends on a vastly reduced number of remaining shares.
Value Line projects $18 to $35 out to 2016-2018 and a resumption of dividends along the way.
Their current policy is to use their cash available for dividends to buy back shares currently trading at about a 30% discount to NAV which will boost the NAV on remaining shares without incurring a tax obligation on the remaining shareholders. In the quarter ending Sept 30 ACAS bought back $175 M worth of shares up from $125 M the previous quarter. The $175 M buy back was equal to a 4.6% dividend. The value behind your and mine ACAS investment increased 4.6% in the three month period because of the buyback.
Warren Buffett says ---The price is what you pay. The value is what you get.
It all boils down to what you want and if you have patience.
If you decide to sell, I hope it will be to ACAS to reduce your shares from the total share count and help increase the value of my shares, because I'm waiting as long as management is buying back shares on my behalf.
Good luck, whatever you decide to do.
It will all depend on management's abilities and goals. I'm sure there is growth around to be bought by alert people.
2014 is only 62 days from today so that's not so terrible.
Buying only real good deals makes sense to me.
So it appears all we have to do now is wait for the distributions to arrive, to either spend or drip into additional units. Management is showing that patience is the best course of action and we should listen to what they say and do the same. The patient investor will win here with VNR as time goes on. The day traders will not be happy.
Thanks for posting. I just read the Seeking Alpha transcript. It is very impressive and to those that read between the lines in confirms the validity of our investment in MWE. I don't know what per cent of MWE's Marcellus business is done with RRC but if RRC is doing what they say, we have to believe that MWE's other customers in the Marcellus and the Utica are not too far behind.. MWE's upcoming conference call should be enlightening. The most important metric (IMHO) is what progress MWE made on the 23 Processing Plants MWE announced from last quarter. It appears that MWE is running hard and playing catch-up ball with their customers who continually keep running ahead.
A double and a double thats a 4 Bagger production growth.
There will be larger than $0.01 quarterly distribution increases coming down the pike and JP Morgan will eventually be proven conservative in their $4.40 distribution and $90 PT for 2015 year end.