And the purpose of your post is what?
1) To help people?
2) To scare the scare the #$%$ out of them?
3)Or does the possibility exist that the current prices are near or at the bottom and the proper move for them is to add at these prices and help secure their future?
JVnavy: The last time that most people have disagreed with me as much as now was a few years ago when MWE got all involved with the "file gate" mess and many gave up long term positions in fear when the NYSE threatened to delist MWE for not filing proper paperwork. They fired the CFO and hired Nancy Beuse and paperwork was redone and properly filed and that led to the biggest growth years yet without those that panicked and fled. There was the same talk of mis-management and sell-outs at that time as there is today.
Vote as you see fit. If you truly believe there is a sellout and MPC is getting the better part of the deal then you should be buying MPC stock hand over fist because-----
There are people with IDEAS and there are people with money. This is an opportunity to join those people together for a common good
MWE has the lock on the GROWTH IN THE Utica and Marcellus that will be growing for the next 50 years IF (And that's the BIG WORD) they can get they can get someone with big deep pockets to finance it above and beyond the financial capabilities that MarkWest has at present. MWE's growth in the Marcellus and the Utica is in its infancy and needs a BIG PARTNER. MPLX is a convenient place for MPC to be placed to protect current MWE unitholders from a tax carnage like KMP-KMI fiasco of last year. MWE's growth will grow MPLX and MPC will grow even faster. There will be plenty for all and plenty of places for MWE-MPLX and MPC holders to all make money
FWIW that's my take on what's going on and my opinion
Accountfourth; John Fox has made it very plain and clear and has distanced himself from the company and the BOD and has stated he is not soliciting proxies-units or anything else in any way-shape-or form. Mr. For has scheduled a Conference Call for Nov 17, 2015 at 2:00 PM Eastern Time. At that time he will state his views.
If you are a unitholder of MWE I would suggest you listen to the Conference Call to help you make a
I disagree. at this point in time MWE and the BOD are playing the safe card for the future of the individual unitholders and providing for the continued growth of MWE going forward. Obviously Frank Semple and the BOD realize the future will need a heck of a lot more ongoing support than they could provide. It was only a question of time In their opinion before MWE wouldn't be able to control their own destiny and at the same time continue protecting MWE unitholders from the same end result that befell KMP unitholders. The MPLX distributions are growing at about 5 times the rate MWE are presently growing and Management signaled they believe they can't continue grow the distributions and the company. It isn't a crime to realize their limitations. It is a crime not to believe the people who know the most about the company. I believe John Fox's current position is to bump up the price as best he can to maximize the MWE unitholders price as much as possible.
The $5.21 unit cash payment is over 5.6 quarterly MWE payments at the current rate and is to be paid upfront and that will with the rapidly growing MPLX distributions cover MWE unitholders income going forward without any drop in income. The IDR's will guaranty MPC keeping MWE in an MLP without a taxable
ugliness like the KMP fiasco. If anyone thinks the IDR's are too much money going to MPC they should be accumulating MPC stock going forward because MWE is positioned to grow all 3 companys going forward.
This probably is a good time to be adding to your share total. Especisince they just announced their earnings are up about 18% and they previously said they plan to raise the dividend with the December payment. I expect it to be announced in the next week, and I wouldn't be surprised if management raised the dividend from $0.26 to $0.29 or $0.30 per quarter. The best time to buy is when its cheap. And you said it was down about $5.00 in the past 6 months.
To me, that s cheap.
If MWE unitholders vote for the merger on the scheduled Dec 1, 2015 meeting. The merger will probably close on Dec 2 or Dec3 and the 1.09 unit adjustment will take place at the same time. You also will receive the approximate $5.21 cash per MWE unit at the same time. No time delay as you incorrectly suggested..
Hi suejenseth:: John Fox is still making money for us--Even though he is in retirement with no official position in MWE anymore..
His coming out against the merger I believe was the catalyst for MPC to realize the vote wasn't a sure thing at the price of the deal..
MPC knows the value of MWE to MPC and doesn't want to lose MWE. by being a cheapskate.. I would have preferred a higher exchange rate instead of more cash but MPC is saving the units because that becomes a recurring expense every quarter and the cash payout is paid once and forgotten about.. A compelling story just got more compelling. Might be another chapter to this saga is still ahead.
I believe you are right, the key to this additional payment was due to John Fox rattling the cage. Now MWE is trading at $9.08 below the merger price with less than one month to the vote A big MWE price jump tomorrow ($3-$4) could start the momentum to higher ground.
Fear of the unknown.
And all the while, if we can overcome our fear it could be the greatest opportunity staring us in the face and many may be too afraid to make a move.
At the present time MPC is in the growth phase of their business accumulating and maximizing the value of their assets. they are not in the "splitting up" phase. They plan on maximizing the value of MPLX and MWE after the merger and growing MPC with the growth of the IDR's and their own growth potential. With energy prices in the toilet everything is being valued at distressed levels. This is their opportunity to buy not to split up.
You said--- There is much unlocked value in this stock and will do very well going forward.----
You are 100% right. And if you believe it you should be adding to your MPC --MPLX---MWE positions at current levels
MWE will trade X-Div $0.93 on Monday On friday MWE closed at 43.68 which was $1.97 below the merger conversion price of MPLX. That means MWE will probably start to trade at about a $2.90 discount. The merger vote is currently scheduled for about Dec 1 or 2 All MWE unitholders will receive a $3.37 cash payment (About a 7.7% payment on the current MWE price).
A lot of value here with an even greater potential coming down the road.
If you focus on the growing income, the stock price will take care of itself. HASI increases their dividend on an annual basis with the December payment. This year it has been paying $0.26 per quarter which at the current $18.01 share price comes to $1.04/ $18.01 or 5.77% annual dividend. I am expecting the dividend to be increased to about $0.29 or $0.30 per quarter for the next payment. At $0.29 per quarter the yield would be 6.44% and at $0.30 the yield would be 6.66%. Increases of this magnitude should help drive the share price higher going forward and provide an opportunity for portfolio growth.
Hi SueJen Seth: Long time no hear. I hope all is well with the family. the incredible MWE Saga continues. if the world doesn't end MWE will survive to make us even more money. Frank Semple is handing out new team jackets with a new name on the back. just remember Babe Ruth had his greatest years after the Boston Red Socks traded him to the NY Yankees. MWE will thrive with MPC as the financial backer MPLX's growth will multiply when they are dragged upwards by MWE's embedded growth potential.
and best wishes to the family.
MPLX is already in the 50% splits.
If I had sold a year ago as you suggested in addition to the large tax obligation I would have, I also would have given up 100% of the income for this year and going forward with less cash to invest for income. What do you mean 5-8 years to get back to even? My income is growing and the opportunity is here to but additional units at low prices. Prices we haven't seen in 4 years. You said you are buying MWE to keep your cost basis above zero. THAT MEANS THAT WHATEVER MWE UNITS YOU OWN ARE PROFITABLE TO YOU. If you own 1000 MWE units with a cost basis of ZERO you currently are $40,000 ahead right now after 4 years of no growth.
If you own 10,000 MWE units with a cost basis of ZERO you currently are $400,000 ahead right now after 4 years of no growth. If you own 25,000 MWE units at a ZERO cost basis you are $1,000,000 ahead right now.
AND TO RAISE YOUR COST BASIS ABOVE ZERO you have the golden opportunity to buy at prices not seen in 4 years and currently yielding 9%. Buying before X-Xiv will give you an additional $0.93 per unit. Buying before the merger will give you an additional $3.37 per unit plus the 1.09 bonus of additional MPLX units. Buying now before these events will get your post merger MPLX distributions up to or above current MWE distributions
Think it through AND DO THE MATH.
A follow-up on our posts of October 19th since then GAB's share price has risen from $5.61 to $5.72 (+1.96%) As I mentioned I am accumulating additional shares at the current depresses prices by buying and dripping the dividends. So anything I buy or drip now would cost me 1.96% more than on October 19th
The following changes have taken place in the 4 days.
Share price has risen $0.11-NAV (good for sellers and holders
) has risen $0.15 (good for holders and buyers) Discount to NAV Up from -6.97% to -7.44% (good for buyers) Yield down from 11.41% to 11.19% (good for nobody)
Marathon Petroleum has been projecting MPLX's distribution increases for the 2015 -2019 time frame based upon the MPLX-MWE merger as follows.
2015 increase 29% (Distribution just raised to $0.47-A raise to $0.50 for the Feb 2016 payment will reach the 29% 2015 goal.
2016 increase 25%
2017 increase 25%
2018 increase 20%
2019 increase 20%
The market price of all securities are based on fear and greed at the time.
How low can a security go? In 2009 Ford traded under $1-GE $5--So prices can go very low due to fear. But that's the best time to buy them.
The following has been taken from the press release for the 3rd quarter====
The Fund intends to pay a quarterly distribution of an amount determined each quarter by the Board of Directors. Under the Fund’s current distribution policy, the Fund intends to pay a minimum annual distribution of 10% of the average net asset value of the Fund within a calendar year or an amount sufficient to satisfy the minimum distribution requirements of the Internal Revenue Code for regulated investment companies.====
The "key" words are and has been """"Minimum annual distribution of 10%" They have been paying more than the 10% in years past""""
I'm expecting about $0.18 or $0.19 to be paid in the December quarter.
You and I cannot say that MPLX's units have "fallen mostly due" to this proposed merger. I would say that lower energy prices had a lot more to do with it.
More important MPLX this morning just announced they are raising their November distribution 6.8% to $0.47 on target to reach the 29% increase for 2015. I would say that the current MWE and MPLX prices are an opportunity to buy and add at prices that will probably turn out to be multi year bargains.