but where is the "incentive"? all they have to do to get the B shares is keep the dist at .4744 per qtr Presently .4875) and keep dist coverage above 1.0 (presently 1.2) it seems like management just wants the class b shares and does not want to preform to get them!!
they just sent out a proxy to increase incentive shares and I think it will be votes down, now it seems they are doing an end around to get the b shares
mid guidance was even better 19500-020000 bpd this 7-8% higher without any more drop downs or acquisitions.
the management incentive deal could be good but they don't set the bar very high to achieve it.... basically just keep dist coverage flat and dist flat as well. i would like to see some higher (achievable) goals, like raise dist by 7-8% and keep dist coverage above 1.1
If you are serious about buying at 31.00 then sell the 31 puts you can get about .60 for the march 22-31- puts which would make your net cost about 30.40 less commissions but no dividends
agreed also I can't spell or proof read before I post it was supposed to say "intertanko" and still now they are reporting only 13k per day so what are really the rates?
strangly ARP has raised the dist every quarter since 4-2012 now they announce the monthly dist and they leave the dist flat.... BUT the stock goes up. go figure.
the total return is higher considering the distributions july call is 1.78 and dist = .2416x5=1.208
line is now 33.43
what are rate now? intertankp reports suexmax as 10K per day, while vlcc are high at arount 47k per day if this was true they could hire two suezmaxs in place of the one vlcc and save 37k per day??
the new dist coverage ratio is much worse than last quarter, it will be interesting to see if they address it in the CC or just dance around it. some relief will come when nd refinery starts producing and la increases production but they are 4th quarter items not even 1-2 quarter hopefuls
what you are ignoring is the distribution payout ratio, if after earning are announced and the dist coverage approaches 1:1 then you will see clmt pop up but I will be happy if they get it back to 90% this quarter.
75 million out of 442 million market cap is a rather high percentage to do it at the market pricing which will keep LRE down for quite a long time till the new shares find a home.
I would have thought the secondary was over by now but today we have a .50 drop on no news in a flat market???? what going on?
Erik they say to sell down to the sleeping level. I don't think the dcf will be as great so that they can raise dist, but we will here a lot of "management hype and synergies bs" but it will take time it intergrate berry into line.
that said I have been selling puts to wait for a pullback.
liza, before you go off and leave us, why not post your top 10 or 20 picks in the mlp & trusts areas not so much you top holding but your top "adding to" stocks.
PS, I too appreciate your knowledge and informative posts as well
I was expecting more of dist increase than they reported as they were up and running almost 100% durig the quarter maybe the spread is getting to them.
I will chime in here, they want more incentive bucks for running the company, one of the goals is to "maintain the distribution " and acquire more properties... A real incentive plan would say something like "increase distributable cash flow by 7-10% " To pay them extra just for doing their job is not what I would like to do. bare in mind we already pay them 3.5% of our ebitda and then in most cases each high officer get a million or two stipend to keep the country club dues and such.
If prices stay high, we will see much more drilling for Nat gas, which has slowed in the last few years due to the low nat gas prices. I can remember last year due to a pipeline problem the companies just "flared" the nat gas i.e. just burnt it up rather than sell it and when then they reported it to unit holders they said it had no material impact on earning
Sounds like they are crying in their champagne, we pay the general partner and they have IDR's and the 6-7 officers are paid well enough now and just happen to be officers of the gen partner as well so now they want more?? give us the same deal they want!!
I use Etrade and can pretty do as I please with options in my taxable account. my ira has some limitations, but I can write puts even in the ira (as long as I have cash in it to cover the put) the taxable account requires margin available to short call or puts