I disagree. The share price may be appropriate at $23 give or take. But Shareholders can certainly see more cash flow through in the form of dividends.
And I'll gladly give new management a few years to show progress. I've lived with these clowns lining their own pocket at our expense for more than a few years.
Time to kick them out!!!!!!!!!!!!! Send me my form and I'll gladly check the right box!!!!!!!!!!!!!!!!!!
Well, the transcript is available at Seeking Alpha.
You only need to read the first paragraph of the CEO (Cohen).
Let me translate.
Excuses, Excuses, Excuses, Excuses - All not my fault
This just isn't going to be a widely held stock in terms of institutional ownership. That isn't going to change. If your ok with that fact then put your money up.
If we saw a general market sell-off then this could conceivably see sub-$17. But otherwise this seems to be an excellent level to consider investing. Just make sure you understand the risks and are willing to live with them.
Yeah, I don't support any selling off of our future drilling sites. Unless we end up with more than 20 years of drilling sites, then I'm happy to see slow and steady growth.
Glanced through APL results tonight and it wasn't good IMO. Don't understand what we are getting from the acquisition at all.
We'll see what ARP call is like and I'll read through the APL call and results later this week - but its looking like both the ARP large acquisition and the APL large acquisition are not exactly shaping up as home runs - or triples - or doubles - or even singles - seems like we are hoping for a base on balls!!!
At least at APL we've got some more organic growth on the way in 2014 - and Pioneer seems to be going gangbusters. Looking forward to the call later this week.
Unfortunately, I disagree - and this type of activity is exactly the problem.
We are an E&P company. We need to drill and operate. Drill and operate. We have a private partnership program that in the longer term benefits when we are excellent at drilling and operating. Blocking and tackling. Its not glamorous. Its not "being the smartest guy in the room". Its just hard work done again and again and continuously.
Financial engineering is NOT the ticket to long term success. In fact it is a distraction - and at worst, can become an excuse for not properly executing (you know the "dumb" guys do the dirty work and we are somehow the "smart" ones).
I'd strongly prefer they stick to producing. Drill and Operate - that's what we are supposed to be doing.
We'll see - I will be happy to receive $2.50 next year.
I don't agree that we are a good candidate for a Devon type transaction though.
On the one side we've got APL which could be similar in terms of the transaction done with XTEX.
But on the other side we've got ARP - with a private drilling partnership program and an E&P business.
What made XTXI/XTEX attractive to Devon was simply scale - and they will be able to control XTXI - ie basically force them to accept any and all assets - guaranteeing development wherever they drill. Plus they get a CEO for their midstream assets that they were going to spin off anyways.
Maybe someone that wants to expand in both mid-stream and E&P - but I just don't see the attractiveness of 1/2 the ledger and still having to pay for full control (ATLS).
Anyways - this unitholder will be thrilled with $2.50 from ARP and $2.50 from ATLS in 2014. I don't need to be the biggest or fanciest - I'd just like to see us grow organically and slowly through small acquisitions. Let other folks go on TV, just send me the steady growth in DCF
At this point - if the yield is something you like then holding ARP/ATLS is ok but there isn't going to be incredible growth from here from what I can tell.
But who knows - I hope for the best!
Wow, we got hammered by the State of NJ - looks like 1.6 MILLION in new commercial real estate taxes just for our properties in NJ.
NOI increased and base rents increased - spreads on new leases up over 6% which is good.
Finally broke through 90% non-anchor occupancy and overall we're at 93.5. Hopefully this means we have another 2.5%-3% over the next 12 months which would pretty much fall to the bottom line.
Have to listen to see if we've got any news on either JCP or Sears closing stores. Looks like Chambersburg and North Hanover are in the process of being sold (but at a $30 million loss) - though I saw a mention that the South Mall's contract fell through.
If nothing else this should put us in a position to increase the dividend next year - perhaps .20.
Saw a short intereview with Leon Cooperman on Forbes this weekend. He touted Atlas Energy and SD. From what he was saying he felt there is 40-50% value based on the underlying assets of ARP and APL. But it also seemed he was doing the old "get paid while you wait" for this value to be found.
On SD I believe he said they thought its worth about $10.
The interview was on Forbes website - can't put links into yahoo any more so not sure if you can still access it or not.
They may have the numbers wrong - but I'd think you have to agree that until we get some clear visibility to how the latest acquisition is being handled and how the mess in PA will get cleared up, that there won't be any appreciation in unit price.
I'm hopeful that we'll switch back to doing small acquisitions and slowly expand - but right now things seem somewhat jumbled IMO.
Frankly, I hope XTEX pays out more than 1.46 for the coming year. We are paying out at a rate of 1.36 currently.
I'd hope this type of transaction - combined with lower capital costs would correspond to at least a 10%+ increase in distributions, which would be $1.50+.
And if we aren't getting .40 per quarter in 2016 then I'd have to ask why we're doing the deal, as we could get that on our own with current projects.
Well, bigger than Ghawar might be a stretch but even if its half the size its enormous. Hopefully APL will be able to strengthen its partnership with Pioneer over the next few years and capture a lot of their production.
Thanks for posting the article.
Pricing is strong and looks like most things are going well. .075 NOK dividend for the quarter (little more than a penny before taxes).
They need to clarify what is going to be the dividend policy going forward. I'm under the assumption that we'l be getting a larger end of year dividend (in June) and smaller quarter by quarter dividends based on results - but I'm not sure that's definitively what is happening.
I like optimism, but I see no clear path to a $5 payout in 2016.
Next year will be our first over $2 in distributions. Two years later we'll have 250% growth?
I hope next year brings $2.50+ followed by something over $3 the following year and $3.50 the year after that. Anything else is gravy. SO MUCH has to happen between now and then that all the analysts numbers are just that - numbers.
Lets see how the next few quarters go before assuming we'll see that kind of growth.
I remember in March 2009 XTEX was trading for a buck - thought about buying 5000 units that day but for some reason I didn't. (figured that if everything was going to collapse I might want a little cash to hit the local Walmart the night it all went down!).
I don't remember what XTXI was trading at but I assume it was something similar.
Its an interesting transaction (I own a little XTEX). I hope it truly is a tax-free transaction, and it will be nice to get a $2/unit cash payout.
I'm not sure it will have a big impact on APL though. I suspect the transaction was about two things - one being the geography and two being getting Barry as the CEO of Devon's new midstream. Devon will be the largest customer for the new entity - which I guess has its plusses and minuses.
Well it was going well until it was interrupted.
But as a long time holder - I've been expecting an interruption!
We'll get a decent distribution - hopefully this might push us towards a return to buying smaller acquisitions.