To further reenforce, talk to Antonio in IR. He will give you a good summary of their program. The combined co is seeing huge savings to the tune of the ability to save 400 mil in capes. And still maintain DCF With current hedges. And at best some insider buying no selling.
Talk to IR. Management gave a clear presentation of state of the business at Wells prresentation. IR said this selloff is way overreacted given their hedges and ability to reduce costs. Prior year distribution announcement didnt come til 1/2
I agree, oil has been down a total of 6-7 weeks and the sky is falling.Hedges are in place and capex will save 400 million or more per year right now. Distribution is secure for a quarter and then look only to a reduction, there will be no suspension at this point. Russians and Iranians getting #$%$ and looking at saudis will blood in their eyes. those of us who bought more at 7or high 6s will be rewarded handsomely.
Clearly this co reallocated their portfolio after last years interest rate run up to accommodate a slightly rising interest rate environment when in fact it note rest rates dropped. Clearly if rates start to rise their portfolio performs better.
No doubt forecasting is a crapshoot. The analysts and markets have definitely punished the MLPs far beyond their due. Your post shows where the potential upside can be if one relies on patience.
Just cut the cr-p. They will maintain .04 without question AND trading at 28% discount to book! CC will no doubt clarify the issue.
What a short statement. Yes it was down 3.7% and subsequently reversed and went up. The market digested the news and obviously shrugged it.
Yes crude futures up but open report still looks dismal from supply demand perspective. This may be brief rally before another leg down. There is still a call for 40 dollar oil!
I am not lying, KBW in their current segment had 3Q BV at 4.58, 12/31 at 4.38 and current at 4.14. All agency reits have suffered in January due to the rate drop. By comparison Agnc BV has dropped 25.64 to 23.61.
Agree, biggest challenge right now is the debt at revolving credit. Otherwise no long term debt due til 2020. Hopefully dist reduction and capex reduction will give bank what they want to see because equity offering is a complete disaster plan
Goes to show that opinions are varied every day, but the truth may well be somewhere in the middle. He is right that cutbacks in capex production will lead to falling behind to keep up down the road. But never discount these guys who have been involved in the industry and know the ways of opec.