I should be downgraded...90% cut to the distribution rate...it's a total mess right now for those holding the stock. Maybe long-term this is needed for expansion to get out of the poor placement in their market, but in the near-term, this is a slaughter.
Wow...I thought I was just being scared, but it looks like selling earlier in the quarter was actually side-stepping a land mine. 90% reduction...any way you slice this, it's bad, and WAY worse than I would have ever expected...I was thinking at most, a five cent reduction. Just shocked.
I guess the "whisper" was a lot higher? Maybe more light on conference call to the spinoff possibilities will help?
Usually, as the ex-date nears, the stock rallies, but I think there are too many unknowns right now for that to take place...too many potential buyers thinking they might not get out if earnings report is poor. I don't think you hit $22-$20 unless they delay Bluegrass & Moss Lake, or give negative guidance toward DCF or competition with the MWE and KMP issue. Be that as it may, risk-reward is pretty poor at this point.
If that is the case with Bluegrass, pps is going to be capped and to the downside. I sure hope they can fill the contracts needed, but if Bluegrass and Moss Lake are truly delayed, I see no real catalyst for owning this until it hits $20-$21.50. Things will just get more "dicey" for coverage, and possible secondary to fund more growth to bring coverage into place. Not saying any of this will happen, but there are better companies to place growth and coverage bets on than BWP. GL.
No, I'm not in BWP management. And I do think BWP management should be addressing the vague commentary they have been giving. They should comment on distributions, and not wimp out by stating the board only decides what they'll do.
Be that as it may, too much pain...had to dump out with 10k shares. Sorry to add to the selling pressure, but there's better fish out there than this, like EPD and KMP. GL.
You are rigth liza...my bad...didn't mean to mislead on that. CPNO did run at a below, and sometimes a significant below 1x coverage, which kept a lid on the pps, but made it a great trading vehicle. I just see many similarities with this stock...but I do think that the projects they have going forward will change the dynamic of not only the company, but also the DCF. Thanks!
Should be a real tear with an upside surprise with no cut action taken come Feb. 10th at announcement.
Everyone keeps stating the stock is pricing in a distribution cut, and that the open season on the new pipeline project is still pending until January 17th with the extension of said season. I do not see how anyone is getting to a distribution cut...that seems silly and VERY drastic considering their outlook for 2015 with accretive projects coming to fruition. If they fill the order log for the new pipeline and announce that tomorrow or sometime soon, then that open issue will be a positive. If they have to extend that open season for the new pipeline, more pressure on the pps will occur. The fact they announced their earnings release date, and no preannouncement of a distribution cut or earnings miss, solidifies in my mind things are moving along and no cut is forthcoming.
Yes, I think too that with all the newer activity going forward and recently put online, I think the pipeline contracts are a "push" for the quarter. I too don't think Loew's would appreciate a distribution cut. Again, this stock makes me think of the former CPNO, that had a 75%-85% coverage rate for two years in a row, and still maintained their distribution and increased it in the final year before being acquired by KMP. I guess patience is key on this?
I'm still not certain as to how anyone is coming to the conclusion that they will be cutting the distribution level? I get declining contract amounts, but I would think with their proposed outlook for revenue and cash growth in 2015, that a cut coming just after a year-ago increase would be a little drastic and premature no?
I thought that might be keeping a lid on this. I see no reason for a distribution cut, especially if they fill the open season booking for their new project. I'm just surprised as there has been no announcement of a cut, and they're getting close to announcing the distribution, that the stock keeps trickling lower. Thanks.