I don't know if there will be a large swath of E&Ps declaring bankruptcy, but they will have to do a dance with their creditors probably at a higher lending rate in the future to pay back what they owe and re-adjust their thinking on making money on $32bbl oil (it was actually done at one time). As for mid-streams such as ENLK, they will always be in demand to haul, fractionate, ship on down the line and transport to another end point, so they will be making money, but they are going to have to adjust their thinking on doing this according to today's volume demands in the areas they service and ditch the pie-in-the-the-sky M&A money hole for awhile. As for DVN, I haven't seen anything in the annual report where they contributed anything, much, to Crosstex since the merger, but they sure are "Hoovering-Up" the money the XTEX portion makes. I would say we are not going to see a big increase in distributions .
I hear what you are saying, and I think we as unit holders have been mislead to a degree because we were told that by 2016 the drop-downs from DVN would end up in the distribution jars of the ENLK unit holders, but for the life of me I cannot understand why instead of building its war chest (ENLC, ENLK) Barry Davis, went on a M&A spree depleting the bottom line. If you look at 4Q 2015 figures, there was a 700MM+ goodwill payout, which I would like to know what that went for, and hopefully it was only a one time payout. If so, then we will have more money for distributions, hopefully. But, we are going to have to have a board of directors that can make money on $30bbl oil.
I have been reading all the metrics in the footnote section following the quote for ENLK, and it seems that, in my mind, everyone is saying that flat growth is better than negative growth or negative growth. Any opinions on what the 1st qtr 2016 distribution will be? Another .39, .40 or even .41?
Enquiring Minds Want to Know at a Kroger Near You.
XTEX was never bankrupt...not even back in 2006-2009, when I bought the vast majority of my 20K of XTEX shares for ~$6.50.
As I understand, and I might be wrong because I read the transcripts of the quarterly meeting and this topic was kind of like a billard ball glance shot, not a true hit, and the ball went off into another direction, but, the $740M-$750M "goodwill" payment made this last qtr., was to pay Devon for some drop down assets. Anyone know for sure, if not what was almost 3/4 of a Billion in goodwill payments in one quarter for?
Iran is going to start dumping oil and gas onto the global market, which is fine by me so long as the other OPEC countries can get by with the yachts they already have and cut production, so that our own prices will go back up.
i've also asked myself what kind of PAC does the coal industry have because DUKE energy should have switched over to natural gas to heat the water to turn their electric generating turbines along time ago. All of this happening under the nose of a President who points at the sky, gives $1.5B to a country who would love to see our oil and gas industry fail, and frog marches U.S. Navy personnel they've hijacked in international waters.
We've have got enough reserves in this country to be energy independent, but we also have a just plain nuts bunch of democrats who would rather us import oil from countries where people are being trained to slit our throat rather than keeping people in jobs in the oil patch, creating new jobs in the oil patch, and still having enough oil and gas left over to meet our Strategic Petroleum Reserve requirements.
Heaven help us that we can survive the next 10 months of the present administration's non-sensical policies.
P.S. Give me all the thumbs down you want. I suppose you bought these units for the same reason I did... to make money each quarter. But, come this time next year, and I don't care how much management said it intended to stay on the course of raising the distribution level, I think we will be lucky to be getting . 19 cents a share in distributions.
I tried to find the accounting figure before writing this, but I could not. Enlink paid out somewhere close to $750+- in goodwill this past year, seven times the amount of FY2014. Goodwill I take it is what they are giving Devon for their drop down assets that are as of yet to fully come all online. From a personal viewpoint, prior to the meltdown in the oil and gas commodities markets, my own opinion was that Devon saw Enlink as an asset cow.
For those who may have missed the headlines on the main page, Devon is expected to cut its distributions/dividends by 75%. If the same happens to us, we will have a dime each quarter in distributions.
Oilmen speak only one language: oil and gas. But, they should have spent time in D.C. learning that politicians talk out of both sides of their mouth and in the end no one wins. If Barry Davis is looking for the Henry Hub price to go back up to $43.25, he is crazy, because Iran is being a green light to start exporting as much oil and liquid distillates as possible. The only way the Hub price will go back up is for the rest of OPEC to cut production by 50-75% (or, heaven help us from the EPA) we become energy independent. If I have said it once, I will repeat myself, Devon took hold of Barry Davis' nose and told him what they wanted and he would do this and take that. I think the "fire and brimstone" demeanor of his talk at the quarterly conference was and indication that he had been in the barrel with Devon having personnel at Crosstex hop when they hollered frog. And, I still stand behind what I said last fall when oil prices were dropping that it was not the time to be adding new acquisitions: they could wait. Now, Devon is going to cut its distributions/dividends by 75%...are they going to dictate to the old XTEX crew to drown as the ship goes down?