.01 X 3 = .03 is not one half of the rest of the years projected .015 increase. .01 over three quarters fits into the guidance statements. Question is what do they plan for next year.
...well, that's what they've been harping on, so it's either time to put up or shut up, because I am in this for the money. I already have wallpaper.
I don't either, but I think it has to do with the after hours ok of the sale of an additional 3,000,000 shares under a revised 10K, dumping most of the old guard management at the insistence of the financial backers, i.e.the Wall Street Money Men and keeping 1-2 minor players who can show the new players where the can is for in the Bldg. My prediction: 1) They flood the market with shares and they end up with 3,000,000 * ($1.50) because the street can smell a rat. 2) the rat stays at $1.00-$1.75/share for 7-8 years and slowly creeps up to $2 then another 2 years then $3. Now accounting which the new management has hired is tighter than my Aunt Sadie's girdle and the DCF and EBITDA figures begin to look good and a distribution (quarterly...screw this monthly payout, and gives accounting more time to look over the books.
Sentiment: Strong Sell
I have seen some MLPs that pay close to what ENLK is paying in distributions and the unit price is $50. What will ignite a price rise to $50 for ENLK? Will it be the first combined 10K or 8K or K something another that shows the combined earnings of both companies? Will the distribution go on up to $1.47 as stated in the forward looking statements? Enquiring minds would like to know.
Has anyone gone nuts as I have trying to figure out which figures from the K-1 go into line 1, box 2 and 3, and line 2, box 2 and 3, and the very last box (not the W2 figure any idiot can figure that out) on the Turbo Tax form and the K-1 used to supply the figures?
If I remember the conference call correctly, the company said they were going to open up the board to allow directors to be elected to the board from community of unit holders. Liza? Ruby? You available? Throw your hat in the ring as a write in candidate at least.
P.S. Isn't executive management being paid sufficiently to not have to worry about MIFs? Take a look at the insider trading for the company and what the share prices were bought for and sold for by a lot of the executives. The oil patch is not the same as the major bond and equity companies.
Read http://seekingalpha.com/article/2067213-qr-energy-the-buyout-of-the-general-partner-is-a-big-deal?source=yahoo and see what you think the overall impact of the MIF and additional units that are going to be added over the next four years and then give me the finger if you still disagree QRE might possibly might start having problems with both its unit price and distributions after this year.
I am going to wait until I see how low the unit price goes from all this incentive to management stuff that was talked about the other day and also take look at the first 10-K to hit the street before I sink any more into this company.
After having been burned bad by Harvest Energy Trust and their management doing a Wizard of Oz/wicked witch air attack all is well and then selling out for less than book...well, imagine how many p.o.'d unit holders their were.
I think we are going to see a lot of brokerage houses change their minds on QRE and rate it just as high as HOLD, until after Sherman marches through Georgia.
I checked out WSJ, ID, Seeking Alpha, etc., etc., and I could not find any reason for why they downgraded their opinion of the units. Any insight from anyone?
Sentiment: Strong Buy
I have been reading some of the comments that are being left by others, that Devon is going to take XTEX's EBITDA where they get the money for their distributions, and use it for wildcatting operations.
1) I would think that when the merger agreement was put in place, the old XTEX (and XTXI) board said no to anything like that...we have an obligation to our limited partners.
2) Since the G.P.s (XTXI) dividends are tied to XTEX distributions going up, then the last thing they would want to see is anything that would cause them to hold flat causing a drop in the share price and no prospects for an increase in dividends.
So, my big question is when Devon comes in with all these ideas of taking away from the XTEX/XTXI unit holders and share holders and will Barry and the boys and girls from Crosstex tell Devon to go fly a kite, they aren't going to hurt the unit/share holders
So long as it's not Entrubl, then all we can do is wait and see. However, snow and horrible cold weather in the east should make up for some lost ground.
I guess this is a lesson for the future...XTEX will make its forward looking statements re: distributions to its LPs, but only the low end.
I missed it. Did he come across flying off into one direction, and then suddenly switching directions and going into another all together, all the while telling everyone that the great and powerful OZ has everything under control? Barry Davis did a good job, and now the Devon people are stepping aside to let him run the company. This is okay, if he does as good a job in bringing it up like he did post-2008, but if Devon becomes a millstone, where's the parachutes for us?
I thought the merger was to bring DVNs midstream assets in with XTEXs. If they use any money from XTEX to fund DVNs E&P upstream ventures, then I would say they sold the unit holders a load of fertilizer. XTEX is a midstream operating company. Not upstream. Siphoning off XTEX money for DVN capex in e&p and not midstream ops turns this deal into a lie (in my opinion) and would definitely make me want to bail out. If I wanted to be in the upstream end I would buy QRE.
I am replying to myself... I wonder what the chances are that the difference might be paid with treasury stock, i.e. stock that was offered in one of the secondaries but did not sell 1:4 we would get 1 share for everyone share we already own.
If you are going to compare O&G MLPs then you need to compare upstream to upstream, midstream to midstream and downstream to downstream. I like CMLP which is a midstream road tar company that is selling for around $26 and paying $2.00+ per unit each year.
Sentiment: Strong Buy