I am somewhat confused by this .95x coverage and the previous quarters 1.05x coverage. What does this mean exactly?
I think XTEX, now that it has paid off its bills, built its infrastructure, is about to pull off a APL (only maybe not that much in distributions but they will be fairly sizeable none the less). I gave up on upstream companies when I got my tail feathers burned (really singed, I got out okay, by Canadian Harvest Energy a few years ago. I would not buy another upstream operation for the life of me.
ex-dividend, i.e. the last day you can buy shares and get the distribution or dividend (actually I think it was yesterday, but i am in a time loop)
I think that in one year you will see the distributions go away and everything folded into the common stock.
No more .33 or .34 distributions. Maybe .16 cents.
DVN only paid its LP .16 per unit (I believe I am correct...) With a dilution of the LP of XTEX from 100% to 47% in the new company I don't see how Devon will be contributing to XTEX (or whatever the new MLP is called distributions). Someone care to explain how this is going to work?
You said Hunt Lawrence and Yorktown Partners are aligned with the shareholders. I am not concerned with the share holders, per se, but the unit holders. So, if prior to this announcement, the XTEX distribution was being divided between around 63-64 Million unit holders, and after looking at the pie chart there is going to be close to 2.5X that number of unit holders...where is the money coming from? I looked at some Devon's 10-Ks and I had a heckuva time trying to sort out capex, and possible DCF that would be availbable for the new MLP? BTW, I wonder how this will effect us tax wise? No change? Treat it as a sale of the MLP units and pay the .20% plus the income tax, Wipe the slate clean as though you just picked up the units yesterday? I know you think I may be full of it, but I am pretty worried about these things.
Any idea as to why from a $29.50ish high on Monday the units are going back down, yet XTEX is getting all of this infrastructure and is just going to pay DEVON MLP rates.
Where can I get a copy of the Credit Suisse report re: XTEX/Devon MLP plans.
Also, dear readers, remember, if you sell, you not only pay the .20% cap gains tax but also taxes on every distribution dollar you have received since you have owned the units...you could end up paying close to 50%. I own 20,000 shares. I will sell at $50 (bought at 6 in 2009).
I did not read my own post.... I meant not get the distribution
Liza...did you look at the adobe presentation of how the cash flow is going to work for the proposed merged company? I am somewhat concerned, because the arrows for where the money was going to come from (this was a Devon prepared adobe presentation) had all of the money that was going to both the stock holders (the unit holders were left out from the arrow drawings) had the money coming from Devon's e&p operations. I did not see anything to make me think that they were contributing anything from the midstream side. But, I have been wrong in the past. They went on about how the share's would probably have a dividend of .375 sooner or later but there was not a single line drawn on the Devon map showing where they would be sending dcf into the MLP. Please help.
Just exactly what does "ORGANIC" mean? If this is a move that will benefit MLP holders and stock holders say so.... Don't use obfuscating verbiage to state where you plan to end up, or hope to end up in a year. I hate that. It's worse than a telephone cold call sales pitch man.
I was a little troubled when I read the following quote from the Motley Fool "Add to that Devon's ability to selectively monetize some of its midstream assets that aren't immediately going into the new Crosstex MLP combination and we see a company with tremendous financial flexibility in an industry that is more known for having little financial breathing room."
So: a) Devon picks its least profitable midstream units to throw into the merger, or
b) they string it their midstream units integration into the new company, out over an indeterminate length of time of their own choosing or
c) who knows?
Or is the Motley Fool just being ultra-conservative to calm the fears of Devon's shareholders?
Liza - i wasn't being negative. I was (am) confused because everything I had been reading about the new MLP was that all of the assets were to go into one bucket almost immediately. I have have read Seekingalpha plus some other articles on the merger and I had not seen anything about a spread out over time movement of assets into the new LP, so of course i was like "what ?" and so when is the time timeline for having all of the midstream assets in the same pot.