What happened... This morning you were calling for single digits.... Your halucination shift again????? Break out the spoon.... Heat up your score.... And stick the needle back in.... You'll feel better in just an instant
All you need is a stationary low pressure system to sit over a region and both are rendered useless.... Regardless of temp....
And the above scenario is common when there is a "Bermuda High" stuck over of all places.... Bermuda.... It can leave the North East.... Midlantic... And even the mid west and SE in dreary still weather for days on end
actually he stuck a needle in his arm and said that he has been short since the low $30s....
We all believe his slurred hallucinations.... which all proved quite accurate over this past weekend when he called for KMI to drop 15% on Monday and it 2%
sure hit it out of the park with his rhetoric over this past weekend...
next step... he deletes a few posts.... and continues on midweek at EPS
He doesnt quite get it that I was a consultant when the book on Yahoo msg bd posting was written
KMI could have used less than 1/10 of it mid m March - mid April cashflow and hedged the entire balance of their oil production at a price 20% of their budget....
They could even still turn a massive profit if they placed furthe hedges today with oil stil 5+% over their budget....
A "professional" should be able to see that with Stevie Wonders eyes
the 1.1 B should be used to start funding a better cash balance.
320m or .15 per share for a 40B $ company is extremely low.
they should have 2-3 $ per share in cash , if they did riding the cycles out would be much easier .
rcmusa.... no company should warehouse $5-$7 Billion in cash when it has better than $40 Billion in debt...
The saving on juice that would wind up being EPS is just far too great
KMI has significant reliable cash flow... this is where you look at the proverbial DCF... their cash flows are more than enough to "ride out a cycle"
This tangent is a perfect example of why the Kinder family should be under an MLP structure
What did I get right.... That Kinder was oblivious to????
Ya cant run a C-Corp like an MLP
The debt was ridiculously high.... New debt was insanity (remember me questioning the NGLP debt prior to the Moody's warning)
You dont build market cap by dilution regardless of whether its cap ex or not
The dividend guidance was unsustainable ( the guidance had the dividend at $10 B in divis paid in 2020)
The sector was in trouble and it would affecr KMI sooner or later
Revenue was in serious decline.... And only a complete fool would rely on a make believe metric like DCF as their primary means of evaluating a company especially in an enviornment of declining revenues.... The TOP line is paramount.... When its declining the company is shrinking
And quite a few other rants of mine proved true... And in hindsight many here are kicking themselves in the head for for not recognizing (listening)
I stlill believe that KMI over corrected.... Most of the bad is is in the rear view mirror.... Oil will not go below Febs lows....
What to do with the $1.1 Billion in cash flow that was earmarked for Palmetto???? KMI planned to use its revolver to pay the current debt due in 2016.... Use the cash instead.... Makes for a much cleaner balance sheet
I read it as an approved project by the State where the Legislature has stepped in to block (temporally?) a mechanism that is used to acquire the easements..... IF thats the case there's litigation ahead and $ to be won by KMI
Frees up $1.1 billion of cash flow that would have gone to Cap-ex.... project will get built just pushed 1-2 years out
Nice opportunity to use those dollars to pay down/buy back debt
This is actually a Huge (a lil Bernie Sanders voice inflection there for fun) gift to KMIs balance sheet
Man you sure have a bug up your as.... but anyway... reality just cut the # you were proposing by 33%
This really isnt as difficult a task as you propose.... all debt that is held in street name has already been notified electronically (not by phone as you proposed)... and all they have to do depending on their account is hit a button or call their rep
I will again bet that the majority of small debt holders of which their are probably thousands will just take the extra juice in a heartbeat.... meaning that when it comes to the big boys and the bond funds they will just need about 40% of the debt
furthermore... in your original post in this thread.... you said phone calls need to be made and negotiations have to get done.... there are no negotiations!... everyone gets the same deal or there is no deal... so while you say I split hairs you talk out of your rear end
While that is true .... it is a statistical impossibility for exactly 50% of the debt to be held by 50% of the debt holders when the debt is spread out so thin
I'd bet that 50% of the debt is held by approx 1/3 of the debt holders
I agree that the swap is just about offering the LINE holders a chance to avoid another massive COD tax.... but unitholders should just sell... they avoid further COD like that too.... LINE/LNCO cannot just come out and tell the share/unit holders to sell but thats in reality what they are doing
Here's the problem
1) if LINE goes BK so does LNCO.... 2).... IF there is a large cancellation of debt at LINE.... LNCO is on the hook for all the COD at partnership rates... and they do not have the ability to pay those taxes... they probably do not even have the ability to pay the COD tax on the 2015 debacle
The problem was that you couldn't run a C-Corp like an MLP... so using new equity for growth was dead in the water...
I said It a million times... the better solution was for the MLP (KMP) to buy the GP (C-Corp KMI) as EPD did
But lets not forget EPD has seen its own sharp decline in unit value.... but it appears that their distribution is safe
Anyhow.... interesting show on Frontline last night about Saudi Arabia.... good part of it was about the wheels falling off the bus due to low oil prices.... they cannot continue on their current pace much longer....kitty is running dry... as they cut social benefits and wage expensive war
$80 oil cures many ailments.... and in more ways than one SA is the disease.... thats capable of curing itself
It actually took a few months for the postcard to show up.... and I was amazed that with the poor quality of my mail service that it did so.... and that I even comprehended what it was because it looked like just another piece of junk mail
While failing to do so yourself.... IF LNCO issues shares and fails to cancel the LINE shares they will have magically increased the market cap by th amount of the shares issued....
Something has to break.... Either the shares get cancelled or their will be a further significant decline in both companies share values due to the printing of shares
Which logically would lead to the cancelation of the LINE unit.... Which would magnify the COD for the rest of the LINE holders if their is further COD