It's also hard to understand the questions about accelerating distributions. They are increasing nicely, yet are allowing ARLP to continue strengthening its finances. No reason for them to grow faster. Adding to corporate liquidity is the smart policy. Anyone wanting faster growth should buy more units.
If you google "Chemicals Leader Methanex Focusing On Alternative Fuels" you will see an interesting article about the use of Methanol.
Here's a quote:"The company isn't all about industrial chemicals. It is the world's largest producer of methanol, which can be used to produce clean-burning fuel.
As a fuel, methanol can be blended with gasoline and ethanol, the company says. It is a high-octane fuel that has an added environmental benefit: It biodegrades quickly.
Tighter regulations starting next year on ship emissions in northern Europe and North America have sparked interest in methanol-based fuels, Methanex says.
There was a press release today from Bloomberg that said "Hungry U.S. Power Plant Turns to Russia for Coal Shipment". The body of the article said "When New Hampshire's largest utility needed to rebuild coal supplies after the past frigid winter, it turned to Russia rather than Appalachia in the U.S. Northeast or Wyoming's Powder River Basin.
The Doric Victory, a bulk carrier the length of two football fields, transported the fuel almost 4,000 miles (6,436 kilometers) from Riga, Latvia, last month to Public Service of New Hampshire's Schiller power plant in Portsmouth, a 150-megawatt facility that's produced electricity since 1952."
Perhaps someone should mention to Bloomberg that Latvia is no longer part of Russia. Of course it could be that Riga, Latvia was just a transit point.
According to Lorenzo Lamadrid, Chairman of the Board of SES, "We are approaching a pivotal point for SES, as we have established the commercial viability of our technology through our plants at the Yima and ZZ joint ventures, and continue to make significant progress in working with partners in major global industries ranging from electric power and DRI steel to high value chemicals and transportation fuels. We believe that Charley's experience directing global operations, commercializing technology and developing global marketing and distribution strategies will prove invaluable as we drive our collaborative initiatives with Zhangjiagang Chemical Machinery Company, GE, and Midrex Technologies/Kobe Steel to the next level."
Mr. Brown's expertise is in administrative management skills in running medium to large scale commercial operations. The reasoning behind his appointment is clear. In the opinion of the Board of Directors, such skills are about to become a necessary requirement for the co. We are very close to some major developments.
Mr. Brown was not appointed because he is someone's favorite nephew in need of a job.
Sentiment: Strong Buy
Since ARLP's business plan is to use excess DCF to fund organic growth, and since ARLP and AHGP are controlled by the same people, I doubt that any basic business model is going to change in the near future. I wouldn't want any accelerated Dist. in order to satisfy desire of short term investors for quick gains. At this point I can't afford to sell ARLP because of the tax problems it would create. So my plan is a stepped up basis to my heirs. I hope its a long term plan. As to using a faster growth of Dist. to fund other investments, ARLP is the best large investment I've ever had, and am fully satisfied in taking a Warren Buffet approach to it. Besides, organic growth funded by excess FCF is the best way to maximise long term dist., and since I don't care about the stock price going up, which won't do me any good, I'm happy with things as they are.
It aint broke. Management shouldn't try to fix it.
I think your suggestion would tend to limit price appreciation in ARLP stock. Since AHGP's only asset is ARLP securities, wouldn't that restrict AHGP's asset growth? AHGP's primary interest is in seeing their investment grow in value.
Another point: ARLP mgmt. is great at increasing value of its coal assets, but the industry may ultimately be limited due to forces beyond its control. With its substantial excess DCF, I think ARLP should look for other energy related investments, ala NRP.
If you want to know GE's interest in SYMX do a google search on the above title.
Among other things in the article, you will see statements like
"Over the six-week, $17 billion takeover struggle, it became clear that the only unit GE and Siemens wanted to acquire in its entirety was the French company’s gas turbine-making and - servicing business. With gas set to be the fastest growing fossil fuel over the next 20 years, it is unlikely to be the last effort to tap into the coming boom. " and
"With developing markets expected to consume the vast majority of new energy production, “you need to be present there,” Steve Bolze, the head of GE’s power and water division, told analysts May 14. “And over 25 percent of the new power in the world will be natural gas driven.”
With SYMX's technology, you don't need to use leading edge tech. such as hydraulic fracturing, you only need to find cheap, low quality, unwanted coal, which is a lot easier to find than gas, and far more abundant and widespread. Gas isn't always found where it is needed, low quality coal is.
Sentiment: Strong Buy
The recent events were not imaginery. They formed a meaningful JV with a Chinese Chem. Man. company, who has invested substantial funds into the JV. The JV was licensed by the Chinese Govt. Some individual or group bought $15 million shares from the Co. at $1.85 with warrants over $2.00 to buy more. On April 28 they said they contracted for a substantial and continuous supply of COG to be delivered thru an already existing pipeline 8 kilometers away. The pipeline is expected to begin deliveries in June (this month), and if it doesn't start until July, well, we've already waited a long time, and this doesn't matter. As everyone here knows. there are numerous other irons in the fire, including a venture to produce iron in a more efficient, cleaner manner with a subsidiary of Kobe Steel of Japan.
We're on the edge of perhaps explosive growth. I wouldn't let "no news" affect me. Sometimes you just have to be more patient than you would like.
Sentiment: Strong Buy
I think the problem is just a matter of public(investor) lack of awareness. At the last press conf. it was mentioned that the co. would make some attempt at more pub.rel., but the insiders probably don't care that much, taking a long term view. It does seem frustrating, but the only difference to most stockholders is simply that the value of their holdings is less than it should be. It also allows for a relatively cheaper entry point for those still looking to invest. If I wanted to buy more, I would likely prefer AHGP, but I'm too concentrated as is.
I would tend to agree with you on the meaning of "we". I think it was just a poor juxtaposition of the last sentence of the paragraph of which I quoted, in which ARLP was discussing their investment in W.O. They probably should have separated that sentence from the rest of the paragraph.
Nevertheless, since W.O production is about to begin in the 3rd Q., that production has to go somewhere, and soon. They should have contracts already in place, unless they are planning on adding W.O. production to ARLP's other deliveries.
Per the 10q, at the end of the summary discussion of White Oak, the next sentence says:
" As is customary in the coal industry, we have entered into long-term coal supply agreements with many of our customers". I take this to mean that ARLP has already signed contracts for W.O. production. This is a very encouraging sign. I suppose for competitive reasons, they don't want to reveal any detail.
The reason I thought NRP was including OCI Wyoming was the following in their press release:
"NRP benefitted from its diversification into other asset classes, as increases were experienced in aggregates and industrial minerals as well as oil and gas. Revenues from aggregates and industrial minerals related revenue increased $3.2 million mainly due to an increase of $2.7 million attributable to the equity investment in OCI Wyoming. This increase was due to the first quarter of 2014 reflecting a full quarter of revenues, as well as increased income generated by OCI Wyoming. In addition, oil and gas revenues increased $8.3 million mainly due to the two acquisitions of non-operated working interests in the third and fourth quarters of 2013, as well as increased development and improved pricing on NRP's oil and gas royalty properties."
Too soon to judge market reaction. Most of trades are from momentum players dragged in by the recent reports of future activity. Not surprised at their impatience. Report was to be expected. Qtr. was too soon to see any long term effects of announcements. Report was actually pretty good in some respects, particularly expenses. This aft. noon's press conf. may be revealing.
The previous qtr. the words were " a global gasification technology company enabling clean high-value energy from abundant low-grade natural resources". I am sure the word changes are not accidental. They were, or certainly should have been, well thought out.
In its press release before its 4th qtr. earnings, SYMX described itself as "an advanced gasification technology company enabling cleaner high-value energy from abundant low-grade natural resources worldwide".
In yesterday's press release, SYMX described itself as " the premiere gasification technology company enabling clean, high-value energy from abundant low-grade natural resources worldwide".
I thought the change of wording was interesting. It seems to portray a more aggressive picture of itself.