hope the kuwaiti oil workers have a change of heart and strike again.
i loved their statement 'in honor of the emir'....
i think the guy that could help you resigned months ago. IR guy. they say someone else took over but i would bet every call goes straight to voicemail which is likely deleted daily w/o response. maybe oil rips and you can flip it for a profit or better exit price to speculators trading the corpse back and forth.
don't step in the bulls**t
cyntiques, you got out right?
i sold my bonds weeks ago after they finally paid the deferred interest. i have a feeling those strike prices on the warrants to be given to noteholders are 10x the price of the equity valuation.
do what the millenials do....start a gofund me page.
who does that? take effectively a margin loan on shares in a stock that is struggling to make its payout? said i wasn't saying CEQP wouldn't make it, just for a sponsor i would hope for more conservative and prudent risk mgmt. dreaming if you think payout is sustainable. prefds kick in one year to take about $60 million in DCF away, that alone will drop coverage. i was a supporter of CEQP but switched into WPZ, KMI when CEQP and those stocks were equal in price, been better off ever since.
FR actually has a term loan against all their shares of CEQP. hows that for smart mgmt? if for any reason CEQP fails they lose 2x. according to wells fargo they need at a $2.00 annual payout just to cover the interest on that loan. the guys running the show are leveraged like a day trader. not saying CEQP won't make it just saying when i think of a strong sponsor/PE this is not what i had in mind.
we are talking a debt to ebitda of near 9x-10x, without waiver or PE to come in an do a equity recap this MLP is toast. the rest of their assets are ok, but 100% of logistics was the dude who just left, they have to scramble to get another customer maybe its completely uneconomic to transload through those assets right now. too much debt for the ebitda absent a PE fund or outright sale, its a Ch 11. anything can happen though i just thought it would be a good spec at 30-40 cents i don't know why it held up so good.
would this be a good spec at 30-40 cents on possible equity recap. sure they might face massive dilution their debt/ebidta is now 9-10x but if they did a prefd, with lots of warrants at 50 cent strikes or something maybe a PE could come in here and take majority ownership, pay down debt to get them back to 4-5x on leverage?
keeping payout at zero for several years let internal cash paydown leverage, strike discounts with customers to get more use out of assets etc.
like you said never going to happen they keep lots of cash on hand, won't sell, pay us too much i love it. i have the e's and d's and hope they never retire. odds of a cut to prefd are slim unless they want to cut common to zero.
its closer to $2-$4 mcf all-in i checked. but i believe asian and european spot prices have fallen to where there is no positive spread. however i believe most LNG contracts are lined up with investment grade counter parties for 20 years, some of which want out but unless they are insolvent its not going to happen. also some contracts may simply be cost plus and less burdensome to buyer as they could get current spot plus fee.
i thought they had $300 million in cash? hope you are right would prefer to keep collecting high yields on these prefds while no company can buy them out and retire them. perfect situation to the prefd holders. entrenched mgmt, no buyout, keep paying too much we like it.