If ARP is so great, why have no insiders been buying?
And why has their largest shareholder, Leon Cooperman, been selling by the boatload?
The problem with ARP and these other MLP's is that they can't afford to drill at such low prices. So the natural decline of their existing production cuts their total production, revenue and cash flow. This is in the face of heavy debt loads. High interest rates in the case of ARP.
Their hedges will only save them for a while. They have to have higher prices, or they are in big trouble.
A $2 increase in the price of oil won't save ARP. A $10 increase won't save them.
They have too much high cost debt. Oil and gas prices are too low to justify drilling, without which ARP's production and revenue head south. Only ARP's hedges will delay its inevitable bankruptcy.
Anyone drilling wells with these prices is an idiot, and that includes companies like the mighty SWN. Just look at the writeoffs these companies have been taking, and it's not over yet. You just can't make money at $1.50 gas period. ARP gets more of its revenue from gas than from oil
Ed Cohen is a con artists aka Bernie Madoff, and ARP is nothing more than a ponzi scheme that is out of suckers to put more money in. This jump in price is ridiculous, based on a tiny uptick in oil and probably some short covering and a letup in tax-loss selling. You won' t see Cohen buying any ARP down here.
Unless you want to lose everything here, sell your ARP. Leon Cooperman has been dumping by the boatload. He used to be ARP's largest shareholder.
The MLP model only works when oil and gas prices are high enough for such companies to replace the reserves they produce. That is NOT the case today.
Oil and gas are depleting assets. Unless there is a miraculous recovery in o&g prices that allows companies to drill at a profit, these companies are all doomed because their production will drop.
The whole upstream MLP sector is doomed because they can't profitably drill wells at these oil and gas prices. The decline curve will take over. Production, revenue and cash flow are all headed south. Hedges are nothing more than a temporary band-aid.
They all are neck high in debt, high cost debt in the case of ARP. I'm afraid ARP is headed to zero. Even Leon Cooperman sees the writing on the wall and has been selling.
Ed Cohen=Bernie Madoff. ARP has been a ponzi scheme and the jig is up.
Did any one ever say this guy is a scummy shill?
After all the hype he has been putting out for the last couple of years, now the unitholders take it in the shorts.
If ARP has any sense left at all, they will sell some of their longer dated hedges and buy back debt and pfd at a huge discount.
uses silver, can't tell how much. This from the Silver Institute, must reading for silver buffs.
The Axon smartphone from China’s Shenzhen-based company ZTE reportedly
is the first smartphone to use Corning’s silver-based Antimicrobial Gorilla
Glass. The durable glass was first announced last
year, and now is being used on a fully functioning smartphone.
Gorilla Glass is used because of its high-scratch
resistance and hardness, which allows thin glass
without fragility. More than 2 billion devices
including smartphones, tablets and laptops from 33
major brands use the regular Gorilla Glass, according
to Corning, and the glass can also be recycled.
At the antimicrobial version’s introduction at the
2014 Consumer Electronics Show (CES), James R.
Steiner, Senior Vice President and General Manager
of Corning Specialty Materials, said: “Corning’s
Antibacterial Gorilla Glass inhibits the growth of
algae, mold, mildew, fungi and bacteria because of
its built-in antimicrobial property, which is intrinsic
to the glass and effective for the lifetime of a device.
This innovation combines best-in-class antimicrobial
function without compromising Gorilla Glass
The Antibacterial Gorilla Glass is also being used
in Automated Teller Machine (ATM) screens
is why Bluemountain Capital has bought such a large position in CDE.
These are big time guys at Bluemountain. Know way of knowing why they are buying CDE--could be the specifics at CDE, the improvement in reserves, etc. Or it could be they are buying as a bet on higher gold and silver prices, weakness in the dollar. They could be short other mining names and long CDE as a hedge.
Goofy Yahoo won't allow links to be posted, but just do a search on Bluemountain Capital, and you'll find their web site.
harehau has been right and for the right reasons. I am not harehau.
ARP is a con game, a ponzi scheme. Cohen is a shill. Did any of you ARP losers notice that ARP wants to sell more pfd through an ATM?
Only dummies would buy that pfd because the proceeds will be wasted if ARP pays ANY distribution to the limited partners. If buying that preferred is dumb, guess where you limited partners stand on the IQ totem pole?
60 cents annually?
MEMP management seems incoherent. They buy back over $20 mill worth of their units at over $15, and then they cut the distribution. Did they think the price would go up after such a cut? What's really disgusting is that there was insider selling prior to the distribution being cut.
Then they borrow $100 mill for the acquisition. What the heck are they thinking about except the long term incentive comp plan they want unitholders to approve.
What they should have done first was to cut the distribution. No stupid buyback, how incompetent.
Then explain to unitholders that the distribution was cut to help finance the acquisition. I would have been fine with that because it made sense.
Now they should find some good operating people to help them get costs down. Terrible performance on their part.