I have some concerns over AMID's debt levels, AMID will need to do it's preferred secondary issuance, that NGL has already accomplished. But I liked AMID alot, I doubled my money on it....time to redeploy capital into another non-oil/MLP type asset...plan on holding onto NGL for some time...unless there is some NEW news that will cause me to alter my plans, GLTA
Thank you for the write up, shabang.
I sold out of my AMID yesterday, and now hold NGL as my only high yielding MLP.
I need to be more diversified, have too much in oil-related stocks the way it is.
I need to practice Capital Preservation as I get older.
I do have size-able stakes in KMI & ETP, with a token (1%) stake in LGCY
thanks for all your outstanding work, I think that I am like you in that I lost some in upstreams, but swapped out into mid-streams at depressed prices (NGL, AMID, ETE) and made back my money....for now I hold NGL, ETE, AMID and a small stake in LGCY....But these (mlps) are 10% of my investments
Key Takeaways. On 4/21/16, NGL announced a series of de-leveraging
initiatives which we view as positive. These include (1) a $200MM private
placement of 10.75% convertible preferred units to Oaktree Capital Management,
L.P., (2) a temporary reduction in its distribution (annualized) by 39% to $1.56
(i.e., savings of $170MM/year); and (3) approximately $100MM of debt
repurchases at $0.60/dollar. Including proceeds from the sale of GP and LP
ownership interests in TLP (~$462MM) and the de-consolidation of TLP debt, we
expect total potential debt reduction of $1.2B from these initiatives. We estimate
FY2017 (ending March 2018) and FY2018 leverage of 3.4x and 3.1x, respectively,
(versus current leverage of 3.8x, as calculated by lenders) and distribution
coverage of 1.73x and 1.77x, respectively. We are raising our valuation range to
$15-17/unit from $10-13/unit to reflect a shift in our valuation methodology to a
(yield based) distribution discount model (from sum of the parts previously) as
we view the revised distribution as more sustainable. We maintain our
Outperform rating. We are also raising our FY2016 and FY2017 DCF/unit
estimates to $2.15 and $2.70, respectively, from $2.10 and $2.53.
"Just read up on going private. They would have to offer prices substantially higher than the market."
Hardly, All Yorktown has to do, is to offer a price that the unit-holders are willing to sell for. I owned the old KMI years ago when it was taken out via a LBO....the recent run-up in MCEP is a premium price for recent unit-holders, don't except the a LBO to buy MCEP at $3.00 or higher...at that price level Yorktown would have no interest at today's Oil Prices...IMHO
Merger??? Hardly...no other upstream MLP is worth merging with.
Acquisition???Hardly...no oil company buys old properties that an upstream MLP has.
LBO (leverage buy out)???Maybe...Yorktown taking the company private and don't have to bother with individual unit-holders anymore
Just My Humble Opinion..selling off my stake in MCEP as prices rise...sold at $2.03 & $2.11...still own a few shares
What gives...all of a sudden someone wants to buy this...big jump in the last hour...still own a few shares...praying for a good outcome....of course praying for a good outcome is not what investing is about...so my stake in MCEP is 2% of my investment portfolio.
"MCEP is my largest holding."
Well if I had $50,000 in MCEP, and I tried to sell it all in one day, then I would be the biggest seller for the day...that is too much for me...therefore MCEP is NOT my largest holding, more like a small percentage, so if it does have a massive dilution and current existing equity holders are wiped out...it would not hurt me that much...KMI is my largest holding, owed the old KMR for many years...BUT I am all for MCEP soaring higher,