Diesel is now dirt cheap and there is low demand in the Dakotas. If you had to come up with a worse scenario than burning cash for that refinery and the oil service companies, I don't think it would be possible.
Also, they put out that press release that the distribution was very important to them and the insiders would back up the financial requirements to make sure it would happen while they knew how bad shape they were in and would have to get a loan at usury rates with extreme penalties if they tried to pay any off before the due date and the distribution was history. The Goo comments that went along with the horrible quarterly report made it sound like it would be forever, if at all, until a distribution would be re-instituted and all the insiders cashed in their options--not a lot of long-term faith. Who knows what shenanigans they are trying to pull with these insider buys.
Looks like you're about the only one that heard how great things are going, including all the insiders dumping units. One more example that the market is really dumb and doesn't know how great things are as new all-time lows are stamped.
There are 2 million barrels of tar sands crude produced per day in the wild fire area. Since the cheap Canadian crude seemed to be the major means discusses in the conference call by which CLMT staves off bankruptcy, can we get any info about the wild fire affect or is everybody at work today?
The coverage ratio is based on cash flow and how it covers the distribution. 2.2 means they are generating over twice as much cash after expenses as is needed to cover the distribution. I'm not aware of any MLP, even the select best, tha comes close to that.
could whoever put the thumbs down on this well thought out set of comments please have the guts to tell us why you think he is wrong and why the company is doing great?
They hired a significant number of additional highly paid staff along with goo and have absolutely nothing to show for them--continued destruction. They have at least 11 insiders with options who all cashed them in and sold most of them in the $4's. They want to add to that number and bring on more success? There is no MLP that has a 2.2 coverage ratio--why not just say the days of getting distributions are over. Trying to sell any of the parts that are worth anything - nothing will be left. What an absolute nightmare..
Re-read the MEP material accompanying the earnings report--they are trying to figure out how to dump MEP, not buy it themselves.
or they got the unit price low enough that they found a buyer, per their announced intent to sell.
Have you read what is happening today? EEP wants to sell them. Any guesses what they will get? Not much market for something losing this kind of money.