A trust cannot pay out more than its income. It can't add shares or take on debt, so where would the money come from?
There is no management. It's a trust.
Reserves increase when the price goes up due to more oil being economical to extract.
Hurricane Isaac is heading right for it...
If by 'top' you mean biggest, it is accidental. My biggest is APL only because I was averaging down in 2009 at very low prices and suddenly the price took off and went from one of my dogs to my biggest holding in a short period.
My second biggest is VNR only because I held decent positions in both VNR and ENP and they merged.
In both cases, I am prevented from lightening up due to tax considerations.
None of which is new. Distribution coverage issue has been there for several quarters and is the reason the price is where it is and the yield as high as it is.
Sounds like the main thing for you is increased probability of Obama re-election. And you're right. There ain't gonna be no president Romney. But I told you that months ago.
"Because the MLP must distribute almost all profit to the unit holders by law,"
There is no such law. You are thinking of REITS. Most MLPs do distribute much of the cash flow, however they don't have to distribute anything.
It is inline with other small E&P MLPs. You can't compare it to the pipelines. As I said before, it sounds like you need to do more research on MLPs before investing. It sounds like you are not aware of different types of MLPs: pipelines, G&Ps, E&Ps, etc.
You will complicate your tax return.
And unlike MLPs with their K-1, the royalty trusts actually require you to make a bunch of calculations.
You can find the tax booklet that explains it on the website. Take a look and if it scares you then don't buy.
Nice try. It hasn't been announced yet and when it is they will call it a distribution not a dividend. You like to make up fake headlines?
You think someone should invest their money without having any idea what the company does? Maybe just based on liking the ticker symbol or something?
Anyone who does not know BPT produces oil in Alaska should not be putting their money in it, imo. People who don't understand their investments will likely lose money and should stick to index funds.
EXCLUSIVE-White House dusting off plan for potential oil release
Thu Aug 16, 2012 6:29pm GMT
By Jeff Mason
WASHINGTON Aug 16 (Reuters) - The White House is "dusting off old plans" for a potential release of oil reserves to dampen rising gasoline prices and prevent high energy costs from undermining the success of Iran sanctions, a source with knowledge of the situation said on Thursday.
U.S. officials will monitor market conditions over the coming weeks, watching whether gasoline prices fall after the Sept. 3 Labor Day holiday, as they historically do, the source said.
It was too early to say how big a drawdown would be from the U.S. Strategic Petroleum Reserve and, potentially, other international reserves if a decision to proceed was taken, the source said.
Oil prices have surged in recent weeks, with Brent crude prices closing in on $120 a barrel, up sharply from around $90 a barrel in July. The United States and other Group of Eight countries studied a potential oil release in the spring but shelved the plans when prices dropped.
With prices high again, U.S. officials were now collecting information from the market about potential needs and studying futures, production numbers and data on Iranian oil exports.
"The driving force in this is both impact on the economy and impact on the Iran sanctions policy," the source said, noting that Washington did not want rising oil prices to create a windfall for Iran while oil embargo and international sanctions were having an effective impact.
The United States has yet not held talks with international partners about a coordinated move. The source noted that Britain, France, Germany and other partner nations in the Paris-based International Energy Agency were receptive to a potential release a few months ago when conditions were similar.
Those countries were concerned about the impact of high oil prices on the global economy and Iran then, and those concerns "remain equally relevant today."
Domestically, tapping reserves could spark criticism from Republicans, who would cast it as a political move to boost Democratic President Barack Obama's chances in the Nov. 6 election. (Editing by Russ Blinch and Neil Stempleman)
Some of the people here who post racist stereotypes could learn from this. It also helps explain the countries growing thirst for oil:
"The Chinese government has just released its latest annual report on urban development and cities, and some of the figures within it are pretty astounding. China is becoming an urban nation at an incredible speed"
690 million – Urban Chinese population
656 million – Rural Chinese population
51.27 percent – Amount of population living in urban areas in 2011
25 percent – Amount of population living in urban areas in 1982
90 percent – Amount of population living in rural areas in 1949
60 percent – Amount of population employed outside the agricultural sector
200-300 million – Number of migrant workers estimated to have taken up at least partial residence in cities
500 million – Number of migrant workers for whom authorities need to devise methods of urbanizing, according to the report
$786 billion – Estimated amount needed to provide social security and public services for the 500 million new urban residents in the next 20 years
5.2-to-1 – Income ratio for urban residents compared to rural residents
3.13-to-1 – Disposable income ratio for urban residents compared to rural residents
26 percent – Amount the urban-rural income gap has increased since 1997
68 percent – Amount the urban-rural income gap has increased since 1985
76-90 percent – the amount of urban dwellers in China's three largest municipalities, Beijing, Shanghai and Tianjin
The giveaway that you have no idea what you are talking about is your reference to this as a stock. It's not even a stock it's simply a fixed vehicle with the only purpose of paying out the remaining production under the terms of the trust. And that remaining value just went down today since this is ex-day. People who say the price should not go down are saying they expect to pay full price for one third of a pizza. The price will decline from here to zero over the next couple of years with the value becoming less with each ex-date.
There are no big players left in this. Only small time retail losers like yourself who have no idea what they are invested in. Sure, some players may pile on and take the easy money from people like you - I did too, why not - it's as easy as picking money off the sidewalk when you guys are so determined to lose your money.
What makes you so laughable is that the 'message' in that article had been covered here over and over for several years. Even his article was just a rehash of several articles in SA and elsewhere (Citron) over the last year. There was no new information at all. And exactly the same playbook had been followed a few months earlier by GNI, another trust set to terminate around the same timeframe. And these are not the first trusts to terminate. I have seen others approach termination (meaning a few years) and this is following the typical pattern of the last few years decline to zero.
Who's listening? We were saying the identical thing here for 2 years before he came along. Even his article is just a rehash of several SA articles that cam before his.
Exactly what people were saying a few weeks ago just before losing 50% of their investment. And just what GNI longs were saying earlier this year before they lost 50%. Fools with more money than understanding. Asking to lose money, imo.
You do realize that 40% of the trust in NG and they have been getting 12c of the distribution in recent quarters from the NG hedges which expire end of this year. More likely than an increase is for the distribution to drop next year.
The same argument people were making a few weeks ago just before they lost 50% of their investment. Some people never learn. The will be saying the same thing right down to zero.