Constellation Energy Partners LLC (NYSE MKT: CEP) today announced that a subsidiary of Exelon Corporation (NYSE: EXC) has filed a complaint against CEP in the Court of Chancery of the State of Delaware (the "Exelon Litigation").
The Exelon subsidiary, Constellation Energy Partners Holdings, LLC ("CEPH"), was an affiliate of Constellation Energy Group, Inc. ("CEG") until CEG merged with Exelon in 2012. Based on information provided in the complaint, CEPH has been a wholly owned subsidiary of Exelon since that merger.
CEG formed CEP in 2005 and took the company public in November 2006. Following the initial public offering, CEG retained a significant interest in CEP through its ownership of multiple securities in CEP's highly structured classes of equity, which include Class A and Class B units, management incentive interests (Class C), and Class D interests. CEG also sponsored CEP by providing a Management Services Agreement ("MSA"). CEG's sponsorship continued until August 2008, when CEG notified CEP of its decision to sell its upstream gas assets. CEG terminated the MSA effective December 2009, six months after CEP was required to suspend cash distributions, thereby increasing CEP's cost structure. After multiple inquiries to CEG by third-parties to become CEP's sponsor, CEG sold its interest in the Class A and Class B units to PostRock Corporation (NASDAQ: PSTR) in two separate transactions in 2010. For unspecified reasons, CEG retained the Class C and Class D interests after the sale of its other interests to PostRock.
The Exelon Litigation relates to those retained Class D interests and seeks money damages and other declarations by the Court.
CEP believes that the allegations contained in the lawsuit are without merit and intends to vigorously defend itself against the claims raised in the complaint. In conjunction with its defense in the Exelon Litigation, the company anticipates that it will incur legal and other costs that may have a material effect on available cash which could impact CEP's ability to make distributions.
These phantom posts are getting out of hand on a number of the boards I visit.
Plus the spam seems to have come back in a big way recently.
Time for yahoo to revamp its message boards yet again or shut them down entirely.
Personally I am spending much less time on them than I used to and may give up the yahoo boards altogether and just follow a few InvestorVillage boards which are much better signal to noise.
Cushing was down another 2.7mb (from 34.8 to 32.1, and compared to 50.8 in the corresponding week last year). It didn't result in a narrowing of the spread today (although before the report Brent-WTI had narrowed to about $5.60) however the trend of dropping Cushing inventories will tend to narrow the Brent-WTI spread over time (or at least keep it from widening again).
didn't listen to the call but that would be my impression too - hard to imagine putting that into a separate MLP.
You can see those drops in the index data on the website. Historical prices are available daily, weekly, monthly. MLPs did get crushed in 2008-9 along with the rest of the market but they recovered strongly. They also had a mini crash back in mid 2011 during the debt ceiling-S&P US downgrade thing but within a couple of months they were back at all time high.
You have my position wrong about CVRR. I am short puts, so not 'hold' puts.
But it's not a bullish strategy for me, it is because CVRR pays high options premiums and I sell puts and keep rolling them forward, never getting assigned. It is a continual stream of quarterly income without ever having to buy any units. I do that on a number of MLPs, including all the refinery MLPs. I do not intend ever to own units but I make a lot of money from being short puts and continually rolling them forward.
honolulutwit is a legend in his own mind and can't understand why folks here are not impressed by his worthless spam.
You have still got the math wrong as it is not 20%+...more like around 15%.
Idiotic comments akin to saying the Dow is not really at 16,400 or the S&P is not at 1875.
It's an index of the 50 most prominent MLPs and has been in place since 1996, with complete historical information available to anyone on the Alerian website.
The prices are determined by the prices of the constituent MLPs, so you can either look at it to see the methodology or you can not believe it if you choose. One point is that it is a market weighted index so the larger MLPs have more of an influence on the performance than the small ones.
But be aware that a big part of that level of performance is due to compounding effects.
So I guess your opinion is that compounding is just a lot of BS and doesn't really work.
I guess Einstein was a dummy when he referred to it as the 8th wonder of the world.
As an education to yourself, make a little excel function in which an initial value increases by a specified percentage every time interval (year) then cut and paste it for however many years you want to see and graph the results in excel.You will find that it is an exponential curve with the line going vertical on the right hand side of the graph. That is the power of compounding that many don't understand.
As for MLP performance being history, I would just note that the index is within 1 or 2 % of all time highs and the last all time high was reached about 2 weeks ago. There have been a number of new all time highs set in 2014 so far. So your idea that MLPs are not so hot anymore is simply ludicrous.
Note that I have a large portfolio of MLPs and my portfolio performance approximates pretty well the Alerian index. My portfolio value as well as the income it produces is at all time high levels.
Of course, those people whose knowledge of MLPs extends no further than a couple of refinery MLPs (which are very atypical of most MLPs) might have no idea what a great investment MLPs have been and continue to b
I may not be much at trading (by choice) but I know how to make big money in the markets which is more than one can say about you. My money is working for me every day and delivering a constant stream of income : 15% cash yield on a portfolio basis every year, mostly tax deferred so it compounds tax free. That means my portfolio value as well as the cash income it generates doubles every 5 years or so. Exponential compounding (especially when tax deferred) will beat your mickey mouse trading by far. There's a reason Albert Einstein called it the 8th wonder of the world.
You think you're smart but really you are peanuts.
what is the deal with all the phantom posts repeating text from other posts but under new weird IDs?
Is it a bug in yahoo software or is it some hacking by third party (and if so, to what end)?
This has been going on for some time but seems to be increasing a lot lately.
stop whining. You could say the same about every major bank and all market specialists.
Barclays is specialist (along with other firms) for hundreds of securities.
Unless you are very short term trader, none of that matters regarding your investment in CVRR.
The reason CVRR has fallen since the IPO has nothing at all to do with Barclays. It has everything to do with refinery margins and operational factors. So if anyone is to blame for your losses, it is you and only you as you were the one who should be doing your due diligence and risk management.
You just love to whine and complain, don't you?
Hope so because I am doing tax loss harvesting on it.
I doubled up my original position in the low 12's and after 31 days I will sell that original position to harvest the tax loss and reduce my basis. I am exposed with an overweight position for those 31 days so hope the price doesn't drop further during the next month. After the 31 days and I am back to a regular position size, I don't care so much what the price does - more important for them to maintain the distribution so far as I am concerned.
I would suggest not trying to compare too much on a quarter basis as development expenses are bound to be lumpy. A better picture is probably to compare on an annual basis. There will for sure (I hope) be ongoing development expenses otherwise production would quickly decline. Yes, development capex reduces distributions short term but is essential if the trust is continue to maintain distributions longer term. You are thinking along the right lines.
Presumably the trustee is involved in that, so, yes, they do a little more than just collect royalties. However the trustee (a bank employee) is not involved in any operational matters. Operational matters are the domain of the operator compny who will make decisions based on their own interests not those of the trust.
don't know who you're talking about but I have never visited those boards, ever. I only follow high yield energy.
Not the specific downtime however all refineries have unplanned outages. Why would anyone think CRR would be immune?
You still can't do math.
I did make one mistake - the index started in 1996 not 1997 (to be precise 12/29/1995).
So it has been a little over 18 years for the index to go from 100 to 1575.
That is somewhere above 15% compounded per year. If you think it is 82% per year you need to review elementary school math.
All the data including constituents, methodology as well as daily historical prices is on the Alerian website.
If you can google the word 'Alerian' you can find it in 5 minutes, shorter time than to make all these silly posts.
Rather than say it is not possible, how about simply check the historical prices.
Every trading day's closing price since inception is included in a spreadsheet downloadable from the Alerian website.
If you can google Alerian then you can find it.
You are idiotic, equivalent to saying that it's impossible the nasdaq could have hit 5000 in 1999/2000. It is historical fact that ^AMZX started at 100 in 1997 and is at 1575 today. And yes, that equates to more than 15% per year compounded. MLPs have indeed been the very best investment class in the market over the last 15 years.
This is an index. Historical prices are publicly available. You can look them up. I've told you where to look them up but apparently you prefer to say it's impossible than spend 5 minutes actually verifying it.
Again, every single day's historical price is on the Alerian website. google Alerian, then on the website go to 'indices', then choose 'values' on the left hand side - it will ask you if you want to open or save the spreadsheet.
There are two indexes shown: AMZ is without reinvestment, AMZX includes reinvestment of distributions.
For AMZX, you can see that it started on 12/29/95 (OK, looks like I was 1 year off) with value 100. The daily values are updated as far as 2/28/14 with value 1568.60. You can get real time quote on yahoo, just plag in ticker ^AMZX and get this
ALERIAN MLP INDEX TRUST (^AMZX)
1,574.03 Up 5.43(0.35%) 5:07PM EST
Prev Close: 1,568.60
Day's Range: 1,562.10 - 1,575.53
52wk Range: N/A
"This is a game that most MLP’s pull soon after the IPO"
another ignorant comment. More than 90% of MLPs are still fixed/rising distribution ones, only a small number are variable distribution policy. Of the fixed distributions MLPs, very few ever reduce distributions. The refinery MLPs came out as variable distribution model precisely because the cash flow in this industry is so famously variable that it would not fit well within the fixed distribution model.
The drop in distributions in the variable distribution MLPs (NTI, ALDW, CRRR) was entirely predictable and I forecast it while distributions were still very high 18 months or so ago. That was a peak of the refinery cycle with historically wide margins. Should have been clear to everyone that these 3 refinery MLPs were coming to market right at the peak to take advantage of once in a generation conditions. The drops had nothing to do with MLP structure and would have been obvious to anyone who had followed refineries or the oil market for more than a few months. Guys like you hae only yourselves to blame for investing in a sector you didn't understand.