Hard to get excited about huge percentage gains when share sunder a buck. Example: Say a stock is at $10 and you lose 95%. You have a 50 cent share price. Then you get an amazing 100% gain. Sure your shares are at a buck, but the 100% gain did not exactly reverse the 95% loss.
MLPs pay distributions out of distributable cash flow. The distributions are required, and governed by the terms of the ocntract between general partner and limited partners (investors). I don't know what the actual tems are or if they were changed in the new reorg - I really don't think so as we just got CEQP shares and there was already a contract between CEQP general partner and invesors. MLPs pay their investors through quarterly required distributions, the amount of which is stated in the contract between the limited partners (the investors) and the general partner (the managers). Typically, the higher the quarterly distributions paid to limited partners, the higher the management fee paid to the general partner. This provides the general partner with an incentive to maximize distributions through pursuing income-accretive acquisitions and organic growth projects. Failure to pay the quarterly required distributions may constitute an event of default.
They do not pay a dividend. The distribute some of their income to the limited partners (on a K1 form) as required by the MLP rules that allow them to NOT pay any taxes.
They can't "leave aside the distribution". They get to be an MLP and pay no corporate taxes because they are REQUIRED to pay most of their cash flow to the partners (ie unit holders). They can reinvest some to maintain and even slightly grow, but they cannot re-invest it all. And they have to borrow to grow enough to keep increasing the dividend. That is how it works. If they were organized like a corporation they could use all the cash flow to pay down debt and grow profits. Then they would have to pay taxes. And they would pay dividends and not distributions on a K1 form.
Includign all the newly vested options, what percent of the company will Keith own?
If there is major upgrade on a big down day. It is often protective and the stock does not participate in the big from. However if the upgrade occurs days to a week before the big down day, it generally has no protective effect. Go figure.
Borrowing base is not the problem. Problem is whether cash flow at urrent prices will cover the moly mine costs including operatin the water treatment plant. With most small oil companies it is debt service that is the worry. While USEG has little debt, they have obligation to provide for the Moly mine operating expenses. .
Algerian dropping CMLP from index on Sept 18. But they don't bother to include on the press release that CMLP is going away on Sept 30, so of course it won't be in their holdings and it won't be in any index. Duh. Price action truly terrible.
So far this reorg plan does not seem to be adding to shareholder value. And it is their fiduciary responsibility to maximize shareholder value. Do they have to take another look at it?
Crude oil take away capacity depends on rail deliveries to coastal refineries to remain adequate.