No, ATLS the spinco is still going to have a separate existence. APL is merging into NGLS and the APL-related part of ATLS is merging into TRGP.
David, not sure why you think this is self-induced, other than the untimely deals (in retrospect). Look at BBEP who bought QRE. Almost no e&p firm saw this coming.
Bosox, that is not going to solve the problem because the problem is not the yield or the growth in the distribution. The problem is the market equating the decline in oil with a decline in nat gas and thinking the decline in oil is permanent. Besides, why should ARP or ATLS give up a GP interest that is probably discounted from its real value. A p/e firm will be able to buy many bargain basement properties in the near future without having to split the proceeds with ARP and they don't need ARP's high cost debt or the Cohen's big contracts either.
Vin, in my experience, the exec management team is keenly aware of the issues with the stock price (many IR staffs read the Yahoo message boards). They know that retail investors are clamoring for signs of confidence in the stock. In many cases, they have flexibility in the award of year-end bonuses so that the individual only gets his bonus amount if he agrees to reinvest it in stock (as opposed to an outright award of stock, which many believe is not as strong a sign as if it appears that they are investing their own money).
In fact, insider buys before good news is released, like maintaining a dividend at a rate expected by the market, could be seen as trading on insider info.
Except you are not going to get a $1 annual distribution forever. It is going to decline over time and also come out of the trust corpus. This isn't like a bond where you collect interest and then the full principal at maturity.
Sorry, threeeputt, but in these types of market downdrafts, insider buying doesn't mean as much as you think. The insiders can't stop the negative market sentiment on all the energy names. Just ask shareholders of SDRL and a BDC, PSEC. Many posters on those boards were using recent large insider purchases in those names as a basis to keep buying. SDRL eliminated their divy and PSEC just cut theirs. While the fundamentals on HCLP may be strong currently, the market doesn't care. It doesn't care about yield or p/e ratios if you are in the energy sector. This stock isn't even technically oversold with RSI level only at 32. Even big oversold RSI levels (under 20) don't guarantee that the stock will bounce back for more than a couple of trading days.
I heard a rumor of this and now EQT has filed a registration statement to bring the general partner of EQM public. Just buy it when it comes public. Not sure of the symbol or the expected timing yet.
We had this discussion about whether the Fed can actually raise the Fed funds rate.You have to understand that the Fed doesn't just set the Fed funds rate and it magically goes to that number. The Fed sets a target rate, but the banks determine the actual rate by trading between themselves based on demand and supply for funds. The banks have excess reserves so one would think they don't have a demand for more funds. The Fed would have to soak up those excess reserves first, by selling their inventory of bonds to the banks which they said they aren't going to do.
I think it gets back to lending and whether there is increased demand so that the banks lend out their excess reserves. For lending to increase, there needs to be increased demand from borrowers or diminishing criteria for loans.
A case can be made that the transmission mechanism for monetary policy is broken. Low rates created asset inflation but not increased loan demand that would create a return to normalized rates unless we go back down the path of expanding loan criteria to more risky borrowers which we may already have with subprime auto loans and student loans.
Skyrocketing interest rates? 2.31% is hardly skyrocketing. We haven't even broken the downtrend. But you are right that it is always something to keep an eye on but is probably just an overreaction to the jobs report.
Sorry cajunlady, but you must have stopped reading at page 11 and not bothered to read page 13 that contained the forward looking statements that are included in every disclosure statement, presentation and press release for every publicly traded company. Further, every investor should know that a dividend must be declared by the board. "Sustainable" does not mean "has been declared by the board." Words have meaning and don't mean what you want them to mean. These lessons are hard to learn, but now you know.
Cashflow, I have been noting your mention of the XOP on several other boards where posters are looking to bottom fish. It looks to me like XOP could fall to the $42 range before it finds support from a couple of years ago. That's another 6 points or almost 15%. I wouldn't look to nibble at any e&p until then. Support can be broken, but right now it is the only thing we can look to
Gambler, I have mentioned the following on so many boards that I have forgotten if I mentioned it here: One poster has been tracking the e&p ETF, XOP and compared to many of the e&p's. It looks like XOP could fall 6 more points or about 15% before it hits support. So I ain't buying any e&p or driller until they drop another 15%. As for MLPs, the better ones mentioned by Keebon have been holding up. I continue to like WGP, ETE, MMP, EPD, PAGP WMB and TRGP. Also Antero (AM) just got its first recommendations with a target of $36. Pioneer (PXD) is the big dog in the Permian and may be in a position to pick up some of the weaker hands. I need to keep an eye on that one.
Don't let trading mistakes (like AWLCF) become long term (losing) holdings.
Looks like we had a typical two-day bounce and now it's going down again, as is NADL, SDRL and AWLCF. A poster on another board has been comparing the decline in e&p's and the ETF for the sector, XOP. Looks like XOP could drop another 10-15% before it hits support.
In an effort to get away from the usual discussion about the energy sector, I recently read a newsletter that discussed Japanese currency rates and their stock market. Many know that the yen has been going down bigtime. I think Abe has an election in the next couple of weeks, but if he survives, look for the yen to continue to depreciate. A colunmist on zero hedge had a piece that suggested the yen is sitting right on a key support level that is likely to give way. The newsletter did an in depth piece that mentioned that two big Japanese pension funds are starting to sell Japanese bonds and will replace them with Japanese stocks. The newsletter compared this deleveraging to the action in US stocks after WW2. There are several Japanese ETFs from WisdomTree to play this. Most of them pay their annual dividend within the next two weeks, so that might be a good time to buy. There is also an inverse currency ETF to play the continued drop in the yen.
Why is it irrational? If you have been reading any of the cashflow analysis that Dan Moore does on Seeking Alpha, he has shown that this isn't worth much more than $6 and that it produces a total return of low single digits at best, and that was before the huge decline in oil. CHK has been reporting values their subordinated interests at $6 in their SEC filings, so why should this trade higher than what CHK values it at. The only reason the stock price held up for this long is because yield pigs got suckered into the supposed high yield.
News story yesterday that Bakken crude was under $50. I mentioned this on a few boards that another poster was pointing to the XOP ETF. If you look at the chart for XOP, it could drop another 10% before it hits support. I wouldn't be dipping my toe into any e&p MLPs or any of the drillers until XOP finds support that holds. While many consider technical analysis to be backward looking, it is interesting to note that the XOP carved out a head and shoulders pattern in the summer, then broke a 3 yr uptrend and fell all the way to its current level. There was no clearly marked support level. Wish I was paying more attention to XOP. Sometimes people will buy a stock and hedge by shorting the index so that they can collect the dividend on the stock without price risk. This might have been a good strategy.