eus they dismantled the company so now their goal should be long term growth. "If" the $3.9 mm is correct as ongoing DEF base, then they can only pay $.02 to .04 quarter out of operations or maybe even a nickle then why pay anything becasue at a nickle and it traded at a 10% yield based on yield then with value added in for rgp units it could trade around a $3.00 price anyway, so why not pool the distribution and re build the assets then come back later with a healthy distribution. bbep did it a few years ago and yes it took time to regain investors confidence they came back stronger than ever
jbc my observation.
I retired from a major after 25 years (also had 5 years in minerals). Tried other areas, reits, etc. but always got surprised as I could not read between the lines for what was not being said. I concluded I would stay mainly with what I knew best; which was energy (maybe a mineral here and there), as with my experience one can read between the lines more times than not on what is "not being said" which lowers the risk somewhat. JMO. also in my energy investments I try to cover prime geographic concentrations/areas with both E&P and MLP's pipes/g&p's and I see energy as a necessity commodity for the rest of my life
thanks nosweat i found it, good analysis. it appears the issue was mostly in Permian (plus gas, etc) in second quarter and not so much postloe. they made commitment again to have Permian rectified by end of year and be at committed exit volumes. we will see if they can do it. i would suggest 3rd quarter will be closer to 1 but still under. close to 1 market may still be forgiving but if not agree will take a haircut
once speculators jump in no telling where price will land after a few weeks.
$300 mm rgp units plus levering up with $300 mm more debt will buy some, but not significant high value liquids reserves. will buy more dry gas reserves but with current futures price deck will not get equivalent near term cash flow. My questions is at the dcf unit in press release why pay any distributions? Why not sell scoop, pool their operating cash 9DCF) for a few years and use $600 mm plus pooled cash plus scoop proceeds and re build themselves before paying any more distributions?
Second Quarter 2014 continuing operations Financial Results
Reported Distributable Cash Flow from continuing operations of $3.9 million as compared to the $4.6 million for the first quarter of 2014; however final chart shows $9.8 mm adjusted whatever that means.
$3.9 mm divided by 156,650,000 (unit outstanding) = $.02
$3.9 mm divided by 102,780,000 (unit floating) = $.04
$9.8 mm divided by 156,650,000 (unit outstanding) = $.06
$9.8 mm divided by 102,780,000 (unit floating) = $.10
ny as always thanks for taking the time to share. I have no strong conviction to share as I currently see most all of the infrastructure mlps as too rich to start a new or increased position except maybe etp/ete/rgp group (my question on mmlp and I did restart a position in rgp and added a little to etp). I do think ARP (E&P MLP) yield is priced too high in the 11% range and could possibly see a 15-20% price gain in price in next 12 months if they meet their started targets in production/distribution growth, energy prices stay reasonably consistent, etc. and no world calamity
chrx per your post on RRC results
"This resulted in liquids-rich production being shut in which negatively impacted condensate and NGL production. The second issue was extensive operational down time on Sunoco's Mariner West line which negatively impacted ethane netbacks."
sin, do you really believe they can pay .60 distribution for next 2-3 years and and concurrently fund reserves growth using debt and equity?
Cox v. Sunoco Pipeline
By Eminent Domain PA on July 24, 2014 in Pipeline Construction
sun_update: The Washington County Judge has provided an additional stay, or delay, in the consolidation cases to allow for the parties to resolve the cases. The involved four cases with property owner representation by Attorney Mike Faherty have progressed to written resolutions. The property owners agreed to modified and restricted easement language with large financial settlements. Cox v. Sunoco is expected to be fully resolved, without a decision on eminent domain power, by September of 2014
going to continue to target 1.1 to 1.2 distribution coverage ratio going forward with qre merger and volatility of .86 vs 1.4 several quarters ago is not unexpected
gp class b units will convert at closing. class b gp units will convert at a 44% discount to the 12 mm units (convert at approx 6.72 mm units my calculation) and was included in 72 mm units. this was around 44 ot 46 minutes into 2nd quarter cc and in joint press release. class c preferred will settled in cash for $350 mm.
-there is approx $80 mm break fee
-goal is to maintain a 4 to 5% annual distribution growth over and above the 2.08 target
also I forgot to point out a Florida oil lifting slipped into 3rd quarter, this has happened before and allows them to transport a full load which reduces incremental costs
not good. in 1st half 2014 I found this interesting
"...first quarter of 2014 (ebitda). The decrease was primarily due to higher commodity derivative settlement payments..." also looks like as you noted Permian issue of production in 1st half.
still have net realized oil prices problems projected for second half due to transportation constraints from Permian to gc whihc will not be materially relieved until mid 2015 but will have some partial relief in last half of 2014. Could not see the postle issue except for higher purchased co2 costs they already mentioned
excludes UMTP project and any new projects. remaining current projects at this time in 2015 will be keystone 200 mm cyro and mobley 10,000 de eth (both last half 2015) and majorsville 200 mm cyro (2016)
March 2014, QRE announced the
acquisition of its General Partner (“GP”)
- The GP has the right to earn 11.6MM Class
B units in exchange for economic interest
and Management Incentive Fee (“MIF”)
- The consideration is conditional on QRE
meeting the following conditions:
• Cash distribution greater than $0.4744/unit per quarter
• Distribution coverage at or above 1.0x annually
• Leverage ratio under 4.0x quarterly
- Assuming performance conditions are met,
one quarter of the units will be issued
- The transaction is expected to result in
immediate accretion to QRE’s distributable
cash flow per unit of approximately 7% in
(1) Assuming (a) 2013 distributable cash flow and MIF held constant during
2014 and (b) QR Energy had paid sufficient cash distributions and earned
sufficient operating surplus to pay the full amount of the MIF in 2014.