is it raw materials company inc? or another name?
What's behind call sale in Markwest
By Chris McKhann 4 hours ago
A large trade sees limited upside for Markwest Energy Partners.
optionMONSTER systems detected the sale of 9,438 November 80 calls for the bid price of $1.60. Open interest in the strike was 2,993, before the trade appeared, showing that this is a new position.
Minutes later, 14,136 September 77.50 calls were bought for $1.13 in volume below open interest of 19,827 at that strike, so the trader is buying back those short calls--which expire at the end of today's session--and is rolling the position to a strike that is $2.50 higher in November.
These contracts could have been tied to a long-stock position in a covered-call strategy . In this case, the investor wants to keep collecting the premium from selling the options while holding onto that stock. (See our Education section)
bob now if you are trying to say there are intrinsic measures used on a transaction that may be true to a small extent but not to a large extent. The deals are driven by the numbers and the companies strategic goals which are based on numbers. If a company chooses to exist an are it is always about the value to them like in the Linn Exon deal. How do I know I actually led and executed deals for one of the three majors.
Also rather than argue with you on the validity of the SEC data; which is not rotten apples but is a snap shot in time and is derived directly from all of the reserves numbers of an E&P company. I can point you to the article mentioned. The published article is copyrighted but you can get a flavor for it and if you are truly interested in being informed I you can get you a copy of the article or any one else that would like it for educational purposes only. The article was published in the Oil and Gas Investor and is titled "A New Yardstick for Measuring Value Creation".
You will also see a lot references to the article in the far east doctoral theses and in Canada and the US
salty great news, thanks for sharing
bob you are wrong my friend, if I can call you friend. the SEC 10 SM is very useful. You can take it and approximate a value of a deal by extrapolating the companies actual cost of capital and applying it proportionally based on r/p ratios to the SEC 10 SM to isolate the investment metrics . It will not be exact but it will be very close.
Also the SEC 10 SM can be used to cross compare E&P investment options (companies) and you can calculate the value created and a proxy/surrogate IRR for each company from SEC 10 and other 10 K data to assist in making investment decisions. There is a published article on this applciation and reference in numerous thesis.
bud thinking it through, if you were the buyer why would you contract/take off for a product that can not yet be produced and if you did contract you would propose a one side deal favorable to you? I think you can guess this is what is going on as they earlier indicated they would have a contract by now and they apparently don't. It is all part of the contract negotiations. By making a clear statement with clear evidence it supports your contract negotiations and yes they may even have sell into the open market so to speak before they get a firm contract, but the plant being in production better levels the negotiation field.
Launched ATM program offering common units for aggregate proceeds of up to $200 million in March 2014
Amended credit facility in April 2014, eliminating the maximum total leverage ratio and maximum senior secured leverage ratio requirements and adding a provision to maintain an interest coverage ratio of no less than 2.5x
Received commitment in July to increase borrowing base of credit facility from $1.6 billion to $2.5 billion in connection with QR Energy acquisition
•Large inventory of low risk development opportunities balanced with high return upside potential (e.g., Permian Basin)
•Enhanced ability to high-grade capital projects
•Stronger financial position and wherewithal to effect acquisitions and growth projects
•Immediately accretive to NAV and DCF per unit
Total Proved Reserves (Mmboe) 323.4
Proved Reserve Life 15.5
Average Daily Production (Mboe/d) 51.9
Reserves 66% liquids
Current 3.28 bcf/d
2014 4.08 bcf/d
2015+ 6.08 b cf/d
65% of Current & 66% Announced Processing Capacity (source bentek)
266 MBls/d growing to 446 MBls/d
slides 8 and 15
Hectatone Update-Nov 2014 in service projected
RENO, NEVADA -- (Marketwired) -- 09/08/14 -- Western Lithium USA Corporation ("Western Lithium", the "Company") (TSX: WLC)(OTCQX: WLCDF
The Company is also commissioning its Hectatone" organoclay plant, located in Fernley, Nevada that is expected to begin imminent production of specialty drilling fluid additives. Mechanical commissioning of the plant is underway and first production is expected by November 2014, based on current startup progress.
2nd qtr cc
During the quarter ended March 31, 2014 Western Lithium made a production decision for its planned organoclay business. The Company has received an environmental approval to extract hectorite clay from its Kings Valley Clay Project. The Company may consider the purchase of other clays including bentonite to make other competitive products. Currently, the Company is completing the construction of a nominal 10,000 ton per year organoclay facility at an industrial site in the City of Fernley. Mechanical commissioning has commenced, with planned production and sales starting in the fall of 2014. Western Lithium has determined that hectorite clay is an important mineral for the oil and gas sector to provide thermally stable gelling and lubricating mud when drilling in high pressure and high temperature (“HPHT“) environments. Globally, the successful implementation of directional drilling technology has commercialized new ultra deep oil reserves and certain shale gas resources in HPHT environments that are emerging as major new energy sources for nations such as the USA. Western Lithium believes that its hectorite clay business will become a niche and critical business to support major new oil and gas discoveries made using HPHT drilling technology.
second try to post
Regional news media gets it
"...Greg Mosier said the major factors for picking Reno come down to business fundamentals.
Mosier is dean of the University of Nevada, Reno's College of Business.
"While incentives are certainly required to be on the short list, factors like proximity to the Tesla northern California assembly facility, proximity to lithium deposits in Nevada, transportation infrastructure and ability to fill work force needs are the most important."
Tim Crowley, outgoing president of the Nevada Mining Association, thinks the proximity to Western Lithium's minute north of Winnemucca had to be a big part of the decision.
"They (Tesla Motors) have to have the mineral," he said. "They can either get it in Nevada or South America. We're ecstatic they're going to get it in Nevada. It showcases the essential need for minerals mined in the state."
Ray Bacon, head of the Nevada Manufacturers Association, pointed to many reasons that haven't received much discussion.
He said that if Tesla had chosen Texas or New Mexico, batteries shipped by rail to its Bay Area car factory would have to change rail lines when turning north.
The Tahoe Reno Industrial Center, where Tesla will locate, also has a looping utility system.
"The looping of all utilities may not seem like a big deal, but automated machinery can be down for hours with a utility failure," Bacon said. "Looping the service stops that issue, and TRIC is one of the few place in the world to have taken that approach. It is a big deal for a 24-7 plant operation and I expect they (Tesla) will become one of those...."
Mark Robison, RGJ 6 a.m. PDT September 5, 2014
Why Nevada for Tesla? Location, low taxes, lithium
Plant can also process simple bentonite used in most drilling
"Phase 1 construction of Western Lithium’s Hectatone™ processing plant... plant will be able to process
other clays such as bentonite for organoclay manufacturing"
Goes along with prior post on NPV of assets at 10% dicount.
They will pay/issue $1.495 b with equity and another approx $915 mm for debt so total out is ~$2.415 b
-NPV is proved reserves @10% is $2.05 b plus say $110 mm is rough value of hedges not in reserves so value of proved properties in total say is $2.155 b
So they are paying $255 mm for upside (probable reserves, discount rate value below 10%, other) or 12% or of the deal.
so bob in your mind is that a good deal?
Anthony (salty two)
January 28, 2014 at 6:46 pm
Nevada! Business friendly, lots of open land, close by truck and rail to Tesla’s Fremont HQ to transport the finished batteries, very efficient if you were to build a lot of solar power to run the factory, and Lithium is actively mined in Nevada (we may have as much as 30M metric tonnes of lithium carbonate, which would be enough for more than 100 million Tesla Model S 85kWh batteries).
Disclaimer: I’ve invested some money in a Nevada-based Lithium mining company. I’m hopeful Musk builds the gigafactory on the west coast and uses domestic supplies of Lithium and other elements needed to create the batteries… and that the company’s stock goes up!
January 28, 2014 at 7:00 pm
Electric cars use around 1kg of lithium carbonate per kwh, so if your figure of 30 million tons is correct that should do for around 300 million Tesla’s, rounding them up to 100kwh each.
That is a higher figure than anything I have seen though;
At the McDermitt Caldera on the Oregon/Nevada border, Western Uranium Corporation are re-examining seven lenses of hectorite clay originally drilled by Chevron Resources.
Drilling at the most southerly site, the PCD lens, is confirming the tonnage and grade indicated by Chevron. This lens has a length of about 2 kms, a width of approximately one kilometer and a thickness of 100 metres under shallow overburden. Higher grade portions of the deposit grade over 0.35% Li and the cut off used in the reserve calculation is 0.275% Li.
Chevron reported that the total resource contained 23.9 billion lbs of carbonate – 2 million tonnes of Li and test work on recovery methods is currently being undertaken.
Hectorites are known to occur elsewhere in the western United States but no reserve data exist.’
2 million tons of lithium is about 10 million tons of lithium carbonate, so that would power 100 million or so Teslas...
Tesla factor: Recharging Nevada's lithium industry
Jason Hidalgo, RGJ 1:06 p.m. PDT April 7, 2014Tough race
"...Add Tesla's "vertical integration" approach to business — which emphasizes a more consolidated supply chain and sourcing as many components as possible domestically — and the prospects of local lithium production are looking up, according to CEO Walsh of Lithium Exploration Group....Walsh said in a statement. "I believe that Tesla will begin to acquire as much lithium supply as it can get its hands on in North America to further the vertical integration of … electrical vehicle production and insulate it from price volatility."
"...Anderson of TRU Group is a lot more skeptical about domestic lithium prospects....Only Western Lithium appears to be a viable project in Nevada at this point, Anderson said. At the same time, Anderson also described Western Lithium's plan to extract lithium from hectorite clay as opposed to the traditional brine ponds seen in Silver Peak and Chile as a long shot, at least from a cost-competitive standpoint.
Outside of Silver Peak, there are no other brine or salt lake opportunities in Nevada for lithium, he added."
Common Units representing limited partner interests filed on S-$ Registration statement
72,001,686 (1) nits equaling $1,494,934,911.45 (2)
(1) Represents the maximum number of Breitburn Energy Partners LP (“Breitburn”) common units estimated to be issuable upon the completion of the merger described herein.
(2) The proposed maximum aggregate offering price of the Breitburn common units was calculated based upon the market value of QR Energy, LP (“QRE”) common units (the securities to be cancelled in the merger) in accordance with Rules 457(c) and 457(f) under the Securities Act as follows: the product of (i) $20.43, the average of the high and low prices per QRE common unit as reported on the New York Stock Exchange on August 18, 2014 and (ii) 73,173,515, the estimated maximum number of QRE common units and QRE Class B units that may be exchanged for the merger consideration, including units reserved for issuance (on a net exercise basis, as applicable) under outstanding QRE equity awards.
Note: current ~120.5 mm outstanding bbep units
Bryan of Western Lithium confirmed that there were about 10 companies looking at lithium in Nevada just a few years ago. That number is way down since then, he said.
"I guess they didn't find the lithium," Bryan said....
..."Battery manufacturers still like to be close to the source," Bryan said. "The lithium battery is still one of the heavier components of an electric vehicle, so if you build it closer to the source, it's more economical because you can keep costs down."
Increased lithium demand from the Gigafactory — regardless of where it ends up — could also benefit Nevada. Still, Tesla's 2017 target means it will have to procure materials from international sources. Nevada does not have the critical mass in lithium production necessary to supply all of Tesla's needs or attract other industries, for that matter.
"The majority of lithium is still coming from overseas," Hill said. "Having lithium in the state provides benefit, but, in and of itself, not enough to cause companies to choose Nevada."
Despite his skepticism about a robust lithium industry in the United States, Anderson understands the attraction. Besides lithium, electric car batteries also need other base materials such as cobalt oxide and graphite. One of the leading suppliers of cobalt oxide is Russia, which Anderson identified as a risky nondomestic source for materials.
"One thing Tesla has to be sure about is the quality and reliability of its materials, and there's no place better than America for reliability," Anderson said. "I think China and Russia can be labeled fairly as unreliable trading partners. Perhaps one of the good things that can come out of this is that it will spur American producers into action."...
Tesla factor: Recharging Nevada's lithium industry
Jason Hidalgo, RGJ 1:06 p.m. PDT April 7, 2014Tough race
Not everyone, however, is hopping aboard the domestic lithium bus.
After seeing his fair share of lithium companies make claims about supplies in Nevada and either misleading investors or folding outright, Anderson of TRU Group is a lot more skeptical about domestic lithium prospects.
Anderson points to American Lithium as an example of a high-flying lithium company that made grand claims about a project in Nevada and then fizzled out.
"That company claimed to be the savior of American lithium supply — almost the same way that Tesla is being called the savior of the battery industry in America," Anderson said. "Now you can't even contact them anymore. I honestly don't even know what happened to them. They just vanished."
Only Western Lithium appears to be a viable project in Nevada at this point, Anderson said. At the same time, Anderson also described Western Lithium's plan to extract lithium from hectorite clay as opposed to the traditional brine ponds seen in Silver Peak and Chile as a long shot, at least from a cost-competitive standpoint.
Outside of Silver Peak, there are no other brine or salt lake opportunities in Nevada for lithium, he added.
Even Silver Peak is likely at the tail end of its days as a productive site, according to Anderson. With lithium production in the site starting in the 1960s, Silver Peak is basically running out of the material, he said.
"It was a good operation, but lithium concentrations have declined," Anderson said. "I'm actually surprised that Rockwood expanded operations because that site will be likely gone in 10 years. Silver Peak is even processing lithium brought in from Rockwood's South American operations these days...."
Tesla factor: Recharging Nevada's lithium industry
Jason Hidalgo, RGJ 1:06 p.m. PDT April 7, 2014
"...With the advent of smartphones and other portable devices, lithium saw its value skyrocket tenfold fr
om 2000 to 2010 before stabilizing to $6,000 per ton in recent years, according to U.S.-based development company Lithium Exploration Group...".