you obliviously do not know a lot about the mwe assets. as oil / ngl prices recover, which they are on a slow reversion to the mean as the driver variables improve, watch the cash flow curve of new combined entity
do you have any passive losses to offset cash gain. look at moneyonomics posts on mlp iv board, even in 25% tax bracket npv of escalating distributions is worth more than mwe standalone npv
in mlp board Msg 58745 of 58758 at 12/1/2015 9:22:07 AM by
Ladenberg Thalman covers MPLX
initiates coverage on MPLX with a BUY and price target of $79.00.
just have to let vote fail naturally ie not be in any other merger agreement. if not the case why would MPC raise cash $400 mm
"...The Merger Agreement provides that MWE is required to pay a termination fee to MPLX of $625 million:
if (i) an alternative proposal was publicly proposed or publicly disclosed prior to, and not withdrawn at the time of, the date of the MWE special meeting called for the purpose of approving the Merger Agreement (or, if the MWE special meeting did not occur, prior to the date on which the Merger Agreement was terminated as a result of the failure to consummate the Merger prior to the Outside Date), (ii) the Merger Agreement is terminated by MWE or MPLX (A) as a result of the failure to consummate the Merger prior to the Outside Date or (B) because the Merger Agreement was not approved at the MWE special meeting called for such purpose and (iii) MWE enters into a definitive agreement with respect to, or consummates, any alternative proposal during the 12-month period following the date on which the Merger Agreement is terminated (whether or not such alternative
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proposal is the same alternative proposal referred to in clause (i)); provided, that for purposes of the payment of the termination fee described above, the term “alternative proposal” has the meaning provided under “The Merger Agreement—MWE Unitholder Approval,” except that the references to “25%” will be deemed to be references to “50%”; ...if MWE terminates the Merger Agreement:
because the Merger Agreement was not approved by MWE Common Unitholders at a special meeting of MWE unitholders called for such purpose in a case where an adverse recommendation change has occurred.
why would mwe do that and pay penalty. all they had to do was let vote fail and they would walk away with no penalty. do not not think that is what happened. table was set by fox to say votes were not there, would be my speculation
sure entices those not yet voting to vote yes on merger ie get 1.09 more units plus as of today $3.27 cash and maybe as low as around $3.20 cash at closing. see sardi view on MLP iv board
jrad would that not be an oxymoron to sell one of your best performing assets ociw to support you poor performing assets. coal is years away from recovery especially metallurgical and oil and gas on a lwo upward trajectory similar to post 1985 but sill another 12-18 months away to be healthy and of course vanta core has ties to O&G
more, press release and info at conference was clear funding and assets going to DCP and had no immediate intention to drop down to DPM"
Spectra Energy has agreed to contribute its ownership interest in both the Sand Hills and Southern Hills NGL pipelines. Phillips 66 has agreed to contribute $1.5 billion in cash, which is expected to be used to pay down a portion of the DCP Midstream revolving credit facility. .....
The proposed transaction complements efforts at DCP Midstream to reduce operating costs, sell certain non-core assets, and convert certain contracts from commodity price sensitive to fee-based.
"DCP Midstream is a valuable portion of our NGL value chain and part of our plans to grow," said Greg Garland, chairman and CEO of Phillips 66. "This infusion of cash and operating assets by the joint venture owners will enhance the credit profile of DCP Midstream, provide stability to the existing business and allow pursuit of growth opportunities."
"The contribution of the one-third interests in Sand Hills and Southern Hills will diversify DCP Midstream by enhancing the balance of fee-based assets while building on the re-contracting work already underway," said Greg Ebel, chairman and CEO of Spectra Energy. "In addition, the infusion of cash to pay down debt will result in DCP Midstream bank credit metrics that will be much stronger, allowing DCP to continue providing excellent service to customers and retain its number one position in gas processing and NGL production. This deal also retains the upside for owners as commodities improve..."
arbtrdr makes a good guesstimate on when solar and wind will play an important and significant role in every day life, but I think even further out than his grandchildrens generation for significant.
Why: will need major storage technology break throughs, most northern climates are not conducive to perpetual solar and wind serving, the more electrical we use for cars, etc. the more power plants we need, my bet is we are in for a major cold cycle in the weather in the next 20 years, etc
hopefully the collaboration - potential does prove to be something special
eom eom eom
IV MLP and Bry message boards
Msg 54674 of 54675 at 9/3/2015 7:29:41 PM by
Refiners are a very volitional business and are extremely sensitive to margins between Brent and WTI and WTS and WTI, etc . They have had a run of a couple of good margin years. I am counting on MWE-MPLX being able to distinguish themselves from the MPC refinery business asap and secure their own investment grade credit rating before the WTI-Brent margin shrinks away.
to look forward to if oil spread between brent and wti narrows, etc