PHILADELPHIA, Feb. 27, 2015 /PRNewswire/ -- Atlas Energy, L.P. (NYSE: ATLS) ("Atlas Energy" or "ATLS") and its midstream oil and gas subsidiary, Atlas Pipeline Partners, L.P. (NYSE: APL) ("Atlas Pipeline" or "APL"), have announced the completion of the merger transactions of Atlas Energy with a subsidiary of Targa Resources Corp. (NYSE: TRGP) ("TRC") ("ATLS Merger") and Atlas Pipeline with a subsidiary of Targa Resources Partners LP ("TRP") ("APL Merger"). The consummation of the mergers follows the approval of the merger by ATLS and APL unitholders as well as TRC stockholders at special meetings which occurred on Friday, February 20, 2015.
(Bloomberg) -- The judge who seized Eike Batista’s luxury cars has used a Porsche Cayenne Turbo S that belonged to the former billionaire, Batista’s lawyer said.
Judge Flavio Roberto de Souza, who oversees a case against Batista for alleged insider trading, parked the $157,000 SUV at a garage at the building where he lives in Rio de Janeiro, Sergio Bermudes said. The lawyer provided pictures showing the white Cayenne license plate DBB-0002, registered to Batista, 58, exiting Souza’s building. The driver isn’t identifiable.
“He cannot do that,” Bermudes said in a telephone interview. “This is enough to remove him from the magistrate. We expect him to be suspended and all his acts declared null.”
A federal judicial oversight body started an investigation of the matter on Tuesday, according to an e-mailed statement from Rio’s federal court.
Judge Souza told Agencia Estado newswire that he took the car to his building’s garage due to a lack of parking space at the police and court facilities. He didn’t reply to two e-mails and several calls to his mobile phone seeking comment on the allegation. An assistant at the Rio court said Souza was busy in meetings.
From PR Newswire press release:
PHILADELPHIA, Feb. 20, 2015 /PRNewswire/ -- Atlas Energy, L.P. (NYSE: ATLS) ("Atlas Energy" or "ATLS") and its midstream oil and gas subsidiary, Atlas Pipeline Partners, L.P. (NYSE: APL) ("Atlas Pipeline" or "APL"), have announced that ATLS and APL unitholders, at respective special unitholder meetings, approved the pending merger transactions of Atlas Energy with a subsidiary of Targa Resources Corp. (NYSE: TRGP) ("TRC") ("ATLS Merger") and Atlas Pipeline with a subsidiary of Targa Resources Partners LP ("TRP") ("APL Merger").
Approximately 99.28% of the votes cast at ATLS' special meeting of unitholders voted in favor of the merger with TRC, and approximately 52.83% of the units were cast of the total outstanding ATLS common units as of the record date of January 22, 2015.
Atlas Pipeline also held a special meeting of its unitholders, from which approximately 98.21% of the votes cast were in favor of the merger between APL and TRP, and approximately 54.84% units were cast of the total outstanding APL common units as of the record date of January 22, 2015.
TRC also held a special meeting of its shareholders today, from which approximately 91.50% of those TRC shares that were voted approved the merger transaction between Atlas Energy and TRC, and approximately 76.15% of the outstanding TRC shares as of the record date of January 22, 2015 were voted.
See release for full details
Some observations regarding options, please poke holes in my math and what am I missing?:
Current New Atlas/Spinco valuation implied by pricing of ATLS and TRGP: ~$5.00
Current rough value of an ATLS April $27 CALL (averaging bid/asl): $5.00
Theoretical value of ATLS April $27 call ($31.47 ATLS price -$27 call price)= $4.47
Time value of option: $0.53
Value of New Atls/Spinco not reflected in option valuation ($5.00-$.53)=$4.47
In other words, assuming deal goes through, the newly constituted option would be worth almost double what its current price is because of the valuation of NewAtlas embedded in the option but not reflected in price.
According to document from Options Clearing Corp issued Feb 12, 2015:
- look document up for specifics/verify accuracy, search for OCC ATLS anticipated adjustment
Contract adjustment to be effective the opening of the business day after the merger is consummated, anticipated March 2.
Options symbol ATLS changes to TRGP1
New deliverable per contract:
1) 18 TRGP shares
2) Cash in lieu of 0.09 fractional TRGP shares
3) 50 (New) Atlas Energy Group, LLC (ATLS) common units
4) $912.00 cash
CUSIP: TRGP: 87612G101, (New) ATLS: 04929Q102
Until cash in lieu amount is determined the underlying price for TRGP1 will be determined as follows:
TRGP1 = 0.1809 (TRGP) + 0.50 ((New) ATLS) + 9.12
OPINION, IT WOULD SEEM TO ME THAT VERY LITTLE IF ANY OF SPINCO/NEW ATLS IS REFLECTED IN CURRENT PRICES OF MARCH OR APRIL OR LATER CALLS FOR ATLS. Anyone else seeing this?
My understanding from various reading sources is that a lot of the drop in rig counts so far has been for vertical well rigs and horizontal rig count has not dropped as fast. Also two other factors to consider:
1) There are a heck of a lot of wells that are completed and have not been turned into production yet, both oil and gas. Further many companies are waiting to complete wells, leaving them drilled but not completed.
2) The industry is undergoing massive productivity improvements through much longer laterals on horizontal wells, many more frac stages in those laterals and massive increase in propellant use as well as on the horizon newer propellants like the one from Fairmount Santrol. See the various sand producers for more on both of these.
Alll of this means that even though capex budgets are being slashed and rig counts dropping it doesn't necessarily mean that outright production decreases are on the immediate horizon. Longer term it also means that production is poised to respond to any price increases which will act as a lid on how high at least WTI can go. The new paradigm is that a major source of oil and gas - shale fracking - is much more price elastic than any previous source.
For the ATLS merger with TRGP of the midstream assets, the final Atlas filing on 2-5-2014 says "Estimated Initial Cash Available for Distribution” ...that upon completion of the distribution, New Atlas’s initial quarterly distribution will, subject to proration as described below, be equal to $0.55 per common unit, or $2.20 per common unit on an annualized basis."
So all these assertions that the filings do no contain the distribution are incorrect. Adjusted for the reverse split the $2,20 is the same distribution level mentioned in previous filings for "New Atlas" or SpinCo as it is called by some.
The repo man took his ex-wife's rides today.
"Federal police in Rio de Janeiro said in an e-mailed statement that they confiscated the BMW and two Toyota trucks at former model Luma de Oliveira’s residence today. " - Bloomberg
Sentiment: Strong Sell
I don't get all this anger. According to the 2/9 filing the expected spinco distribution is the same as prior filing only now $2.20 to account for reverse split. The filing is as clear as can be that although not cast in stone the company believes it can make that level of distribution through the end of 2015 (implying through the end of their hedging of majority of production). How much more clarity do you want?
"This forecast was not prepared with a view toward complying with the published guidelines of the SEC or guidelines established by the American Institute of Certified Public Accountants with respect to prospective financial information, but, in the view of our management, was prepared on a reasonable basis, reflects the best currently available estimates and judgments, and presents, to the best of management’s knowledge and belief, the assumptions on which we base our belief that we can generate sufficient distributable cash flow on an annual basis to pay the full initial quarterly distributions on our common units for the year ending December 31, 2015. We did not use quarterly estimates in concluding that there would be sufficient distributable cash flow to pay the initial quarterly distributions on our common units for the year ending December 31, 2015"
Regarding the more general gripe about the company exactly which E&P company or any type of energy company predicted a 50% cut in the price of oil in six months or a continued giant oversupply of gas? I'm sorry I didn't hear you, wasn't the answer NO ONE?
I know I made a ton of money on the Chevron Atlas sale on the spinout stub using options. I hope to make a modest amount here too.
PHILADELPHIA, Jan. 22, 2015 /PRNewswire/ -- Atlas Energy, L.P. (NYSE: ATLS) ("Atlas Energy" or "ATLS") and Atlas Pipeline Partners, L.P. (NYSE: APL) ("Atlas Pipeline" or "APL") announced today that the final Form S-4 Registration Statements related to the proposed mergers with Targa Resources Corp. (NYSE: TRGP) ("TRC") and Targa Resources Partners LP (NYSE: NGLS) ("TRP") have been declared effective by the U.S. Securities and Exchange Commission ("SEC"). The companies have filed the definitive proxy statements with the SEC and intend to commence the mailing of the proxy materials to Atlas Energy and Atlas Pipeline unitholders, as well as TRC shareholders, for purpose of voting on the respective merger agreements. The Atlas Energy, Atlas Pipeline and TRC meetings will be held on Friday, February 20, 2015, and the record date for the respective unitholder and shareholder meetings is Thursday, January 22, 2015.
As previously announced, the proposed mergers of Atlas Energy with TRC (the "ATLS Merger") and Atlas Pipeline with TRP (the "APL Merger") will occur following the previously announced spin-off by Atlas Energy of its non-midstream business to Atlas Energy Group, LLC (the "Spin-Off"). The ATLS Merger, the APL Merger and the Spin-Off are conditioned on the other and are expected to occur concurrently on February 28, 2015, subject to the approval of the issuance of TRC stock in the ATLS Merger by the TRC stockholders, the approval of the ATLS Mergers by the unitholders of ATLS, the approval of the APL Merger by the unitholders of APL, the effectiveness of Atlas Energy Group's registration statement on Form 10 and other customary closing conditions.
As of the updated Jan 7 filing at SEC for New Atlas aka Spinco they are still saying $1.10 distribution for New Atlas.
As a side note, interesting info out today from Moody's Analytics who predicts oil market will find an equilibrium in the $60 range (WTI) in the next 6-12 months. Demand will increase (naturally and in response to decreased prices), supply will decrease, erasing the 1.2 million barrel per day imbalance in the global oil market. Somewhat echos T Boone Pickens saying will rebalance in 12-18 months and he has a lot higher target.
No saying I agree but worth considering if there isn't heavy financial selling of oil right now and panic with market forces likely bringing about some rebalancing of supply and demand and a steadier, higher price not that far down the road like by mid 2016.
Here is the math on ATLS itself as of a few minutes ago:
For each ATLS unit, unit holder will receive:
0.1809 Units of TRGP ($107.42) = $19.43
$9.12 of cash = $9.12
1 unit of Spinco (see post below on Spinco) = ?
Current value of ATLS unit = $30.96
Implied value of SpinCo = $30.96-$28.55 = $2.41 (this has fluctuated and been negative at one point a week or two ago)
Side note: I've been keeping an eye on ATLS April $28 calls, they've consistently been running around $2.00-$2.50 above their theoretical value which would imply Spinco also priced into the options.
SPINCO=Atlas Energy Group, LLC CIK=0001623595
This is the entity that will be created and distributed to ATLS holders if all is approve. You need to go to SEC web site, look at the Edgar system and look it up by either the name about of the CIK# above.
"Atlas Energy Group's assets at the time of the distribution are expected to consist of the following:
100% of the general partner interest and incentive distribution rights in its E&P subsidiary, Atlas Resource Partners, L.P. (NYSE: ARP), as well as ATLS's approximately 24.7 million limited partner units in ARP;
80% of the general partner interest and incentive distribution rights, as well as ATLS's approximately 2.5% limited partner interest, in ATLS' E&P Development Subsidiary, which conducts operations in the Eagle Ford shale in the mid-continent region of the United States; a 16% general partner interest and 12% limited partner interest in Lightfoot Capital Partners, a business that incubates new master limited partnerships (MLPs) and invests in existing MLPs. Lightfoot owns the general partner interest, incentive distribution rights and an approximately 40% limited partner interest in Arc Logistics Partners LP (NYSE: ARCX), an independent U.S.-based energy logistics service provider; and Coal-bed methane producing natural gas assets in the Arkoma basin, which have net production of approximately 11.5 million cubic feet per day."
"Our Initial Quarterly Distribution Rate
New Atlas believes, based on the assumptions and considerations discussed in the section entitled “Cash Distribution Policy—Estimated Initial Cash Available for Distribution” beginning on page 79, that upon completion of the distribution of the New Atlas common units, New Atlas’s initial quarterly distribution will, subject to proration as described below, be equal to $0.275 per common unit, or $1.10 per common unit on an annualized basis. " note: subject to a bunch of factors that could change
**** READ THE WHOLE FILING FOR DETAIL
Luma: you were correct, I was wrong and much poorer as a lesson. Hope Eike rots in jail for a bit eventually. Someday wonder who you are. Merry Christmas.
Sentiment: Strong Sell