I have hold IEVM for a year, so far I am even. The only reason I keep my shares of IEVM is that I believe Excelyte is a cheap and safe way to control H2S. I have experienced H2S in off shore drilling with 2 drilling contractors.
Excelyte has FDA approval for food processing and hospital biocide control. The drilling H2S control is where the money is. Marketing for hospital and food processing will make Excelyte expensive although cheaper than most of the competitive biocides.
I hope this new capital will be for developing the H2S and drilling mud environmental control and dumping. The B of D needs to have an O&G cognizant director. The O&G business is a fraternity of sort.
ALDW is well located and has a good market to develop good distribution. The only down side is as a refiner fire is always a possibility. Nothing is perfect!
IEVM or IET the corporate entity want to increase the number of outstanding shares from 400,000,000 to 600,000,000 or an increase of 200,000,000.
Sound they need capital to grow? The O&G side of the business will grow; I have to give IEVM another year, but no more? The old team was not up to part. The new team (B of D) does not have an O&G experienced director???
Pursuant to the filling of: SCHEDULE 14A; Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934:
“At the annual meeting, you will be asked to consider and vote upon the following: (1) the election of six nominees for director; (2) the proposal to approve our amended and restated articles of incorporation to increase the number of authorized shares of common stock from 400,000,000 to 600,000,000; (3) a non-binding advisory resolution approving executive compensation; (4) a non-binding advisory resolution to determine the frequency of the vote to approve a non-binding advisory resolution approving executive compensation; and (5) such other business as may properly come before the annual meeting or any adjournment or postponement thereof.”
Assuming the new shares a sold at $.0775, we are talking at 15.5 million.
MMLP is involved with pipelines from Permian basin to Corpus Christy. MMLP is also a major operator of the Corpus Christy port. MMLP dock takes NGL and other productions to the other states and export as well. So MMLP is well placed and its earning is fees based. MMLP should do well especially that all producers want to get to market, home or export markets; they have to use pipeline and port facilities, MMLP facilities.
According to IEVM management the water usage per well varies between 5,000,000 to 8,000,000 USG. The concentration of Excelyte is 25,000 to 80,000 USG time the number of wells, 141, under Excelyte application. Presently IEVM is selling from 3,525,000 to 5,640,000 USG of Excelyte. The cost of Excelyte is made of the water, the processing unit rental; H2S follow up specialist and the delivery cost to the well site. The cost of a gallon of Excelyte cannot be delivered to the drilling site for less than a dollar per gallon. My guess is the Excelyte cost per drilled well is $25,000 minimum. This price appears, to me, to be quiet low, the cost of drilling a well has come down a lot, from $3 million down to $2 million. This lower cost is associated with new drilling methods down to less than 60 days.
The quantity of water used in the drilling technology is set by the depth of the drilling and the density of the mud. According to IEVM management the water usage varies between 5,000,000 to 8,000,000 USG. The concentration of Excelyte is 25,000 to 80,000 USG is used time the number of wells under Excelyte application. Presently IEVM is selling from 3,525,000 to 5,640,000 USG. Now days, it takes less than 60 days to drill a well on land. I would assume that it is possible to multiply by 4 the quantity of Excelyte produced and sold. I would assume that IEVM is no longer a losing proposition. I have no price per USG, my guess is in these large quantities the price per USG around $2 to $5.
Marcellus is the NG that has stopped the NG from Texas to go to the North East. The Texas NG redirected the NG from the Permian basin to Mexico. This Mexican revitalization policy had perfect timing. That is all I was saying!
In a drilling application where H2S is present the quantity of water used varies between 5,000,000 to 8,000,000 USD. The quantity of Excelyte concentration varies with the water used and the H2S concentration. From management 25,000 to 8,000 USD of Excelyte is used time the number of wells under Excelyte application. At this time there are more than 100 wells under Excelyte application.
In a hospital, food processing or vet applications the usage of Excelyte would be 1 gallon at a time. The marketing effort would be such that it would lower profits.
Excelyte application in the O&G industry is the winner. As an extension to possible market the health care and food processing will be the cherry on the cake.
Excelyte has been around for sometimes. It started once FDA approved it for hospital use, than Excelyte was introduced for industrial food processing. Just about a year ago Excelyte was introduced in the O&G drilling to combat H2S. This is where the money is. In this business reputation and actual success in eliminating H2S will create expansion. It takes time, but once you are in, you will become the problem solver that will be called. In the drilling business the contracting company (oil or gas) hire specialists: mud, casing, xlog, I would not be surprise if Excelyte does not provide a specialist just to control H2S 24/7. If it is the case IEVM will be the one to rent this specialist, probably $1000 per day.
My problem is with the way the trading is done. It looks to me that, whom ever is managing the trading, is not interested in getting this stock higher. It sounds to me that they make money on the number of sales, and they keep the stock between: $.065 to $.079. They keep the “ask” at the closing of the previous day too long, and make the “bid” lower.
Nothing new! Sometimes ago the amount of Texas NG going to the North East was bumped by the Marcellus NG. Texas NG found Mexico as the new client. The Marcellus NG will be competing with Texas for the Florida NG. I hope that all these new LNG trains on the GOM will become Texas clients. This is good news for Texas NG.
CVRR is a MLP and CVI is the equity. Why would CVI form a MLP, the reason is tax primarily. The profits after management expenses are distributed to the unit’s holder of the MLP. CVI, in this case, pays taxes on the profits of the management fees. The EBITDA is also on the MLP holders. So the MLP holder pays taxes on the distribution which is a lower rate, capital gain for the straight investor or standard taxes on IRA distribution if the MLP is within an IRA or 401K. It is all about tax rates, corporate versus capital gain.
I am sure CVI own a significant number of CVRR units.
Which Delek is trying or will to buy out ALon Israel? In any case Delek as well as Alon Israel are Israeli incorporated equities. Delek US Holdings has similar holdings as Alon USA, DK has 2 refineries, more pipelines and convenient stores but not under the 7eleven umbrella. One can say that DK is more diversified and operate aside from Texas in a different territory. The trading price of DK is 2 times that of ALJ. It make sense for DK to buy out ALJ.
DK, DKL, DGRLY, DLEA, DLKIS, DLEN, DLKNF. D6J, DEDR, are all Delek equities traded on the OTC, Israeli market, and German market. Delek is not a unknown entity.
Many foxes are confused! If Iran increase the productionof crude, the US producers will be hurt. The refiners work on the Crack Spread. So they will buy cheaper and will sale cheaper as well but their profit is the Crack Spread. ALDW location and its ability to use WTI or WTS fetch good discount, so ALDW crack Spread is better than on the GOM. ALDW will do OK.
You are investing in the wrong equity. MLP assets can be changed anytime as long as the BOD say so. On the other hand a US Royal Trust can not be changed altered for the life of the trust.
ALDW assets is the Big Spring refinery, adding another refinery would lower the probability that both refineries would shut down because of fire. The turn around would not necessary be on the same quarter. So it may be a positive on the distribution.
Great, but around the Great Lakes. The biggest client of steel is the auto industry. Ford is going aluminum. So much for great steel from MN. Add that to Chinese steel that was used because of union wishes, so Chinese steel was used.
ALDW is a MLP who’s only assets are the Big Spring refinery and the 7 Eleven stores. ALDW is own by ALJ which own and operate other refineries in Louisiana and California. ALJ is Alon USA who’s minority partner is Alon Israel, ALJ is 48% own by Alon Israel and 52% Alon USA. I understand that Alon Israel give up the majority control not too long ago. I have to assume that Alon USA owners are different than Alon Israel or Alon Israel would be majority owner.
Delek want to buy Alon Israel, therefore Delek would be the minority 48% owner. Delek will replace the Alon Israel board members, therefore, pure speculation, the assets of ALDW MLP may change by adding another refinery to the assets of ALDW. This will add refined products to the existing 73,000 barrel per month. Refineries profits are based on the Crack Spread. By enlarge AJL refineries are inland and well placed to take advantage of the crude discounts, except the Bakersfield CA refinery which get its crude from the West Coast Alaska crude or imports. Adding assets to ALDW may not be that bad of a deal, expect for CA refinery.
You are right MSB sales only to the great lake area. The cost of getting the ore through the ST Laurent is too expensive. MSB market is the steel mills around the great lakes. Do not forget that the new San Francisco bay bridge was made from Chinese steel?? Chinese our comes from Australia, Brasil but little from the US. That does it??
Delek is buying Alon Israel not Alon USA the majority owner. ALDW is a MLP who's asset is the Big Spring refinery. ALJ has tried to include another refinery in ALDW. The market conditions were not good, and it was postpone. If Delek is the minority owner, the BOD will have new members. The new BOD may change the assets of ALDW the MLP. Until this happen, ALDW stays as is.