What sustained $1.99. IMHO, they are cutting production 48% so in simple terms, they should cut the div say 48% or thereabouts. Still leaves a a 13% yielder at yesterday closing price. Price might even move up as a relief rally. Cogent comments welcomed.-)))
After looking at the reports, its obvious to me that they should spinoff the fuel segment to the shareholders. Probably won't happen. There are numerous advantages to a spinoff. Allows mangement to focus on the sand segment, the sterling results of the sand segment will be obvious to the market, etc.
Its true that the Distribution Coverage Ratio is 1. However, its a growth co sooooo, they are plowing their excess cash into opening up new plants to meet the demand. They are contracted for 8.2 M tons of sand and their capacity is now 6.8 M tons. Need to open up more mines. Not a bad problem to have.
Interesting tidbits at the end of the CC., 1. when the price of oil rebounds ,eventually, industry will need even more sand to refract the closed wells. 2., the industry is now using more sand per well. 3. Looking at reducing their mining extraction cost with new technology. 4.
Where are they issuing debt, please provide us with the link. Their Debt to EBITDA is .7, one of the lowest figures in the industry. Next time please backup your statements
I agree. good opportunity to buy more as the co missed earnings expectation. People don't realize its a mlp and E misses are not that significant. Its all about cash flow. Revs were flat overall because of the fuel segment but, sand production almost doubled and more production is coming online. I'm buying. They have commitments for the next 4 years. People always willing to buy at the TOP.
I hope ur right but, I can find only 2 more years of solid hedges, afterwards they taper off. Where do u see 5 years
Hedges are relatively good till 2016. After which they rapidly fall off. Only co that I know off that is protectied till 2018 is MEMp
What an intelligent post. however remember, "It ain't over till the fat lady sings". This chat room has got to be the stupidxxt board I've ever seen.
Being down when the the dow is up 300+ points is not a good sign. No reason for the stock to be down except there are more sellers than buyers. AFAIK, the story here is still intact. Thinly traded stock.
Excellent analysis. Regarding your conclusion I noticed in their last presentation, they stated that the dist. coverage ratio was 1.17 for unit holders and .95 or so, for the general partner (for the third atr)
No one knows what the cut will be if any however, I doubt they'll be 25%, more like 5% looking at the latest presentation. where they chart their sensitivity to oil prices. . If they do need to cut, the market will not react negatively since it'll be due to the global current oil situation and not company specific. Meanwhile its a good day today for the longs, 2nd highest % gain of the universe of about 60 mlps today.
It took psxp 5 months before its first drop down. imo, the $ rise is speculation that we'll get a drop down soon.
I agree. Take a look at the LGCY Dec wells forgo presentation slide 5, It shows that in 2008 , when oil plunged to $40, they maintained their dist. Same type of E&P mlp, slow decline, long lived assets. So, it can be done.