IMO, This is the golden goose. 25% tax free distribution, well protected till end of 2016 with their hedges. Conservative finances with their debt well protected by their EBITDA. (ratio of 3). One of lowest cost producers. since not involved in fracking AFAIK. Only cloud is IF prices stay down till 2017. CEO recently bought at $8.08. Don't forget, fracking has steep declines, therefore, once rig counts declines, production will quickly decline.
They are NOT hedged at 100%. Soooo, when oil goes down, if u are hedged at say 60%, they will still have decreased income. The other 40% is at spot prices.
I don't know. Once a well is sunk and operating at big CAPEX, doesn't take much to keep it running Those wells will be profitable at say, $40.
From a blogger in October.
Ethane prices reached a multi-year low of $0.15/gallon on Wednesday, and current ethane price is much lower than its lowest point during the financial crisis in 2008.
I'm sure ethane prices are even lower now.
What a sicko. I dumped out around $18. Looking to get back in again. 80% o their oil production is hedged for 2015. Good statistics.
Should have shorted at $130-)). Seriously, it was a good short since the stock was going parabolic at that point in time. Meanwhile I'm a happy camper since I had a 4 bagger with this stock.. I'm back in again at 60.
Naw, if the producers get squeezed, they are going to squeeze the toll roaders. Not good news for the anyone in the supply chain.
I noticed that too. Its not that it has too much debt, its that it only eanded abut 85M in EBITDA so the ratio of Debt to EBITDA is about 5.4 which is a danger signal. Look for a 2ndarry soon.