No doubt, ATLS benefits from the growth of both ARP and APL. Income (i.e. distributions) at ATLS ought to be growing at a dizzying clip over the next 12-24 months provided APL and ARP can continue to grow.
For an income play, I like ARP, for growth, I like ATLS.
A good mix of both should give an investor a nice mix of high income and high growth.
I do think that ARP has a lot of coiled energy,,just waiting to be released. A strong fund raise this year will really help get them going. Good results in the Utica, Marcellus, Mississippi Lime, Marble Falls will also help. Plus, I still believe their Tennessee Chattanooga shale may be prospective for Mississippi Lime as Miller has found.
That would open up another front for liquids drilling.
I think we will be looking at a much larger ARP 12 months from now...probably a handful of deals mande during that time frame as well.
What is a bit comical to think about is that the next batch of Marcellus wells, when they come online, the peak production from those handful of wells will rival the production of the bulk of their legacy wells from over 9500 shallow Devonian wells.
Yes, I heard Cohen's remarks on the conference call. I am interested and wish they could have revealed more info...I guess once they do their filing, the quiet period will be over.
If they can consistently raise $200 million/yr, you are talking about nearly $50 million in what amounts to carried interest.
They will be able to chew through some funds in the Mississippi Lime, especially at $3 million a well.
Any ideas on how the new MLP will be structured?
Yes, somehow I doubt Brunner will be cutting his salary.
So, now debt is down to $34 million, and they are sitting on $12 million in cash.
They better have a plan to boost production. The bankers will likely look to cut the revolver again unless this concern can show meaningful production growth over the next 12 months.
Deal is only slightly accretive in 2013.
These guys still need to get back to 1.0x coverage ratio.
Projects kicking in will get them back to growing distributions.
I am surprised at how little attention the market has paid to ARP.
This company has a very attractive portfolio with the recent deals.
I cannot overstate how big I think the Marble Falls play will be for ARP. Lots of room to run and payouts are very reasonable.
If, and it is a big if, they can get their private partnership fund raising back to $200+ million anually, then they can really set themselves up for some nice long term growth.
I think the BBG deal was very good. You buy natural gas assets at the bottom of the cycle, not the top. Everyone is chasing oil deals, but if/when oil drops to $75..they won't look as good.
The BBG deal was very creative, with VNR's working interest climbing each year.
These guys made a deal that brings in decent cash flow, but gives them a huge call option on gas if prices rise.
I am surprised we have not seen more commentary on this board.
The DTE acquisition looks to be one of the better deals pulled off by any of the E&P MLPs over the past couple of years.
The Marble Falls wells look to be a perfect marriage of low cost (under $1 million/well) and have extremely nice economics. ARP can drill these wells without much concern of botching a well versus drilling a well with similar economics that costs $6 million.
My thoughts are that Legacy is one of the better managed E&P MLPs. These guys stick to what they know, don't take a lot of risks, finance their deals in such a way that the balance sheet does not get over extended, they hedge their production and finally, they under promise and over deliver.
They may not be the fastest growing MLP, but you can feel certain that they are looking to grow prudently while minimizing risk.
Looks like the drop down just happened yesterday. No surprise, SUG assets going to RGP.
Looks to be neutral to slightly accretive according to the release. Heavily equity financed, which puts RGP's balance sheet back in good order..or at least headed in the right direction.
Mark my words.. If you include green energy scams in the MLP sector, it will be the demise of the sector. No need to include those money losing enterprises in a sector that has cranked out fabulous returns for years.
The MLP sector does not need charlatans and schemers. Appreasement has never worked and never will.
Surely you mean "passed" the class...rather than 'past' the class. Yea, open mouth, insert foot. (karma strikes again sonny boy)
Oh, and I think it is funny how you claim debt/ebitda doesn't apply to them. That's funny, Kokja said they were trying to get back to 3.0x...but I guess he doesn't know better than you...
But while were talking about Kolja, let's talk about how they achieved less than 1 cent of accretion per $100 million in acquisitions from '10-'12. $5.7 billion in deals and $.38 in increase. But of course we all know that most of the accretive cash went to plugging holes in their DCF as their $8/mcf hedges rolled off the books and were being replaced with $6, $5, $4 hedges..
You posted a tome on lumberjacks?
Your a schizophrenic nut job!
Half of yoru posts are politcal rants that have nothing to do with E&P, MLPs, LLCs, etc.
Take your medicines.
It was debt to ebitda. And Kolja mentioned it on the conference call, I'm suprised you mentioned it since before you said it didn't exist. Once you realized it was real and got you *** handed to you in a paper sack, then you decided it didn't matter to Linn. Then when you found out that Linn used to frequently comment on it in their presentations until the metric got out of hand, you decided to change the subject to lumberjacks.
I'm glad you finally realized it is a real metric. The deal brings them down to 3.5x from about 3.7x. Remember, they assumed $1.9 billion in debt, so that countered some of the equity issuance.
Congrats norris, you're learning.
Oh, this sounds like a broken record. Yes, we know they are hedged. That's old news.
Or better yet, maybe you can post again about the Hogshooter (oh, that funny word again)....rolling eyes.
When you allow the sector to continue to expand, it will bring about the end. Having been investing in pipeline MLPs for about 14 yrs now and having been the beneficiary of a wave of tremendous growth and investment, I am not in favor of seeing the sector watered down with a bunch of junkers.
Exactly. The MLPs were set up to promote investment in energy infrastructure. The government got that one right!
Along the way, the sector has had numerous PLR's that have expanded the universe.
Agreed, US Energy Independence is of vital importance. It is key to our nations manufacturing revival. Our country deviated from being a manufacturing economy and consequently our job skills and work force have suffered. You CANNOT add significant value without manufacturing when you turn raw materials into a finished goods. Our country is slowly waking up to this.
Separating ourselves from the Muslims is very important. Time to let those db's take care of themselves.