Yeah, somebody had to post that. I was thinking of various combinations of their names with poisons, but I couldn't really come up with anything spectacular. Scott "hemlock" Boruff? David "death angel" Voyticky? Nah, see, they're not even pills, I just don't have it today.
I don't really see any value bets in the options, so thin. Yeah, but even if you own it, what's it hurt for it to take a run through the $4's? The idea is that it will recover some. May as well make some money, the nice thing about MLP's is you're always getting paid, so as long as you're holding, unit price swings don't hurt . . . except the ego.
Right, you know more about Subchapter K than me, I only worked with it for 25 years. You can start your reading with Section 741, move on to Section 733, pay a brief visit to Section 731, and then come back and cite your case. Good luck.
I was thinking the vulture opportunity here was fading away, and it might screw around in the mid $5's for the near term. After today there's a much better prospect that toasted fingers might be slower on the buy button next time this threatens $5. Watching and waiting, there could be a nice chance to wet ones beak, if the unit price will just cooperate and take a swan dive into the $4's.
Well, they don't see it that way. VNR's mission is to preserve cash flow, that's it. They are not interested in exploiting their own reserves, regardless of how profitable it might be. The only exception might be 2014, where they could drill a particularly juicy property in lieu of making an acquisition, their first "growth" capex. Otherwise they leave the "insurance" alone. And they have stacks of it, reserves so large they have $900M in liquidity with a 2.9X debt to EBITDA ratio, vastly more borrowing power in relation to equity than any other MLP I can think of.
If that's not to your liking, look elsewhere. Personally I love these guys to death, I live off my cash flow and I want them to be as conservative as possible.
Now that would be interesting, if the dissidents could convince some of the big institutions to basically conduct a takeover through the markets, no one big enough to require a tender offer, but everyone aware that kicking out management could be accomplished by massing enough ownership. Of course, it's not something you could do on a conference call! It would have to be a more subtle approach to avoid being a conspiracy. I like the idea, SB and DV would be like children fighting men, no chance.
Typically the costs are negligible, as the positions are offsetting. A couple of upstreams buy naked puts, or have, LINE being the most notorious I guess you could say.
Two reasons the majors don't hedge, first they're too big, it would be difficult finding counter parties. And second, the upstreams don't look to maximize profit or play the commodity space, they seek consistent streams of cash flows to pay out. An upstream is willing to forgo the upside for insurance on the downside, in order to fulfill its primary mission, pay us. Some of the big gold companies tried hedging and lost billions on it. Now maybe they wish they had continued!
I will keep that in mind, had no idea you could do something like that. I'd love to see some August $7.50's here . . . though yesterday would have been preferable!
Had to overpay to get what I wanted, but I figure the extra dimes are nothing in the end. Picked up some $5's and $10's, expect those positions to work out very well, with a year's grace. Amazing you could do that, much appreciated!
They need roughly .75 EBITDA less debt after the acquisition. If they did another, say 10 or 15 million units it would take a chunk out of that, get it out of the way going forward. Probably an offering would go off at $19.50, I always thought that's where they would strike, the acquisition forced their hand before. But probably it's too close to xmas to handle, I bet they hold off until January, assuming the price holds or increases.
Now, please, can we say goodbye to the $29's forever? This is like the fifth run at this. So much for the bear raid Crammer claimed was going on, seemed like the index fund, etc. selling made more sense.
" . . . Scott Boruff, has repeatedly demonstrated he is unqualified to lead the Company . . ."
" . . . an entrenched and ineffective senior executive team . . ."
" . . . Executive incompetence . . . "
" . . . reckless and chaotic behavior and some spectacularly poor decisions."
" . . . David Voyticky . . . lacks the qualifications to serve in this position."
" . . . abysmal performance."
They're going to negotiate? Management is going to talk to them? Where, at the meeting hall at the Korean border? It seems the only suitable venue.
It's a fair question. From the noise they made Q3 I would have expected a deal by now. VNR has such a vast backlog of locations, possibly they are restricting their bids to properties that are mostly made up of producing wells with little undeveloped sites, what point is there in spending current money to stack on the pile?
I don't see how how the dissidents negotiate with management, their main goal is to get them out. Anyway, I just think the vast majority of stockholders won't even bother with this. Surely it would have been in the best interest of unit holders to put the kibosh on NGP's restructuring at EROC, it relieved the MLP of the obligation to pay back distributions to public unit holders that would have basically shut out NGP from a profit share for many years. But NGP's proposal sailed through with a huge majority, I think because of pure ignorance among unit holders. Eh, we'll see.