Right, well, I'm sure it's an egghead paradise. Just for history's sake, Oak Ridge was necessary for the uranium bomb, not the plutonium bomb, which was built with reactors located in Hanford.
Oh, maybe close, I haven't started my taxes this year, I'll have to blow off the dust soon. The tax consequences are that distributions in excess of basis are treated as if you sold the relevant units, meaning they will be treated as capital gain (long term in my case). However, as in a sale, tax preference items previously used, like depletion and IDC's, will be reclassified as ordinary income.
Any taxable losses allocated by the partnership are suspended in that case, and you keep track of the losses by type in case you later gain basis back. That does provide an incentive to purchase more units, an instant tax deduction, but that motive should not override prudent diversification.
The bottom line is that the shelter is permanent, eventually the clock winds down. But, that's okay, I would have invested in VNR at the time even if it was all taxable. The tax shelter was just a bonus.
Yeah, I figured it wasn't a hillbilly hovel, but my question was, in what venue did you hear these rumors, where are they coming from? Without being specific, of course.
Yeah, but . . . EROC (post sale) is probably challenged to cover their lowered distribution, whereas BWP management is guiding towards 4X coverage. Take that which whatever grain of salt you like, but that's quite a difference.
Also, EROC was so far in debt it was going to be out of covenant this year, forcing a sale of its midstream unit. As bad as BWP is, at least it's no EROC, and you probably wouldn't expect it to crash as bad.
They've been static for too long, we need some immediate action to reassure the market that distribution growth is back on track. Otherwise this is going to command a higher market yield for some time.
"they tend to believe some pretty wild stuff" - volfan4life2012
Sorry, I've read your posts and you're not one of the nuts, so far as I can see. I'm just curious, looking for some color here. Rumors around Knoxville . . . one tends to think of a bunch of tobacco farmers wearing billed caps sitting in a dingy roadhouse drinking coffee from stained mugs with Lucky Strikes hanging from their lips (no filter). But, I assume I'm wrong and the place is more sophisticated than that, so . . . rumors expressed to you in what fashion? No names or places of course, just flesh it out a bit.
Agree, so why isn't the market rejoicing? That's the downer to me, and why I took my May calls off, there wasn't the pop I've been expecting all fall.
Well, it's already known, has been for some time. There might be some confirmation gain when they announce earnings, but there could also be disappointment they still aren't making any money, the high comp and g&a expenses are so forth. The financing is done, and really better that I thought, if they can actually fit the $100M piece in. And yet we're drifting down, I thought last fall the financing news might push this close to $10, hah! I see no catalysts to drive this up in the near term.
Picky picky. I really don't think they planned on having a pipeline badly situated in order to lose money so retail holders would bail and they take it out, so they can own . . . the badly situated pipeline.
That's "Loews", not the hardware store, and of course management "cahoots" with their own company and their holding company, duh. One and the same.
LINE is an upstream, NLY an agency REIT, hardly "peers", and . . . your value number is absurd.
First, it's not proper board etiquette to address questions to a specific avatar, this is a public board, you're dumping on everyone else, as if their opinions didn't matter.
Second, I wouldn't touch BWP except for trading, it's a mess, it's major assets are badly located and I see no light there for many moons. In any case, I could care less about the pipelines, imho they're way overpriced in terms of yield compared to upstreams.
Yeah, but their could be contagion into the MLP space in general. But, it doesn't appear by the other major names that happened, so it's difficult to attribute the dollar drop here to BWP. In any case, it's of little consequence whether LINE trades at $32 or $33 at this point in the recovery, we're looking for $35-38.