CFO spoke at conference in Orlando , Florida today, stating that distribution is particularly set low, so that if oil prices remain low for a prolonged period 12-18 months, there hedges will help cover distribution, also, should situation of prices change and we see higher prices, then distribution can go higher. Last , distribution coverage ratio is 2.24 , very low purposely, bbep mgmt looking for acquisition
The CFO clearly stated:
1. wants to grow company through aquisitions
2. Keeping Dry Powder, for an opportunity
3. Said, scale of growth and reserves is key to Further Financing.
4. Distribution set particulary low so as to not worry about it for 18-24 months even if oil did not go up then!
Clearly from the message of the CFO is to keep growing and buying, cost savings from financing really sets in with LARGER THE BETTER! Here what he said at Florida event, you an hear it on company website link.
nothing to worry about in 5's, buy buy buy this stock!
Distribution will stay even if oil prices are at these levels, as the cfo claiming that they are very well hedged for next 3 years. IT could go up if
1. they can get oil prices higher
2. buy another oil n gas property
or grow size,
$10 oil move, moves EBITDA mid single digits, , well hedged.
set at low level so next approx 2 years is safe even if oil prices are lower.
He stated its set LOW!
1. CFO speaking
key investment considerations
25 year history
acquire high qual oil n gas properties (growth vehicle) 10 acq's in last 3 yrs
55% oil rest Gas
production up coz of acquisitions
focus on operations
tech focus be on top
2. distributions 50 cents per unit
3. will talk about hedge book (well hedged 85-90$/bbl 4.15/gas) compared to peers well hedged.
4.asset basse highlight, legacy base high quality
5.50% of core now in mid continent/permian basin
6. 2nd largest MLP behind LINE
7. proven reserves 3rd in size
comments of CFO
strong balance sheet, good liquidity,
size is necessary because of finance companies view large scale companies more favorably.
they have been wrong before, they just raised estimates for this year to $58 WTI from $42 previously. Also they cut their forecast for 2016 from $68 to 62 and they were wrong on GOLD, they were adamant about gold going to $1000, so far its hanging around $1200, that is a commodity they cannot manipulate on a large scale...they know it so they push securities (stocks) and or OIL as most Asian nations like CHINA, INDIA, do not participate in large quantities of paper trading in OIL, it is mostly a US/EUROPE/RUSSIA-MID EAST using LONDON, NEW YORK TO trade in.
I think it presents an opportunity here...
1. Oil prices and hedging are key for LINE
if you believe mgmt can do a good job, then BUY
2. We are so close to lows that were made with OIL in 40's,
I think its an opportunity here,
3. The downgrades are in, there is nobody left to downgrade..
They GS, got oil prices wrong, we're expecting 37-40$/ bbl
Now it's 61, so am wondering, why now would they downgrade line?
Are they late to the call?
GS has made 2 bad calls
On Oil and Gold!
I would agree that YHOO would be a good fit for YELP,
1. Yahoo doesn't get the audience it deserves
2. For searches pertaining to food, restaurants, small businesses, its either YELP or GOOG
YHOO needs YELP
3. YELP needs to monetize mobile a bit better than just getting local businesses, they need to get visitors to pay or browse which leads to monetization (FB) is very good at this.
4. YHOO has an image problem with millenials, YELP , INSTAGRAM, GOOG are all liked by millenials
this ones going to bounce back hard.
love NE, KMI, PAA
also like MEMP EVEP CHK LINE
For Very long term (12-24 months) BBEP
Best of Luck
All energy Plays for now
with a few tech
CY and GOOG
Buy LL only on dips for trading ONLY!
are you thinking of selling puts.
For example, if you like, sell the 630 May Puts for 7.50-8.00 $
also buy 15 shares at market.
This way if it goes up, you win both ways
if it goes down 50$, you will get out ASAP break even
If it goes down 100$ or more your screwed.
But based on what your saying, the best bet would be what I just sugggested.
Finally EVEP got the attention it deserves in Upgrade + Price Target.
UPL, LNCO, CHK , SDRL, LINE all doing good
while disappointing for today, BBEP should bounce back up in a few weeks to quarters, this one has lots of longer term potential, 1-2 years out.
If your a quick trader consider
CHK 3rd choice
EVEP 1st choice
UPL 2nd choice
SDRL has shot up 4th choice
finally LNCO outperforming LINE as I loaded up on LNCO to narrow the gap from 1.70 to now around 1.05
sorry to hear you have left us, I cant say I dont blame you, as it is very frustrating to see them do a deal that they probably did not need to do, ie, cut divvy after cutting 3 months prior, also LNCO then is not very safe considering they too may cut 50% (divvy)
Here are a few solid stocks with good divvy
consider adding to these.
Also some non large divvy players that are beaten up are:
Really good ones with mediocre/large divvy
Best of Luck to you!
and the Americans wont stop them this time???
because they want our own domestic oil industry to hijack the rest of the world!!!
ISIS is pure evil! Not saying the Saudis are angels, these religious states are all trouble!
breaking apart, so new tests by CDC will run on without breaking apart, hence better results, whats not to understand by this.??