"Legacy Reserves LP - 8.00% Series B Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units (LGCYO) Stock "
If, as has been quoted of a natural gas mlp CEO, gas prices will never be higher than they are now, then Evep will die a slow lingering death. Oil prices may recover but it won't matter one whit to them. It costs them more to get the gas out of the ground than they can sell it for all in.
Management needs to pre announce what the distribution will be - even if only a few cents per quarter. And protect the preferreds by reaffirming the distribution.
Or buy the damn things back and save 40% interest.
$3B in equity just went poof. Even if they swap their entire $2B in bonds for $1B in junior debt like Linn did, they still have negative equity
$10, $9.50, $9, $8, $7, $6.31 here. Half at $7 so decent average down
If oil goes to $18, they'll monetize and use the cash to pay down the line. The so called hosing by the banks will become a windfall.
There's a video of Kelcy Warren saying natural gas will be low for the next generation. If he's right, none of the natural gas mlp's will survive
I tried to buy a huge chunk privately and was told there's only 3.5M shares not owned by insiders. Doesn't seem right but that's what my broker said