Dude they have THREE months before that has to be finalized. Banks have shown recently to be willing to work with the oil borrowers. Everything has some sort of a risk but MCEP will be JUST FINE.
Yes it is I darn near caught the very bottom. However I am a little disappointed I did not add my full position. I have about 50% of what I wanted thinking it would go down more. Oh well could be worse :)
MCEP is the closest thing to a NO BRAINER in the MLP space. If people really looked into the numbers and not just place them along with the other MLP turds price would be much higher. Looking forward to the call next week.
I made my case with oil being around 40-50 buy the end of the year and into 1q 2017. 99% of oil companies cannot survive at that price so market has to balance out. I also love that MCEP is a pure oil play and no exposure to the natural gas mess. The criteria I looked for was low break even cost and debt levels so I like the risk reward for MCEP. I will start looking to the big boys later in the year for the divy (COP,BP,STO,RDS.A) but all are still bleeding money so no rush. Also researching midstream plays. I see this playing out like 2008 crisis.
I am no expert but I know MCEP is hedged at 90 oil for the 4th with low break evens. Thats all the details I need to fell comfort holding. I expect no info on acquisition because they do not have money on the credit line to make any purchases from my understanding.
Averaged in large long at .76 and have plenty room to add over the long term. MCEP is basically priced for BK in my opinion. Lowest cost producer I have found and only issue is credit line. In this oil market that not that bad of a issue to have. If oil recovers to 60-70 them MCEP will be up over 500% easily and paying a divy. I hate the the volume is so low and the message board is pretty boring :) Look for to the 4th q reporting coming in a few days. Anybody playing the midstreams? Thinking about getting some JPEP or MEP in a few weeks
I bought in today at.77 and will add if company needs to dilute to raise money. $50 oil Mcep is one of a few that will make big money
MEMP hedges do not roll off until end of 2019 so not sure what you are talking about 9-12 months. Best hedged in the industry
Problem is liquidity. Credit lines gets cut so what happens when reserves/production falls and no money to by new wells?