The company mid January tax report press release says the LNCO div is reported as 'qualified'. However, it remains to be seen if the April final report gives it the same tax treatment. (I'm hoping for 'non-dividend' return of capital.)
ERF pps moves for so many different reasons. Today oil and nat gas down, ERF way up on light volume. No logic there. Investors have to think long term to get back to 20's. Think about what's in the reserve base and under the property rights, the build out of pipeline in the area, the potential for product price to go way up later for strange reasons, the capex cut seems to secure the divi...
If you bought down here, it is worth holding long term.
Good time to buy. Oil up nice Friday afternoon, like the money guys know something will happen this weekend. Reminds me of the days when investors were too scared NOT to be in oil. Odd things can happen over weekends.
"...if not for the courage of the fearless crew the minnow would be lost, the minnow would be lost..."
Yes, EU has changed the Fuel quality directive to level the playing filed. Duh, carbon is the same everywhere.
It's the same entity, different tax treatment. If I don't understand LNCO distribution tax treatment going forward, then I'll bet many other investors don't understand it either, so they are now not paying more for LNCO. Maybe the final 1099 March/April 2015 will show some clarity.
I cannot see why LINE tax treatment does not carry through to LNCO holders. Any accountants out there? Meanwhile, my selling LNCO and buying LINE has led to this pps difference. (LOL.)
Glad you pointed out the same thing I saw. Not a well thought out piece. If it was written with the ending first, the headline would have been opposite.
A look at the one year chart shows a double bottom. This thing is going back to $4 a share. From there it could easily tread water for some time until oil demand grows up again or another catalyst moves it off the $4 plateau. Thoughts?
Got my 2014 1099 and MHR-PD tax treatment shows it as a qualified dividend. Maybe the company is paying with 'profits' and will not treat the dividend as a non-dividend distribution. I'll wait until April for the final word.
Pre-market has pps up 3%.
ERF didn't have an excessive yield a year ago,
and now once again it has a cautious dividend yield : ^ (
I hold a few energy stocks and now they all have done about the same div cut, and they have all had pps move up when they announced the cut. I've been investing for over 32 years and I cannot recall such pps up moves with dividend cut announcements. Mr Market has a strange sense of humor. Yes, I know all the arguments, strengthening the balance sheet etc, but 'normally' a div cut gets hated.
As I said, "normally a div cut gets hated". The price action today says many investors have sold after the initial relief rally. Early buyers today got shaved 4%. With a cut investors ask, "What is the history of restoration when commodity pricing returns?"
The new lower 4.75% yield will not attract much income investment. Oil down big today, no catalyst until OPEC says they will cut production (in June?), while the 4Q results were fine, still, ERF is just another energy play stuck with whatever the market says.
Now is the time to buy more energy property. If they do a secondary it will be put to work buying more producing wells. Kind of like a REIT secondary to buy more income property. It sets a floor in the pps, a good time to buy shares.