According to LNCO's 2012 Form 8937 tcm3112 is correct. Assuming the distributions for 2013 will have the same tax treatment as 2012, the 2013 distribution will be a return of capital (ROC). However, lpitzen may also be correct, we'll just have to see what the accountants determine early next year. I think more likely it will all be a ROC as that is how LNCO is set up. There are many allowances passed thru from LINE (depreciation and depletion) that account for the ROC.
BTE takes what 'wall street' thinks is a too cautious approach investing in oil fields. A good balance sheet, well covered dividend, few high risk ventures; yeah, wall street yawns. Which means that for burnt retail investors we can yawn well and sleep easier owning long term here.
For a moment you could buy LNCO for less than LINE, but that lasted for a moment. I bought more LNCO when I saw that 'non-spread' :^)
BTW, trading this morning eliminated the LINE/LNCO price difference with a nice pop by LINE.
FWIW I bought more LNCO this morning. It's like buying LINE w/o the tax hassle.
Tax treatment saves much of the headache but the small float appears to create the different value. When the BRY deal completes there will be more float LNCO so the value difference could be closer.
The article says so many good things about ERF how do they conclude it's a sell? For example: "Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company." "ENERPLUS CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago." "The current debt-to-equity ratio, 0.32, is low and is below the industry average, implying that there has been successful management of debt levels." "The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 153.6% when compared to the same quarter one year prior, rising from -$63.47 million to $34.02 million." Of yeah, sell, sell, sell ;^)
Good comments on my previous valuation metrics. Here another metric to consider:
Cap + debt / reserve BOE = per our BOE investment cost
LINE $16.89 per BOE (but so gassy)
BRY $3.5 per BOE (oil for a bargain? that can't be true!)
PGH $8.9 per BOE (trying to be more oily with the new thermal wells)
BTE $19.86 per BOE (+88%oil)
ERF $13.78 per BOE (50/50 gas/oil)
With an accommodative Fed I think investors worry less about debt load and focus more on potential. In fact bad balance sheet stocks have done better than good balance sheet stocks these last few years. So LINE could make this work, with BRY.
Looking at buying LNCO but calculating and comparing:
LINE 800Millionboe reserves with 6.5B debt
PGH 512Millionboe reserves with 1.6B debt
BTE 292Millionboe reserves with 704M debt
ERF 341Millionboe reserves with 1.0B debt
not sure LNCO buying BRY's 125Millionboe reserves with 1.7B debt improves the metric.
Is the siren call of high yield a good idea?
Note: LINE posts its reserves as 'cubic feet' so I just divided by 6,000 to make boe for an apples to apples comparison.
Navios South American Logistics agrees to store and transship mineral commodities for Vale International S.A. for a 20-year period; minimum aggregate EBITDA of $1.0 bln anticipated (NM) Co announced that it has signed a 20-year agreement with Vale International S.A. (VALE) The agreement with Vale provides for storing and transshipping five mln tons annually of iron ore, plus an option to Vale for an additional one mln tons or a total of six mln tons, with a guarantee that Vale will use a minimum of four mln tons. Navios Logistics would expect to generate ~$35.0 mln of annual EBITDA, and $1.0 billion of aggregate EBITDA over the 20-year term, assuming operating costs similar to the operating costs of Navios Logistics' existing dry port terminal.
If Navios Logistics uses the facility for initial maximum capacity, Navios Logistics would expect to generate ~$50.0 mln of annual EBITDA and $1.5 billion of aggregate EBITDA over the 20-year term, assuming operating costs similar to the operating costs of Navios Logistics' existing dry port terminal. Navios Logistics will provide storage and transshipment services by expanding its existing terminal infrastructure and investing ~$150.0 mln.
I just sold all my WY for a profit on 10/29 and started buying RYN (averaged now at 46.60) and will continue to buy much more on dips. I'd rather have fibers. Jesup expansion will boost future earnings, wait and see.
I thought the idea was for North America to be energy independent. Only way to do that is to ramp up production of oil here and stop importing from 'there'. Then compress the extra nat gas and export it. Isn't that what we're doing?
Exactly. Now bag-holders will have to wait until the deal closes next spring to see what's in the bag. Glad I got out last week at 31.11 per share. I'll wait until after the deal closes to look at WY again. I really don't want shares of TPH.
Share 'cash' of 2B divided by 582M WY shares= $3.43 = .22 share of TPH per WY share IMHO.
Then how will WY account for the 700M actual cash, $1.20 per WY share?
They will probably figure out how to keep it to pay for Longview.
What will WY pps be after the 'merger'?
Seems kind of messy to me just to 'get out' of housing.
Of course, WY is all about housing and always will be.
You must mean Plum Creek issues more shares to buy Mead's acreage, not Rayonier. Anyway, RYN's drop started 10-23 and PCL's drop started 10-28 so maybe RYN affected PCL and not the other way round? Meanwhile WY pops, go figure.
WY earns .27 when analysts expected .21 bottom line, this is going much higher, buy and hold pays here, sale of housing unit to come, more focus on growing wood products for the world, awesome