Yes, you get .9856 shares of BBEP per share of QRE. This is so at any price.
you are asking a crowd for more precision on your own prediction. This would indicate your prediction is not based upon any rigor or thorough research. Based on at least as much research, I conclude they will make money in 2015, and that even if they do not, the business will survive for decades to come and the market valuation will probably go over $1 billion before the next decade begins. That is a 5x return in 5 years, but it is probable that more than half of the move will occur before 2017 begins.
Not so sure. QRE had a great book of hedges up through 2017, which BBEP now owns. They can slow capex for production growth, and still rely on pretty high contactual oil prices.
Should be worth a nice pop.
Could it be that this is a mid cap european company traded in the US that is volatile based upon those characteristics? These prices are gifts. They are in a growing business and now priced at about 10x the low estimate for 2015 earnings. And they missed by 1c.
I am in PBF and also considering adding PBFX. I agree that it is not boring, and also that it will become of greater interest as more assets come to it. I would have already bought some if not for the PBF stake, and it still owning half the partnership.
It is based upon energy prices. A producer is priced based on production and reserves. Reserves presume a declining price going forward. This is a big issue, as all of their oil reserves are being reduced to a much lower base, and that base is still presumed to decline. The distribution may not be so safe, and continued near-term growth is certainly unlikely, but the condition is probably not so dire as the market now fears.
I believe he is quoting the 1/17/15 puts, and that is 2 months, not 2 years.
The Jan 2017 calls are cheap.
I do not know the extent of the accounting damage, but it is true that ARCP has a huge portfolio of commercial properties.