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BP Midstream Partners LP (BPMP)
NYSE - Nasdaq Real Time Price. Currency in USD
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466 reactions on $BPMP conversation
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Looks like it's done
My issue is the loss of div income. What compensates the shareholder for that?
Last one out turn out the lights
When does the takeover close ?
The SEC filing concerning the merger states that BP and BPMP will coordinate their actions such that a BP dividend is not payable on ADRs issued pursuant to the merger in order to prevent BPMP holders from double dipping
Perhaps this means that BPMP will get a dividend for Q1? If anyone can read the SEC filing and understand this aspect clearly, please post
The Department of Interior is singularly responsible for the rise in gas prices. They have gone from the Department of Everything Else to the Department of Nothing Else and enemies of the American People and the American Economy! Congress needs to impeach all the political appointees in Interior and replace them with Americans that can actually do what the department was designed for.
What’s your take on the drop in BPMP price due to Ukraine invasion. Is it a good buy at $17.30?
Distribution for 2021 Q2 is unchanged:
BP Midstream Partners LP (“BPMP” or the “Partnership”) today announced that the Board of Directors of BP Midstream Partners GP LLC,the general partner of the Partnership, declared a quarterly cash distribution of $0.3475 per unit for the second quarter of 2021, consistent with the level of distribution for the first quarter 2021.
The second quarter 2021 distribution will be payable on August 12, 2021, to unitholders of record as of July 29, 2021, with an ex-distribution date of July 28, 2021.
This is the rough calculation for BP:
— at around $3/ADR of earnings, expected for FY2021, they have an earnings yield of 12% currently
— the current earnings yield on the BPMP units is around 12% as well
— but the existence of the BPMP public partnership is a costly nuisance for BP as BPMP places a lot of obligations and related expense (separate arms length governance and org structure, outside auditors, lawyers, tax accountants, etc)
— and finally there is information pertaining to their operations that leaks out via the BPMP disclosures (you can make educated guesses as to what one of their biggest refineries in the US is doing based on the published throughput numbers in the BPMP onshore pipelines)
So when you combine all of the above, at some low unit price (say $14-15), it makes sense to terminate the public partnership, which in any case is being consolidated into BP’s financial results based on their majority ownership
Saves money, simplifies everything and keeps operational flow information confidential; what’s not to like?
My guess is that they will come out with a tender price in the range of $14-15, and perhaps pay that in the form of BP ADRs (this part I don’t get, as BP just announced an ongoing share repurchase program, so why add to outstanding shares? Why not just take the BPMP units out for cash?)
BPMP declared another distribution increase on July 17 to .3237. Yield is 8.2% Seven quarters in a row of increases, with more to come.
Reading various research pieces and commentaries, there are two paths for BP to get this done without resorting to its ‘limited call’ right
— submit the final negotiated terms to the conflicts committee of BPMP and have it rule on whether BP can vote its units (which already constitute a majority)
— if the conflicts committee rules in favor, then the vote becomes a formality and the deal is basically done as submitted (this is not to be confused with the $13.01 initial offer)
— if the conflicts committee determines that BP cannot vote its shares (this is a low likelihood event but can happen when the CC regards the terms of the BP offer to be patently unfair to minority unit holders), then a vote will be held where only the non BP unit holders will be asked to vote, which is a longer process and will obviously involve various public communications
— an altogether separate process for BP to buy out the minority unit holders is to acquire enough units, one way or another, to overcome the threshold (80%) for it to exercise its limited call right, and then call the remaining units
Hi all, would like to seek some opinions here.
I have bought BPMP in recent months, enticed by the big dividends and attractive SP.
However, recently, at Telsa battery day, I learnt that they have plans to introduce US$25k EV to compete in the market. I understand there are still multiple issues with EV, from the cost, charging time, range, lack of charging infrastructure etc.
Still, as I research further, many automakers are pouring their money into EV research and more EV models are coming. Future EV models and infrastructure will improve going forward. In addition, many countries will start to ban the sale of gasoline and diesel vehicles from 2030.
Also, recently, BP Energy Outlook 2020 indicated that oil demand has reached its peak.
As BPMP transports curde oil, so it will be impacted severely by the decreasing oil demand. Land transportation comprises of 66% oil demand.
What do you all think about BPMP's prospect in 20 years time, in 2040?
Can we hold long-term which is my plan?
There is a ‘limited call’ mechanism that the general partner has that allows them to purchase the partnership units they don’t already own; it is triggered by the sponsor ((BP) having at least 80% of the outstanding units; the GP can issue enough new units to BP to satisfy this requirement and trigger the call; this new unit issuance does not require a vote of the unit holders
From memory, the repurchase price in that event is based on the average unit price over the prior 90 days (?), I believe, so it is basically a smoothed market price
This is the only way BP can take out the minority partnership unit holders (probably why the proposal from this morning characterized the offer as ‘non binding’), and it is where this is transaction is headed, most likely
This is a professional British enterprise; they will do the ‘fair thing’; the potential for reputational damage is too great otherwise
Maybe some easy $ here with little to no downside risk? Another distribution and min of $13.01 buyout with opportunity for higher.
Distribution of $.3475 declared, no mention of BP offer.
About a month away from another distribution increase to about $1.40 annually...almost a 10%yield...
Results looked awesome
BP Midstream Partners Reports Fourth Quarter & Full Year 2019 Results | Press office | BP Midstream
I really feel like I must be missing something. BPMPs income (I think) comes mostly from transporting domestic oil and gas production. The drop in oil price should not affect the domestic volume being transported, at least in the short term (maybe very long term if we stop drilling due to low oil prices). The transportation fees are contacted very long term, Why such a low multiple? Seriously, where is the risk I'm missing?
In all likelihood, the conflicts committee is having a back and forth on the amount as well as the form of consideration (BP ADRs) offered by BP to acquire the minorities; there are two securities to be valued in this situation instead of one
It is probably less about actual price being offered versus establishing a defensible analysis and any resulting PR risk
When the Deepwater Horizon spill incident was being resolved, BP effectively deployed arguments around how BP is a staple in UK pensioners portfolios and therefore deserves leniency (remember how bankruptcy was a real threat?)
This same consideration is applicable in reverse now; BPMP is mostly a retirement income play for US pensioners, and BP probably does not want to be perceived to be adverse to that angle
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