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Albert Alfonso

 
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  • McDonald's - A Nearly 4% Yield Now On Sale [View article]
    rdtuck,

    It depends. Some quarters, FCF covers both items. Other quarters, it does not.

    MCD has a pretty solid balance sheet, so adding debt is not really an issue, especially with rates so low.
    Oct 23, 2014. 02:27 PM | Likes Like |Link to Comment
  • Update: American Realty Capital Properties Closes Sale Of Shopper Center Portfolio [View article]
    Yiwen Nni,

    The market did not like ARCP's Summer equity offering and is still digesting the recent moves. This is an income vehicle so do not expect a spike higher, rather a gradual multiple expansion.
    Oct 21, 2014. 04:01 PM | 1 Like Like |Link to Comment
  • The Curious Case Of BreitBurn Energy Resource Partners' Failed Senior Notes Offering [View article]
    Bob,

    That is not at all what I said. Also, you are quoting out of context. I am discussing the BBEP/QRE deal and why I would vote "No", not the E&P MLP rout.

    QRE/BBEP have been linked since the merger announcement, with QRE trading at the exchange "price" of BBEP times 0.9856 plus a 5% or so discount.

    As for if QRE would have been crushed, absolutely it would have. Heck, even VNR, arguably the most conservative, got hammered. It was a market panic. I would argue that we are now seeing panic buying towards the upside too. Volatility sucks for income investors...


    Oct 20, 2014. 10:41 PM | Likes Like |Link to Comment
  • The Curious Case Of BreitBurn Energy Resource Partners' Failed Senior Notes Offering [View article]
    ClubFord,

    You seem to be missing the point entirely.

    The value being offered by BBEP via its units "the currency" has come down significantly. QRE's current value is completely irrelevant as the market trades them inline with each other due to arbitrage.

    IMO, if this transaction were to occur, the "New BBEP" would be a less valuable company than the current QRE.

    QRE has more of its production hedged, a better distribution coverage ratio (1.10x versus 0.86x), and a higher yield.

    This is not to say that I dislike BBEP. Only that I like QRE more.
    Oct 20, 2014. 06:30 PM | Likes Like |Link to Comment
  • Update: Atlantic Power - From Bad To Worse [View article]
    That explains today's pop...
    Oct 16, 2014. 05:05 PM | Likes Like |Link to Comment
  • QR Energy: Don't Buy The Hype About A Distribution Cut [View article]
    Whitney,

    As a QRE unitholder, I am hoping for an adjustment in the exchange ratio. However, this is very unlikely to occur. BBEP is buying QRE in an all-equity transaction. There units have also been hammered unfortunately.
    Oct 16, 2014. 12:42 PM | Likes Like |Link to Comment
  • The Curious Case Of BreitBurn Energy Resource Partners' Failed Senior Notes Offering [View article]
    Junky,

    Regarding the debt offering,

    The stated reason was to pay down the revolver, not to refinance any of the older existing debt.

    As to the use of the term "failed", BBEP tried to issue debt and did not succeed due to market conditions.

    Regarding the QRE exchange ratio,

    This is a mater of opinion, so not really worth debating much on a public forum. However, do note that I suggested selling QRE back in July in order to lock in profits. I still hold a "rump" QRE position, basically my profits from the initial premium.

    http://seekingalpha.co...

    I agree with you that both QRE and BBEP are equally undervalued. Also, fears of a distribution cut are way overblown. I actually have an article in the pipeline which discusses BBEP and its hedging policy. The stocks have thankfully rallied 10 to 15% as of this writing.
    Oct 16, 2014. 12:18 PM | Likes Like |Link to Comment
  • The Curious Case Of BreitBurn Energy Resource Partners' Failed Senior Notes Offering [View article]
    bobdbus,

    The "currency" BBEP was using for the transaction has been devalued. That QRE is also down does not really mater much to the discussion. If the sale were to happen at current prices, I would be against such a deal as it would undervalue QRE's assets. However, this is largely a moot point. The big players in QRE (former GP) want the deal done.
    Oct 15, 2014. 08:14 PM | Likes Like |Link to Comment
  • The Curious Case Of BreitBurn Energy Resource Partners' Failed Senior Notes Offering [View article]
    Quazog,

    The initial announcement had a consideration 40% above that level.
    Oct 15, 2014. 04:26 PM | Likes Like |Link to Comment
  • Atlas Resource Partners: What Does The Recent Transaction Mean? [View article]
    Pablo,

    ARP is certainly cheap enough to merit a buyout. The entire upstream sector is getting crushed...
    Oct 15, 2014. 03:34 PM | 1 Like Like |Link to Comment
  • Atlas Resource Partners: What Does The Recent Transaction Mean? [View article]
    I am not sure where you read that I was suggesting ARP may cut its distribution. To clarify, ARP was left out of the deal as its assets do not fit into a midstream MLP structure.

    As to the distribution, ARP is well hedged through 2017.
    Oct 15, 2014. 03:32 PM | 1 Like Like |Link to Comment
  • The Curious Case Of BreitBurn Energy Resource Partners' Failed Senior Notes Offering [View article]
    Both BBEP and QRE are very well hedged. I would be shocked if distributions were cut.
    Oct 15, 2014. 10:08 AM | 3 Likes Like |Link to Comment
  • The Curious Case Of BreitBurn Energy Resource Partners' Failed Senior Notes Offering [View article]
    2. The weak sisters of OPEC are screaming to get the price of crude back to $100 or better. The alternative for their countries is blood in the streets.

    This is totally true. Iran and Venezuela have both been asking for a meeting ASAP to discuss oil prices.

    The "oil glut" is mostly imaginary outside of the US. Just look at what Libya, a minor oil producer, did to the market. There is a reason why refiners have locked in production at $90 per BBL...
    Oct 15, 2014. 10:07 AM | 2 Likes Like |Link to Comment
  • The Curious Case Of BreitBurn Energy Resource Partners' Failed Senior Notes Offering [View article]
    The merger is subject to a unitholder vote.
    Oct 15, 2014. 10:02 AM | 3 Likes Like |Link to Comment
  • ConocoPhillips: A Solid 4% Yield Now On Sale [View article]
    The OPEC members are divided. Venezuela and Iran want higher prices while Kuwait and Saudi Arabia want to maintain market share.
    Oct 14, 2014. 08:47 PM | Likes Like |Link to Comment
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