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Douglas E. Johnston  

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  • Will Boardwalk Pipeline Partners' Struggles Bleed Over To Other MLPs? [View article]
    the waterfall table remains as is...so no IDRs will be paid out....they could have reintroduced a subordination period, as some suggest, but that is a bit far fetched....
    Feb 12, 2014. 09:25 AM | Likes Like |Link to Comment
  • Boardwalk Blows Up - $3 Billion Of Market Value Evaporates In One Day [View article]
    Just because mlp's distribute all their free cash flow does not mean earnings are not useful...doesn't depreciation matter? Doesn't an mlp investor have to participate in the periodic offerings to maintain ownership? Implying that mlp's require some special, different form of analysis is patently false ... For too long mlp investors have looked only at dcf
    Feb 11, 2014. 08:37 PM | 1 Like Like |Link to Comment
  • Boardwalk Blows Up - $3 Billion Of Market Value Evaporates In One Day [View article]
    Poclerk there really is not much diff btw an mlp and c corp as some would like investors too believe...imagine a c corp that had lots of depreciation and returned all free cah flow as dividends and then would go to capital markets a few times a year to fund growth and acquisitions....mlp's receive an unjustifiable low yield as investors ignore the fact that much of what they receive is return of capital. If they do not recycle back into the new equity then they effectively get diluted....
    Feb 11, 2014. 08:32 PM | 1 Like Like |Link to Comment
  • Disaster Strikes For Boardwalk Pipeline Partners [View article]
    no offense but considering an author on MF or even SA as "trustworthy" seems a tad naive....there are so many pumpers and bashers and just click-seekers that any "advice" should be carefully reviewed.
    Feb 11, 2014. 10:30 AM | 2 Likes Like |Link to Comment
  • Disaster Strikes For Boardwalk Pipeline Partners [View article]
    take a look at Ron Hiram's work on BWP and you will see that it was fairly obvious that BWP was improperly valued and, given their asset locations (etx/la) it was clear that renewals were going to be poor as those gas fields are unproductive at NG sub 5....
    Feb 11, 2014. 10:27 AM | Likes Like |Link to Comment
  • MLP Brokerage Analysts Are Worthless [View article]
    just consider the underwriting fees that are paid by distributing all your cash and coming to the capital markets year in and year out...
    Feb 11, 2014. 10:23 AM | 2 Likes Like |Link to Comment
  • Disaster Strikes For Boardwalk Pipeline Partners [View article]
    DRIx - well said
    Feb 11, 2014. 10:22 AM | Likes Like |Link to Comment
  • Disaster Strikes For Boardwalk Pipeline Partners [View article]
    my understanding is there are no IDR payments at this distribution level
    Feb 11, 2014. 10:21 AM | Likes Like |Link to Comment
  • Disaster Strikes For Boardwalk Pipeline Partners [View article]
    impairments & one time sales in '13
    Feb 11, 2014. 10:17 AM | 1 Like Like |Link to Comment
  • Disaster Strikes For Boardwalk Pipeline Partners [View article]
    BPaone323 - do u think value investors would be interested in an MLP that at $5 would be trading at 30% of book value (which undoubtedly is inflated some) and with a fwd PE of 5.8 and a dcf yield of 30%? I would agree with you if income investors were the only creatures out there but I think a $5 call is somewhat out there.....
    Feb 11, 2014. 10:14 AM | Likes Like |Link to Comment
  • Disaster Strikes For Boardwalk Pipeline Partners [View article]
    gene - i think the big issue was bwp assets in the haynesville, where production is drying up until NG persists in 5-6 range (hedgeable)....
    Feb 11, 2014. 10:10 AM | 1 Like Like |Link to Comment
  • Disaster Strikes For Boardwalk Pipeline Partners [View article]
    Doc...it may be a bit of a generalization but I do not think it is over...and I am not sure such low cost of equity that many mlp,s enjoy instills capital discipline...also, mlp seems to be the preferred means of monetizing PE assetsand other spin offs...i find many mlp,s valued more like a c corp are typically overvalued and i dont buy into that mlp,s are different....but really my points was that mlp,s are short tail options that retail investors do not fully appreciate....the need to come to capital markets all the time can lead to disastrous results during tough times like bwp today....

    But thx for the comment and I will look at some of those names u mention.kit
    Feb 10, 2014. 08:09 PM | Likes Like |Link to Comment
  • A Closer Look At Boardwalk Pipeline Partners' Distributable Cash Flow As Of Q3 2013 [View article]
    robin - so where do you get that 80-90c from...seems like they could lose say another 50mn in DCF for renewals in '15 but maint capex maybe be a tad high at 100mn (stuff left over from '13 into '14). and then they have southeast coming on line late '14 (how much does that add?)....so maybe looking at 350mn in DCF for '15 as low estimate? 1.40ish a share ... i guess the one issue is the 525mn in debt due in '15 that will have to get refunded....I'm trying to get some info on where there debt trades but it must be private...
    Feb 10, 2014. 04:11 PM | Likes Like |Link to Comment
  • Disaster Strikes For Boardwalk Pipeline Partners [View article]
    MLPs involve huge tail risk as seen today. The idea of distributing all cash flow and funding growth through equity/debt is flawed. It works great when the cost of equity is cheap and u issue north of book value but once that goes away, the model fails. Their hope is by giving away all cash they can get the cost of equity cheap by getting retail to bid up units based on "yield"....a scheme by any other name....
    Feb 10, 2014. 04:02 PM | 3 Likes Like |Link to Comment
  • End Of The Road For Boardwalk Pipeline Partners [View article]
    doc - I've shied away from midstream so no opinion on EPB (yet)
    Feb 10, 2014. 03:21 PM | 2 Likes Like |Link to Comment
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