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Philip Trinder

 
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  • Atlas Energy: A Mispriced Equity That Is A Unique Value Play [View article]
    Dan,

    The record date for ATLS distributions paid during the first quarter of the year (so the distribution paid for the fourth quarter of actual performance) is typically February 6th through the 10th, as shown here:

    http://bit.ly/1qD5Ibz

    So if the M&A deal closes before the end of January then that distribution is unlikely to be paid to current ATLS owners.

    Best Regards,
    Phil
    Dec 12, 2014. 01:14 AM | Likes Like |Link to Comment
  • Why Is Plains All American Pipeline Down So Much? [View article]
    alschroed,

    The upstream producers typically sell the oil at the delivery point into the pipeline. The customer risk is really more from the other end of the pipeline. Here is the Customer concentration information from page 32 of PAA's most recent 10-K:

    "Customers

    Marathon Petroleum Corporation and its subsidiaries accounted for approximately 15% of our revenues for the year ended
    December 31, 2013 and approximately 16% of our revenues for each of the years ended December 31, 2012 and 2011. ExxonMobil Corporation and its subsidiaries accounted for approximately 13%, 13% and 10% of our revenues for the years ended December 31, 2013, 2012 and 2011, respectively. Phillips 66 and its subsidiaries accounted for approximately 11% of our revenues for the year ended December 31, 2013. ConocoPhillips Company (prior to the spin-off of Phillips 66, which was effective May 1, 2012) accounted for approximately 10% of our revenues for the year ended December 31, 2011. No other customers accounted for 10% or more of our revenues during any of the three years ended December 31, 2013, 2012 and 2011. The majority of revenues from these customers pertain to our supply and logistics operations. The sales to these customers occur at multiple locations and we believe that the loss of these customers would have only a short-term impact on our operating results. There is risk, however, that we would not be able to identify and access a replacement market at comparable margins. For a discussion of customers and industry concentration risk, see Note 13 to our Consolidated Financial Statements."

    Source: http://bit.ly/1zMnybV

    Best Regards,
    Phil
    Dec 9, 2014. 09:29 PM | Likes Like |Link to Comment
  • Top December Income MLPs: 5 Lowest-Priced High Yielders Show 21% Edge [View article]
    MotorD1212,

    NKA is very likely to cut its distribution, here's the key quote from their most recent quarterly conference call:

    "However, in light of the continuing challenging conditions in the natural gas storage market, the board is reviewing the distribution level going forward and it is likely that the distribution will be reduced beginning this fiscal third quarter or suspended if current market conditions persist."

    Source: http://seekingalpha.co...

    It may be better to assume that NKA has 0% yield going forwards.

    Best Regards,
    Phil
    Dec 7, 2014. 04:09 PM | 1 Like Like |Link to Comment
  • Crude Oil Price Drop Has Overly Large Ripples [View article]
    Dirk,

    Just a quick heads up that Compressco Partners LP (correct symbol GSJK) changed its name and ticker symbol on December 1 to CSI Compressco LP (CCLP).

    Here's a link to the 8-K filing: http://1.usa.gov/1tMTurZ

    Best Regards,
    Phil
    Dec 3, 2014. 11:25 AM | Likes Like |Link to Comment
  • Will Linn Energy Post A Windfall Profit For Q4? [View article]
    Hello Tim,

    The MTM on the future hedge positions is based on comparing the forward hedge contracts to the futures prices as of the end of the quarter, so it takes into account the futures prices all the way through 2018. The entire futures curve is also always moving around and can move differently than spot prices (or typically the nearest month futures contract they like to put up on CNBC).

    Oil Futures: http://bit.ly/12oiUq1

    Nat Gas Futures: http://bit.ly/Irfoya

    Realized hedging results are the hedge contracts that actually expired / settled during the accounting period shown in the financial statement.

    LINE is generally unlikely to cash in any of its forward hedge positions because those forward prices are used by the bank group to help determine the Borrowing Base (which in turn controls the availability LINE has under its Revolving Credit Facility). So as long as those hedge contracts are at prices higher than the bank group's internal "price decks" the hedges are extremely beneficial when the banks' calculate LINE's Borrowing Base (typically scheduled twice a year in April and October, although the Company and the bank group can each call for a review at any time).

    Best Regards,
    Phil
    Dec 2, 2014. 04:11 PM | 3 Likes Like |Link to Comment
  • BreitBurn Energy Partners: Trend Points To A Break For Energy MLPs [View article]
    Hi Clayton,

    In the hindsight is 20/20 category, it looks like the perfect time to sell QRE was right after the BBEP announcement.

    All of the Upstream MLPs are extremely risky and decreasing oil prices and high leverage make things more difficult.

    S&P rates BreitBurn's debt B+ (corporate) / B- (unsecured bonds) with a negative outlook so the combined entity really needs to do an excellent job of enhancing the production of its assets as efficiently as possible (especially since BBEP just announced a distribution increase when they closed the QRE deal).

    Best Regards,
    Phil
    Nov 24, 2014. 01:39 PM | Likes Like |Link to Comment
  • BreitBurn Energy Partners: Trend Points To A Break For Energy MLPs [View article]
    And actually they paid zero distributions for four quarters until reinstating it at $0.375 after 1Q2010 (paid in May 2010).
    Nov 24, 2014. 12:12 AM | Likes Like |Link to Comment
  • BreitBurn Energy Partners: Trend Points To A Break For Energy MLPs [View article]
    Also wall street viewed that drop in 2009 as a 100% reduction in the distribution on a quarter over quarter basis.
    Nov 24, 2014. 12:05 AM | Likes Like |Link to Comment
  • BreitBurn Energy Partners: Trend Points To A Break For Energy MLPs [View article]
    Casey,

    You may want to recheck BBEP's distribution history: http://bit.ly/11Plfu3

    Best Regards,
    Phil
    Nov 23, 2014. 10:15 PM | Likes Like |Link to Comment
  • Kinder Morgan: Is The Merger Actually Bad News For KMP Unitholders? [View article]
    Rudester,

    You say the following in your comment: "If you sell the KMI stock received right after receiving it, the sale is tax free (as the market price will be just about your KMI cost basis)."

    Your statement is incorrect unless you are talking about KMR shares held in an IRA (or any type of tax advantaged account):

    For KMR holders their historical cost/tax basis will be their cost/tax basis for the KMI shares that they receive in the exchange when the deal closes, so if they have held KMR in a taxable account for a long time and then sell the KMI shares they receive they will have substantial taxable gains.

    Best Regards,
    Phil
    Nov 19, 2014. 05:12 PM | 1 Like Like |Link to Comment
  • Kinder Morgan: Is The Merger Actually Bad News For KMP Unitholders? [View article]
    rlp2451,

    That's wrong. The cost/tax basis of KMR shares held will not change and there is no step-up or reset from exchanging into KMI shares at deal closing (since it is a tax free exchange of shares for shares, just like any time any C-Corp buys another C-Corp with 100% stock for stock). There is no concept of a "sale" of KMR shares involved in the transaction when exchanging KMR shares for KMI shares.

    The reason KMP and EPB holders are getting a taxable event (and as a result a new tax basis the day of closing) is that KMI is a C-Corp tax entity buying MLP tax structured entities so it is a change of tax entities that means KMP and EPB unit holders get "sale" treatment for tax purposes when the deal closes and they receive cash and C-Corp shares. This also means that KMI will be the entity that gets to step-up the tax basis of the underlying physical assets held by KMP and EPB and then KMI will use that very large tax shield the transactions generate to reduce its taxable income going forwards.

    And then for the added future benefit, KMI will then own a large basket of excellent MLP qualifying assets with a high and stepped-up tax basis. So if KMI wanted to it could then create and IPO a new "high-growth drop-down MLP with a large and strong investment grade GP / sponsor" with those stepped up basis assets and start an MLP with IDRs all over again...

    Best Regards,
    Phil
    Nov 19, 2014. 03:11 PM | 2 Likes Like |Link to Comment
  • Kinder Morgan: Is The Merger Actually Bad News For KMP Unitholders? [View article]
    rlp2451,

    Ah my apologies, when you made this statement: "your KMR shares will be considered as sold this year" I incorrectly assumed you were saying that the KMR/KMI part of the deal would be viewed as a "taxable sale of KMR shares."

    Since the exchange is tax free for KMR into KMI no taxing authority will consider any KMR shares as "sold this year" unless the investor actually goes out and sells them in the open market.

    So to clarify things, who or what entity do you think will view the "KMR shares as sold this year" when the deal with KMI closes?

    Best Regards,
    Phil
    Nov 19, 2014. 02:11 PM | 1 Like Like |Link to Comment
  • A Yield Play Without Any Yield? [View article]
    JCCIII,

    You're welcome. It looks like ABY will send a 1099-DIV, also here is some key language from page 63 of the prospectus:

    - Distributions to U.S. Holders of our shares may be fully taxable as dividends

    It is difficult to predict whether or to what extent we will generate earnings or profits as computed for U.S. federal income tax purposes in any given tax year. If we make distributions on the shares from current or accumulated earnings and profits as computed for U.S. federal income tax purposes, such distributions generally will be taxable to U.S. Holders of our shares as ordinary dividend income for U.S. federal income tax purposes. Under current law, if certain requirements are met, such dividends would be eligible for the lower tax rates applicable to qualified dividend income of certain non-corporate U.S. Holders. While we expect that a portion of our distributions to U.S. Holders of our shares may exceed our current and accumulated earnings and profits as computed for U.S. federal income tax purposes, and therefore may constitute a non-taxable return of capital to the extent of a U.S. Holder’s basis in our shares, no assurance can be given that this will occur. We intend to calculate our earnings and profits annually in accordance with U.S. federal income tax principles. See “Taxation—Material U.S. Federal Income Tax Considerations.”

    - If we are a passive foreign investment company for U.S. federal income tax purposes for any taxable year, U.S. Holders of our shares could be subject to adverse U.S. federal income tax consequences

    If Abengoa Yield were a “passive foreign investment company” within the meaning of Section 1297 of the IRC (a “PFIC”) for any taxable year during which a U.S. Holder holds our shares, certain adverse U.S. federal income tax consequences may apply to the U.S. Holder. Abengoa Yield does not believe that it will be a PFIC for its current taxable year and does not expect to be a PFIC for U.S. federal income tax purposes in the foreseeable future. However, PFIC status depends on the composition of a company’s income and assets and the fair market value of its assets (including, among others, less than 25% owned equity investments) from time to time, as well as on the application of complex statutory and regulatory rules that are subject to potentially varying or changing interpretations. Accordingly, there can be no assurance that Abengoa Yield will not be considered a PFIC for any taxable year.

    If Abengoa Yield were a PFIC, U.S. Holders of our shares may be subject to adverse U.S. federal income tax consequences, such as taxation at the highest marginal ordinary income tax rates on capital gains and on certain actual or deemed dividends, interest charges on certain taxes treated as deferred, and additional reporting requirements. See “Taxation—Material U.S. Federal Income Tax Considerations—Passive foreign investment company rules.”

    Best Regards,
    Phil
    Nov 19, 2014. 12:22 PM | 2 Likes Like |Link to Comment
  • Kinder Morgan: Is The Merger Actually Bad News For KMP Unitholders? [View article]
    rlp2451,

    The exchange of KMR shares into KMI shares is a TAX-FREE exchange, so your statement is incorrect.

    Best Regards,
    Phil
    Nov 19, 2014. 11:35 AM | 9 Likes Like |Link to Comment
  • A Yield Play Without Any Yield? [View article]
    Here is the company that the article is referring to: Abengoa Yield, plc (ABY).

    Investor Fact Sheet: http://bit.ly/1oZM0Gc

    Here is a link to the press release they put out last Friday: http://bit.ly/1oZM1Kd

    The article title is completely misleading, ABY does pay a dividend. As they clearly explained in their IPO prospectus the prorated dividend for 2Q14 would be added to the 3Q14 dividend because the company was only public for about 2 weeks in the second quarter (since the IPO priced on June 12).

    Prospectus: http://1.usa.gov/1oZM3BE (See "Cash dividends" on page 30)

    Also from the 3Q14 press release, linked to above:

    "Third quarter dividend approved by the Board of Directors, payable together with the initial pro-rated dividend already approved, for a total amount of $0.2962 per share.

    Raises 2015 Dividend per Share guidance by 18% from $1.36 to $1.60 per share."

    As investors it is much better to get into the habit of finding and reading the original source content from the actual companies themselves, a cursory glance at "Yahoo Finance, Google Finance, Nasdaq.com and Motley Fool" is never enough due diligence.

    I have no position in ABY (and have not done any analysis on its valuation) but it looks like buying it at $21 on Friday was a decent move, since it is now trading near $28 (up 33% in 3 trading days from Friday's low)...

    Best Regards,
    Phil
    Nov 18, 2014. 03:35 PM | 5 Likes Like |Link to Comment
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