Akaralph's  Instablog

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Semi-retired consultant residing in beautiful northeast Georgia. Over 40 years of responsible experience in planning, finances and investment management. Primary focus is on portfolio development for retired (or nearly retired) individuals who do not possess great wealth. The Protected Principal... More
  • Denbury Resources and ENP 1 comment
    Nov 3, 2009 12:28 PM

    How will the acquisition of Encore by Denbury Resources affect ENP? That remains an interesting question after watching EAC's rise of 35% or so the other day after the announcement.

    If you follow ENP as I do, you know that they recently increased their quarterly distribution. It would appear that Denbury will continue as the new general partner for ENP, and that ENP will continue their E&P activites in the west, the Permian Basin and in North Dakota's Williston Basin.

    I would think that ENP's operations would complement the Denbury operations in the Gulf Coast, and that after the acquisition is completed it would be beneficial going forward. Based upon this, I can only think that ENP's shareholders will continue to benefit from a stream of increasing distributions going forward.

    Of course, now that Jim Cramer has warned that this deal is a bad one I am even more encouraged.

    Disclosure: I am long ENP.

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  • Hinds Howard
    , contributor
    Comments (33) | Send Message
    I am long ENP as well, and I agree that DNR deal should add support to ENP's growth going forward. On the conference call for the EAC deal, DNR management indicated that ENP was strategic and that GEL (DNR's other MLP) was not as strategic...it turns out GEL's GP will change control and be under the control of Quintana in a recently announced deal.
    30 Dec 2009, 09:33 AM Reply Like
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