Tuesday, August 01, 2017 10:30:12 AM
4+4= 10.
No, you say? Well, now.....let's just consider that in a different world, 2+2= 5. So we've now pinpointed a deciding factor that will skew all possible deductions, right?
My issue with Ford lies in its recognizing that CEQP has not been the cash generator of, say, five or six years ago. My response would be: "What MLPs have managed to continue their earnings platform in a continuing pattern if we go back to pre-energy sector "heartburn" onsets? I contend it is not realistic to measure by this exceedingly simplistic premise regardless of the logic.
I also smell the absence of Ford in CEQP's book management. This is to say that Ford doesn't appear to be closely allied and aligned with the company's deal-making. We need to be ever vigilant when it comes to sensing manipulative reasons for strong assertions clearly moving in contrary motion.
Finally, CEQP's appeal to most retail investors will center on distribution amounts/yield and DCF coverage. In short, are distributions sufficient for the retail crowd to find appealing longer term and if so, how sustainable is the payout schedule? In CEQP's case, coverage doesn't get much better. From the 8-K filing of this morning, our company reversed the prior reporting period's loss to a small but important profit. It's the reversal that has my attention. As for distributable cash flow (DCF)? Cash flow paid to us unit holders is measured in terms of sustainability. We recognize this as "coverage," meaning that the company has money to cover the expense of paying us the 60 cents we'll receive on the 14th of this month. Coverage is 1.5 times what they are paying out! This is far better than necessary to keep this happy camper eating.
It's important that we investors read between the lines as there will be occasions on which analytical companies will deliberately skew things for whatever their intent. It is for us to understand. I hope this helps somebody.
Addendum: My analysis above started with the inordinate rise in valuation apparent out of the chute when trading began this morning. My thinking is that there were enough investors out there who not only want to capture the fat distribution that will be locked in very shortly, but they are also digesting content such as you'll find above in this missive. either way, it's so nice to see our units traveling well above $25. I've been expecting as much and it's always reassuring to find things assembling in like fashion in the minds of others.
Have a good day!
Recent CEQP News
- Energy Transfer and Crestwood Announce Preliminary Election Results of Crestwood Preferred Unitholders • Business Wire • 11/01/2023 12:00:00 PM
- Energy Transfer and Crestwood Announce Preliminary Election Results of Crestwood Preferred Unitholders • Business Wire • 11/01/2023 12:00:00 PM
- Crestwood Unitholders Approve Energy Transfer Transaction • Business Wire • 10/30/2023 08:05:00 PM
- Crestwood Announces Receipt of Requisite Consents With Respect to its Previously Announced Consent Solicitation • Business Wire • 10/24/2023 08:59:00 PM
- Leading Independent Proxy Advisory Firm Glass Lewis Recommends Crestwood Unitholders Vote “FOR” the Transaction with Energy Transfer • Business Wire • 10/23/2023 12:00:00 PM
- Energy Transfer and Crestwood Announce Election Deadline for Crestwood Preferred Unitholders to Elect Form of Merger Consideration • Business Wire • 10/23/2023 11:30:00 AM
- Energy Transfer and Crestwood Announce Election Deadline for Crestwood Preferred Unitholders to Elect Form of Merger Consideration • Business Wire • 10/23/2023 11:30:00 AM
- Crestwood Announces Extension of its Previously Announced Consent Solicitation • Business Wire • 10/20/2023 11:00:00 PM
- Leading Independent Proxy Advisory Firm ISS Recommends Crestwood Unitholders Vote “FOR” the Transaction with Energy Transfer • Business Wire • 10/18/2023 12:00:00 PM
- Crestwood Announces Extension of its Previously Announced Consent Solicitation • Business Wire • 10/18/2023 11:00:00 AM
- Crestwood Announces Quarterly and Special Distributions • Business Wire • 10/12/2023 09:09:00 PM
- Crestwood Announces Filing of Definitive Proxy Statement in Connection with Pending Energy Transfer Transaction • Business Wire • 09/29/2023 09:31:00 PM
- Crestwood Announces Commencement of Consent Solicitation • Business Wire • 09/27/2023 12:00:00 PM
- Energy Transfer and Crestwood Announce Expiration of Hart-Scott-Rodino Act Waiting Period • Business Wire • 09/26/2023 12:00:00 PM
- Energy Transfer and Crestwood Announce Expiration of Hart-Scott-Rodino Act Waiting Period • Business Wire • 09/26/2023 12:00:00 PM
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