Comments for MLP HINDSight

Comment on Are you the Keymaster? MLP Issuers and Banks to Avoid by Indiabulls Online Trading | Forex Pros Tip

Indiabulls Online Trading | Forex Pros Tip — Sun, 20 May 2012 04:53:20 +0000

[...] LeapPad Explorer Learning Tablet (Green) best deal online Review LeapFrog LeapPad ExplorerAre you the KeymasterThe best Review LeapFrog LeapPad ExplorerLeapFrog LeapPad Explorer Learning Tablet (Green) best deal [...]

Comment on Week Thoughts: MLPs Drubbed, Last Week Dubbed by wj

wj — Sat, 19 May 2012 16:13:00 +0000

No doubt we are seeing the inverse affects of the “rising tide lifting all boats” axiom in the MLP price action lately. My take is that a big part of the run up in MLP prices over the last year is the result of new investors piling on in search of yield but not really understanding the the true nature of MLP distributions. As this money exits positions and suddenly realizes that their distributions weren’t actually dividends in the true sense, but rather return of capital that simply reduced their cost basis, the effect of which, will result in taxable gains rather than expected tax losses. Having said this, well managed MLP’s may now favor the debt market at record low rates to fuel their growth rather than dilute equity holders by recklessly issuing additional units that may fall into weak hands. –wj

Comment on Heinz vs. Hinds: Taxes on Foreign MLP Investors by click here

click here — Sat, 19 May 2012 08:18:15 +0000

Webblog Link…

[...]just after you will find the hyperlink to a bit of an[...]…

Comment on MLP Over Unders: Place Your Bets by blog

blog — Sat, 19 May 2012 07:58:30 +0000

Valuable Site…

[...]placed under you will see the link having a on the internet services that[...]…

Comment on Heinz vs. Hinds: Taxes on Foreign MLP Investors by http://cordovagilberte.purehost.com/

http://cordovagilberte.purehost.com/ — Sat, 19 May 2012 07:22:51 +0000

Blog Link…

[...]followed down the page there may be the website link towards a[...]…

Comment on MLP Over Unders: Place Your Bets by www

www — Sat, 19 May 2012 06:57:23 +0000

Blog Link…

[...]followed on this page there is the web site link towards a[...]…

Comment on MLP Over Unders: Place Your Bets by HCG Diet

HCG Diet — Sat, 19 May 2012 03:21:17 +0000

Great information…

This can be superior. Persons checked out every single group video material so we are astonished. We are curious about one of these merchandise. Only appreciate each of your input, and cost the effort inside this. Please keep enhancing. They are slight…

Comment on Column: MLPs Hitting the ATM by Hinds Howard

Hinds Howard — Fri, 18 May 2012 12:18:00 +0000

WJ -
Thanks for the comment, that OKS deal was very unusual. OKS did in fact raise $474.2 in gross proceeds ($459.8) from the public offering, and then raised $459.8 million in proceeds (no bank fees involved, so OKE bought at the net price of the offering, a 3.0% discount). OKE must have thought OKS stock was going to provide it with a better return than deploying that capital within OKE, and had an extra $459.8mm sitting around.

The original 7mm offering was oversubscribed and so OKS decided to increase its public offering to 8mm, hence the different numbers on different days. Here is the press release that has the description of what happened.

Separately, the GP of an MLP always has the option during an equity offering to contribute the requisite amount of capital to maintain its 2% ownership stake and not have it diluted down as a result of the new equity. So, in the press release, you will read the $19.4 million of additional capital OKE contributed to maintain its 2% stake.

Hope that answer helps, let me know if anything is unclear.

Comment on The Elusive MLP Free Lunch, or The AMLP Sucker Bet by Mutual Funds | Mlp Mutual Funds | | Top Online ResourcesTop Online Resources

Fri, 18 May 2012 03:58:58 +0000

[...] The Elusive MLP Free Lunch, or The AMLP Sucker Bet | MLP HINDSight [...]

Comment on Column: MLPs Hitting the ATM by wj

wj — Thu, 17 May 2012 19:36:00 +0000

Hinds,
As an active investor in various oil and gas MLP’s I value your insight. I understand the need to frequently raise new capital to facilitate growth to compensate for their distribution outflows. I am good with that, provided that the expected return on new capital exceeds its cost. But I remain troubled by the lack of transparency and and lack of effort to communicate their plan and expectations with unit holders. For example, I own OKS and on Feb 27 they issued a 424B3 registration that says:

“We are offering
7,000,000 common units representing limited partner interests to be sold
in this offering. We will receive all of the net
proceeds from the sale of such common units. Concurrently with this
offering, we will also be
selling 7,000,000 of our common units to
ONEOK, Inc. in a private placement at a price per common unit equal to
the public offering price, less the
underwriting discounts and commissions.”

Then they followed up with a 424B5 registration on Feb 29:

“We are offering
8,000,000 common units representing limited partner interests to be sold
in this offering. We will receive all of the net
proceeds from the sale of such common units. Concurrently with this
offering, we will also be selling 8,000,000 of our common units to
ONEOK, Inc. in a private placement at a price per common unit equal to

the public offering price, less the
underwriting discounts and commissions.”

Does this mean that they are trying to sell 15MM new units and raise another $900 MM and why are they concurrently selling an equivalent amount of common units to the General Partner?

So far, your blog is the only place I have found that attempts to clarify and shed some light on the highly complex financial maneuvers between the General Partners and the Limited Partners. Any comment here? –wj