tag:blogger.com,1999:blog-4815867514277794362.post7539384836271825592..comments2024-03-08T06:18:28.125+11:00Comments on Bronte Capital: Further exploring the capital intensity of Alliance ResourcesJohn Hemptonhttp://www.blogger.com/profile/03766274392122783128noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-4815867514277794362.post-74374513698115952622013-03-19T17:57:16.163+11:002013-03-19T17:57:16.163+11:00While EBITDA may be high because of capitalized ex...While EBITDA may be high because of capitalized expenses, it trades at under 5x 2013 EBITDA, right? Which isn't expensive by any means. They are actually distributing cash and not raising more equity as well. However they have distributed more cash flow than they generate (I define generate as OCF-ICF) each of the last two years. Low or negative OCF-ICF is not uncommon in the commodity game (drillers, coal, iron ore, etc.). I've never fully understood how these companies continue for long periods of time without generating positive cash flow. When they are structured as an MLP and are distributing high amounts of cash flow (essentially net income), investors seem solely focused on the yield and not on whether or not their are underlying cash flows to back it up.Akhttps://www.blogger.com/profile/09646479250565629294noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-47555648499305873242013-03-18T17:50:51.889+11:002013-03-18T17:50:51.889+11:00John
we need some sort of a catalyst -- a clear ...John <br /><br />we need some sort of a catalyst -- a clear boundary beyond which this is not sustainable: the moment when they can no longer keep paying ever rising distributions, better yet -- when they have to cut or eliminate it. i don't see it. do you?Ionsonnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-74278725666464749702013-03-16T09:28:21.812+11:002013-03-16T09:28:21.812+11:00Maybe they just dig stuff up from deeper in the gr...Maybe they just dig stuff up from deeper in the ground? This does not seems that convincing so far.Makrointelligenzhttps://www.blogger.com/profile/07305478203133746792noreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-10073723584571325982013-03-16T08:49:54.658+11:002013-03-16T08:49:54.658+11:00it's all very interesting, of course, but at t...it's all very interesting, of course, but at the end of the day... look... i have avoided investing in ARLP because i didn't like the look of the accounts... instead i went for other high yielding mlps whose accounts i did like... YTD... i might as well have invested in ARLP. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-24346219078127120922013-03-16T06:44:57.253+11:002013-03-16T06:44:57.253+11:00totally off topic, Sears Holding company has a lot...totally off topic, Sears Holding company has a lot of job postings for Real Estate people...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-7616307967656646132013-03-15T19:26:31.510+11:002013-03-15T19:26:31.510+11:00Why are
Mining equipment and processing facilitie...Why are<br /><br />Mining equipment and processing facilities of 1435 <br /> <br />Property, plant and equipment, at cost of 2362<br /><br />separate line items?<br /><br />ps there is a typo in your account of Peabody indicating that there was a change between 2000 and 2000.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-77208399462528870502013-03-15T14:20:29.704+11:002013-03-15T14:20:29.704+11:00"In 2000 Peabody had $5.2 billion of property..."In 2000 Peabody had $5.2 billion of property, plant, equipment and mine development"<br />...<br />"By 2000 Peabody had 15.4 billion in gross PP&E"<br /><br />Looks like the second one refers to 2012.dedenoreply@blogger.comtag:blogger.com,1999:blog-4815867514277794362.post-46896392294159315612013-03-15T07:07:14.195+11:002013-03-15T07:07:14.195+11:00BTU's geology could not be more different from...BTU's geology could not be more different from AHGP.<br /><br />The PRB accounts for most of the volume... you simply don't need that many machines to dig that stuff out vs some deep underground Illinois Basin mine.<br /><br /><br />Comp it to an Eastern coal miner -- CNX, WLT, ANR, etc.Anonymousnoreply@blogger.com