BSM

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Robert 111

Robert 111

BSM has filed to sell up to $100,000,000 worth of common units. Will this dilute our just purchased shares in value?

Igor Greenwald

Igor Greenwald

Equity sales are part and parcel of the MLP model. Whether they dilute or create value really depends on how the proceeds are invested and the cash flow that investment generates. In the case of BSM they have an opportunity to create value by infilling their own extensive Haynesville holdings in a way that lets developers drill longer and more lucrative laterals. Despite the recent weakness in energy prices I remain optimistic.

Robert 111

Robert 111

Thanks for the additional information, Igor

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