OMP Acquisition--First of Many in the US Energy Infrastructure World

Hey Subscriber,

While we are pounding out the Ultra Growth Portfolio Playbook 2022, our Ultra Income position OMP accepted a take-over offer from their neighbor in the Bakken Shale and other locations Crestwood Equity Partners (CEQP) which historically has been like a blend of an energy infrastructure private equity + midstream infrastructure owner-operator.

What to do with your LP units?

My advice is to keep them...the combined companies will be able to raise the combined dividend 5-10% with the new OMP capacity and I think CEQP can back to the $32-$34 range that OMP ran to this year (a run as I have said in hindsight that driven by strong OMP stock buybacks, we should have taken our 3-to-1 return, sold at $34 and waited for a pullback (which we, of course, ultimately got).

But on the other hand, it is pretty dang cool to have a $10.22 cost basis on the new combined units since we already have a 21% yield on our OMP units--beats working!

Here is the full conference call on the acquisition 

Here is the CEQP investor deck on the acquisition as well.

This is the final pitch from Crestwood Equity Partners on the call this morning

" I just want to highlight all of the commercial operational and financial objectives that we think we're meeting with this transaction. I think you'll see as we efficiently integrate the business in the first quarter of next year, assuming we get a smooth close, then we're going to have a much bigger platform in the Bakken.

We'll be a bigger player in terms of financial scale across all of our basins. We'll have a significantly greater free cash flow to make some opportunistic and strategic decisions with, which could include expanding our presence in the other basins that we operate, where we have identified similarly situated opportunities, or just continuing to return capital to our investors through either distribution increases or stock buybacks." 

Attention Investview Preferred Shareholders INVUP

Finally, DTC has approved the INVUP shares for trading. Currently, they are listed on the OTC platform and B. Riley Financial is in the process of setting up market making for the shares. 

Right now I understand INVU is planning on opening accounts for all INVUP shareholders on their soon-to-be-introduced LevelX trading platform. You will be able to trade them on LevelX or move them to your trading platform of choice.

The closing date is all that is left in this DTC listing process.  

Sent: Thursday, October 21, 2021 8:20 AM
To: UW_Email_Notifications@dtcc.com
Subject: Approval of Issue CPS210927066, Closing Date: N/A *
 Issue Id: CPS210927066
Expected Closing Date: N/A
Issuer: INVESTVIEW INC
Sub Issue Type: Preferred Stock 
Series Id: N/A

DTC has completed the Eligibility review and approved the above issue.