14.03.2019, 00:21
Basic Materials | Oil & Gas Pipelines | USA
Here's the Innocent Reason Antero Midstream Shares Got Cut in Half Today
What happened
Shares of Antero Midstream (NYSE: AM) appeared to have lost roughly 50% of their value today, but that's not really what happened. Instead, the two master limited partnerships (MLPs) of Antero Resources (NYSE: AR) completed their simplification transaction today, and many of the popular stock-information dashboards have yet to update their databases.
First announced in October 2018, the plan was for Antero Midstream GP LP (NYSE: AMGP) to acquire all units of Antero Midstream LP, convert into a C-Corp for long-term tax advantages, rename the combined company as Antero Midstream (without the "LP"), and start trading on the market by recycling the latter's existing ticker. That's what happened today -- meaning units of the two MLPs no longer exist.
So what
It's a bit confusing, but the company represented by the "AM" ticker today is actually a different company than the one represented by that ticker yesterday. The important thing is that investors who owned the MLP have received compensation for the difference in valuations resulting from the simplification transaction.
It was possible to choose to receive cash, new shares, or a combination of cash and shares for each unit of the MLP that you held. If you were a former unitholder and didn't choose one of the compensation options available, then you were automatically given the default option. That included $3.415 in cash and 1.635 shares of the new Antero Midstream stock for each unit of the old MLP you owned.
Now what
Investors shouldn't panic over what appears to be an awful trading day for Antero Midstream. If you were a former unitholder, then you were compensated one way or another -- whether you made the decision or not -- for the difference in valuations stemming from the simplification transaction.
....
https://finance.yahoo.com/news/apos-inno...ax3_e4fH_Y
![[Bild: AMc1dl1820.png]](https://finviz.com/publish/031319/AMc1dl1820.png)
Here's the Innocent Reason Antero Midstream Shares Got Cut in Half Today
What happened
Shares of Antero Midstream (NYSE: AM) appeared to have lost roughly 50% of their value today, but that's not really what happened. Instead, the two master limited partnerships (MLPs) of Antero Resources (NYSE: AR) completed their simplification transaction today, and many of the popular stock-information dashboards have yet to update their databases.
First announced in October 2018, the plan was for Antero Midstream GP LP (NYSE: AMGP) to acquire all units of Antero Midstream LP, convert into a C-Corp for long-term tax advantages, rename the combined company as Antero Midstream (without the "LP"), and start trading on the market by recycling the latter's existing ticker. That's what happened today -- meaning units of the two MLPs no longer exist.
So what
It's a bit confusing, but the company represented by the "AM" ticker today is actually a different company than the one represented by that ticker yesterday. The important thing is that investors who owned the MLP have received compensation for the difference in valuations resulting from the simplification transaction.
It was possible to choose to receive cash, new shares, or a combination of cash and shares for each unit of the MLP that you held. If you were a former unitholder and didn't choose one of the compensation options available, then you were automatically given the default option. That included $3.415 in cash and 1.635 shares of the new Antero Midstream stock for each unit of the old MLP you owned.
Now what
Investors shouldn't panic over what appears to be an awful trading day for Antero Midstream. If you were a former unitholder, then you were compensated one way or another -- whether you made the decision or not -- for the difference in valuations stemming from the simplification transaction.
....
https://finance.yahoo.com/news/apos-inno...ax3_e4fH_Y