Capital Gains - New Rules effective June 25 (Tuesday)In Q4 last year Kelt added 25 MMcf of gas processing, that ultimately ended up being shut down for two weeks in Q1 as the result of a plant turn around.
essentially 14 day out of 90 down, 15.55% impairment (4.0 MMcf/day)
Original 20% impairment of 34 MMcf (6.8 MMcf/day)
So in Q1 the a 25 MMcf gain, 73% they were suppose to experience at wembley/pipestone, they only realized a 41% gain in production Capacity in Q1. With essentially 11 MMcf of processing impaired.
Effectively in Q2 4.0 MMcf will be added if the explanded plant has no downtime.
In Q3 we should realize the benifits of the plant repairs and 6.8 MMcf/day will be added.
Really the cashflow engine of Kelt will be Wembley/Pipestone and until all these plant issues are stabalized and working properly, the shares could trade a little poorly.
Capital Gains
Also the Capital Gains tax is coming into effect June 25, and many people are liquidating stock to take advantage of the lower Capital gains rates. The market has been going sideways.
So we should see a better market going into next week now that this is behind us.
MHP
IMHO