P.M. BRIEFING : Mesa to Halt Cash Distribution
Mesa Limited Partnership, the energy company run by takeover strategist T. Boone Pickens, announced today that it will stop paying unit holders a cash distribution next year because of low prices for natural gas, which accounts for 80% of its holdings.
Mesa said it will pay its 37.5-cent distribution for the fourth quarter but will “discontinue cash distribution to the common units until industry conditions and cash flow improve.”
The news sent Mesa units tumbling in active trading on the New York Stock Exchange, where prices fell $1.12 1/2 to $7.87 1/2.
The announcement is the second time this year Mesa has cut its distribution. In March, the partnership cut its payout from 50 cents per unit. To maintain that high distribution, Mesa had used stock profits and asset sales to cover any gaps.
More to Read
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
