$DAKP . DD Inside.
News..
https://finance.yahoo.com/news/lone-star-valu...00570.html
9:01 am Dakota Plains: Lone Star Value responds to 'inaccurate' comments by Dakota Plains (DAKP) :
Highlights of letter (as stated by Lone Star Value):
In its press release, the co claimed "the Board & management team have completely reshaped the co & exited an extremely onerous & value-destroying joint venture structure & have protected value creation at its principal asset, the Pioneer Terminal." The co's statement seems to indicate that exiting the joint venture structure was the only step necessary to generate stockholder value; however, the value creation that the co claims to have "protected" at the Pioneer Terminal simply has not been realized by stockholders considering the co's stock is down 90% since the joint venture structure was exited
We find no merit in Dakota Plains' statement that "Lone Star Value also completely ignores the impact of the oil price collapse & the sweeping loss of value across the midstream market & MLPs." Lone Star Value is well aware of the oil price collapse & the loss of value that has occurred across the midstream market & MLPs; however, we will not let the Board hide behind this excuse, particularly as relates to the 2015 EBITDA guidance of $23.4 mln that it issued on Dec 12, 2014 & reiterated in Mar 2015
On March 2, 2015, the co reiterated its guidance in another press release. Craig McKenzie, CEO of Dakota Plains, is quoted in the release stating "our EBITDA guidance of $23.4 mln for 2015 remains unchanged."5 The price of oil settled at $49.76 per barrel on the previous trading day, down 17% from the day Dakota Plains originally issued its 2015 guidance
Oil prices were down 17% at the time the co confirmed its 2015 EBITDA guidance in Mar 2015 from when the co initially issued the guidance in Dec 2014; yet, after the price of oil had recovered 18% to approximately the same levels as when the guidance was initially issued in Dec 2014, the co retracted its guidance in May 2015
Dakota Plains' allegations are smear attacks, not facts. The facts are that Dakota Plains has dramatically underperformed, with a stock price decline of 96% during Craig McKenzie's tenure as CEO & a decline of 91% since the Board was partially reconstituted last year.
$DAKP Profile.
http://www.dakotaplains.com/
Dakota Plains Holdings, Inc. is an integrated midstream energy company operating the Pioneer Terminal with services that include outbound crude oil storage, logistics, and rail transportation and inbound frac sand logistics. The Pioneer Terminal is located in Mountrail County, North Dakota, where it is uniquely positioned to exploit opportunities in the heart of the Bakken and Three Forks plays of the Williston Basin. The Williston Basin of North Dakota and Montana is the largest onshore oil production source in North America where the lack of available pipeline capacity provides a long-term and increasing surplus of crude oil available for the core business of the company. Its frac sand business provides services for UNIMIN Corporation – one of the world’s leading producers of quartz proppant and largest supplier of frac sand to E&P operating companies in the Williston Basin. Dakota Plains was founded in 2008 and is headquartered in Wayzata, Minnesota.
http://www.dakotaplains.com/operations/
In 2009, Dakota Plains completed its initial acquisition and build out of its New Town, North Dakota transloading facility. The transloading facility is connected to the Canadian Pacific Railway. In 2011 we doubled the size of our facility and brought the on-site tank car capacity to 160. We continued adding land, taking our terminal to approximately 200 acres today. In 2013, the terminal had nearly $70M in CAPEX projects, building state of the art crude oil and frac sand operations. Dakota Plains manages all aspects of the operations at the Pioneer Terminal.
Crude Oil Operations
Crude-2Crude-6Crude-7Crude-5
Dakota Plains crude oil operations are based around two 8,500 foot loop tracks each capable of 120 car unit trains, 180,000 barrels of crude oil storage, a high speed loading facility that can accommodate 10 rail cars simultaneously, two active gathering system pipelines and transfer stations to receive crude oil from 10 trucks simultaneously. We implemented leading edge fire suppression, spill remediation and backup power generation solutions. Our terminal has also deployed industry leading automated terminal metering and accounting systems. We have commenced construction on the third 90,000 barrel storage tank, which should be operational in the Summer of 2015, enabling the terminal maintain its nameplate capacity of 80,000 barrels per day.
Frac Sand Operations
Sand-3Sand-4Sand-5Sand-6
Dakota Plains executed an agreement with UNIMIN Corporation to construct a 750,000 ton per year frac sand automated terminal in Q3 2013. UNIMIN is one of the world’s leading producer of quartz proppants, and this terminal connects its largest frac sand mine, Tunnel City, Wisconsin. UNIMIN funded the project building 8,000 tons of sand storage, four new ladder tracks with the capacity to land 70 loaded railcars and one track dedicated to empty cars. Frac sand operations commenced in Q1 2014.
Industrial Zone
The Pioneer Terminal has over 70 acres of industrial-zoned space within the double loop track and would be ideal for a laydown yard or bulk storage. Access is via a secured entry/exit point and the land has been brought to grade. The land is raw, ideal for building to suit. The space is available for long-term leasing, and ideal for shippers wanting access to rail. The Pioneer Terminal’s four ladder tracks, representing 10,000 feet of useable capacity, had previously been used for crude oil. With the Pioneer Terminal expansion (double loop track) now complete, Dakota Plains is ready to utilize of these ladder tracks and build out the industrial yard.
News..
https://finance.yahoo.com/news/lone-star-valu...00570.html
9:01 am Dakota Plains: Lone Star Value responds to 'inaccurate' comments by Dakota Plains (DAKP) :
Highlights of letter (as stated by Lone Star Value):
In its press release, the co claimed "the Board & management team have completely reshaped the co & exited an extremely onerous & value-destroying joint venture structure & have protected value creation at its principal asset, the Pioneer Terminal." The co's statement seems to indicate that exiting the joint venture structure was the only step necessary to generate stockholder value; however, the value creation that the co claims to have "protected" at the Pioneer Terminal simply has not been realized by stockholders considering the co's stock is down 90% since the joint venture structure was exited
We find no merit in Dakota Plains' statement that "Lone Star Value also completely ignores the impact of the oil price collapse & the sweeping loss of value across the midstream market & MLPs." Lone Star Value is well aware of the oil price collapse & the loss of value that has occurred across the midstream market & MLPs; however, we will not let the Board hide behind this excuse, particularly as relates to the 2015 EBITDA guidance of $23.4 mln that it issued on Dec 12, 2014 & reiterated in Mar 2015
On March 2, 2015, the co reiterated its guidance in another press release. Craig McKenzie, CEO of Dakota Plains, is quoted in the release stating "our EBITDA guidance of $23.4 mln for 2015 remains unchanged."5 The price of oil settled at $49.76 per barrel on the previous trading day, down 17% from the day Dakota Plains originally issued its 2015 guidance
Oil prices were down 17% at the time the co confirmed its 2015 EBITDA guidance in Mar 2015 from when the co initially issued the guidance in Dec 2014; yet, after the price of oil had recovered 18% to approximately the same levels as when the guidance was initially issued in Dec 2014, the co retracted its guidance in May 2015
Dakota Plains' allegations are smear attacks, not facts. The facts are that Dakota Plains has dramatically underperformed, with a stock price decline of 96% during Craig McKenzie's tenure as CEO & a decline of 91% since the Board was partially reconstituted last year.
$DAKP Profile.
http://www.dakotaplains.com/
Dakota Plains Holdings, Inc. is an integrated midstream energy company operating the Pioneer Terminal with services that include outbound crude oil storage, logistics, and rail transportation and inbound frac sand logistics. The Pioneer Terminal is located in Mountrail County, North Dakota, where it is uniquely positioned to exploit opportunities in the heart of the Bakken and Three Forks plays of the Williston Basin. The Williston Basin of North Dakota and Montana is the largest onshore oil production source in North America where the lack of available pipeline capacity provides a long-term and increasing surplus of crude oil available for the core business of the company. Its frac sand business provides services for UNIMIN Corporation – one of the world’s leading producers of quartz proppant and largest supplier of frac sand to E&P operating companies in the Williston Basin. Dakota Plains was founded in 2008 and is headquartered in Wayzata, Minnesota.
http://www.dakotaplains.com/operations/
In 2009, Dakota Plains completed its initial acquisition and build out of its New Town, North Dakota transloading facility. The transloading facility is connected to the Canadian Pacific Railway. In 2011 we doubled the size of our facility and brought the on-site tank car capacity to 160. We continued adding land, taking our terminal to approximately 200 acres today. In 2013, the terminal had nearly $70M in CAPEX projects, building state of the art crude oil and frac sand operations. Dakota Plains manages all aspects of the operations at the Pioneer Terminal.
Crude Oil Operations
Crude-2Crude-6Crude-7Crude-5
Dakota Plains crude oil operations are based around two 8,500 foot loop tracks each capable of 120 car unit trains, 180,000 barrels of crude oil storage, a high speed loading facility that can accommodate 10 rail cars simultaneously, two active gathering system pipelines and transfer stations to receive crude oil from 10 trucks simultaneously. We implemented leading edge fire suppression, spill remediation and backup power generation solutions. Our terminal has also deployed industry leading automated terminal metering and accounting systems. We have commenced construction on the third 90,000 barrel storage tank, which should be operational in the Summer of 2015, enabling the terminal maintain its nameplate capacity of 80,000 barrels per day.
Frac Sand Operations
Sand-3Sand-4Sand-5Sand-6
Dakota Plains executed an agreement with UNIMIN Corporation to construct a 750,000 ton per year frac sand automated terminal in Q3 2013. UNIMIN is one of the world’s leading producer of quartz proppants, and this terminal connects its largest frac sand mine, Tunnel City, Wisconsin. UNIMIN funded the project building 8,000 tons of sand storage, four new ladder tracks with the capacity to land 70 loaded railcars and one track dedicated to empty cars. Frac sand operations commenced in Q1 2014.
Industrial Zone
The Pioneer Terminal has over 70 acres of industrial-zoned space within the double loop track and would be ideal for a laydown yard or bulk storage. Access is via a secured entry/exit point and the land has been brought to grade. The land is raw, ideal for building to suit. The space is available for long-term leasing, and ideal for shippers wanting access to rail. The Pioneer Terminal’s four ladder tracks, representing 10,000 feet of useable capacity, had previously been used for crude oil. With the Pioneer Terminal expansion (double loop track) now complete, Dakota Plains is ready to utilize of these ladder tracks and build out the industrial yard.
