ces,Firstly, I don't think an acquisition will happen, unless it...

ces,
Firstly, I don't think an acquisition will happen, unless it really compelling.
Management would assess it at lower oil prices, I'll pluck a couple of numbers out of the air, say $50 to $60.
The criteria may be something like the following....
Based on a conservative production profile....

1. at $50 oil, it would have to be self-funding, i.e., free cashflow pays off debt financing. We keep getting the same distributions, and distributions would increase once debt reapaid.
2. at mare than $50 it would be generating excess cash that INCREASES cash available for distribution to shareholders from day one.
3. at less than $50 short-term distributions would be reduced to service debt, but would be available once debt repaid
4. at significantly lower oil prices, say $35, distributions would be less than would have been the case without an acquisition.

Obviously, distributions from our existing assets are very dependent on the oil price.
The impact of a "cracker" acquisition would leverage current distributions, e.g., at current oil prices, distributions could be higher than pre-acquisition..
As I said, I don't think that they will find a "cracker acquisition/read cracker price" in the current high oil prices environment.
Unlikely to get a meeting of the minds between seller and buyer.
If we were an Operator, maybe it would be possible.

In summary, to me a cracker acquisition means higher rather than lower distributions in the short as well as long term.
Obviously there would be increased risk: price of oil and rate of production (although more assets can reduce overall production risk).

I'll say it again, an acquisition is unlikely, but if they do find a "compelling" opportunity, then it should be a positive.