Pat Sanchez is the President and COO of Sanchez Midstream Partners (SNMP). Listen to Pat describe Sanchez Midstream’s operations and what gathering, processing, and fractionation are all about.

Just a little post-script here – this stock has been a disaster! Sanchez Midstream has been the worst, and most stressful investment of my life. I’m a long-term investor in SNMP stock. That means I’ve had the pleasure of watching SNMP’s stock price decline from double digits to approximately $0.40/share today. For my listeners, I think it’s worth noting that there is significant value in hearing interviews such as this one. If you didn’t get the sense that management was optimistic about the future, maybe you didn’t listen to the entire interview. This is one conversation to remember when you hear management provide a rosy outlook while you have your doubts. I certainly had my doubts, but I also thought that the SNMP balance sheet was strong enough to withstand the near-term volatility as it related to SNMP’s sponsor, Sanchez Energy Corporation. But that clearly wasn’t the case.

Sanchez Midstream has cut its dividend three times over the past 12 months – ultimately cutting the distribution to zero. And then most recently, Sanchez Energy Corporation voluntarily filed for bankruptcy. With all the moving pieces, it goes without saying that Sanchez Midstream today is a high-risk investment and a super complicated story – one that will very likely have a binary outcome. Will Sanchez Energy Corporation’s bankruptcy result in a Sanchez Midstream bankruptcy? Will a final ruling force SNMP to adopt lower tolling fees? Should limited partners, i.e., those of us without any claim to the business outside of an economic interest, stick around to see what happens? I probably will, if only because I’ve already lost too much money for it to matter. But I also think it’s impossible to say where things shake out.