Probably. Kelsey will buy what he can, where he can, when he can ----and sort it out later. Follow the money--All roads lead to ETE. That's where Kelsey has the bulk of his own personal money---and that's why eventually Kelsey will figure a way for most of the money to go in that direction.
I have owned ETP since 09 and bought PVR now RGP and very pleased with both. I wanted to talk about Stripes stores in my town, Lubbock Texas. Several new Stripes stores in new growing part of Lubbock, people stand in line for the food. They are very busy and doing well. Lots of construction workers I have talked to eat there every day and say food is very good. It is cooked fresh right in front of you. Lots of gas bays, I fill up there and I am going to go early to avoid the lunch crowd and try the food there soon. Stores are clean and run well, all seem to be doing very well. Thought owners might be interested. A corporate district office is 2 blocks from my house, I see it every day. Nice to see your money at work!
I have my doubts about structure simplification process - buying Susser does not make things simpler. I believe one analysis asked the question about "wouldn't buying Susser be more complicated?" and ETP said something to the effect of "it is not easy keeping things simple - doing business things get complicated" I believe that was in the first quarter conference call.
I really do not care in the end, my accountant does my taxes and I just try to make money. I am just glad ETP has increased the distribution to .02 instead of .015.
Sentence by sentence --
1) You haven't received a K-1 because you bought this year. The 2014 K-1 will be issued in March 2015 for you to be able to do your 2014 taxes.
2) The distribution for an ETP (which is an MLP _Master Limited Partnership) is totally a Return of capital. You are a partner in the ownership of ETP and you are entitled to your share of the ROC distributions and you get a credit for your share of the company's expenses. For all these benefits it will reduce your taxable purchase cost and most of the distributions are TAX DEFERRED as long as you own the partnership units and don't sell. If you pass away your heirs will normally receive a step up in value to the value at the date of your death. While you are alive you can spend the ROC distributions with little taxes (if any) payable or reinvest the income (also with no tax) into additional units and receive more income (again with little or no tax)
3)Thats why they have tax accountants. Be smart USE ONE- It will be very beneficial to own MLP's in your portfolio --Mainly due to the fear of the tax complications of people like you. It is always easier to follow the herd to tax slaughter than to find and follow a better and safer path. I'm sure you went to school years ago to learn something. Now its time to go back and learn something thats important to your pocketbook.
retired_forever_more, it's a wonder you're retired. no offense, but your question displays a complete lack of knowledge of the situation. doesn't matter where the 6.6% comes from, you just get it. it's like molecules in a pipeline. how does a unit of natgas get from texas to transco zone 6 in new york? when you figure that out you have the answer to your stupid question.
generally (typically), you will receive both, ROC and distributions from earnings, if there are any earnings. You really need an accountant for K-1 tax management, especially the year in which you sell your position.
I bought some ETP this year so haven't received a K-1 yet. I'm wondering if they are paying their 6.6% distribution from earnings or is a lot of it return of capital. I'm not sure I should have gotten involved with this due to tax complications. Thanks for any replies.
How long do you want to hold either company? Understnad if ETP or RGP have any problems or stop growing rapidly then ETEs ability to increase their distribution would fall. Remember ETE mostly gets $$ from ETP, RGP and SXL. ETE is leveraged and thus subject to that risk. FWIW I own ETP, RGP and ETE. how risk tolerant are you. Any bad news and ETP goes down 3 or 4 points, but ETE goes down about 10.