You can contact them via thier conpliant/suggestion line for message boards, but i have never seen them do anything about a thing like this. Don't you have access to another chart? Easier to use that. Got to remember lots of data on Yahoo is wrong, not just for EPD.
PS - I do suggest you go to the National Association of Publically Traded Partnerships and read their primer. It is more complete and accurate than my answer.
Distributable cash flow is basically EBITDA minus interest, taxes, and capital expenditures for maintanance. Where you are having trouble is all of the additions (investments) they make in new pipes, processing plants and such. I do note that EPD will have approximately $3.8B in DCF for 2014 and will only pay out about $2.4B in distributions. Free cash flow subtracts $$ invested. It has a positive effect on DCF because the new projects create more $$. Also EPD assets while depreciating are actually almost always appreciating because of ever higher construction costs and barriers to construction. Capex does NOT come from operations but instead from borrowing. For example if EPD builds $6B worth of stuff in 2014 it will issue about $.8B worth of equity, retain about $1.5B in cash from operations and issue about $4B in debt at about 3.5%. The debt cost is about$140M a year. The additional units have a distribution of about $30M. They average a return of about 15%-20% on their new organic builds or about $1B. Thus they have almost $800M more to add to the distribution pot each year with a growth of $6B in EV a year.
"...in a few months..." turned out to be wrong. It took more like a few days or, in some cases, a few hours. Margin calls probably went flying out to the shorts on the way up, too.
I've been trying to figure out how to get Yahoo to correct the EPD chart. They show 2 splits, on Aug 21 and again on Aug 22, which makes the long term charts useless. Does anyone know how to contact Yahoo to try to get them to correct their mistake? Thanks.
I know with pipeline companies you should not look at earnings, but rather cash flows. Even still, I don't see how all these MLPs, EPD included, can continue to pay out and raise their distributions. Their free cash flow over the last several years has not come close to covering the distribution. I know they use a "distributable cash flow" metric, but can someone explain to me how that is different from free cash flow? If capex continues to be as much as cash flow from operations, yet they are continually paying and increasing distributions, something has to give. Yes, I know this why they issue shares and take on debt. But obviously debt has to be repaid eventually, and just issuing shares to pay distributions is a ponzi scheme.
If you are just going to respond "you need to do some research on MLPs" please do not respond. Just asking if someone is willing to have this discussion with me.
You're absolutely correct about irrational sellers. Put the emphasis on IRRATIONAL! Buffoons like Jim Cramer like to sow the seeds of panic in order to get attention. They thrive on creating their own news on CNBC in order to sustain their ratings. It costs them nothing to be wrong, but it does cost those who succumb to their fear-mongering. Cramer et. al. did, however, create a fabulous opportunity for level-headed investors to pick up some terrific bargains.
Here's my take. From the intraday high to the intraday low, the broad market dropped almost exactly 10%. By definition, that's a "correction." The market may re-test the recent lows, but I believe they will hold. Unless something untoward occurs, we will be in for a brief period of consolidation which will open the door to a full-blown resumption of the secular bull market we are presently in. MLPs trade very much in their own universe, as evidence by the trading last week. Some corrected by well over 10%, but the reversal was just as dramatic as the sell-off. Take a look at MMP, as a good example. From the recent intraday high of $87.50 to the intraday low on Tuesday of $66.36, it corrected by well over 10%. Within 3 days, MMP was back up to $81.48. Some MLPs have very thin markets that provide unusually wide spreads that can give patient traders some great opportunities to grab bargains. It takes some guts (and cash), but having open orders, laddered down, well under the market, can prove to be extremely profitable. When the price starts to collapse, don't panic and cancel your orders. Leave them alone. Don't let buffoons like Jim Cramer cause you to panic. Set up your own game plan, and stick with it. Stop watching CNBC. Turn off your computer. Take a laxative. Watch a movie. JMHO.
Until about two weeks ago, I was severely under-invested in stocks. Sentiment had gradually turned overwhelmingly positive, investors were complacent, and all memories of 2008 seemed to have been erased. During the past week, I did some very aggressive buying in names that I had been watching carefully. EPD and MMP had been on my radar, so I put in orders very substantially below the market. As the orders got executed, I put in new orders even lower. I didn't get everything I wanted, but that's part of the game.
When I was selling in 2007, I had a premonition that the country would have a catastrophic mortgage crisis that would cause a stock market crash of biblical proportions. Shortly after LEH went bankrupt, and Obama was elected, I was confident that we were at or near the bottom. We're not going to see another 2008/09 this time around, but this correction was long overdue. The pendulum always swings too far. The trick is to guess how much too far it might go. The talking heads are all using words like "reflex rally" to describe days like Friday (10/17). I take that as a good sign that the correction is nearing its end. The panic selling will eventually turn into panic buying by those who can't afford to miss the next big move up. Money managers don't get paid the big bucks to be sitting on cash when prices are soaring. A year from now, this correction will look like a little blip on the charts that will have been forgotten about by most people. In the meantime, some of the charts look like shark's teeth.
These last couple weeks made me wish I had more cash on hand to invest but it's almost all invested! And I can't find anything I want to sell.
I've been in this game long enough (50+ years) to know that junk goes down and stays down. Quality goes down with the junk but bounces right back. I live for markets like what we've had in the past couple of weeks. That's when I do my buying. I was like a kid in a candy shop in late 2008 and early 2009. I had gotten out it late 2007... a little too early, but better too early than too late. When I told people to get back in, they were like deer in the headlights. They were paralyzed by fear that the whole country was going down the toilet, so they sat on the sidelines until most of the recovery had run its course. Knowing when to get out is great, but knowing when to get back in is even better. For most people, the best strategy is to not sell... just go along for the ride. That's why I tell most people to keep the major part of their money in something like VTI and forget about it.
At the present rate, the DRIP people will end up buying at a much higher price than if the distribution had been payable early this week.
so you pumped it to retirees while you were dumping it and denying its risk
What a guy
You're being way too pessimistic and showing signs of panic. Get control of yourself. When I see posts like yours, I know the bottom is near. Panic is the greatest enemy of your wealth. Buying opportunities like this don't come alone often enough to suit me, and I'm taking full advantage of this one while there's time. Put your open, limit buy orders in well under the market, and just stop watching it. I bought MMP that way at $67 yesterday, and look at it now.
EPD has been up and down the last few days along with all the other MLPs. Agree with the laugh at MLPL - now down even more as of 11am this morning.
hey numb nuts what makes you think I still own it I sold in the 70's hope it goes to a 15% handle I'll buy it back.