Impressive presentation..Made a strong case for Dist.growth in 2014 and beyond from today's level..They have clearly adopted a lower risk,heavily fee based Business Model..Modest,but stable growth layered on a 10% plus Dist.yield is what i'm looking @ !
But the real question is this mgmt team's competence. IMO NS and NSH should sell itself to one of the larger MLPs with better core competency. I mean buying a refinery now to be sold and getting into asphalt because governments were going to have to spend to build/repair roads?
I own MLPs since 2009 that my yield to cost is anywhere between 9 & 25% because of great quarter after quarter of distribution growth. The answer isn't to sit it out in an almost 10% yielder with zero growth. The answer is to get into say a 6-7% yield to cost that grows into a 10% yield to cost over the next few years.
And certainly invest with a management team that has'nt totally screwed everything up for partners by investing in crazy sectors like refining and asphalt.
Mgmt needs to do what took too long for ETP to do. In ETP's case they needed to dump retail propane. NS needs to dump asphalt now rather than play their salami slicing games. Just get the pain out of the way and forego bonuses and other perks as a way of sending a message of profound apology to investors.