It's amazing to me, BBEP, another upstream, reported .69 coverage this quarter, and although the unit price got hit, it recovered smartly this morning, and is trading more than a point of yield lower than QRE. Meanwhile, QRE covered, which is good considering it wasn't a stellar quarter and everyone was concerned about the new expense arrangement, which can't get any worse, and should get better. And QRE is 100% hedged for the near term, and aggressively hedged out. Yes, there is a dilution event in 2014, but to assume a sponsor hasn't factored that in when it set distributions is absurd. It just doesn't make sense. This continues to be the best buy in the upstream space, and it's been that way every since it dropped out the 20's last year. You would think the market would wake up eventually.
What is the supposed distribution hit supposed to be in cents per share (or percentage) of the current distribution? Also, what is this other upstream MLP you mentioned above that is trading a point lower than QRE but paying almost as good a distribution, if I understood your posting correctly.
Ya that's interesting considering BBEP was downgraded by two big Wall Street firms days before earnings. The Street hasn't changed ratings on QRE but investors are still reluctant. Credit Suisse still maintains a buy.