Not surprising that APL increased by only .01 for last quarter. With a large percentage of POP contracts and ethane mostly in rejection they are hurting like all the others in the NG processing arena. From OKS to EPB and KMP distribution increases were a tad lighter this quarter. Until we either get the economy on track or more industrial projects that utilize NGLs completed - or both - the distributions are going to increase but slowly and we are according to several of the processors looking at similar conditions until 2014. Guess slow and steady is good!
Hopefully, we'll see NGL pricing start to firm up. NG pricing has been a positive the past few months.
APL should start to see cash from the expansion this quarter and even more the second half. With the acquisition it appears we won't start to see growth until 2nd half of 2014. Hopefully they will lay out a timeline in terms of how they intend to grow this new system.
How? We are producing more ethane in the US than we can use in industry. We also cannot transport all of it. Thus it is going to take at LEAST one year until industrial plants are completed and the distribution system grown.
As to the acquisition - If they do not see cash from the TEAK buy then they are in deep trouble. Hope you did not mean that comment as being serious. The problem with APL is way too many POP contracts and paying too much for acquisitions, but then the Cohens are famous for screwing up acquisitions, hedging and other things.