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MarkWest Energy Partners, L.P. Message Board

  • buyandwin buyandwin Aug 17, 2012 2:16 PM Flag

    MWE Announces Closing Of Unit Offering

    MarkWest announced the closing of the 6.9M Unit offering

    This should probably pay for another few pieces of MWE's NorthEast Infrastructure buildout that will ultimately lead to their dominant 60% share of the NE Infrastructure buildout.

    That is the current project per centage that has been disclosed SO FAR.


    I think there is a lot more coming, so we will need more patience. I hope everyone here realizes that history is being built right now, right in front of our eyes and later when they write the books on this massive undertaking, we will not believe it.

    Transcontinental RR in 1880's-NASA to the Moon in 1960's and now MWE gobbling up 60% or more of the NE Energy Infrastructure--The only difference is MWE is doing it without Government Money


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    • So it has been about a month now--wonder when the next secondary will be announced, maybe after the elections? Maybe January?

      • 1 Reply to lner2512
      • . We, as investors want the company to grow the business and increase the quarterly distributions. MarkWest pays out the bulk of their DCF to their unit holders in growing distributions. To fund the growth MWE has to, from time to time sell additional units or borrow money to fund the growth projects that if done correctly wqill increase the DCF so they can increase the distributions to us the unitholders. As long as MWE uses the funds wisely they will be able to increase distributions to the unitholders making MWE a good investment. For your information MWE has raised the annual distribution 220% from $1.00 at the IPO in May 2002 to the current $3.20. That is a 13% CAGR. in addition the price has risen from the $10 IPO price to the current $54.53 .
        The August unit sale was at $50.72 . So the unit price has advanced about 7.5% since the offering in August. I have owned MWP (Merged into MWE) and MWE for the past 8 years and have captured the bulk of the unit price and distribution growth

        So IMHO MWE is using the funds properly and for the benefit of the unitholders. Thats why I have an investment in Mr Semple and his management team that runs MWE all these years.

        So, in answer to your question, I welcome an announcement of an additional unit offering and/ or a note offering. It will signal me of additional distribution increases coming in the future. These growth initiatives have increased my quarterly distribution income in the past and hopefully I expect them to continue to do the same in the future.


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