. 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.
so B&W I can summarize you are backing off of you .03 quarter distribution increase position for the time being. again if we see .01 to .02 quarter that will be adequate for the time being to me with the growth potential they are trying to achieve. arb and others what do you feel now about .01 to .02 range as adequate?