I just checked on the MWE cash flow and income statement for 2012. The total gross revenues sales were 1.4B while their Cap Ex was 1.95B. This is amazing which means they are spending 1 dollar to search for 70 cents of sales revenue. KMI has 10B in sales and 2.1 B in Cap Ex while EPD has 42.5B in sales vs. 3.6B for Cap Ex. Clearly EPD is the much safer MLP. I don't see how MWE can stay in business. I sold my MWE and KMI and am still long EPD.
Three years from now, after all the capex has been spent and their processing plants are up and running, they will be making 6 times the revenue they are getting now and presumably spending little in capex (unless they are building more). You've got to spend money to make money.
Value creation is the measure of greatest importance in evaluating investing in any energy company. It is not unusual for fact growing energy companies to spend more in capital than their revenues for several years in a row. Take a look at fast growing GPOR which is one of MWE customers. They have spent approx 2 times plus greater in capital in the last three years than the revenue they have generated. There are many more examples so it is time to shut this topic down
I was shocked to see it. Remember gross sales is before you subtract expenses. You can never make money if you pay more in Cap Ex than what you sell your product for. In analyzing a company you have to see if their business model makes sense. Good luck to you and others as I sold my MWE for a large profit. I just wanted to bring this to people's attention.