I am curious about this and also why the stock did not move with increase in the price of oil and natural gas. I like stock and looks like the company is moving forward witih some impressive new project that will increase production shortly - but why is growth rate for next year flat to negative? Any answers to some or all of these questions would be much apppreciated.
EEP pays a distribution, not a dividend. The distribution reduces your basis so no federal tax is paid until your basis is at 0 or the tax year you sell the shares. Deferred taxation is a big advantage of MLP's. Unfortunately, slowing demand for oil and natural gas in the U.S. is negatively impacting this stock. I will be buying below 45 based on the long term trading range and my personal need for fixed income.
mtks for your infmtn on how the tax is handled for eep. i have been wanting to buy eep for a long time but the tax consequence always inhibited me until your xplanation. i do have a question and hope you will answer it: if, as you say, the tax is deferred until the cost basis is zero or the year when sold, will the distributions be taxed as ordinary income?