I agree. FGP has been a dead company for years. It yields so much because investors know that they won't get any capital appreciation and therefore they won't pay a high multiple on the stagnant distribution. MLPs are growth vehicles and Jim Ferrell never got the picture. Look at Overland Park based Inergy Partners (NRGY). These guys have grown the distribution by about 15% a year for the past 4 years and the capital appreciation that unit holders have gotten has probably outstripped the cumulative distributions that FGP holders have gotten in the last 12 years. Most investors don't understand that the market place pays top dollar to own a growth name like Heritage Propane (that is now known as Energy Transfer Partners (ETP)). ETP has essentially doubled their distribution in about 4 years and the unit price has shown similar appreciation. One final observation, Irik Sevin, the former CEO of Star Gas was very similar to Jim Ferrell in the fact that he bought a lot of companies but could never raise the distribution and in the end, he blew the company up. FGP is in a precarious situtation because it has such a high cost of equity capital due to the fact that the yield is so high) and they already have a high debt to cap ratio.
rrb1981 - You don't know what you're talking about. Jim Ferrell does get the picture...many of the guys running those other companies you mention learned the business from Jim Ferrell. He has been a leader in the industry time after time.