I disagree that it is the toss of a coin. MMP was the first MLP to take out its GP... being the first it did the takeout at 11x ebitda which in today's GP takeout world was a real bargain (BPL had to pay over 20x ebitda to buy out its GP).
MMP just completed a huge acquisition of BP assets and due to much lower financing costs combined with better metrics the deal is way more accretive than thought just 90 days ago.
LONG TERM. Taking out the GP should result in lower finance costs and higher DCF for shareholders.
The exception may be NRGY which had no choice but to take out its GP as its fundamentals have deteriorated badly of late.
But MMP, EPD, and BPL should prosper nicely. I expect all 3 to be able to grow DCF to shareholders by 5% for the forseeable future.
Ferdie....what are your thoughts on owning a large portion of ones holdings in MLP's? I have become quite disillusioned over regular divy stocks that have lost too much value(PPL) or have cut the divy(SUSQ). I currently own just BPL and FGP...thanks in advance