Owned SUN years ago and sold it, stagnant. Bot ETP recently only b/c all the nos. added up that ETP was going to be a BIG winner. With SUN's recent announcement of earnings, it is difficult to comprehend why they sold. Will someone get canned over this sellout? Appears SUN was taken advantage of. ETP will prosper and so will SUN.
I agree that the purchase of SUN is a great move by ETP. They paid a fair price and the structure of it still allows SUN shareholders to benefit going forward , in that they get part cash and part stock. Having examined the deal, I also note that it is a mutual benefit, ie the combined assets of SUN and ETP are better together from a profit standpoint and thus are better for both set of shareholders to be combined. SUN did the right thing to take the offer, it was a good deal for them too.
We know this for sure. Cramer, says lots of folks are mad at ETP management for the secondary because they don't think they needed the money. In that case the dividend is safe for sure. It makes you wonder if ETP is actually going to stash some cash for an acquisition instead of floating the secondary after the acquisition is made. That's my guess.
I hope so too...but I wouldn't worry about it. This thing is not like CPNO or something like that, where covereage is an issue. The DCF is strong and should only get stronger as these newer developments take root. GL.