Question : why has ete been out performing etp by such a large margin?
Somewhere down the line ETP will probably buy out ETE to eliminate the IDR's that ETE owns. That will cut the cost of capital down dor ETP going forward. To do the buy-out(merger) the ETE unit-holders will have to be compensated for ETE to give up those IDR's. That would mean a premium to be paid to the ETE unitholders of "X" amount. Could be 10%-20% or more depending upon many factors. The longer they wait to accomplish this the closer ETE gets to starting to receive the deferred distributions coming down the pike in 3 or 4 years. There are manmy complications in the interum-RGC-SXL and the SUG and SUN assets.. Most important question I think is how can ETP afford it???
Kelsey Warren is smart-- He created this So I'm sure he will figure it out. The original game plan was ALL THE MONEY EVENTUALLY GOES TO ETE. ETE will have to be sold to ETP for a big premium to make it happen.