What SXL means to ETP.
For those of us trying to translate this increase to ETP here goes an attempt. It is a bit complicated as some of the increase is at a 37% split and some at 50%.
The distribution is going up .03. .075 of the increase is at a 37% IDR split and the other .0225 at the 50% split. Using 103M units outstanding this means an additional $1M on the 34.4% of SXL that ETP owns and an IDR of $450K on the 37% split amount and $1.550M on the 50% split amount. The GP got $21M last quarter so ETP will receive about $25M this quarter. Note my figures could be off +/- $1M.
The big deal is this means about $120-130M for ETP in dcf from SXL in 2013. That is about .10 per unit per quarter.
There is a typo - .075 should be .0075. The rest is correct. Would guess no change but good coverage in the 1.05-1.1X area in what will be a tough quarter for midstreamers with ethane effective worth zero. Could go up a bit. The problem is if they raised but only to say .90 then they get slammed for having a meaningless increase. Almost better to hold on till next quarter. Also have no idea how to calculate the contribution from "holdco" or the other SUN assets owned seperately.
I know you love this bond but 4 and 3/4 years of same distribution is the classic carrot in front of greyhounds. Maybe sometime in the 5 year mark they will raise it by a penny and then knowing them will give you another SO.