mktply - The money does not all flow to ETP (think you meant ETE) but instead ETP needs to get the balance sheet repraired and get the corporate structure helped. Last quarter if you look around low NGL pricing and flat differentials made for low increases for the players compared to prior years. What you are forgetting is ETP has an irregular pattern of earning/DCF and they need to be able to cover with earnings that include some of the deferrals that will start going away in 2 years.
Progress is being made each quarter, just a bit slower than all would like. The earnings will be interesting. The again so will trying to translate the way they report it. Still do not understand why ETP cannnot report a NET DCF number so you do not need to subtract all the payments they make. Clearer is better.
Agree ... they need to clean up the Balance Sheet ... it's just painfully slow ... I think when you see the Gas Stations go, we may have some hope ... I just worry about Kelcy and another deal thereby postponing a DCF bump
***... ALL the money cant possibly flow to ETP ***
Actually it does. ETE is the GP and ETP is the LP. The LP pays distribution rights tto the GP at the rate of 50% over the minimum distribution.
In fact ETE owns "MILLIONS OF ADDITIONAL ETP SHARES THAT ETE HAS WAIVED REGULAR DISTRIBUTIONS ON IN ADDITION TO THE EXTRA INCENTIVE DISTRIBUTIONS FOR A FEW YEARS GOING FORWARD" This was done because ETP couldn't afford to pay those distributions much less the incentive distributions that ETE is entitled to at the time.
Do some Due Diligence to find out what you own and the relationship between ETP and ETE
All the current deals management are making are to unwind the complicated corporate structure that has evolved over the years.
ETE units are rising in price more rapidly than ETP because more and more people are beginning to understand what has been created here and where the money is headed.
The cardinal rule of investing IS TO FOLLOW THE MONEY. People bought ETP over ETE because the distribution yield percentage was higher that ETE. However the growth was in ETE. ETP hasen't raised the distribution in 5 years. The eventual scenario probably will be that ETP will buy-out ETE at a HUGE PREMIUM if management can simplify the structure of the entities involved and figure a way to make it happen
A call to Investor Relations could help clarify the situation.