anyone worried about the $17 billion in debt/payout ratio of 300%
Interest rates are going to go up over the debt situation in Washington.
And once the Chinese, Japanese and others that loan us all this money
by purchasing our bonds want another 1-2% more for the declining value
of the dollar denominated bonds, all interest rates are going to be higher.
Imagine ETP when they have to refinance the debt at 2% more.
Finally, I would prefer a payout ration not exceeding 100%.
ETP has a rate close to 300% according to Yahoo finance.
Two things. The payout ratio to DCF is a tad under 1X and steadily improving. Your numbers are bobus. As to borrowing costs going up there is no real worry as many of its projects have a rate component tied to a cost inflator. Also ETP earns well over an average of 10% on its projects. Agree ETP not for you as you have no clue about MLPs. ARB