EPD operates on the ability to finance debt. If the credit markets seize up, MLP"s have difficulty financing expansion or in some cases, overall operation without issuing new units. So when it looks like Europe is going to go bankrupt that does have reproductions stateside or it could depending on the our financial institutions exposure to Europe, which candidly, no one knows, no matter what they say.
So until word came out that Germany was essentially going to be buying Italian bonds, there was some nervousness. This has also seen huge gains in the past two years, folks looking in to lock in some nice profits didn't have to look very far and sold some and of course there may have been redemptions etc..etc.. Price of oil declining is also a factor though this shouldn't trade with the price as oil as much as it does. In theory it should go up if the price goes down because consumption would likely be greater making pipeline volumes higher.
It is not a reflection of ETP earnings or anything else. I bought more at 38 today and couldn't believe the order was filled. Yields almost 6.5% at that price with the current distribution which has been raised every quarter for close to a decade. Easy buy, 22% gaining with the distribution is in the bag. Relax folks.
"EPD operates on the ability to finance debt. If the credit markets seize up, MLP"s have difficulty financing expansion or in some cases"
Take a look at what happened the last time credit markets seized up in late 2008/early 2009. Large cap MLPs like EPD continued to raise substantial long-term debt at attractive rates, while the banks would not lend even to each other let alone the GEs of the world. I suspect during the next crisis this will play out again as well.
don't let this US debt downgrade crap scare you out of MLPs; next week will provide some truly amazing buying opportunities...as some of the really high quality MLPs plunge I will be there to swoop them up. can't wait.