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Enterprise Products Partners L.P. Message Board

  • mktplyr517 mktplyr517 Sep 5, 2012 10:22 AM Flag

    Well its September...

    and I do believe that the supposed time frame for EPD to detail a plan that would raise the rate of distribution increase....has past....

    We also have seen the total distributable cash RETAINED for 2012 exceed 1/2 a BILLION dollars

    Again... it must be difficult for a company to distribute a mere $2million more a Q when they are playing with more than $500,000,000.00 of limited partners money

    Given the prior discussion on this board it would appear that IR was rather disingenuous in its prior discussions with shareholders

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    • When did EPD originally say they would meet to discuss distributions? After the first half 2012 projects were completed and the numbers were in. Those numbers came in early August.

      Has the BOD met since then? They met this week according to the information EPD gave me.

      Does the BOD normally comment on distributions except when declaring distributions? No.

      Does EPD management normally comment on distributions except during a conference call of in a 10Q/10K? No.

      Did you read the transcript from last quarter? Obviously not. That is because EPD stated last months that because of the continuing problem with low NGL prices and some construction issues that they would be delaying a decision on distribution until "later in the fall." I would think that would mean when the results are in for this quarter.

      Did EPD give an explanantion for keeping its distribution increase rate at .0075/quarter? Yes, during my discussion they indicated that with the current market conditions there was little upside in unit price to be obtained for increasing the rate. They also noted that with the cash retained and lower interest rates on their debt, EPD had not had a secondary offering nor do they anticipate having one in 2012.

      You say a .0025 change in the increase would not make much difference. I agree. It indeed would not cost EPD much money for several years, but would not do EPD any good in their opinion. If you reinvest it would take 400 units to receive an additional $1 from the differential you ask for. Over 20000 units to get one additional unit for reinvestment each quarter. As you say it makes little difference and the market seems to agree.

      My suggestion - call EPD at 866 230 0745 and let them know your feelings. OK?


      • 1 Reply to arbtrdr
      • Its really just all about the compounded effect of an accelerated distribution... I believe that we are now at or about $5 billion in retained distributable cash flow since the financial crisis that was supposed to be the catalyst for retaining more of the limited partners cash..... the key phrase here being partners DISRIBUTABLE cash... not cash marked retained for investment... and I have made my feeling known to EPD and believe that my complaints fall on deaf ears.. This venue is a legitimate opportunity to let others see that not all EPD holders are cheerleaders who tow the company line... there will come a time if it hasn't come already that EPD is in violation of the tax laws that give it its tax differed status because of all the retained cash... we'll see how great the cheerleading is if a massive tax bill were to come due

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