You claim victory, but keep in mind they said more than "we are increasing the distribution growth rate." They gave a reason for this (better than expected performance from recent projects), and that reason alone would have been enough to make the unit price go higher even if they had not announced a higher distribution growth at this time.
All some of us were saying is that they shouldn't raise the distribution just because they could afford it in the short term. That is not responsible. They need a reason to justify it - to make it so everybody understands that it's sustainable. Now they have their reason, and in my view that is the best news.
The issue wasn't as to whether they can justify that a bump in the distribution growth rate is sustainable... the issue was how could they justify not increasing the growth rate.. its all in the #s.. and the time had long past
There was no justificatioin for not increasing the rate by a paltry $2 mil/Q when more than $500,000,000.00 of DISTRIBUTAL cash was retained in the 1st half... defending that position was both assine and illogical (they retained over $5 billion over 4 years)
The rate was contracting at an ever accelerating pace and I don't care how much is being reinvested that is not really the best model for a MLP
I suggest that those of you who were so admantly against this bump donate your increased income to charity.... and BTW this suggestion is no more out of line than cheerleaders telling me to just shut up and sell... there seemed to be a comfort in telling me what to do with my money so I am returning the favor
Don't know what you're talking about. The press release gave the proposed distribution amounts: .65 for Q3 and .66 for Q4. Why are you trying to estimate them yourself when we already know the amounts?
As for the impact on unit price, I expect there to be little as this increase is already priced in. The company has telegraphed this increased for some time and the unit price has already risen much more than the Alerian index over the last 6 months. So this announcement is not news and probably already priced in.