I also miss your posts that were a breathe of fresh air on KMP many years ago. Hope you are doing well as you put me into mlp's about 15 years ago. What bothers me about epd is the 1 penny rises in distribution when they are premier mi d stream mlp and should do more for holders
Are you kidding? EPD is a beast of a MLP. They raise the distribution every Q. They have nice coverage and excellent financing. They have tons of projects...but if you are expecting aggresive growth, you are in the wrong MLP. They are far to large to achieve more than pedestrian growth. Look at the enterprise value. There are not enough projects to allow them to grow at 10-15% anually like some of the small MLPs. You sacrifice stability for hyper growth.
They could bump it by more than a penny but then there would not be quarterly raises and they might have to issue more debt/units to satisfy yield only investors. I'm fine with the plan as it has produced the results that Chart points out above. I would caution people that most MLP"s have historically traded at a distribution yield of 250-275 basis points to the 10-year treasury. Obviously we are approaching that as the 10-year rises and the unit price rises. Point being, another 143% gain is unlikely in the next 4 years ;), but an annual combined return of 10-20% isn't bad either. Hopefully the momentum of the distribution increases can keep pace with rising interest rates which aren't going to go parabolic in the short term but should start rising in the next 6-12 months. Good luck to all.
Good to hear from you again. Have made some good money over the last 10 years in EPD, KMP and even ETP as I bought when it was heritage propane.. We just need some posts from Bill Joe who hated KMP to make my day complete.
Good health and a happy new year