Even adjusting for nonrecurring items coverage was poor @ about 0.6..the combination of RINS and poorly timed Refinery expansion is going to be problematic for some time. Forget Dist. growth for a while.
i like their story but a lot of capex plans going forward plus decreased coverage implies more units as leverage is already 2.5ish...thought it might be worth a shot (admittedly missed the pop) but looking at their page 6, it looks like yield was more like 11-12% prior to the ~20% distribution growth over last two years....wake me up when we get to $24.......
You do know that management holds over 17 million shares, right? I would say that management's interests are fully aligned with stockholders. Also, I think that they get a better split over a minimum pay out? Today is a gift buy buy buy!!
I know how you feel. When they raised the distribution by only a $.005, after successive raises of $.03, I had a feeling that some bad news was just around the corner. At least the Superior refinery will be operational for the 3rd quarter. Elsewhere? Ugh! I'm sure that the last thing they'll want to do is cut the distribution, but it's going to be a challenge to maintain it.