Consider buying the LP or the GP when the LP is paying a much higher yield. Yes, over time if the distributions grow they will grow at a faster rate for the GP. In time, the GP may even payout more than the GP. But consider all the payments received starting from that purchase date. It may be a VERY long time (even decades) until you have received more in total from the GP than you would have received from owning the LP over that whole period.
Back a couple of years ago when americanobeer and guintogg were filling this board with nonsense, XTEX and XTXI were priced about the same, so a purchase decision would have been between an approximately equal number of XTEX units or XTXI shares.
Since distributions resumed, each unit of XTEX has paid (including the coming one) $1.11. Over the same period XTXI will have paid $0.34. Given that both XTEX and XTXI payouts are increasing nicely, do some estimates to see how long until the total amount received from XTXI equals that from XTEX. I think you will find it is a long time.
Furthermore XTEX distributions are tax deferred and so can be re-invested tax free until sold, whereas if the Bush tax cuts expire XTXI dividends would be taxed at ordinary income rates.
At the time div/dist was resumed, XTXI was priced about $8 per share and XTEX was priced about $13.50 per unit. As of today, appreciation of units since then: XTXI about $5.50 per share. XTEX about $4.55 per unit. Add the $.67 delta in terms of div/dist to the XTEX and total and we get $5.22 per unit return for XTEX vs the $5.50 return for XTXI. Slight edge to XTXI since div/dist resumed.
While I don't dispute Liza's knowledge base, she chooses her data points carefully to make her case. Others can do that too. If you are looking for growth in share price XTXI all the way now that div has resumed; when IDR's kick in XTXI will appreciate much more quickly. If you are looking for income and higher yields XTEX is currently the way to go. As to the tax issue, for the millions of people who have Roth's, there is no issue.
Looking forward to cc for future guidance and how the new projects will add to shareholder/unitholder value.