"As a result of continued outstanding operational and financial performance, the Board has elected to step-up the distribution this quarter by five cents per unit, returning strong, predictable cash flow back to our investors. From this new baseline, the Partnership expects to grow limited partner distributions at a sustained 15% rate consistent with previous guidance.”
glad youre enjoying your small gains on this stock in a 5 yr bull market. by the way, my pick CXO has trounced your 5yr returns by more than 2 to 1. 172% vs 387% for your stock. like i said 3 yrs ago CXO BABY
thanks all for setting me straight. What you explained is exactly what i thought after i first read it but it just seemed too good to be true. For some reason the phrase in the report "consistent with previous guidance" threw me off.
Quoting from the CFO during the CC:
"We expect to deliver sustained 15% annual distribution growth from this new baseline. The distribution represents an increase of 23% versus the third quarter last year and 10.3% increase versus this year's second quarter."
To achieve this goal, they need to get to $2.30 by this time next year, Sequential bumps of 6,7,8 and 9 cents will do the trick. I have not looked at 2014 estimates yet, but given their current 151% distribution coverage and the number of projects coming on line in 2014, I see no reason to doubt their word.
Ok help me out here because I must be one of those readers. If you are at $2.00/yr and you have 15% distribution growth that would be an increase of approximately $.30. I don't see the the 2 cents per quarter. Help me understand.
Are you sure you're on the correct Board? ACMP has not posted a two cent distribution increase in at least the last five quarters. As for the future, if Stice says 15%, it will be so. At a coverage ratio of 151% after this increase, they could have posted a bigger bump this quarter.