There sure are a bunch of people here who have not read beyond the headline. ETP is not issuing ANYTHING now. It is a shelf registration for the future. Can we move on from that?
Second, ETP now have acquired significant new assets and unless I do not understand the MLP company structure they pay out substiantially all their free cash flow thus in order to get new assets they need to issue units and debt. As long as the cash flow from these new assets is accretive the DCF per unit goes up.
Yes, ETP made some bad decisions in the past and their marketing plan that was VERY successful until about 2007 has not worked well since. They have sold off many of the underpreforming assets and managed to keep the distribution intact despite crippling NGL prices in the last quarter. By 2014, ETP will have sold about 1/3 of the 2012 company and acquired assets equaling more than twice the 2011 assets. We will see how this all works. In the meantime we are paid over 8% to wait and get a 5% discount on DRIP units. Who else gives you that with an investment grade to boot?
If you take a look back at over 500 secondary offerings by MLPs there is indeed an initial decline. The decline is equal to the discount given in order to move a large number of units in 1 day. The market then in about 99% of the sales recovers within one to 2 weeks.
I ask how you think a MLP - which pays out all its free cash - can expand without raising additional capital. If you do not understand that then maybe you should not own MLPs. Secondaries are a fact of life for MLPs unless they stop. paying out their distributions.
The real question should be is the stuff they acquire or build accretive after the payout for the new units and the cost of debt. If the new project is accretive then in the medium and long term the new units are positive. The problem for ETP is both the GP IDRs and the fact that commodity differentials basically disappeared 3 years ago where ETP was making a bundle. Yes it is flat since 2008 but you have been paid about 32% in tax deferred distributions to wait till ETP gets it sorted out. Last time I looked MSFT and WMT both had about a 10+ year time period when their stocks went nowhere. As I said before I will patiently wait until early 2014 for the HUGE number of projects to come on line. ETP has said where it is trying to go. Hopefully they have it correct this time.