I could be wrong, and am open to correction, but if DCF was $339 million and outstanding units were approximately 245 million, the ratio is quite good. Even if we use the total "after Sonoco" number of units outstanding of approximately 300 million (55 million or so issued in October) and do not even add any DCF from the acquisition, the ratio is still about 1.1 and good enough for me for now. Hopefully the acquisition is indeed accretive as they said it would be. Any constructive comments appreciated.
THere was a unit offering and also the SUN units. Also need to figure in the units issed via the DRIP. It looks like they covered - just barely. The 335M units was at the end of last quarter. THe CCall will tell the tale. Agree in basic numbers with RRB and Clambo.
The unit count should indeed come in around 300 million. The GP take is approximately $2.10/unit, so that, added with the $3.58 distribution, means a total cash requirement of around $1.7 billion annually (before the IDR giveback) or about $1.63 billion after the $70 million IDR waiver. That is $409 million quarterly. If you net out the recently issued units, then yes, they are hovering right around the 1.0x coverage. I believe next Q we will see a coverage ratio near 1.0x due to the addition of the SXL IDRs and of course the slew of SXL units. Will also see the contributions of the gas stations, but i expect that biz to be jettisoned quickly.
Thanks, that is helpful for me. It seems to me that one large risk of the Sunoco deal was how much they would get for the gas stations. Do you know what they budgeted for when they said the deal would be accretive? In the short term I would guess that holding the stations are accretive since they are probably generating more profit than the low cost of the short term debt incurred or allocated to that business.