Should be next week if history is a guide. Any meaningful increase should give the price a boost. An increase would also signal a strong 2Q earnings and cash flow report. While the proceeds of the sale of APU stock will not meaningfully impact earnings or cash available for distribution, it will increase liquidity substantially which makes a distribution increase easier.
I've listened to the people on this board complaign about the ETP distribution, currently 7%, go down to the local bank and see what they are paying on your funds. On 10/04/2012, the day they bought Sunoco, ETP units were $ 41.60 today $ 51.34 this is a 23.6% increase and you people are bitc--- about no distribution increase. As a former Sunoco shareholder who has watches the Sunoco investment increase by over $175,000, and dividends increase by over $ 30,000 per year, I do not share your opinion of the company. They now own 33% of SXL market value over $ 2 bil., Hess has their service stations for sale and hopes go get in excess of $2.0 bil for them, the Sunoco stations are worth much more than the Hess locations. The drain on Sunoco earnings were the east coast refineries need to process expensive Brent crude and not the service stations, which produce cash flow every day.Today, Sunoco buys spot product and resells it. With no exposure to refinery costs and the outside chance to share in Philadelphia refinery profits, That is a much better deal for Sunoco. So, I'll continue to collect 7% distribution, plan for continued unit appreication and let management get on with the job of improving the company.
"While the proceeds of the sale of APU stock will not meaningfully impact earnings or cash available for distribution, it will increase liquidity substantially which makes a distribution increase easier."
Under "fair value" accounting for non-cash transactions, ETP booked the gain on the sale of propane on the 2012 contribution of propane to an APU partnership in exchange for cash and APU units. They booked the units at fair value at the time of contribution, somewhere around 44.50 per unit. Since then, under the equity method of accounting, ETP increased the book value of its APU units by its share of APU's earnings and decreased it by distributions received from APU. So, for gaap, there will not be a huge gain on sale, which was in July....so it hits 3Q. Plus, I think dispositions of assets not in the ordinary course of business are excluded from cash available from distribution unless the board declares the sale a partial liquidation, which they will not do, imo, since the sale of propane was part of the plan to acquire the Florida pipeline.
So, they are essentially exchanging the value of propane into more pipeline assets, not partially liquidating.
Nevertheless, there is either more cash or less debt, making ETP more liquid for its size, hence making a distribution increase easier, over 300 million worth.