Do any of you guys have any idea when the IPO will be offered and any guess as to what the IPO will open at?? Based on the $1 distribution level would an IPO of 10-12 be a reasonable expectation??
Risk? hahahahaha. Risk? Risk is what he thrives on. What I am saying is Dans private company would have no problem getting loan for a bill.
What assets are contained in the new offering he is making for 350 million? Maybe he is offsetting some of the purchase price with that?
I still think epco or epd will buy more interest in TPP. I cant see anything in the last thirty years that he has bought into that he hasnt ended up owning 90%-100% of.
One way to get $ would be to sell units in the GP so you can share any risk there might be w/the retail market. Point is, people don't keep $1 billion lying around in their checking accounts, so there must be some debt out there somewhere or a short term loan to be repaid before Easy Al jacks up rates some more.
Dan private company is worth well in excess of 1 billion, without counting any EPD units. If he wasnt involved in a public company no one would have any idea how much $ he has. Thats the way he likes it. He would have no problem getting the money or financing for the purchase.
Other thoughts - where did the $1 billion come from that was used to buy the TEPPCO GP in the first place? Lot of money to have lying around in your checking account.
Re: TEPPCO/EPD merger - that would basically be a monopoly of the whole NGL business. Will that finally fly with the regulators? Will the gas producers be happy to only have one choice for processing? It's worked so far but at some point you wonder.
Other item - what's up with the Dixie pipeline shutdown? Their website says they have shut the line in due to contamination. Doesn't EPD own a lot of their shares?
My thinking is that he is going to bring the GP of EPD public, and down the road, EPD will merge with TPP, and EPD will buy the GP of TPP from Dan Duncan, thereby dissolving it and leaving the EPD GP as the sole GP. This has happened with KMP and Sante Fe, EPD and Gulfterra and Valero and Kaneb. The goal for him is to end up with 1 GP and one monster MLP which will eliminate a lot of duplucative costs and drive more value into the GP.
the offering says 365 million. he paid 1 billion for tepco and bought $100 mill worth of units in TPP. In addition to this his private company ,also called Enterprise, is probably worth more than that.
You mean sell it to EPD dont you. I guess I a not an expert on these vehicles. I keep thinking Dan put it in his private company mabye to take the private company public? What could the private company be worth? Huge truck and tank car fleet. hundreds of on going location product exchanges and long term purchase,sales,and marketing agreements, and very large real estate holdings and rights.
Dan bought the GP of Teppco and some TPP units. He will not buy the rest, if anything, he will merge it into EPD and combine the GP's, or as has been the case with 3 other MLP mergers, the GP is purchased by the acquiring MLP and essentially dissolved. Dan is after the GP take, not the LP units.