I am also an owner of this stock, based on my broker's recommendation. I understand that the dividends to the controlling shareholders who have 80% or so are subordinated to the other shareholders's dividends for a few years. I have not seen this provision in writing, and do not know the mechanics of the deal (for instance, whether the subordination is cumulative). I would be interested in knowing anyone's views on the management team runnning the business. Thanks.
There's a reason for the Dilbert cartoon where Dogbert says "prospectus is another word for open your mouth and close your eyes". This is basically a private company where the founder is cashing out, retaining control while he builds his empire with other people's (read your) money. That said, they have a reputation for being pretty savvy on structuring their deals by bringing in partners to share the risk. But, the health of their business depends on the health of the petchem and refining industries who use their transportation and feedstock processing services and the gas companies who produce the products they handle. To the extent that they have competition it will drive their fees and revenue stream down even if their volumes hold steady. I would buy it at a low number (14 to 15, say) for the dividend yield but wouldn't count on a big price runup. Watch the insider info. on this one very closely.
I'm in charge of my mother's stocks --- all of which are high risk, and big yields in order to give her a continuing monthly supply of money for nurses, etc. I'm very confused about EPD, but I just got a big folder from them which I must peruse. I assume that's the 1065 you're referring to. You're the first person I've seen take notice in I don't know when. My broker told me it was a very solid stock, and, to be sure, we've been receiving regular dividend checks, so I can't complain, but I sure don't know what to make of this company. I have no way of making a prediction, either. I'm not getting out of it, because there's no need to -- if they continue to pay out, but her entire portfolio is down, and all of her stocks are like this. I must also assume this is a momentary trend. My broker says, "Relax, I worry too much." Is he right? j
My broker put me into EPD at the IPO. I didn't realize it until I received a form 1065 on Saturday, March 20th--after I had filed my taxes. Okay, so I'm here and underwater. Now, what makes this company tick? Anyone have any prospects? If they pay attention to their interal workings like they issue their 1065's, we all are in big trouble. What gives? Hold, buy or sell? My broker hasn't stubbed my toe too many times. But other than the 1065s, I haven't received anything from EPD. Please post info.
You are correct for I think three yrs general partners distributions are suborinated to the general partners. I have spoken to the company who feel there is little or no chance of lowering the dividend, and their betting is it will be increased toward the end of 99.
Oil prices have only a marginal impact on this liquids processor. They have most of their vols under longterm contracts. Their key to profit is effiency of production. Prior post correct that owners div's are subordinated to limited partners for 3 years.
Another recent MLP is "PAA" which is yielding around 10%. they are primarily is pipeline trans and storage. Most of the seasoned MLP's such as TPP and Buckeye are yielding 7-9%