Are these, the .annual distro of $.40 equals a 4X coverage...so they say. The distro was $2.13. So $1.60 is the BEST they could pay IF they turn things around. With so many quality MLP's out there, why take less than 3% from a underperforming mess like this? Learn from the propane and coal MLP's...buy something else.
Btw, while I haven't owned this since Merrill put a sale on it, in 9 trades of bwp I was lucky to make money each time in the past...so I'm not bashing just for the heck of it. IF they fix it, I'll be back in. Good investing.
From Merrill Lynch
"A full quarter of results from the acquired assets should help DCF coverage to recover to ~1.36x in 4Q13 and set MEMP up for a strong F2014. Management reiterated its 2014 guidance of $298-306mm adjusted EBITDA and 1.15x-1.25x DCF coverage. We model no distribution growth through 2Q14 and expect distributions per unit to increase ~5% in 2014 (YoY), even taking into account IDRs."