It certainly could become Lord of the GP's given the potential growth, but TRGP has already been really spectacular having raised its dividend approximately 35% in 2013 and having given guidance of an increase of greater than 25% for 2014. Own both.
The GP already existed as a private entity. Taking it public doesn't change the cash flow pattern. However, I can believe that some PAA holders are moving to the GP for the higher dividend growth rate. However, as some have pointed out on this message board, the IPO was at a rich level as compared to other public GPs such as TRGP, KMI and ETE.
TRGP might be a good proxy. It closed yesterday at a 2.90% yield. TRGP is expected to grow dividends in the 20% range over the next few years. PAGP leverage to PAA distribution growth is expected to be approximately 2X. This implies a 15% - 22% dividend growth path for PAGP. So a yield in the 3% range would be expected. The new issue is being brought in the 2.5% range.
However, in the intermediate and longer-term PAGP should be a winner.
LOL, geez - not being critical. I agree with you concerning MWE management as I, too, rely on them to pay bills as MWE has grown to be my largest holding. I often find your posts to be informative and will strive, in the future, to curb any sense of enjoyment when reading posts with which I usually agree.
Genarally agree with you on MLPs in tax sheltered accounts, however, if one only has income available in tax sheltered accounts many MLPs (as you know) have been great performers just on a net price appreciation and distribution basis without the tax deferral. The UBIT problem, at least so far, appears to be of the theoretical persuasion (not that it couldn't become real). Moreover, except for direct investment in corporate bonds, investing in a tax sheltered account always involves forgoing some form of tax shelter, examples are special rates on dividends and long-term capital gains. I think the worst investment in a tax sheltered accounts are stocks paying no dividend. One pays the entire return at one's marginal rate instead of the long-term gains rate.
Also, I really enjoy your posts on the MWE site. I, too, am a bit of a cheerleader for the management team.
So if one started a new company and began building a factory that person would really be putting themselves out of business as cap Ex would be larger than revenues, which would be zero.
LOL, I think you are confused between maintenance Cap Ex and new project Cap Ex.