Yeah, well, the same team of jackasses quite recently had projected distribution growth straight through 2020. Mr. Market thought it was a crock of **** then, and he was right.
Mr. Market (and me) called this a good while ago. I wonder what sort of 2016-2020 guidance they're going to provide on distributions. They had projected 20-25% annual distribution growth through that period.
Not agonna happen.
Appears that the bold proclamations from management, likely intended to soothe Markwest holders who have seen their investment vaporize, were just a tad on the optimistic side.
Mostly, because of this nation's zero interest rate policy, it can be accretive to EPS. Massive malinvestment going on.
I think one of the factors that is hammering the storage/pipeline/gathering/etc MLP's is the fear that some of their customers my go bankrupt and stiff them. That sort of thing is less likely with APU.
I smell capitulation this afternoon.
As the yield soars north of 15%, something smells bad. It has to go to TGP's business, and beyond the general MLP meltdown.
This was an easy call for me. I voted no.
I've been an investor for over 40 years now, and this may be the first "no" vote I've ever cast.
Trading half our distribution (the main reason many folks decided to invest in MWE), AND the IDR's, is simply too big a price to pay for what MPC/MPLX provides.
I just finished reading the 250+ page merger proposal, and am now more convinced than ever that management has sold the unitholders out. They get to keep their jobs, and keep their residences in Denver. They get retention bonuses. Who knows what else they get.