I agree with most of your thoughts although I would have thought MPLX holders would relish the deal. The projected growth rate would not be possible without MWE (our distributions) cash. Withholding $2.00/unit from MWE holders makes a lot of growth possible for no cost...this is approx. $350 MILLION/year without any growth from MPLX or the MWE portion of the company.(assuming 185M MWE units out) Granted there is $3.00+ in cash for MWE holders but this is really only going to cost $1.00/unit after withholding $2.00. IF MPLX can maintain 25% growth, it will take at least 4 years to get the dist. to $4, MWE projected $4 in 2 more years
67$/Share...Nov '14 it was $75, Sep '14 it was $80...granted oil has fallen off a cliff
$1.64 current dist...giving up $2.00/unit at current rates, so much for $3.96 in '17. 4-5 years for $4.00 dist . if 25% growth is real. Using current dist. rates, approx. $350 million of what was MWE dist. will be retained......IDR? Current thought is MPLX got the big piece of the wishbone.