Do not understand. ETE has a bunch of economic interests and is covering at about .95. You either like the growth in the future that is closely tied to LNG or you don't. If RGP and ETP are successful so is ETE. If they have issues then ETE goes down twice as hard. Pretty simple.
Too bad you cannot look at continuing results. Got to take out the $57M IDR waiver. ARB is correct. The LNG sale will give ETP some $35M less in distributions but cut some $100M in DCF between now and 2020. Again they continue to trade future gains for making it today.
So would ETP. It was for sale and they stated they received no realistic offers. With a book value of about 2.8B and DCF of about $350M crazy to sell at the $1+B offered. Patience
Things are very very different today. The spread between buy and sell used to be about 2% today it is often ONE CENT. You also paid more if you did not buy in 100 share lots. Today - makes no difference. You can buy anything up to 1000 shares with as low as a $2.95 comission. Nothing to be gained except liquidity for small companies. EPD certainly does not fit that example.
Will they split - yes. The time has nothing to do with it. Most MLPs simply want a price under $100 as that is sort of a mental mountain to climb so they have historically split when priced above $80 for a while. Remember a splt creates only costs for the action - no real value.
Very simple and easy answer - Stupid people buy stock before it splits thinking they get some sort of deal. Second - lots of buyers for ETE on the broker reports that came oyut recently.
ETE announced years ago if it got over $80 they would split. Would think the same for ETP. Liquidity - there is plently already. As to selling covered calls - nobody who has owned ETP for very long is going to risk losing their units and taking a huge tax hit for a bit of covered call income. All it takes with MLPs today is a tiny bit of good news to move the price up significantly. As to volitality - Where? ETP has not moved much at all.
Lets try the numbers again - The Capex for 2014 is about $300M but they already issued the units and debt. Continuing capex was stated at $90-100M. Thus with $400M in DCF they should be able to pay down STerm debt a bit. No forecast for 2015 is not scary as BWP usually gives no forecast at all. The rating agencies actually will love what they did because the EBITDA to debt ratio will come down if BWP is correct to about 4X at the end of 2014. That is better than MWE and a lot of other MLPs.
Loews offered capital for BWP, not Bluegrass. BWP needs to develop its G&P assets. Also find it really not possible that they will get no storage $$ in 2014. Is it not probable we will get a curve going into the heating season requiring storage. If we go into winter of 2015 with no storage it really will be a disaster.
Do I have confidence in management - NO. But BWP even at these numbers makes money and could have paid out .40 instead of .10. They elected rightfully or wrongfully to take all at the worst case scenario and put all the bad news out there now. Is BWP dead money? Not sure. Putting $$ in now will likely get a return in a couple years. Contract renewals cannot continue to come in lower because BWP now has all but a couple small ones already in and already elected NOT to even try to negotiate but rahter wait until 2015 with the idea that rates will improve.
BWP - good assets? Yes but right now they move gas the wrong direction. That might change if more utilities move to NG and BWP has the largest E/W line across the south. Would i buy today? No - noty until the dust settles, but the headlines of BWP going out of business is just plain stupid.
I always got pleasure from seeing others do well whether it be in investing, life or health. Laughing and putting down people that have had something negative to them is rude, not Christian, and shows you to be an insensitive #$%$.
Why do you like POP better? In times when the NGL prices are low (like now) and ethane is being bypassed then APL makes few $$. I get it that if things change then POP is good but it provides a VERY bumpy cash flow
Excuse me. The change since early January is only 6%. Glad you have been trading since the 1950s - not. BTE is indeed down with production constraints and weather issues, but nothing significant. US markets are down several % in January as well.
Always love an expert on grammar who does not capitalize anything!
Think you need to look at the $$ provided by Aurora and the $$ that are coming in 2014 with the huge drilling program. Nothing dilutive I could find. It is accretive and changes the company going forweard. EF is the most prolific in the US. Also close to allandling facilities. Marathon is a great operator. Aurora was ignored simply because they sit in Perth australia.
And you blame him for the Canadian $$ going down too! The exchange is going to change as time go on. MHR recently sold acreage in area that was not as good for about twice as much per acre and MHR land was almost all non producing.
wain - The Canadian dollar is down about 7%. It is you that has no clue. Sorry. BTE is a canadian company primarily traded on the TSX. The NYSE shares are priced off the TSX ones.
They suggested paying a .01 increase going forward and considering specials. Distribution is now .70. A Payout of .74 in 4 quarters would be about 5.4
% rate for 2014. The estimate was EPDs - not mine - blame them.
And I think you are a horses rear end. 1 1/2% down down for the DOW and EPD is up! Now consider that EPD suggested a 5% CAGR for distributions. That means the current $2.80 distribution goes to $2.94 in 2014YE. and over $3.10 in 2015YE. Your $66 wil be long gone. Care to givbe something meaningful as a comment?