For the last few years KMP has allowed the distribution to exceed the DCF in Qs 1&2.... they would usually make it up in a traditionally strong Q3 and Q4
This shows that they have actually listened to the critics...
It leaves us in a position where a strong 2nd half exceeds guidance and the distribution that is paid out may exceed earlier estimates
I think Kinder has once again outplayed his detractors.... an unexpected increase in the distribution in Q3 should shut the chumps up
Icahn's cost is about $46.... He got $2.24 in 2013 in divis... and he's at $1.50 for 2014 (inc 2nd Q 14)...
That's $3.75 in divis (return of capital)... Share price is $43.70... that's $47.75 in value for him
Is that what you call losing your rear end??????
Then factor in he has been a long term player... Icahn will smell like a rose when he is done here
I know this is the dreaded topic where much has been said but this will slow things.... the argument was made that EPD wanted to increase in full cent increments.... that's history... it moves to a half cent
I would have wanted them to increase the quarterly dist to 1.125 cents (1 1/8 cents) but that will be out the window too because they would never move to a .55625 cent rate (9/16s cent)
I guess there is still a potential for say 1/2 cent special distributions but the split is a disappointment for me
We are getting closer and closer to the Fed raising rates.... mgmt. has said they wanted dry powder for that day.... it just looks like it will be tougher to accelerate at that time....
I would rather a plodding of incremental cents as opposed to specials but given the scale moving forward specials are about all we will ever have a chance for and that will result in a slowing of the rate over time
and on the bright side.... every time I am critical.... the unit price makes a significant move to the upside
Obviously your scenario holds true only if you owed since "inception"... which isn't even a relevant metric to someone considering it today.... that's why they say past performance does not indicate future performance....
My comment that you replied to was fact... MLPL has underperformed AMLP by a 3:1 ratio the last 2 days...
Please explain as it is supposed to mirror at a 2:1 rate... Oh yeah that's what USB failed to clearly disclose..... when it underperforms it can underperform by as much #$%$1... sounds like the perfect vehicle for "retirees"
Get a week of those returns if the index is off by 5+%... and your principal is hammered while you wait for the divi cut.... most "investors" do give a damn if their principal is hammered... I know you say you don't care but that's the biggest crock you have spewed
you failed to comment on the safety of the divi... since inception the divi has declined about 20%
of the time... EPDs Distribution has never declined
Retirees would be far better off with KMPs 7% tax differed distribution than MLPLs 8.6% taxable distribution... and I could play the empty speculation game too and talk about yesterdays metrics... you could have bought NS in the last year for $36 and tax differed 11% yield (I think arbtrdr did)... gained 60% to its current $64 unit price... but makes the current distribution 7.5%... can anybody guarantee NS's performance going forward...no... but that's the point jerkwad.... EPD... KMP... NS can and will all come off these prices.... which guarantees MLPL goes down by a % multiple greater than 2Xs
Another quick fact... while I detest the term "troll"... it is you who fits the definition by pumping MLPL here
Could you imagine the losses if MLPs actually took a hit... like they will when the fed hikes rates
and BTW.... your divi is nowhere near guaranteed as it will shrink like a cotton tee shirt in hot water when it corrects.... But a distribution like EPDs.... that's money in the bank
and remember.... this rhetoric is in line with the opinion that leveraged ETNs are not buy and hold instruments suitable for retirees income...
They are an instrument that must be monitored on a constant basis
Hey whats with all your whining on the MLPL board about spreads and big down days.... didn't you know that the primary mkt maker in MLPL is UBS itself?
It has attained a unique position..... KMP has even moved more than EPD since the export news last week
We now are about to have a LNG facility.... a refinery scaled for export... and a tanker fleet
3 Home Runs relative to the future.... I wish the Hedgeye guy would put out a nonsense piece so that I could add in the low $70s
Kinder thinking ahead of the pack.... again
You can't comprehend shitfromshinola..... anything that "has no stocks in it" is composed of other assets.... AKA a "floating" basket of options...... that have to constantly be rolled and rebalanced.... to mirror the "DAILY" performance by a leveraged factor
Want to tell the flock that options do not have asset decay....
and BTW.... I just did a 1 yr comparison of EPD to MLPL and EPD has outperformed MLPL over that time frame.... and that chart indicates that in Dec when EPD was -2% off the start date.... MLPL was off about 12.5% at that time (a factor of 5Xs).... that is a perfect example of MLPLs risk and I guarantee you that MLPL would be off 30-40% if EPD were to slide 10-15%
"retirees" should understand that "leveraged" ETFs and ETNs should only be used by investors who monitor their accts constantly. They are not buy and hold investments.... Most sites that explain how leveraged ETFs and ETNs work will even caution against ever holding overnight... do not buy this type of investment without a full understanding of how they work and what the risk is
There is a concept called asset decay that will cause the value of such "investments' to decline overnight even if the assets of the fund increase... and the fund has to rebalance each and every day because it mirrors "daily" performance not performance "over time"
Only the most very sophisticated investors should touch them...
This Steveshrift has to work for the investment bank that markets mlpl because trading the ETN has no effect on its increase in value.... there are only fees to be earned by the banker
IF Federal lands were to opened up to fracking.... Oh the Royalties.... and taxes to the treasury..... thousands of educated and skilled Americans put to work at more than livable wages.... all that money fueling the economic engine of the US of A
A stable abundant supply of energy to the world that stabilizes prices at a decent margin over the cost to produce.... some mad man goes bizerk in the mid-east and nothing happens.... Putin shuts a pipeline and all is well... financial mkts become less affected by geopolitical events
and on top of it all no need to have idiots clamoring for burger flippers to be paid $15/hr
I'll agree with you and the article.... policy has not changed.... just the classification of what qualifies as refined
And in light of that..... EPD is a huge winner
The WH may not want to call attention to this change in classification of certain petro products.... as I have been pointing out it may not be in their interests to be seen as petro/ trickle down economics friendly
The export of unrefined petroleum products creates JOBS everywhere... it is trickle down economics at its best
Producers drill more wells... Jobs.... wells require equipment.... Jobs... equipment is comprised of parts.... Jobs..... people making a decent wage spend money.... Jobs.... which create even more jobs... this doesn't even scratch the surface of Jobs created in transport and export.... which of course leads to even more jobs
So many of these jobs (1,000s) will be high paid engineers and highly skilled labors
All those jobs pay income tax.... higher revs to Uncle Sam and the states
The Obama administration has embraced Reaganesque trickle down economics as it is becoming abundantly clear that the liberal Keynesian model of printing money for the govt to spend and give to big banks to invest and prop up the mkts (Wall Street) is a failure for the economy (main street)
Countless Americans will be far better off as a result of the exportation of unrefined petro
When American petro products hit the world mkt that will increase world supplies which will actually temper prices and volatility.... which is very good news for John and Jane American
And yes this is a political post as it is a political issue as implied in the original post.... this issue has a huge affect on so much especially EPD unitholders
That's a bit off base.... while you are one of the "wealthy" people as an owner of EPD who will become wealthier... the Nat Gas Producers have been struggling for years with the cost to produce exceeding the commodity a good deal of the time.... the depressed Nat Gas prices have been a boon for Americans on the lower end
This will now create an environment where the Nat Gas Drillers will be able to profit off the liquids and most probably increase the supply of the dry gas we use in our homes which will keep those prices steady
This is a huge win for the American economy and don't underestimate it being released at the same time the downward revision in the 1Q GDP was released... these exports will have a very positive affect on US GDP for dozens of reasons
That would a substantial cash hit for any party
Is the market is very frothy and is going to pull back at least 10%
I've raised a boatload of cash and this will be my #1 focus after a pullback in the overall mkt of better than 10%
We should see that soon as this will be a sell in April and go away in May yr
They will use option strategies to enhance the return and yield. However they must maintain that leveraged position at all times. Even if it defies common sense. No buts about it.
Premiums from selling puts will enhance the yield as long as the share price is basically even to positive(but destroy your equity if share prices drop, especially if they tank over night) Call buying enhances the share appreciation. It gets very complicated as all contracts have to roll forward with many expirations. Assets will also decay over time, especially purchased calls, when share price is stagnant . This is a very simplistic explanation of a very complicated tool.
ETNs can be difficult to short but that's the play in a leveraged long fund in difficult times.
A leveraged fund should only be used in times of fast moving share prices. Years of gains can be wiped out in a matter of minutes if the trend turns against you. They certainly are not for retirement aged income seeking investors. They are widowmakers.
Only a complete fool would advocate the average investor to go anywhere near them!
"leveraged" ETNs are not buy and hold instruments BY DEFINITION
Look.... big words... show just 1 instance since the rate was bumped in 2012 that I mentioned this..
IF you can't be a man and say I don't know what the efff Im talking about... You must know of an instance so get it and shut me up with an actual fact... fail to respond with an instance and I'll just have to assume that you were typing out ofyerass
And yes I have spoken to them.... I feel they spread as much sheet as any other company... they cant (refuse)answer why they stated they would return to retaining less cash after the financial crisis subsided and failed to do so....
What your missing here is that when they said they would return to retaining less cash after the crisis and failed to do.... makes all future comments from them far less credible
When you come up with that ROR # you fail to acknowledge that an increased dist growth rate will in fact put that ROR DIRECTLY in your pocket via a nice pop in unit equity
and that increased dist growth rate also results in far less units being issued because of greatly enhanced equity value... we could revisit 2012 when they issued units less than a week after bumping the rate which was the biggest clusterphuc in timing that mgmt. could have produced... not to mention the fact that the investment bankers profited greater than unitholders because morons at EPD handed them a massive bone to short
This is an MLP... your idea of cutting the distribution would in fact cut the equity value... people like to tell me to sell if I don't like the way things are but let me tell you IF you want this run like a typical corporation you are in the wrong company...
We know that MLPs from time to time sell off as a result of speculative talk on tax treatment... THE BIGGEST threat to MLP tax treatment rests in the retained DCF..... "typical" companies have to pay TAX on reinvested profits... MLPs get a pass because of the structure...
Tell me how EPD's equity value would react IF Uncle Sam targeted reinvested retained cash
I did not go toe to toe with Arb.... but enjoyed smacking around those that add nothing but name calling... & I don't think Arb took issue with any facts presented he did however offer an opinion that differed from mine and basically offered a speculative scenario that had DCF declining... IF DCF were to decline after all the organic growth EPD has had that would indicate a waste of the cash put into the organic growth and really pisspoor mgmt
The reality is Arb wants a higher distribution... he has greater patience in waiting for it than me
The fact of the matter is that EPD cannot trade much higher with its current yield and dist growth rate... and it will miraculously have a strong rally when the distribution growth rate is increased again
I want the added equity value and larger distribution now... added unit value is beyond the reach of partners because of mgmt. style....Covering the distribution at better than 1.4Xs and holding more than $1.2 billion a year "may" be better in the long term from some points of view but partners should be able to access the full value of their units at any time
That will lead to the argument of efficient mkts and some would say that EPD is fully valued right now.... I believe it's worth quite a bit more and the only way to unlock that value for partners is with a greater rate of distribution growth. I'll bet that most of you believe that EPD is worth quite a bit more too.... how do you think that value should be unlocked so that you as a partner has access to it now
I also laugh with all the support not increasing the dist growth rate gets.... it will make mgmt. believe that unit holders are complacent and it will be that much longer before the rate is increased and unit value unlocked
I know.... my response to your reasonable reply to my post will be attacked and called repetitive spam by some jerkwads... however an idiot like me believes that this is civil discussion relevant to EPD and belongs in this space