If SXL traded like other comparable 20% growers (mplx,vlp) it would be in the mid-50'S based on the projected 2016 Distributions
Or more likely the $20B in organic growth projects planned for the next 5 years.Those will add ~$2B to EBITDA..
A 6% EBITDA margin isn't very impressive..Doesn't,by itself cover 3 years of 30% growth...Perhaps they can supplement with accreative acquisitions.
So would SE want to keep WMZ an MLP..SE,like ETE has it's own MLP (SEP) and may want to merge those 2 down the road..SE has expressed an interest in being a pure-play G.P..Which plays well for Holders of WPZ.
If they do MPLX will drop by a proportional amount and you will still have a $50 deal...No way out except to vote down the Deal.
Actually for a Midstream company with limited commodity price exposure 4.8x book is INEXPENSIVE and below the average of pure play G.P'S
is going to export a lot of the product...Just sold another 26 cargoes to Europe thru 2018.That's not an issue.What is an issue is the the Dutch Benchmark that the pricing of these contracts is tied to is currently $6.50/mmbtu..If the cost metrics some of the posters have reported (consistent with trade source) are correct this is a $$ losing proposition..Positive cash may be generated with a Crude oil link under $50-$60,but huge book losses are obvious...Again,this assumes the cost numbers presented are correct.
sold another 26 Cargoes from Sabine Pass to EUROPE for delivery thru 2018.Total now is 68 beginning in 2016.So the U.S. is on the Board..As is Australia with the start-up of the first of several new Facilities.
There's no auction..One bidder doesn't constitute an auction..PSX saw what happened to MPLX when they made a stupid move to buy MWE...Don't believe they're that clueless .....besides on fit...Kelcey owns it if he wants it @ any price above last sale.