THE $100mm of cash flow is only the PXD 50.1%..Epd is paying about 10x for all...Good price..Will lock in at least another 5 years of Quarterly Dist. increases.
They raise the Dist. EVERY quarter...Which is enough defense for me..Does your Bond Coupon ever increase ? The answer is no..Which is the fallacy of looking @ growing MLP'S as Bond substitutes
should be soon. They have options on 3 and had indicated there would be 2 this year(both on the water under term contracts). The last 2 each added $0.11 to the Dist....Would like to see them exit 2015 @ $1.90
MUR and HES are almost sure things imo .....Selling way below NAV..MUR needs Tax free exchange but 50/50 Debt Equity not an issue for Big company...Although all cash is more accreative.
Your right,that's the risk....A taxable event..A Distribution cut isn't a risk as it's backstopped by OKE.
AGREE real industry issues are on Intl.routes....I haven't seen such price cutting on Business and First class for a long time !!...
I think that with Kinder out of the mix EPD is the largest Cap.MLP and subject to being sold off by ETF'S and Index players when sentiment changes $$ flows..The fact that they've increased the Dist. nearly every Quarter for the past 10 years allows me to be patient in view of Energy,and all Energy related being the most "out of favor" segment of the Market....As frustrating as it is.