When you consider PAGP'S Income comes from PAA..... much of it from PAA distributions it suggests that Distributions are ,at least, safe @ current level.
Any acquisition of wpz would be done with stock as a tax-free.exchange..Debt is no issue for a suitor...in fact it's an incentive as it would likely be structured as as an accretive Equity offering.
And in addition many Funds,including CEP'S and Hedgeies end their Fiscal year on Nov.30.. As a result Tax selling and Portfolio dressing will likely force sales until the Thanksgiving break..
It can be reinvested more profitably overseas probably ..And @ the Jefferies conf.last week they up the number to $1.2B
They made it clear on their Call that they didn't intend to maintain current spending levels..They won't outspend Cash Flow in 2016 and they have $1B in cash overseas that can be repatriated without tax consequence..Div. is secure.
Investor concerns about their ability to finance an aggressive expansion plan (8 newbuilds) has been addressed..Now to refinance the Debt maturities due in 2016..Folks are not connecting the dots regarding their Relationship with Shell/BG..Almost like having a Sponsor.Also extending a Contract at the same Day Rate despite a very weak Spot market is indicative of what users see going forward imo.
Hope you're right...love to see it under $40