No surprise on the earnings.. Seeing how you advocate selling the "stock" (which is non existent) in $36 range I suppose you will be here saying buy once this gets back to $48.. LOL Do you know what a MLP is? You should have taken my advice and bought on 8/6..
great strategy.... sell low and buy high....no wonder retail folks lose money in the market. Use this as a buying opportunity.
as well as organic and third party opportunities to grow PSXP... CAGR of 30% thru 2018 is not a lofty goal.. at least another 3 year hold for me.. making big $$$$$$$ GLA
The sellers of PSXP think the downgrade of PSX somehow translates into PSXP's CAGR of 30% thru 2018 as not sustainable. Now that PSXP's units are investment grade, long term borrowing will be cheaper. Just hope the midstream business makes their growth projections.
Regardless, this 25% correction from the high should not be a surprise to anyone. It was overdue. IMO, the selling should be just about done. Just need strong earnings to get this moving back up again. GL
You are ignoring the Goldman Sachs downgrade of PSX as the reason for the selloff in PSXP.
No reason for PSX to dilute their equity in PSXP by using the units for an acquisition. PSXP units are investment grade status now no way they will want that lowered.
PSXP overhyped? naw, not even close. They have a lot of projects that will be shortly/just coming on stream so the DCF will get a significant bump going forward. $102 will be a low estimate once all is fully operational.
rt leaves, You could be right. I just used the lower end and would be happy to see that. For me, seeing that SHLX has a larger sponsor than PSXP, means a faster and longer growth cycle. What might be a concern is the unit dilution to help pay for the growth. I don't think it will be a huge negative but it could hold appreciation back somewhat if it is stronger than I am modeling ( 7% max). Regardless, we have another winner here and should track closely with PSXP with respect to the 2% distribution yield as this climbs higher.
After the first drop the unit price seemed to base around $44. So using that number and using the low end expectations of the next two drops (both being accretive at 30% each) this would add another $26 to the unit price. If there is any unit dilution I think it should be minimal. By year end we could see this trading $70's+. Just hope they execute their growth strategy as outlined in the CC. Also, at some point this year, I expect the Alerian MLP ETF to announce the addition of SHLX.