They are going to experience substantial growth over the next 24 months as there project pipeline gets built out .The problem is not only the perception but the fact that the marketplace perceives as being over leveraged for the current environment They should cut their distribution say to $.50 and take the extra $600 million and pay off debt.This would eliminate the fear factor and the we could get back to basics and view ETE as the growth company that it is. I would suspect and hope that we will be getting some clarification later this month!
One has to ask the question having lost over $4 billion dollars whether Mr Warren bought or holds any of his stock on margin. Having made many open market purchases at substantially higher prices its hard to imagine he was a cash buyer. Of course many companies have policies prohibiting such action but are we witnessing a repeat of CHK that brought the company and its president to its knees!
I was wrong! They didn't cut the distribution and they didn't renegotiate the terms of the WMB deal. Big mistake. They should have done both and the stock would have been up.KMI prime example. Now we will always be waiting for the distribution cut or the credit downgrade!
Kind of the worst of all worlds.Refusing to acknowledge the dramatically changed circumstances in the MLP business and then cutting your distribution to do an overpriced deal. Seems a little desperate. And to top it all off your inflicting yourself with the likelihood of a downgrade!
ETE will cut distribution! Hopefully to $.50. They announce new and lower terms for WMB. After fussing around for 4-6 months stock will begin to move. EBIDTA will explode to the upside in 2017. Stock will double in 18 months and will sell for $25 -$30 in 2018. Anyone that doesn't have the patience for this should move on and buy treasury bills!