The math seems to indicate a short term potential dilution effect of about 94 cents per share if 8 million shares are added. Or, other thoughts?
Medium to longer term I am still very bullish on EEP. I expect some shorting on todays announcement but believe it will bounce right back.
Until/unless the Keystone XL gets built, EEP is the only major oil pipeline in town. With oil prices down, rail transport is competition, but oil prices will rebound. And, the recent spate of rail transport accidents/spills is not good. When/if the XL gets built, it will not obviate the EEP Keystone pipeline, but will provide a competing alternate route for a portion of it. While I expect up and down quarters, I think the future is very strong for EEP. They have pipeline transport contracts in place for many years ahead.
A new base may have been established and the stock may push for new highs in my opinion. I am a long time holder - not trying to pump it - just enjoying the dividends and nice overall yield. Has the right balance of reasonable safety and good return to suit my needs.