- why have the GP finance (via buying ETP units) FY07 capex? maybe it
will be easier to place a block of ETE than ETP. maybe Harvard will
add to their position. 4.7 times debt to ebitda is going to have to
come down below 4.0
- just loved the one word answer "YES" on the conference call when they
were asked about their interest in aquiring a pipeline to move gas east
- the 980mm ebitda guidance for ETP is ultra-conservative even for
these good ole boys ... . they say they never want us to be suprised
on the "wrong side"!
- the multiple ETE paid for the rest of the IDR's was quite punchy and
dilutiive but will be netted out by the increase in cash from the ETP
- should we be happy that ETE is taking on more ETP units? it
decreases ETE's overall leverage to ETP doesn't it?
- if ETE continues to buy ETP shares to finance growth, does that mean
this is a slow motion ETE levearged buyout of ETP?
- with the 50% GP/LP split, ETP's cost of capital is much higher than
some of the other MLPs like a CPNO. maybe instead of limiting its GP
participation like others have done the way to make ETP's cost of
equity cheaper is to just to have to GP buy the LP.
thanks in advance for your thoughts
> > > THIS IS THE DISCUSSION GROUP FOR ENERGY TRANSFER EQUITY- Hide quoted text -- Show quoted text -- Hide quoted text -- Show quoted text -
To the best of my knowledge, MGG is the only pure play on the IDR as it
holds no units of MMP. Even though MGG is in a position to have
maximum leverage on distribution growth at MMP (about 2.7 x) the yields
are surprisingly close (MGG: 4.2% and MMP: 6.2%). Unless I am missing
something, MGG looks like a bargain at its current price.
> > mike- Hide quoted text -- Show quoted text -
> > > mike- Hide quoted text -- Show quoted text -- Hide quoted text -- Show quoted text -
You can speculate as to which MLP will grow faster -- many believe ETP
will be at or near the top of the pack. And that may make ETE the hot
ticket on the GP side. But the leverage offered by MGG is hard to
ignore when the market begins to price it to yield close to MMP. MMP
is projected to grow at 8-10% so you're looking at some pretty big
numbers at MGG.
What's wrong? My guess is MGG's market underperformance is largely one
of perception -- if it has failed to surpass its IPO price after almost
a year, what good is it? It may be simply dropping off people's radar
screens and that -- to me -- looks like opportunity.
I agree that MGG looks like an opportunity, but it really has for quite
a while now. I'm happy sticking with the position I have. Surely
patience will be rewarded...