Teppco opens up 1.50 higher in the early going. Stefil Nicholas starts Oneok LP (OKS) at a buy and that mlp opens higher as well but has turned a few ticks lower. Wunderlick starts Transmontaigne (TLP) at a buy and its up 1.
The mlp index opens up over 1 point.
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About Me
- joewxman
- a meteorologist with a knack for trading and investing in MLPS! I also like horse racing, enjoy cigars and a good port wine.
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6 comments:
Joe (and anyone else). Hypothetically, I own 100 shares of TPP. My last quarter distribution was ($0.725) (100) = $72.5. Assuming distributions of TPP would have been unchanged and EPD's distribution remains at its previous quarter's amount of $0.5375; my post-merger distribution will be ($0.5375) (100) (1.24) = $66.65. Should I vote for this merger or against it?
Thanks,
JCarroll
Disclosure. I actually own more than the hypothetical 100 shares noted in my previous comment. Further considerations which I assume to be true: the merged TPP/EPD partnership will be larger and more diversified than either company before the measure, and (I guess) more stable and better able to increase distributions in the future.
Thanks for any and all responses.
JCarroll
I agree. We're taking a 10% haircut on income in exchange for the idea that the new enterprise will be more reliable. I doubt it. I think it's a good deal for Dan Duncan and a not so good deal for us. TPP's future distributions are not in doubt, as far as I know, so I don't feel like I'm getting anything of real value for my loss of income.
You might make a case that we get a 10% premium in the sale price of TPP, but we'd have gotten that anyway in the course of time.
There was a comment that the merger would be accretive in 2010, so maybe EPD will increase the distribution accordingly.
I hope so.
steve
Since Duncan has control its going to go through. Teppco for years has gone absolutely nowhere given its mediocre distribution growth. I would vote for the merger.
FWIW, I think the proposed merger is worst for EPD unitholders. They get the privelege of overpaying for a slow-growth/no-growth MLP. I don't see how the purported cost savings--even if they actually occur--make this a good deal for EPD.
If I owned TPP, I would vote in favor, but I might consider selling my EPD units.
Bruce
Considering where we've been these last 12 months..taking the money and running is probably a prudent move.
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