If I had to pick reasons I believe the unit price is rising, I'd point to these items:
1. relative peaceful conditions globally.
2. continued strengthening in US hydrocarbon production
3. crack spread no longer on a meaningful negative slope.
4. Strong General Partner committed to expanding facilities including added pipeline installation. I'm expecting more change.
5. cyclicality is working for us unitholders after a period of doubt and unexpected repairs.
6. Significantly increased throughput, thanks to expanded refinery capacity.
7. Winter across the PADD 11 region was especially severe this past half year or so. It leads me to think people are fed up with not getting out and enjoying life, spending a few bucks on gas and convenience store goodies. I see bottled up desire for fun.
8. A larger audience is waking up to the reality of a considerably higher distribution this quarter. Any time you have a company able to increase its payout to the tune of 88%, people will sit up and want to see the company's distribution policy;and relative safety that the regular distributions will continue in like manner will be recognized; Expectation is that the level of distributions going forward for the rest of this year will very likely continue the upward bias shown in this Q's payout slated to close entry on Thursday of this week. All told, there's probably excellent reason to expect a payout in the following Q in the amount of at least $1.25 if not more---barring incidents.
Lay it on me---I've probably overlooked some key points. One thing for sure, however, my 6,709 units are making me a very happy old man!
My thoughts and ideas in the above, nothing more.
Len
