IMO it was part of the beat down they took. Optimistic projections made on former strong crude prices and perhaps normal winters bit them with worse case scenarios. Supply vs demand hurt the world energy sector and many companies were faced with cutting distributions. ETP took a "stealth cut" by the move last year to combine with Sunoco logistics. Neither sets of unit holders were happy. The stock fell.
New money came in when the stock bottomed last Fall... some of it ours. .. :0)
ETE is the parent of both and an MLP itself that benefits from IDR's. Sunoco logistics, the surviving entity in the merger changed it's name to Energy Transfer Partners, using the higher trading volume, familiarity, and ticker of ETP. Debt went up by Sunoco's former 1+ Billion to 30+ Billion with ETP's and SXL's combined.
This sale announcement spoke to lowering the debt, obviously to bolster confidence and the balance sheet. I didn't dig deeper to see what cash flow they gave up....
Progress on lowering the debt will be viewed by Wall Street as a good thing as long as it does not disproportionately hurt cash flow. These days it seems a rising tide lifts all boats.... ETP is up 1.5%
so it is looking good.
GLYA!
"You’ve got to be very careful if you don’t know where you are going because you might not get there."
"The future ain’t what it used to be" "A nickel ain’t worth a dime anymore."
-so long Yogi, we will miss you-
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