Energy Transfer Partners LP (ETP)

[wshaw14]

The Math

The Math is in the link below

Using the outstanding units of both companies and the conversion ratio, along with the distributable cash flow of each company we can come up with the adjusted DCF of the combined company on a quarterly basis.

Source: Q1-2018 results ETP & ETE

At first glance it appears that the adjusted DCF per unit will be lower than the ETP distributions in Q1-2018. But remember, each ETP shareholder is being issued 28% more units. So a current ETP shareholder will be paid distributions on 28% more units.

Shockingly, the amount of DCF (adjusted for 28% increase in units) available for each ETP unit appears to be higher than the distribution previously declared.
https://seekingalpha.com/article/4193548-energy-transfer-partners-will-distribution-cut-post-merger?page=2