Energy Transfer Partners: Will The Distribution Be Cut Post Merger?

About: Energy Transfer LP (ET)
by: Trapping Value
This article is exclusive for subscribers.
Trapping Value
Deep Value, special situations, REITs, dividend investing

We had speculated on what would happen post IDR buyout.

The consensus was that ETE would get the best treatment and ETP would suffer as a consequence.

The terms appear different than what we envisioned.

We run the numbers to analyze the potential of a cut.

Post market hours we were treated to a roll-up of gigantic proportions. Energy Transfer Partners (ETP) is being merged with Energy Transfer Equity (ETE) subject to approval of the shareholders.