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Re: MWE is up on a big down day....Hi Paidtobuy:
>>>>1) The asset: better post merger than without merger<<<<
Always think asset-More assets after the merger. Also stronger financial company (MPC) that wants to grow the company.
>>>>3) The Dividend: MWE pays 3.68 per annum. MPLX pays 1.76 per annum<<<< MPLX has been uncreasint the distribution $0.03 per quarter -August 2015 payment was $0.44- Nov 2015 should be $0.47 -Probably still bfore the merger. After the merger the Feb 2016 payment should be at $0.50 or annualized at $2.00. But we are not buying annualized income here. They have projected 25% increases for 2016 and 2017 And 20% increases in 2018 and 2019
To get those percentages MPLX will have to pay the following per each MPLX unit-Don't forget MWE investors will have 1.09 MPLX units for each MWE units they currently have ( thats 9% more) Plus also Don't forget There will be a $3.37 cash payment for each MWE unit owned at the merger closing (Thats a 6.18% additional bosus to current MWE unitholders) MWE unitholders that are paying attention at this time have the opportunity to add to their MWE unit totals at these depressed price to receive the cash and unit bonuses on their current units and on all new units bought before the X-Dates. And in case you forgot there will probably be another $0.93 distribution paid by MWE before the merger in Nov 15. 2015. A lot of money and units rolling in before December 31, 2015 . Here is the list of distributions that MPC and MPLX have guided for going forward. It's a compelling story to me
2016-- $0.50-$0.53-$0.56-$0.59= $2.18
2017-$0.62-$0.66-$0.70-.$0.74=$2.72
2018-$0.78-$0.0.82-$0.86-$0.90=$3.36
2019-$0.94-$0.98-$1.02-$1.06=$4.00
Good luck
b&w |
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