Tax basis in corporate shares is determined lot by lot. Tax basis in a partnership is determined in the aggregate (although IRS may have ruled otherwise that I am not aware of....it has been nearly 10 years since I met regularly with tax experts). If aggregate is still the rule, You can solve distribution in excess of basis problem simply by buying more units aka Kelsey Warren who buys more each year.

 

Distribution this year will not be less than 1.22. Thus any  purchase price under 13.56 means a yield on cost of more than 9%. Last Nov distribution of 26.5 cents was covered 1.93 times. Had that distribution been the current 30.5 cents, coverage would have been 1.68.

 

We already know debt ratios are at or ahead of target. Otherwise, distribution would not be 30.5 cents 

 

I'm expecting a gangbuster's quarter on 2/15. NG volumes nationally have been at records. ET transported lots of Biden's SPR withdrawals in 4Q, almost all of the 130 futures contract writedown in 3Q will turn around in 4Q ad contracted product was delivered and I'm expecting at least 500 million from winter storm Elliott (vs 2.4 billion from Uri). Gulf Run pipeline in service in mid Dec and more projects online in 2023.

Consequently I expect estimated EBIDTA for 2023 at or above record 2022.

 

Market still not paying for 1.22 yield. I expect over 14 after earnings. Still too much distrust over past KW debt-funded spending orgies. I expect that will not gradually dissipate providing no bug spending blunders. Thus multiples will gradually expand.

 

IMO, ET a great buy at any price under 13.56 (9% yield).