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ETE, PAGP, WGP, ENLC: A Distribution Growth Guidance Comparison

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Historical distribution

Plains GP Holdings (PAGP) announced a distribution cut in 3Q16. Based on this distribution cut, PAGP declared a distribution of $0.55 per unit for 1Q17, an 11.3% fall YoY (year-over-year).

EnLink Midstream LLC (ENLC) and Energy Transfer Equity (ETE) have kept their distributions flat at $0.26 and $0.29, respectively, for the past several quarters. Western Gas Equity Partners (WGP) declared a distribution per unit of $0.49 in 1Q17, representing a 6% rise compared to previous quarters and a 16% rise compared to the same quarter of the previous year.

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Distribution guidance

WGP expects to grow its distribution 12%–18% in the 2017–2018 period. ETE and PAGP are less likely to resume distribution growth in the coming quarters due to their subsidiaries’ significant growth plans and relatively high commodity price exposures. 

EnLink Midstream expects to resume distribution growth after its major projects come online in 2017.

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