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The higher growth rate for KMP is historical, I agree that going forward the growth appears to be much slower with distribution increases indeed supported by the I shares being PIK distributions. You are correct that KMP is also heavily into pipes as compared to storage, where MMP is higher in storage and terminalling. Different businesses and business model.

The real thing here is MMP. THe "merger" being made to lower the cost of capital and provide an assist for future growth. THe 50/50 split of $$$ going forward on additional $$$ is why the combination. There is nothing sinister or intending for a future merger, only a look at the market and what other players are doing such as MWE. The GP spilt was a great deal for those that got in early and only paid 2% or even up to maybe 25%, but at 50% the cost of capital makes too many projects simply not viable for providing DCF growth. MMP is well managed and disciplined to take care of itself in this difficult environment.

ARB