Subscribe for email updates on new posts

Analyzing Cash Flows of Master Limited Partnerships

Stock Quotes

BPL77.00  chart-2.57
BWP16.77  chart-0.57
EPB40.55  chart+0.19
EPD37.17  chart-0.91
ETP64.02  chart+0.265
KMP93.96  chart+0.45
MMP79.54  chart-1.71
NGLS61.00  chart-0.9925
CEQP9.06  chart-0.17
RGP30.41  chart-0.59
PAA55.97  chart+0.24
SPH44.28  chart-0.025
WPZ52.15  chart-0.55
NLY11.34  chart+0.08
AGNC22.69  chart+0.21
2014-10-30 16:00

Preliminary review of El Paso Pipeline Partners’ results for 3Q 2014

master limited partnership logos-EPB

Author: Ron Hiram

Published: October 20, 2014

Summary:

  • Operating income and EBITDA per unit have declined in each of the last 5 quarters compared to the corresponding prior year periods.
  • Adjusted EBDA decreased in 5 of the last 6 quarters when measured on a per unit basis.
  • DCF per unit increased by 12% in 3Q14 vs. the corresponding prior year period, achieving 1x coverage.
  • Main concern: how the market will value KMI on a post-transaction basis.
  • This article focuses on some of the key facts and trends revealed by the results of operations reported by El Paso Pipeline Partners, L.P. (EPB) for 2Q 2014.

Continue reading EPB – Preliminary review of El Paso Pipeline Partners’ results for 3Q 2014

Preliminary review of Kinder Morgan Energy Partners’ results for 3Q 2014

master limited partnership logos-KMP

Author: Ron Hiram

Published: October 19, 2014

Summary:

  • Adjusted EBDA per unit and segment earnings per unit exhibit slow growth year-to-year for the past 5 calendar quarters.
  • Distributions per unit are growing somewhat faster than DCF per unit.
  • Recent market turmoil and sharp decline in commodity prices, particularly oil, is not expected to have an adverse effect.
  • Project backlog is growing and could further accelerate if the anticipated increase in demand from conversion to gas by utilities and petrochemical companies materializes.

Continue reading KMP – Preliminary review of Kinder Morgan Energy Partners’ results for 3Q 2014

AGNC - Does American Capital Agency's business model support a dividend increase?

REIT logos-AGNC

Author: Ron Hiram

Published: August 28, 2014

Summary:

  • AGNC’s sustainable coverage of dividends turned positive in 4Q13 and has remained so for the last 3 consecutive quarters.
  • The improved performance was primarily driven by dividend reductions.
  • The improved performance was achieved while decreasing leverage.
  • The 5-year trend of declining or flat dividends may finally break if net interest rate spreads hold.

Continue reading AGNC – Does American Capital Agency’s business model support a dividend increase?

NLY - Does Annaly's business model support a dividend increase?

REIT logos-NLY

Author: Ron Hiram

Published: August 27, 2014

Summary:

  • The current dividend again seems to be aligned with what NLY’s basic business model can produce.
  • Return to positive coverage in 2Q14 was achieved without increasing leverage.
  • The 3-year trend of declining or flat dividends may finally break if net interest rate spreads hold.

Continue reading NLY – Does Annaly’s business model support a dividend increase?

BWP - A Closer Look at Boardwalk Pipeline Partners’ Distributable Cash Flow as of 2Q 2014

master limited partnership logos-BWP

Author: Ron Hiram

Published: August 25, 2014

Summary:

  • The 2014 DCF forecast is likely to be met or exceeded.
  • The leverage target (4x debt to EBITDA) is unlikely to be reached by year-end.
  • Operating income and EBITDA trends in recent quarters and TTM period are not encouraging.
  • Valuation multiple lower than peers, but so is current yield. The likelihood of significant distribution growth in next 2-3 years is low.
  • BWP well positioned to benefit from increased demand to transport gas and NGLs from north to south (vs. south to north). But this will require significant capital investments and time.

Continue reading BWP – A Closer Look at Boardwalk Pipeline Partners’ Distributable Cash Flow as of 2Q 2014