About this website

The website explains how distributable cash flow (DCF) is defined and why it is important to analyze it and derive a sustainable measure of DCF. Results reported by master limited partnerships (MLPs) are analyzed. comparisons of reported DCF to sustainable DCF are generated, and various coverage ratios and reports analyzing performance are generated. Simplified sources and uses of funds statements are presented to focus readers' attention on key cash flow items. The website also features general articles about MLPs and about other topics of interest to yield-focused investors.

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Disclaimer

The documents and opinions in this website are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the securities mentioned or to solicit transactions or clients. The information in this website is believed, but not guaranteed, to be accurate. All content on this website is presented as of the date published, is not updated and may be superseded by subsequent market events or for other reasons Under no circumstances should a person act upon the information contained within without first conducting his/her own independent research and consulting with his/her investment advisor and tax professional as to whether such action is suitable based on the investor’s investment objectives, personal and financial situation, and specific legal or tax situation.

BPL - What to look for in Buckeye Partners' results for 2Q 2017

 

 

 

 

Author: Ron Hiram

Published: July 24, 2017

Summary:

Operating income declined in 1Q17 vs. 1Q16, despite the boost given by the first contribution from VTTI. It is important to see whether this recurs in 2Q17. Per unit, DCF growth has outpaced distributions in 6 of the past 9 quarters, but […]

MMP - What to look for in Magellan Midstream Partners' results for 2Q17

 

 

 

Author: Ron Hiram

Published: July 24, 2017

Summary:

The 19% increase in 1Q17 operating margin vs. 1Q16 primarily reflects the impact of mark-to-market gains on futures contracts in the recent quarter vs. losses in the prior year’s quarter. Overall, despite the high level of product margin in 1Q17, MMP’s reliance on […]

ETP - Closer Look at Energy Transfer Partners' results for 4Q 2016

 

Author: Ron Hiram

Published: March 10, 2017

Summary:

Despite spending ~$14.6 billion (net of dispositions) in the two-year period ended 12/31/16 (~$15.6 billion in the two year period ended 12/31/15), results have been dismal. Per unit Adjusted EBITDA in 2016 is roughly the same as it was in 2012; DCF per unit in […]

BPL - A Closer Look at Buckeye Pipeline Partners' 4Q16 results

 

Author: Ron Hiram

Published: March 6, 2017

Summary:

BPL has substantially underperformed the Alerian MLP index since announcing the VTTI transaction, possibly due to concerns regarding this deal. DCF outgrew distributions per unit in 8 of the past 9 quarters; but in 4Q16 DCF per unit decreased due to the VTTI transaction. Special […]

EPD - A Closer Look at Enterprise Products Partners' results for 4Q 2016

 

Author: Ron Hiram

Published: February 28, 2017

Summary:

Despite projects totaling ~$9 billion placed into service in the last three years, gross operating margins and Adjusted EBITDA per unit have been declining for eight consecutive quarters. For the last two and a half years (since 2Q14), distribution growth has been outpacing DCF growth […]