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 All content on this website is presented as of the date published, is not updated and may be superseded by subsequent market events or for other reasons Under no circumstances should a person act upon the information contained within without first conducting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.

MMP - A Closer Look at Magellan Midstream Partners' results for 4Q16

Author: Ron Hiram

Published: February 22, 2017

Summary:

Crude Oil segment operating margins increased 17.9% in 4Q16; higher average rates, in part resulting from deficiency revenues, more than offset lower shipment volumes. Storage revenues also increased. Refined Products’ operating margin decreased 6.4 due to mark-to-market losses on hedges; but total volume shipped increased 5.9% […]

MMP - A Closer Look at Magellan Midstream Partners' results for 3Q16

Author: Ron Hiram

Published: November 11, 2016

Summary: The 14% drop in total operating margin reflects a move from unrealized profits on hedged positions in 3Q15 to a unrealized losses in 3Q16. Reliance on commodity-related activities continues to diminish; correspondingly, the fee-based portion is increasing. For 8 of the last 10 quarters, distribution growth […]

MMP - A Closer Look at Magellan Midstream Partners' results for 2Q16

Author: Ron Hiram

Published: August 7, 2016

Summary:

Operating margin in 2Q16 is up 6% vs. 2Q15; reliance on commodity-related activities has been diminishing; correspondingly, the fee-based portion is increasing. For 7 of the last 9 quarters, distribution growth has outpaced DCF growth when measured on a per unit basis and each quarter is […]

MMP - A Closer Look at Magellan Midstream Partners' Results for 1Q 2016

Author: Ron Hiram

Published: May 16, 2016

Summary:

MMP’s reliance on commodity-related activities has been diminishing. Coverage ratio in 1Q16 was substantially below MMP’s historical levels. Projects under construction being placed into service in 2016 will increase EBITDA by over 10%; the 10% distribution growth guidance with 1.2x coverage for 2016 seems achievable. DCF […]

MMP - Preliminary Review of Magellan Midstream Partners' 4Q15 Results

Author: Ron Hiram

Published: February 7, 2016

Summary:

The 12% decline in 4Q15 gross operating margin was driven by lower commodity prices and a comparison to the high commodity operating margins achieved in 4Q14. Fee-based gross margin accounts for the bulk of the total and actually increased in 4Q15 vs. 4Q14. Coverage ratio remained […]