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 All content on this website is presented as of the date published, is not updated and may be superseded by subsequent market events or for other reasons Under no circumstances should a person act upon the information contained within without first conducting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

NGLS - A Closer Look at Targa Resource Partners’ 3Q15 Distributable Cash Flow

 

Author: Ron Hiram

Published: December 3, 2015

Summary:

Distribution coverage is solid on a TTM basis; but operating margin, operating income, Adjusted EBITDA and DCF all declined on a per unit basis for the past three quarters. The proposed acquisition of NGLS by TRGP entails a ~32% cut in NGLS distributions (from $0.825 per […]

NGLS - A Closer Look At Targa Resource Partners' 2Q15 Distributable Cash Flow

Author: Ron Hiram

Published: August 22, 2015

Summary:

NGLS provided very solid distribution coverage in the TTM ended 6/30/15. While exposure to gross margin from sale of commodities has been coming down over time, it is still substantial. Given that, and given that operating margin, operating income, Adjusted EBITDA and DCF are declining on […]

NGLS - A Closer Look at Targa Resources Partners’ Distributable Cash Flow as of 4Q 2014

Author: Ron Hiram

Published: February 16, 2015

Summary:

Operating margins and Adjusted EBITDA increased in 4Q14, but at a far slower rate compared to the prior 4 consecutive quarters. Coverage of reported and sustainable DCF in 4Q14 and 2014 was excellent, but is likely to fall from 1.5x in 2014 to 1.0x or even […]

NGLS - A Closer Look at Targa Resources Partners’ Distributable Cash Flow as of 3Q 2014

Author: Ron Hiram

Published: November 25, 2014

Summary:

Impressive increases in operating margins and Adjusted EBITDA in the last 4 consecutive quarters. Very solid coverage of sustainable DCF in the TTM ended 9/30/14. Multiple of enterprise value to TTM EBITDA appears very reasonable relative to other MLPs with lower distribution growth prospects. APL acquisition […]

NGLS - A Closer Look at Targa Resources Partners’ Distributable Cash Flow as of 2Q 2014

Author: Ron Hiram

Published: August  7, 2014

This article analyses some of the key facts and trends revealed by 2Q14 results reported by Targa Resources Partners LP (NGLS). It evaluates the sustainability of the partnership’s Distributable Cash Flow (“DCF”) and assesses whether NGLS is financing its distributions via issuance of new units or debt.

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