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 All content on this website is presented as of the date published, is not updated and may be superseded by subsequent market events or for other reasons Under no circumstances should a person act upon the information contained within without first conducting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

PAA - A Closer Look at Plains All American Pipeline's 3Q16 results

 

 

 

Author: Ron Hiram

Published: November 26, 2016

Summary:

Lower Supply & Logistics continues to burden results; management attributed some of the 3Q16 segment loss to one-time events and is forecasting segment profit of ~$165 million in 1Q17. Coverage was below 1x i n 3Q16 and TTM; PAA funded distributions by issuing […]

PAA - A Closer Look at Plains All American Pipeline's results for 2Q16

 

 

Author: Ron Hiram

Published: August 25, 2016

Summary:

The 5% increase in 2Q16 segment operating profit over the prior year reflects 2Q15 costs associated with the Line 901 incident. Lower Supply & Logistics margins continue to burden results. Coverage remains below 1x. In the TTM ending 6/30/16 PAA funded distributions by issuing […]

PAA - A Closer Look at Plains All American Pipeline's 1Q16 results

 

Author: Ron Hiram

Published: June 3, 2016

Summary:

Segment operating profit has declined for 5 consecutive quarters when comparing each quarter to the prior year period. The declines are mainly due to lower Supply & Logistics margins. For the past 9 quarters, total dollars distributed have been growing more rapidly than DCF. The […]

PAA - A Closer Look at Plains All American Pipeline’s 3Q15 Distributable Cash Flow

 

Author: Ron Hiram

Published: November 13, 2015

Summary:

Business conditions continue to deteriorate for PAA at a faster than projected pace; PAA has decreased its Adjusted EBITDA guidance for 2015 in each of the last 4 quarters. Trailing 12-months coverage of distributions stood at 0.93x on a reported basis and 0.85x on a […]

PAA - A Closer Look At Plains All American Pipeline's Distributable Cash Flow As Of 2Q 2015

 

Author: Ron Hiram

Published: August 11, 2015

Summary:

Coverage ratios have dropped below 1x on a TTM basis, the first time this has happened in over 4 years. PAA used cash raised from issuance of debt and equity to fund a small portion of its distributions in the latest TTM period. A 7% […]