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 All content on this website is presented as of the date published, is not updated and may be superseded by subsequent market events or for other reasons Under no circumstances should a person act upon the information contained within without first conducting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

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 […]

KMI - A Closer Look at Kinder Morgan’s results for 4Q 2016

 

Author: Ron Hiram

Published: February 25, 2017

Summary:

Adjusted EBDA declined 6.2% in 4Q16 and 3.7% in 2016, mostly due to sharply lower gas-gathering volumes and crude/condensate gathering volumes. Cash generated by operating activities declined 28.1% in 4Q16 and 9.7% in 2016; consequently, reported and sustainable DCF were also lower. Management‘s 2017 guidance […]

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% […]