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 All content on this website is presented as of the date published, is not updated and may be superseded by subsequent market events or for other reasons Under no circumstances should a person act upon the information contained within without first conducting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

A Closer Look at Kinder Morgan Energy Partners’ Distributable Cash Flow as of 3Q12

Author: Ron Hiram

Published: November 3, 2012

In an article titled Distributable Cash Flow (“DCF”) I present the definition of DCF used by Kinder Morgan Energy Partners LP (KMP) and provide a comparison to definitions used by other master limited partnerships (“MLPs”). KMP’s definition and method of deriving of DCF (what KMP refers to as […]

RGP: Regency Energy Partners LP - Quarterly DCF Data

 

 

 

 

A breakdown by quarter of the 9 month numbers in the report titled “RGP: Closer Look at Regency Energy Partners’ Distributable Cash Flow” is presented below:

Period:3Q113Q111Q11 3Q103Q101Q10 Net cash provided by operating activities83.363.757.454.740.432.8 Less: Maintenance capital expenditures(7.0)(2.0)(3.4)(2.7)(4.1)(3.9) Less: Working capital (generated)(14.3)(14.3)(3.7)-(3.6)- Less: net income attributable to GP Less: Net income attributable […]

RGP: Closer Look at Regency Energy Partners' Distributable Cash Flow

By: Ron Hiram

Published: Feb 6, 2012

In an article titled “Distributable Cash Flow (“DCF)” I present the definition of DCF used by Regency Energy Partners LP (RGP) and provide a comparison to definitions used by other master limited partnerships (MLPs). Using RGP’s definition, DCF for the 9 month period ending 9/30/11 was $1.43, down […]

WPZ: Closer Look at Williams Partners’ Distributable Cash Flow

By: Ron Hiram

Published: Jan 24, 2012

WPZ: Closer Look at Williams Partners’ Distributable Cash Flow

In prior articles I reviewed a variety of factors causing distributable cash flow (DCF) as reported by a master limited partnerships (MLP) to differ from sustainable DCF as I calculated it. These include cash generated from working capital, asset […]

EPB: Closer Look at the cash flows of El Paso Pipeline Partners

By: Ron Hiram

Published: Jan 10, 2012

The announcement of KMI’s acquisition of El Paso Corporation (EP) resulted in a marked decline in EPB’s unit price. This reflected investor concerns that drop-downs from EP (EPB’s general partner) would no longer exclusively reach EPB but, instead, would be split between EPB and the other Kinder Morgan […]