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.

Archives

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 All content on this website is presented as of the date published, is not updated and may be superseded by subsequent market events or for other reasons Under no circumstances should a person act upon the information contained within without first conducting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

Two-Year Performance Comparison of Selected MLPs

Author: Ron Hiram

Published: March 31, 2014

As an investment class, master limited partnerships (“MLPs”) have been highly correlated with the S&P 500 for the past 2 years. I derived Chart 1 using March 31, 2012 as the starting level for both the Alerian MLP Index, a composite of the 50 most prominent energy MLPs, […]

MMP - A Closer Look at Magellan Midstream Partners' Distributable Cash Flow as of 4Q 2013

Author: Ron Hiram

Published: March 25, 2014

This article supplements, and should be read in conjunction with, my preliminary review of 4Q13 results reported by Magellan Midstream Partners, L.P. (MMP). It evaluates the sustainability of MMP’s Distributable Cash Flow (“DCF”) and assesses whether MMP is financing its distributions via issuance of new units or […]

BPL - A Closer Look at Buckeye Partners' Distributable Cash Flow as of 4Q 2013

 Author: Ron Hiram

Published: March 23, 2014

This article supplements, and should be read in conjunction with, my preliminary review of 4Q13 results reported by Buckeye Partners L.P.  (BPL). I now evaluate the sustainability of BPL’s Distributable Cash Flow (“DCF”) and assesses whether BPL is financing its distributions via issuance of new units or debt.

[…]

WPZ - A Closer Look at Williams Partners’ Distributable Cash Flow as of 4Q 2013

Author: Ron Hiram

Published: March 17, 2014

This article analyzes the most recent quarterly and annual results of Williams Partners, L.P. (WPZ), looks “under the hood” to properly ascertain sustainability of Distributable Cash Flow (“DCF”), and assesses whether WPZ is financing its distributions via issuance of new units or debt.

Effective January 1, 2013, management […]

PAA - A Closer Look at Plains All American Pipeline’s Distributable Cash Flow as of 4Q 2013

Author: Ron Hiram

Published: March 14, 2014

This article supplements my preliminary review of 4Q13 results recently reported by Plains All American Pipeline L.P. (PAA). I now evaluate the sustainability of PAA’s Distributable Cash Flow (“DCF”) and assesses whether PAA is financing its distributions via issuance of new units or debt.

PAA transports, stores […]