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 All content on this website is presented as of the date published, is not updated and may be superseded by subsequent market events or for other reasons Under no circumstances should a person act upon the information contained within without first conducting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

BWP - A Closer Look at Boardwalk Pipeline Partners’ Distributable Cash Flow as of 2Q 2014

Author: Ron Hiram

Published: August 25, 2014

Summary:

The 2014 DCF forecast is likely to be met or exceeded. The leverage target (4x debt to EBITDA) is unlikely to be reached by year-end. Operating income and EBITDA trends in recent quarters and TTM period are not encouraging. Valuation multiple lower than peers, but so […]

SPH - A Closer Look at Suburban Propane Partners' Distributable Cash Flow as of 3Q FY 2014

 Author: Ron Hiram

Published: August 24, 2014

Summary:

Gross margins as a percent of revenues declined for the 3 recent consecutive quarters and latest 12 months. Adjusted EBITDA per unit, net cash from operations and DCF also declined in the latest 12-month period. Cash reserves have been used to fund distributions. Despite its lower valuation […]

RGP - A Closer Look at Regency Energy Partners' Distributable Cash Flow as of 2Q 2014

Author: Ron Hiram

Published: August 21, 2014

Summary:

There are significant differences between EBITDA and Adjusted EBITDA because investments in unconsolidated affiliates are treated as if they were fully consolidated. Even on an adjusted basis, EV/EBITDA multiple is high vs. other MLPs. RGP has not been generating excess cash that could help fund its […]

BPL - A Closer Look at Buckeye Partners' Distributable Cash Flow as of 2Q 2014

Author: Ron Hiram

Published: August 19, 2014

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

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EPD - A Closer Look at Enterprise Products Partners' Distributable Cash Flow as of 2Q 2014

Author: Ron Hiram

Published: August 17, 2014

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

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