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 All content on this website is presented as of the date published, is not updated and may be superseded by subsequent market events or for other reasons Under no circumstances should a person act upon the information contained within without first conducting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

NGLS - A Closer Look at Targa Resources Partners’ Distributable Cash Flow as of 3Q 2014

Author: Ron Hiram

Published: November 25, 2014

Summary:

Impressive increases in operating margins and Adjusted EBITDA in the last 4 consecutive quarters. Very solid coverage of sustainable DCF in the TTM ended 9/30/14. Multiple of enterprise value to TTM EBITDA appears very reasonable relative to other MLPs with lower distribution growth prospects. APL acquisition […]

BPL - A Closer Look at Buckeye Partners' Distributable Cash Flow as of 3Q 2014

 

Author: Ron Hiram

Published: November 21, 2014

Summary:

BPL has been funding distributions by issuing debt and equity. Stark differences between reported and sustainable DCF due to cash consumed by working capital and by payments to terminate interest rate swaps. DCF coverage is likely to be below 1x in 2014. Improvement expected in […]

ETP - A Closer Look at Energy Transfer Partners' Distributable Cash Flow as of 3Q 2014

Author: Ron Hiram

Published: November 17, 2014

Summary:

All segments exhibited notable Adjusted EBITDA improvements on a TTM basis except Interstate Transportation & Storage. Substantial differences between reported DCF and what I consider sustainable DCF. Sustainable DCF coverage in the latest TTM periods improved considerably compared to the prior year period, but is still […]

PAA - A Closer Look at Plains All American Pipeline’s Distributable Cash Flow as of 3Q 2014

Author: Ron Hiram

Published: November 15, 2014

Summary:

3Q14 results bolstered by Supply & Logistics segment profits; up 138% over 3Q13. Unusually strong 1Q14 results may cause Adjusted EBITDA unfavorable comparison with 1Q15; could create a buying opportunity if unit price drops in response. DCF coverage of distributions remains strong and sustainable. Unit price has […]

EPD - A Closer Look at Enterprise Products Partners' Distributable Cash Flow as of 3Q 2014

 

Author: Ron Hiram

Published: November 12, 2014

 

Summary:

Consistently strong DCF coverage ratios; growth in DCF per unit exceeding growth in distributions Substantial excess cash reduces reliance on capital markets and minimizes dilution. Favorable structure: no IDRs, low leverage, breadth and diversification. Growth underpinned by projects beginning commercial operations: $4.9 billion in […]