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 All content on this website is presented as of the date published, is not updated and may be superseded by subsequent market events or for other reasons Under no circumstances should a person act upon the information contained within without first conducting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

ETP - A Closer Look at Energy Transfer Partners' Distributable Cash Flow as of 1Q 2015

Author: Ron Hiram

Published: May 14, 2015

Summary:

Adjusted EBITDA declined by $57 million in 1Q15 vs. 1Q14 but is up $569 million (13.5%) for the TTM ending 3/31/15 vs. 3/311/4, while average LP units outstanding decreased slightly. Coverage ratio, as reported by ETP, was 1.18x in 1Q15. But pro forma for the RGP […]

PAA - A Closer Look at Plains All American Pipeline’s Distributable Cash Flow as of 1Q 2015

Author: Ron Hiram

Published: May 11, 2015

Summary:

Segment operating profit declined 16% in 1Q15 vs. 1Q14 mainly due to lower Supply & Logistics margins. Adjusted EBITDA increased in 1Q15 vs. 1Q14 due to a $153 million swing in selected items; but was up 7.2% compared to the mid-point of management’s guidance. Sustainable DCF […]

MMP - A Closer Look at Magellan Midstream Partners' Distributable Cash Flow as of 1Q 2015

Author: Ron Hiram

Published: May 7, 2015

Summary:

Operating margin declined $51 million vs. 1Q14; Refined Products down $72 million on lower energy prices, but Crude Oil up $21.4 million on increased Longhorn shipments and BridgeTex contributions. Despite the headwinds, 1Q15 coverage ratio remained among the strongest in the universe of midstream energy MLPs. […]

BPL - A Closer Look at Buckeye Partners' Distributable Cash Flow as of 1Q 2015

Author: Ron Hiram

Published: May 5, 2015

Summary:

Lower energy commodity prices positively impacted demand for storage and negatively impacted revenues and butane blending spreads; overall good results in 1Q15. Results for 2Q15 are likely to compare favorably due to a performance issue in 2Q14, but coverage is expected to be below 1x. Sustainable […]

EPD - Preliminary review of Enterprise Products Partners' 1Q 2015 results

Author: Ron Hiram

Published: May 3, 2015

Summary:

Sharp declines in NGL and crude prices adversely affected EPD’s largest segment via lower natural gas processing margins and lower equity NGL production. Despite this, total gross operating margin in 1Q15 increased vs. 1Q14 as lower operating expenses offset decreases in commodity prices and contributions from […]