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 All content on this website is presented as of the date published, is not updated and may be superseded by subsequent market events or for other reasons Under no circumstances should a person act upon the information contained within without first conducting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' 2Q15 Distributable Cash Flow

 

 

 

Author: Ron Hiram

Published: August 30, 2015

Summary:

Operating income and EBITDA trends in recent quarters and TTM period are not encouraging; but there are some positive signals from the gas transportation business. Coverage is not an issue given that distributions were cut so drastically. Leverage remains high. Valuation multiple lower […]

A Closer Look at Suburban Propane Partners' Results and Cash Flows as of 6/30/15

Author: Ron Hiram

Published: August 27, 2015

Summary:

SPH benefited from lower oil prices; it did not pass on to its customers all the benefits of lower propane costs thus increasing gross margin to 57% in 3QFY15 . Distributions coverage at 1.09x in the TTM ended 6/30/15; sustainable DCF shows a marked improvement over […]

KMI - Conversation with Kinder Morgan’s management re Distributable Cash Flow

Author: Ron Hiram

Published: August 27, 2015

Summary:

Management’s response covers concepts brought up in my recent SA article on KMI. We discuss the rationale for a number of the non-GAAP calculations. We discuss the impact of KMI having eliminated the structural subordination of its debt. We discuss the differences in our methods of […]

NGLS - A Closer Look At Targa Resource Partners' 2Q15 Distributable Cash Flow

Author: Ron Hiram

Published: August 22, 2015

Summary:

NGLS provided very solid distribution coverage in the TTM ended 6/30/15. While exposure to gross margin from sale of commodities has been coming down over time, it is still substantial. Given that, and given that operating margin, operating income, Adjusted EBITDA and DCF are declining on […]

BPL - A Closer Look at Buckeye Partners' 2Q15 Distributable Cash Flow

 

Author: Ron Hiram

Published: August 19, 2015

Summary:

Substantial improvement in Adjusted EBITDA and DCF in the TTM period ending 6/30/15 mostly due to Global Marine Terminals segment and year-ago losses at Merchant Services. Coverage ratios, both based on reported DCF and sustainable DCF, improved markedly in the latest TTM period. Management expects […]