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 All content on this website is presented as of the date published, is not updated and may be superseded by subsequent market events or for other reasons Under no circumstances should a person act upon the information contained within without first conducting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 Resource Partners’ 3Q15 Distributable Cash Flow

 

Author: Ron Hiram

Published: December 3, 2015

Summary:

Distribution coverage is solid on a TTM basis; but operating margin, operating income, Adjusted EBITDA and DCF all declined on a per unit basis for the past three quarters. The proposed acquisition of NGLS by TRGP entails a ~32% cut in NGLS distributions (from $0.825 per […]

BPL - A Closer Look at Buckeye Partners' 3Q15 Distributable Cash Flow

 

Author: Ron Hiram

Published: November 24, 2015

Summary:

In 3Q15, the Global Marine Terminals segment benefited from strong customer demand, much higher capacity utilization, and higher rates on expiring contracts. Adjusted EBITDA, DCF and coverage ratios improved markedly in the latest TTM period, but this is partially due to year-ago losses at Merchant […]

ETP - A Closer Look at Energy Transfer Partners' 3Q15 Distributable Cash Flow

 

Author: Ron Hiram

Published: November 19, 2015

Summary:

In the 9 months ended 9/30/15, ETP funded distributions by issuing debt and/or limited partnership units. Adjusted EBITDA increased 3.4% in 3Q15 vs. 3Q14 but decreased 29% on a per unit basis; DCF declined in 3Q15 vs. 3Q14, but is virtually unchanged for the 9-month […]

MMP - A Closer Look At Magellan Midstream Partners' 3Q15 Distributable Cash Flow

 

Author: Ron Hiram

Published: November 16, 2015

Summary:

In 3Q14 MMP again produced outstanding results in terms of operating margins, EBITDA and DCF. Coverage ratio remained very strong in 3Q15 despite continued industry headwinds that adversely affected other MLPs. The importance of MMP’s excess cash flow s magnified in the current environment that […]

PAA - A Closer Look at Plains All American Pipeline’s 3Q15 Distributable Cash Flow

 

Author: Ron Hiram

Published: November 13, 2015

Summary:

Business conditions continue to deteriorate for PAA at a faster than projected pace; PAA has decreased its Adjusted EBITDA guidance for 2015 in each of the last 4 quarters. Trailing 12-months coverage of distributions stood at 0.93x on a reported basis and 0.85x on a […]