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 All content on this website is presented as of the date published, is not updated and may be superseded by subsequent market events or for other reasons Under no circumstances should a person act upon the information contained within without first conducting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

BPL - Preliminary review of Buckeye Pipeline Partners' 4Q15 results

Author: Ron Hiram

Published: February 15, 2016

Summary:

Overall results for 4Q15 and 2015 are impressive, given market conditions. Adjusted EBITDA by segment in 4Q15 is up 9.4% in absolute dollar terms, vs. 4Q14, and up 7.6% on a per unit basis. In 2015, DCF increased 16.3% in absolute dollar terms and 8.4% on […]

MMP - Preliminary Review of Magellan Midstream Partners' 4Q15 Results

Author: Ron Hiram

Published: February 7, 2016

Summary:

The 12% decline in 4Q15 gross operating margin was driven by lower commodity prices and a comparison to the high commodity operating margins achieved in 4Q14. Fee-based gross margin accounts for the bulk of the total and actually increased in 4Q15 vs. 4Q14. Coverage ratio remained […]

EPD - Preliminary review of Enterprise Products Partners' results for 4Q 2015

Author: Ron Hiram

Published: February 1, 2016

Summary:

EPD’s results held up remarkably well. 2015 operating margin increased in absolute terms over 2014 and declined only slightly measured on a per unit basis. Mainly due to acquisitions, increases in distributions per unit have been accompanied by declines in DCF per unit; however the pace of […]

KMI - Preliminary review of Kinder Morgan’s 4Q 2015 results

Author: Ron Hiram

Published: January 24, 2016

Summary:

Measured in absolute dollar terms, 4Q15 Adjusted EBITDA is roughly unchanged from 4Q14 despite highly unfavorable market conditions, but on a per share basis there was a 34% decline. Large goodwill impairment charges ($1,150 million) and losses on sale of assets and project delays ($284 million) […]