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 All content on this website is presented as of the date published, is not updated and may be superseded by subsequent market events or for other reasons Under no circumstances should a person act upon the information contained within without first conducting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’ 1Q 2016 results

 

Author: Ron Hiram

Published: June 16, 2016

Summary:

The trends in operating income and EBITDA per unit appear encouraging. For the past 3 consecutive quarters each metric increased vs. the comparable prior year period. DCF coverage exceeds 4x; coverage is not an issue given that distributions were cut so drastically in February 2014 […]

SPH - A Closer Look at Suburban Propane Partners' 2QFY16 Results

 

Author: Ron Hiram

Published: June 7, 2016

Summary:

Volumes and gross margins are trending down, but gross margin percent is up because SPH did not pass on to its customers all the benefits of lower propane costs. Coverage of distributions deteriorated substantially and was below 1x in the latest TTM period; distributions were […]

PAA - A Closer Look at Plains All American Pipeline's 1Q16 results

 

Author: Ron Hiram

Published: June 3, 2016

Summary:

Segment operating profit has declined for 5 consecutive quarters when comparing each quarter to the prior year period. The declines are mainly due to lower Supply & Logistics margins. For the past 9 quarters, total dollars distributed have been growing more rapidly than DCF. The […]

BPL - A Closer Look at Buckeye Pipeline Partners' 1Q16 results

 

Author: Ron Hiram

Published: May 28, 2016

Summary:

Assets placed in service, higher average capacity utilization rates and expiring contracts renewed at higher rates or for longer periods increased Global Marine Terminals’ Adjusted EBITDA in 1Q16. Pipelines & Terminals’ Adjusted EBITDA decreased lightly in 1Q16, reflecting lower volumes due to a milder winter […]

KMI - A Closer Look at Kinder Morgan’s results for 1Q 2016 results

Author: Ron Hiram

Published: May 25, 2016

Summary:

Adjusted EBITDA in 1Q16 is up about 1.5% from 1Q15 measured in absolute terms and down about 2% on a per share basis. Reported DCF in 1Q16 was essentially unchanged from 1Q15. Sustainable DCF was lower than reported DCF by approximately 9.6% in the TTM ending […]