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 All content on this website is presented as of the date published, is not updated and may be superseded by subsequent market events or for other reasons Under no circumstances should a person act upon the information contained within without first conducting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’ results for 2Q 2016

 

 

Author: Ron Hiram

Published: August 28, 2016

Summary:

The trends in operating income and EBITDA per unit appear encouraging. For the past 4 consecutive quarters each metric increased substantially vs. the comparable prior year period. DCF coverage exceeds 4x because quarterly distributions were cut from $0.5325 to $0.10 per unit in February […]

SPH - A Closer Look at Suburban Propane Partners' Results for 3QFY16

Author: Ron Hiram

Published: August 27, 2016

Summary:

Key metrics (volumes, gross margins, Adjusted EBITDA, DCF) are trending down; leverage has increased significantly. Coverage of distributions deteriorated substantially and was below 1x in the latest TTM period; distributions were funded from non-sustainable sources. Overall demand for propane is expected to be flat or to […]

PAA - A Closer Look at Plains All American Pipeline's results for 2Q16

 

 

Author: Ron Hiram

Published: August 25, 2016

Summary:

The 5% increase in 2Q16 segment operating profit over the prior year reflects 2Q15 costs associated with the Line 901 incident. Lower Supply & Logistics margins continue to burden results. Coverage remains below 1x. In the TTM ending 6/30/16 PAA funded distributions by issuing […]

TRGP - A Closer Look at Targa Resources Corp.’s results for 2Q 2016

Author: Ron Hiram

Published: August 20, 2016

Summary:

Fee-based gross margin as a percent of total gross margin has declined for the last 4 consecutive quarters. Operating margin and Adjusted EBITDA declined in 2Q16 vs. 2Q15 in absolute terms and per share, primarily due to lower commodity prices; changes in throughput volumes were minor. […]

BPL - A Closer Look at Buckeye Pipeline Partners' 2Q16 results

 

Author: Ron Hiram

Published: August 10, 2016

Summary:

Assets placed in service, higher average capacity utilization rates and a one-time reduction in property tax accruals increased Global Marine Terminals’ Adjusted EBITDA in 2Q16. Pipelines & Terminals’ Adjusted EBITDA increased despite a decline in volumes transported; it was driven by increased capacity utilization, higher […]