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 All content on this website is presented as of the date published, is not updated and may be superseded by subsequent market events or for other reasons Under no circumstances should a person act upon the information contained within without first conducting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

TRGP - A Closer Look at Targa Resources Corp.’s results for 3Q 2016

 

Author: Ron Hiram

Published: November 28, 2016

Summary:

Operating margin in 3Q16 is down 12-13% vs. 3Q15; on a TTM basis it is down 2% in absolute terms and 25% per share, primarily due to lower commodity prices. Adjusted EBITDA per unit declined in the last 3 quarters but is expected to improve […]

PAA - A Closer Look at Plains All American Pipeline's 3Q16 results

 

 

 

Author: Ron Hiram

Published: November 26, 2016

Summary:

Lower Supply & Logistics continues to burden results; management attributed some of the 3Q16 segment loss to one-time events and is forecasting segment profit of ~$165 million in 1Q17. Coverage was below 1x i n 3Q16 and TTM; PAA funded distributions by issuing […]

BPL - A Closer Look at Buckeye Pipeline Partners' 3Q16 results

 

Author: Ron Hiram

Published: November 12, 2016

 

Summary:

All business segments exhibited improved performance in 3Q16 over 3Q15. DCF per unit has been increasing at a faster pace than distributions per unit in 8 of the past 9 quarters. Coverage ratios based on both reported and sustainable DCF have improved markedly and […]

MMP - A Closer Look at Magellan Midstream Partners' results for 3Q16

Author: Ron Hiram

Published: November 11, 2016

Summary: The 14% drop in total operating margin reflects a move from unrealized profits on hedged positions in 3Q15 to a unrealized losses in 3Q16. Reliance on commodity-related activities continues to diminish; correspondingly, the fee-based portion is increasing. For 8 of the last 10 quarters, distribution growth […]

EPD - A Closer Look at Enterprise Products Partners' results for 3Q 2016

 

Author: Ron Hiram

Published: November 7, 2016

Summary:

Due to unfavorable pricing environments in the past two years, gross operating margins are flat despite >$10 billion of net capital expenditures and acquisitions since 9/30/14. When measured on a per unit basis, gross operating margins have been declining for the last seven consecutive quarters […]