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 All content on this website is presented as of the date published, is not updated and may be superseded by subsequent market events or for other reasons Under no circumstances should a person act upon the information contained within without first conducting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

ETP - Closer Look at Energy Transfer Partners' results for 4Q 2016

 

Author: Ron Hiram

Published: March 10, 2017

Summary:

Despite spending ~$14.6 billion (net of dispositions) in the two-year period ended 12/31/16 (~$15.6 billion in the two year period ended 12/31/15), results have been dismal. Per unit Adjusted EBITDA in 2016 is roughly the same as it was in 2012; DCF per unit in […]

ETP - A Closer Look at Energy Transfer Partners' 2Q16 results

 

Author: Ron Hiram

Published: August 8, 2016

Summary:

Measured on a per unit basis, Adjusted EBITDA and DCF have been declining for the last 5-6 consecutive quarters vs. the corresponding prior year periods. DCF does not cover distributions and coverage would have been even lower but for the IDR reduction agreed to by […]

ETP - A Closer Look At Energy Transfer Partners' 1Q16 Results

 

Author: Ron Hiram

Published: May 22, 2016

Summary:

Absent a $60 million gain due to an accounting method, ETP’s Adjusted EBITDA would have declined in 1Q16 vs. 1Q15. Maintenance capital expenditures in 1Q16 declined 30% vs. 1Q15 and are flat when measured on a TTM basis, while investment in property plant and equipment […]

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 […]

ETP - A Closer Look at Energy Transfer Partners' 2Q15 Distributable Cash Flow

Author: Ron Hiram

Published: August 17, 2015

Summary:

Adjusted EBITDA increased by 6.8% ($95 million) in 2Q15 vs. 2Q14. However, this was accompanied by a 36% jump in the average number of units outstanding. Reported DCF in the 6 months ending 6/30/15 excludes a $938 million outflow used to increase working capital; hence coverage […]