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Hinds Howard

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  • MLPs And Relative Value Versus U.S. Treasuries [View article]
    Good stuff Phillip, I agree with you... http://bit.ly/PavzOW
    Aug 25 09:36 PM | Likes Like |Link to Comment
  • Recent Post Catch Up [View instapost]
    Same as my blog.
    Aug 19 02:39 AM | Likes Like |Link to Comment
  • Kinder Morgan - Pipe Dream Valuations [View article]
    The KMR offering increased the unit count for KMR, so yes. But, proceeds from the offering will be used to help fund an acquisition that will increase the per unit distributable cash flow and distribution for KMP (i.e. an accretive acquisition).
    Aug 10 10:34 AM | 1 Like Like |Link to Comment
  • Kinder Morgan - Pipe Dream Valuations [View article]
    No dilution, its a secondary sale, all proceeds go to the current shareholders that are selling.
    Aug 9 09:39 PM | Likes Like |Link to Comment
  • Kinder Morgan - Pipe Dream Valuations [View article]
    This is a secondary sale of shares owned by the private equity firms (Carlyle Group, Goldman, Riverstone) that took KMI private back in 2007. So, no dilution, less overhang going forward, management not selling, so it will weigh on the stock, but after that its an incremental positive.
    Aug 9 09:38 PM | Likes Like |Link to Comment
  • Kinder Morgan - Pipe Dream Valuations [View article]
    I like it better than KMP, given that its the same company and same distribution (in units), but trades at a 10% discount. Its great for retirement accounts, but I don't see the catalyst for that perpetual discount to go away, barring its elimination altogether.

    At one point, I thought KMP might consolidate KMR because KMI was out there for people to buy in retirement accounts and for institutions to buy. and so there was some value in owning KMR in the event it was merged into KMP at some premium. But, now that KMP did an actual offering through KMR last week, it seems like KMP is committed to keeping it in place.

    Because of its discount, KMP loses money long term by having it in place because each quarter when they pay distributions, they are essentially issuing equity at a 10% discount. So, if you like KMP, you should like KMR better. KMR's current discount has historically been a good entry point relative to KMP. I don't own it though, and am not recommending it in any way. Oh, and all of the above should not be construed as investment advice, just one man's rambling opinion.
    Aug 9 01:08 PM | 1 Like Like |Link to Comment
  • Kinder Morgan - Pipe Dream Valuations [View article]
    Great title, not so great article. While I agree that KMP is overvalued right now, you mentioned none of the relevant factors like: 45% of their cash distributions go to the GP, distribution coverage ratio is lower than other large cap peers (especially EPD, which does not have incentive distribution rights), they are still struggling to make up for the Rockies Express pipeline turning out to be totally superfluous, lower expected distribution growth than other comparably priced investment grade MLPs, the massive amount of equity KMP needs to issue to fund its acquisitions and capital budget, etc.

    I am long KMI and remain so given it benefits from most of the negatives of KMP, like KMP having to issue a bunch of equity and 45% of CF going to the GP (KMI).
    Aug 9 12:30 PM | 7 Likes Like |Link to Comment
  • The Impending Implosion Of StoneMor Partners [View article]
    You know what would really help the analysis would be to take all of your FCF analysis and do the same thing for a more traditional MLP like EPD or KMP to see if their FCF covers distributions, and to show how STON does it somehow differently. Looking at STON's books in isolation isn't enough.
    Jul 27 09:47 AM | 2 Likes Like |Link to Comment
  • IPO Preview: PetroLogistics LP [View article]
    Historical context, this will be the largest ever MLP IPO in terms of gross proceeds, exceeding the IPO of EPB in 2007. See here for my quick breakdown of IPO in my Week Thoughts post.

    http://bit.ly/IBtgVg
    May 2 11:07 AM | Likes Like |Link to Comment
  • Yield, Value, Safety And Complications With MLPs [View article]
    In the second tab of that spreadsheet those are listed as well. There are a lot of publicly-traded GPs, like Loews, APC, HFC, SE, TRP, TK, LNG
    May 1 03:09 PM | Likes Like |Link to Comment
  • Yield, Value, Safety And Complications With MLPs [View article]
    Thanks John, one thing to note, a reader has pointed out that EROC eliminated its IDRs in 2010 as well, so I just updated the spreadsheet for that.
    May 1 02:04 PM | Likes Like |Link to Comment
  • Yield, Value, Safety And Complications With MLPs [View article]
    Thanks for the shoutout, I just posted a list at my site of each MLP, their current IDR tiers, and which MLPs have eliminated or capped their distributions. Enjoy!

    http://bit.ly/ISNIjP
    May 1 01:13 PM | 1 Like Like |Link to Comment
  • MLP Basics II: Distributions and IDRs [View instapost]
    You pretty much have to go through the filings. I've done that and have which MLPs have IDRs in my database, if I can find time, I'll post the list at mlpguy.com
    Apr 27 10:07 AM | 1 Like Like |Link to Comment
  • The Case For MLP Distribution Aristocrats [View article]
    I can't give direct financial advice on this website, for compliance reasons within my firm, but the above list is a good place to start, as are the top ten largest weighted MLPs in the Alerian MLP Index, because they are larger and more sophisticated companies. In the last few years off the top of my head, there have been serious accidents at a plant owned by EPD and a mine operated by ARLP (both listed above), but that's not a reason not to own them, in my opinion. EPD is the largest MLP there is (until KMP combines with EPB), so an accident at one of their many plants or along one of their many pipelines is not going to have a material impact on their operations, especially given that insurance tends to cover the accidents.

    ARLP is one of the best coal operators there is and takes safety very seriously (I experienced this first hand when I went deep into one of their mines back in 2006), but it came out that they had been cited for violations prior to their accident in 2010. Mining is a dangerous business, if that's a concern of yours, I would steer clear of that one.

    A pipeline spill a few years ago at EEP (not on my list above), caused oil to spill, but that has proven to be an opportunity to buy them at this point.
    Dec 28 02:18 PM | Likes Like |Link to Comment
  • The Case For MLP Distribution Aristocrats [View article]
    that's a tough assumption to make given that many people hold these for long periods of time to take full advantage of tax deferrals. I just left out dividends and distributions entirely when comparing stocks to MLPs above. Given the wide disparity of yield (2.8% for stocks vs. 5.8% for MLPs), fair to say MLPs still come out ok.
    Dec 28 02:05 PM | 1 Like Like |Link to Comment
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