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Ron Hiram  

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  • A Closer Look At Energy Transfer Partners' Distributable Cash Flow As Of Q4 2013 [View article]
    Hi Ray. I agree - my investment in ETE is larger than in ETP.
    Mar 15, 2014. 09:56 AM | Likes Like |Link to Comment
  • A Closer Look At Energy Transfer Partners' Distributable Cash Flow As Of Q4 2013 [View article]
    My positions in ETP and ETE were established a while back. While I agree with your comments, ETP's reported and sustainable DCF have been growing faster than KMP's for the past two years. I established my ETP and ETE positions a while back. Unfortunately, at the time I did not consider SXL.
    Mar 15, 2014. 09:53 AM | Likes Like |Link to Comment
  • Preliminary Review Of Buckeye Pipeline Partners' Q4 2013 Results [View article]
    KMP/KMI and EPB provided 2014 guidance for KMP/KMI and EPB. If the numbers are achieved, I don't see these partnerships significantly underperforming their peers. If the Kinder entities fail to meet 2014 expectations while their peers meet expectations, the answer is different. Given Richard Kinder's savvy and reputation, I don't see a reason to doubt the 2014 targets were set based on the best available information at the time. Of course targets my be missed - but as of now I don't see KMP/KMI and EPB as being in the same category as BWP.
    Feb 13, 2014. 02:26 PM | Likes Like |Link to Comment
  • Preliminary Review Of Buckeye Pipeline Partners' Q4 2013 Results [View article]
    Near term, I don't.
    Long term depends on how the assets they acquire perform. In any event, I would not expect BPL management to inflict the same kind of damage on their LPs as did BWP, even if BPL faced with the same set of problems (which it does not). .
    Feb 13, 2014. 02:08 PM | 1 Like Like |Link to Comment
  • Preliminary Review Of Plains All American Pipeline's Q4 2013 Results [View article]
    The GPs yield less than their underlying MLPs. On the other hand they should provide better growth, less dilution and better alignment of your interests with management's. But if you are concerned about being too concentrated in MLPs for your yield producing investments, there are more non-MLP alternatives to the lower returns offered by the GPs than to the higher current yields offered by the underlying MLPs.
    Feb 11, 2014. 11:20 PM | Likes Like |Link to Comment
  • Preliminary Review Of Plains All American Pipeline's Q4 2013 Results [View article]
    It all depends on how high a price they pay to purchase the GP stake.
    Feb 11, 2014. 11:15 PM | Likes Like |Link to Comment
  • Preliminary Review Of Plains All American Pipeline's Q4 2013 Results [View article]
    Alternatively, you could look at the ratio of unit price to DCF, or better still sustainable DCF. But you need to make sure you use a consistent measure of DCF because some MLPs define it to include all what's distributable to all partners (including the GP), and some define it as what's distributable only to limited partners.
    Feb 11, 2014. 11:13 PM | Likes Like |Link to Comment
  • Preliminary Review Of Enterprise Products Partners' 4Q 2103 Results [View article]
    "Lower current yield than almost all other MLPs" would have been a better choice of words. You correctly point out that there are other, more relevant, yardsticks that can be used to measure relative valuations. I would not look only at EBITDA, as earnings numbers can include one-time items and adjustments. Adjusted EBITDA may make more sense (depending on what adjustments are included). In prior articles I also compared MLPs using sustainable DCF as a measure.
    Feb 5, 2014. 08:41 AM | Likes Like |Link to Comment
  • Preliminary Review Of Kinder Morgan Energy Partners' Results For Q4 2013 [View article]
    Could be. Another possibility is that he has in mind a takeover by KMP of EPB.
    Jan 21, 2014. 11:13 AM | 1 Like Like |Link to Comment
  • A Closer Look At Boardwalk Pipeline Partners' Distributable Cash Flow As Of Q3 2013 [View article]
    BWP's spending on growth capital expenditures in 2013 are estimated at just ~$230 million, a very modest amount. Growth capital expenditures in 2014 and beyond seem to be highly dependent on a single project - the Bluegrass pipeline. We don't yet know whether BWP and WPZ will decide to proceed with this project, whether FERC will approve it and what BWP's stake in the project will be. I therefore consider prospects for growth in revenues, cash flows and distributions to be uncertain.
    Jan 5, 2014. 12:24 AM | Likes Like |Link to Comment
  • A Closer Look At El Paso Pipeline Partners' Distributable Cash Flow As Of Q3 2013 [View article]
    You cannot just look at past distribution increases. I noted that prospects for continued growth beyond 2013 are uncertain and recommended reducing positions prior to the recent big price drop.
    Dec 21, 2013. 02:18 PM | Likes Like |Link to Comment
  • A Closer Look At Buckeye Partners' Distributable Cash Flow As Of Q3 2013 [View article]
    The answer to your question requires analyzing your own specific portfolio. For example, what is the percent invested in MLPs? How much of that is BPL? What does the rest of the portfolio look like, how correlated are its returns to MLPs and the energy sector? The answers should give you an indication of what you should do, regardless of your entry point. My articles indicate which MLPs I regard as having solid, sustainable, or improving coverage ratios. Assuming you decide to diversify, I would begin the selection process with those. But bear in mind there are many additional factors to take into consideration.
    Dec 8, 2013. 10:25 AM | Likes Like |Link to Comment
  • 2-Year Performance Comparison Of Selected MLPs [View article]
    Look at TRGP, WMB, PAGP, OKE
    Dec 8, 2013. 09:57 AM | 2 Likes Like |Link to Comment
  • 2-Year Performance Comparison Of Selected MLPs [View article]
    I continue to cover WPZ.

    Cannot quantify the impact of the boom in liquids space. It is obviously very significantly and benefitted MMP and PAA.

    Much of the improvement in EPD’s total gross margins in the TTM ended 9/30/13 is attributed to Onshore Natural Gas Pipelines Services and Onshore Crude Oil Pipelines Services. The former benefited from higher volumes of natural gas produced and transported from the Eagle Ford shale formation. The latter benefited from increased crude oil production and transportation volumes from the Eagle Ford, Permian Basin and Rocky Mountains regions.

    Much of the improvement in KMP’s EBDA n the TTM ended 9/30/13 is attributed to Natural Gas Pipelines. This segment benefited from strong results generated by the Eagle Ford assets, contributions from the midstream assets in North Texas and Oklahoma (the Copano acquisition), and contributions from TPG drop-downs.
    Dec 8, 2013. 09:41 AM | 1 Like Like |Link to Comment
  • A Closer Look At Enterprise Products Partners' Distributable Cash Flow As Of Q3 2013 [View article]
    Yes.
    I did not do a detailed analysis of KMI, but it may be the best way to participate in the Kinder Morgan story given the conflict issues I discussed in prior articles.
    Dec 7, 2013. 10:15 AM | 1 Like Like |Link to Comment
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