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Ron Hiram

 
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  • A Closer Look At El Paso Pipeline Partners' Distributable Cash Flow As Of Q3 2013 [View article]
    Each year you were taxed only on your pro-rata portion of this MLP’s pretax income. An MLP's income is typically less than its distributions, primarily because of depreciation deductions; so in effect the distributions you received were tax deferred. But when you ultimately dispose of the investment your tax basis will be lower and, consequently, your tax bill will higher. Deferred taxes increase your rate of return, all else being equal.
    Nov 18, 2013. 10:55 AM | 1 Like Like |Link to Comment
  • A Closer Look At El Paso Pipeline Partners' Distributable Cash Flow As Of Q3 2013 [View article]
    I agree that it makes sense. There may be tax considerations that make it disadvantageous, but I don't have specific data on this. Also, the conflicts involved in executing such a merger, and the cost of the inevitable lawsuits, are also a factor.
    Nov 18, 2013. 10:51 AM | Likes Like |Link to Comment
  • A Closer Look At Kinder Morgan Energy Partners' Distributable Cash Flow As Of Q3 2013 [View article]
    I think you are oversimplifying. KMI relies in only in part on KMP's DCF. It has other assets and its economics are different. An example of the conflicting interests is given in my recent article on EPB. See http://bit.ly/1dGiSd2
    Nov 16, 2013. 10:56 PM | Likes Like |Link to Comment
  • A Closer Look At Enterprise Products Partners' Distributable Cash Flow As Of Q3 2013 [View article]
    The 2015 Panama Canal expansion is expected to enable EPD to substantially increase propane exports to Asia. First because the Asian market is currently being supplied exclusively from the Middle East, enabling EPD and other US exporters to offer a second source. Second, because in addition to being able to provide a second source of propane to destinations in the Far East, EPD will be also able to offer faster deliveries because large vessels departing from the US Gulf Coast will require a ~25 day journey vs. the ~41 days it currently takes.
    Nov 15, 2013. 01:47 PM | 1 Like Like |Link to Comment
  • A Closer Look At Enterprise Products Partners' Distributable Cash Flow As Of Q3 2013 [View article]
    Link to correct version of Table 3 appears below. Apologies and thanks.
    http://bit.ly/HX777S
    Nov 15, 2013. 08:56 AM | Likes Like |Link to Comment
  • A Closer Look At Magellan Midstream Partners' Distributable Cash Flow As Of Q3 2013 [View article]
    I don't hold myself to be a tax expert. To the best of my knowledge, as a non-US citizen you are subject to withholding tax unless you receive and exemption, which should not be difficult to do. You can file a form called W8-BEN and, provided you are a citizen of a country that has a tax treaty with the US, you should not have anything withheld. If you do not file this form, you will incur withholding, whether for a regular dividend paying stock or a distribution from a fund or an MLP. I think the same applies to interest you receive (your ETN question). In other words, I think you face this issue with any income generating US investment and your best bet is to file the form that will permit your broker not to withhold. Hope this helps. Again, this is to the best of my knowledge.
    Nov 11, 2013. 11:52 PM | Likes Like |Link to Comment
  • Thoughts On Kevin Kaiser's Allegations Of Inadequate Capital Maintenance Expenditures At Kinder Morgan [View article]
    I submitted the article for publication before the transcript of the conference call was made available. The additional level of detail provided re the maintenance cap ex issue was very helpful in mitigating my concern on this issue. My other concerns (relating to the way coverage is calculated and KMR's impact on coverage) were not the subject of this call and were therefore not addressed.
    Sep 21, 2013. 12:49 PM | 2 Likes Like |Link to Comment
  • Thoughts On Kevin Kaiser's Allegations Of Inadequate Capital Maintenance Expenditures At Kinder Morgan [View article]
    I submitted the article for publication before the transcript of the conference call was made available. The additional level of detail provided regarding the maintenance cap ex issue was very helpful in mitigating my concern on this issue. My other concerns (relating to the way coverage is calculated and KMR's impact on coverage) were not the subject of this call and were therefore not addressed.
    Sep 21, 2013. 12:48 PM | Likes Like |Link to Comment
  • Thoughts On Kevin Kaiser's Allegations Of Inadequate Capital Maintenance Expenditures At Kinder Morgan [View article]
    KMI and ETE 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.
    Sep 21, 2013. 12:33 PM | Likes Like |Link to Comment
  • Thoughts On Kevin Kaiser's Allegations Of Inadequate Capital Maintenance Expenditures At Kinder Morgan [View article]
    I suggested Gasland not as a reliable source of information but as an example of how opponents try to sway public sentiment.
    Sep 21, 2013. 12:09 PM | 2 Likes Like |Link to Comment
  • A Closer Look At El Paso Pipeline Partners' Distributable Cash Flow As Of Q2 2013 [View article]
    Thanks for your question. I responded via an article recently published.
    Sep 20, 2013. 03:30 AM | Likes Like |Link to Comment
  • A Closer Look At Suburban Propane Partners' Distributable Cash Flow As Of Q3 FY 2013 [View article]
    I am not sure which transaction you are referring to. Please be more specific. Thanks.
    Sep 10, 2013. 03:13 PM | Likes Like |Link to Comment
  • A Closer Look At Targa Resources Partners' Distributable Cash Flow As Of 2Q 2013 [View article]
    The MLP GP's probably offer the greatest DCF growth prospects. Take a look at ETE, TRGP and WMB. Other than that, look at EPD, PAA, MMP and WPZ. Of the MLPs I cover, these probably provide the best DCF growth prospects.
    Sep 10, 2013. 03:04 PM | Likes Like |Link to Comment
  • A Closer Look At Targa Resources Partners' Distributable Cash Flow As Of 2Q 2013 [View article]
    I bought when it yielded >9%. This was after SPH acquired the propane operations from NRGY. The reasons for initiating the position were outlined in http://bit.ly/18Pl39D
    Sep 9, 2013. 11:22 AM | Likes Like |Link to Comment
  • A Closer Look At Targa Resources Partners' Distributable Cash Flow As Of 2Q 2013 [View article]
    I am saying they are more reliant on raising cash via debt and equity issuance than other MLPs (i.e., NGLS is not generating excess cash); an LP's exposure to dilution risk is therefore greater.
    Sep 9, 2013. 11:11 AM | Likes Like |Link to Comment
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