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Ron Hiram

 
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  • Is Energy Transfer Partners About To Increase Distributions? [View article]
    A while back I noted that I significantly reduced my ETP position.
    Jul 29 02:20 PM | Likes Like |Link to Comment
  • A Closer Look At Plains All American Pipeline's Distributable Cash Flow As Of Q1 2013 [View article]
    There is a lot of work involved for each MLP. Due to time constraints, I have not yet reviewed GEL.
    Jul 15 01:01 PM | Likes Like |Link to Comment
  • A Closer Look At Magellan Midstream Partners' Distributable Cash Flow As Of 1Q 2013 [View article]
    WPZ 3/31/11, 6/30/11 and 9/30/11. TTM coverage exceeded 1.3 in those periods and sustainable was higher than reported. Then management made its strategic acquisitions and coverages dropped (as did the unit price). EPB also had coverage >1.3 (with sustainable coverage > reported) before KMI acquired El Paso. There may have been others, but these are the first that came to my mind.
    Jun 13 03:36 PM | Likes Like |Link to Comment
  • Performance Comparison Of Selected MLPs [View article]
    The table name appears immediately below the table.
    Table 6 compares coverage on 4/19/13 to what it was a year before so you can see the change, both in terms of reported and sustainable DCF.
    You understood correctly re SPH . After the acquisition of NRGY's retail propane business SPH did not cover distributions. But as detailed in my articles re SPH, I was expecting that to improve and stayed long. Indeed it has improved as you can see in my most recent SPH analysis.
    May 23 10:13 PM | Likes Like |Link to Comment
  • A Closer Look At Suburban Propane Partners' Distributable Cash Flow [View article]
    Due to time constraints I cannot cover all MLPs. So I don't follow CLMT and cannot compare it to SPH.
    IDR payments do not offset any other expenses.It just divides the pie so that the GP gets more and the LPs get less, all else being equal.
    Distributions are more a function of underlying performance than GP IDR ratchet points. Moving from 13% to 48% IDR participation increases cost of capital and could slow down distribution growth. But my guess is that quantifying the correlation between distribution growth and IDR % will be difficult because there are so many other variables at play.
    May 22 11:38 PM | Likes Like |Link to Comment
  • A Closer Look At Suburban Propane Partners' Distributable Cash Flow [View article]
    There are no incentive distribution rights for the benefit of SPH's General Partner. The Partnership owns (directly and indirectly) all of the limited partner interests in the Operating Partnership. The Common Units represent 100% of the limited partner interests in the Partnership.
    May 22 03:48 PM | 2 Likes Like |Link to Comment
  • Can Annaly Capital Management's 12.2% Dividend Be Sustained? [View article]
    I don't know which period your $334m refers to.
    "We have elected to not account our interest rate swaps using hedge accounting. Therefore, changes in fair value on our interest rate swaps are reflected in earnings." (2012 10-K, p3). Therefore, both realized and unrealized gains and losses on interest rate swaps flow through the income statement.
    May 22 01:56 PM | Likes Like |Link to Comment
  • A Closer Look At Enterprise Products Partners' Distributable Cash Flow As Of Q1 2013 [View article]
    I provided detailed analysis of ETP and EPB in individual articles covering these MLPs. See also http://seekingalpha.co...
    May 20 09:41 AM | Likes Like |Link to Comment
  • A Closer Look At Plains All American Pipeline's Distributable Cash Flow As Of Q1 2013 [View article]
    Due to time constraints, I have not yet covered LINE.
    May 20 09:37 AM | Likes Like |Link to Comment
  • A Closer Look At Energy Transfer Partners' Distributable Cash Flow As Of Q1 2013 [View article]
    In the case of ETP, the bulk of the amount seems to be related to affiliate contributions. Specifically, RGP reimburses ETP for 30% of the capital expenditures related RGP's share of the Lone Star venture. The far larger portion of capital expenditures on Lone Star has been growth, rather than maintenance. I therefore regard the reimbursement as an offset to ETP's capital expenditures rather than an addition to cash flow from operations. Theoretically I should add back the portion related to Lone Star maintenance capital, but I don’t think that number is provided and, in any case, the amount would not be material.
    May 15 08:57 AM | Likes Like |Link to Comment
  • Performance Comparison Of Selected MLPs [View article]
    Distributable cash flow for 2012: 4,133.3 (1-31-13 press release)
    Total distributions in 2012: 2,191.9 (10-K p F-6).
    Divide 1st line by 2nd line.
    Apr 28 04:12 AM | 2 Likes Like |Link to Comment
  • Preliminary Look At Q1 Distributable Cash Flow Generated By Kinder Morgan Energy Partners [View article]
    If what you mean is "Sustaining capital expenditures", you can find the annual number in the 2012 Form 10-K (p54). The numbers for 4Q12 and 1Q13 are provided in KMP's press releasees dated Jan 16 and April 17, 2013, respectively.
    Apr 25 01:53 PM | Likes Like |Link to Comment
  • Preliminary Look At Q1 Distributable Cash Flow Generated By Kinder Morgan Energy Partners [View article]
    1. Of course it is possible my analysis is too conservative in some cases. In the case of KMP, outflows from risk management activities totaled $157 million in 2012 reflecting termination of interest rate swap agreements. I ignored this outflow while management deducted it in calculating DCF. So for this item I was less conservative. On the other hand, I deducted $367 million of inflows in the "Other" category, while management included these in the DCF calculation. So here I was more conservative. The breakdown of items included in "Other" is provided in http://bit.ly/10eyvzb. Readers can decide for themselves which items are appropriate. As an aside, I could go either way on $171 million of that $367 million. It represents KMP’s share of depreciation in various joint ventures. The way I look at cash from joint ventures that appears in DCF numbers but not in an MLP’s cash flow statements our outlined in prior articles. For example, see the RGP analysis in http://bit.ly/ZmeWtk.
    2. I always look at quarterly and TTM numbers but recognize that both are rear view mirror numbers. They are helpful but not sufficient in trying to assess future performance. Many other factors should also be taken into account.
    3. The article on KMP referenced above takes a crack at answering your 3rd question. In the discussion of Table 6 I noted that KMR owns approximately 31% of KMP in the form of i-units that receive distributions in kind. Not having to pay cash for such a significant portion of distributions makes a big difference. I think it causes KMP’s coverage ratios to appear higher than what I believe they really are.
    Apr 25 02:44 AM | Likes Like |Link to Comment
  • A Closer Look At Regency Energy Partners' Distributable Cash Flow As Of Q4 2012 [View article]
    Wish I had the time to cover more.
    Apr 21 09:34 PM | Likes Like |Link to Comment
  • Preliminary Look At 1Q 2013 Distributable Cash Flow Generated By El Paso Pipeline Partners [View article]
    I looked it up and agree with some, but not all, their points. In the case of EPD, they base their calculations on 2012 gross capital expenditures, ignoring $1.2B generated via asset sales. I disagree with that approach. See http://bit.ly/13pGayu
    Apr 21 09:31 PM | 1 Like Like |Link to Comment
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