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Ron Hiram

 
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  • A Closer Look At Boardwalk Pipeline Partners' Distributable Cash Flow As Of Q3 2012 [View article]
    Yes, but given my time constraints it may take 2-4 weeks.
    Mar 16, 2013. 11:17 PM | Likes Like |Link to Comment
  • A Closer Look At Williams Partners' Distributable Cash Flow As Of Q3 2012 [View article]
    See article at http://bit.ly/YU54lh
    Mar 10, 2013. 07:54 AM | Likes Like |Link to Comment
  • A Closer Look At El Paso Pipeline Partners' Distributable Cash Flow As Of Q4 2012 [View article]
    Capital expenditures for Phase 1 of the plant to be built by Elba Liquefaction Company are estimated at ~$1 billion. I doubt EPB’s 50% share will all be spent this year. In 2013 EPB expects to spend $4 billion for growth capital. So this project is not very significant as a percent of total capital spending and I see no reason that its results would have a greater effect on EPB’s long term share price than other projects. There are at least 10 LNG export terminals in various stages of planning in the U.S. The process of getting DOE permission to export LNG (especially to non-FTA countries) and getting FERC combined operating licenses and approval to construct or modify facilities is very lengthy. While Phase 1 of this project has received DOE approval, and while it is smaller than most of the others and utilizes Shell’s capabilities for rapid design, construction and implementation, I still cannot hazard guesses as to whether it will receive all the required approvals or when it will commence operations. No timeline was provided by Shell or EPB.
    Mar 5, 2013. 08:00 PM | 1 Like Like |Link to Comment
  • A Closer Look At Kinder Morgan Energy Partners' Distributable Cash Flow As Of Q4 2012 [View article]
    I have not looked at MMLP
    Mar 5, 2013. 03:56 PM | Likes Like |Link to Comment
  • A Closer Look At Kinder Morgan Energy Partners' Distributable Cash Flow As Of Q4 2012 [View article]
    Not sure I understand the question. KMP does make these reductions in its calculation of DCF before certain items.
    Mar 1, 2013. 10:08 AM | Likes Like |Link to Comment
  • A Closer Look At Kinder Morgan Energy Partners' Distributable Cash Flow As Of Q4 2012 [View article]
    The answer to your question depends on your risk tolerance, what is currently in your portfolio and a lot of other factors. "Best" may differ for each investor. Nevertheless, the “Answers to Readers’ Questions” section of my website (http://bit.ly/Wn8FeG) contains responses outlining my favorites. Most recently, on Jan 9, I recommended to a reader to start buying EPD, MMP, PAA, WPZ and EPB, allocating more to the first 3 than the last 3, despite their lower yields. I said I would split the 6th investment between KMI (GP of EPB, KMP, KMR) and WMB (GP of WPZ). With the exception of WPZ/WMB, they have all done well, but their prices have increased substantially. Despite that, if your decision is to buy MLPs at this point, I would repeat the recommendation.
    Mar 1, 2013. 09:53 AM | Likes Like |Link to Comment
  • A Closer Look At Plains All American Pipeline's Distributable Cash Flow As Of 3Q 2012 [View article]
    See answer to papaone.
    Re KMI, it yields 3.97% vs. 5.8% for KMP, but KMI should give you better distribution growth, better capital appreciation potential (MLP GPs should be candidates for acquisition by the underlying MLPs because of the burden they create in terms of cost of capital), and less dilution. If you are concerned about being too concentrated in MLPs for your yield producing investments, there are more non-MLP alternatives to the 3-4% current returns offered by the MLP GPs than for the 5-6% current returns offered by the underlying MLPs.
    Re BWP, it is not one of my favorites. See my prior articles (most recent is dated 12/4/2012).
    Jan 26, 2013. 08:00 AM | Likes Like |Link to Comment
  • A Closer Look At Plains All American Pipeline's Distributable Cash Flow As Of 3Q 2012 [View article]
    The most recent comparative article on MLPs was published on 12/12/17 (http://bit.ly/VBjHex) and also appeared in SA. Regarding your second question, the “Answers to Readers’ Questions” section of my website (http://bit.ly/Wn8FeG) contains responses outlining my favorites. Most recently, on Jan 9, I recommended to a reader to start buying EPD, MMP, PAA, WPZ and EPB. Regarding your third question, tax code changes are last on my list of major concerns. See response to a reader dated 1/8/13. I am more concerned about environmental issues, regulators, and valuations. The concern regarding regulators includes delays in approvals of new pipelines and greater than anticipated restrictions on LNG exports.
    Jan 26, 2013. 07:38 AM | Likes Like |Link to Comment
  • A Closer Look At Targa Resources Partners' Distributable Cash Flow As Of 2Q 2012 [View article]
    Ignore the first line in Table 2. The numbers in that line were mistakenly left in from a prior table covering results for the TTM ending 3/31/12 and 3/31/11. Apologies.
    Jan 19, 2013. 03:35 PM | Likes Like |Link to Comment
  • Trailing 12 Months Performance Comparison Of Selected MLPs [View article]
    I would start buying EPD, MMP, PAA, WPZ and EPB. I would allocate more to the first 3 than the last 3, despite their lower yields. I would split the 6th investment between KMI (GP of EPB, KMP, KMR) and WMB (GPof WPZ). Safety is, of course, relative.
    Jan 9, 2013. 05:09 AM | 1 Like Like |Link to Comment
  • A Closer Look At Magellan Midstream Partners' Distributable Cash Flow As Of 3Q 2012 [View article]
    Environmental. To quote an International Energy Agency (IEA) official: "If the social and environmental impacts aren't addressed properly, there is a very real possibility that public opposition...will halt the unconventional gas revolution in its tracks". See also a documentary titled "Gaslands" by Josh Fox. 2. Falling afoul of the regulators. For example, ETP fell >12% when FERC announced that it is seeking civil penalties and the disgorgement of profits totaling $167 million for allegedly manipulating the wholesale natural gas markets in Texas. 3. Too much money. MLPs have become increasingly popular. The ease with which they can raise equity and debt creates a risk of too much money investment opportunities and lowering the returns. 4. Tax code changes that would eliminate the advantages inherent in the MLP structure.
    Jan 8, 2013. 11:54 AM | 2 Likes Like |Link to Comment
  • A Closer Look At Boardwalk Pipeline Partners' Distributable Cash Flow As Of Q3 2012 [View article]
    I don't know of such a way. The only thing I can suggest is to look across a large number of MLPs and see what they mean and median numbers of maintenance capital expenditures as a percent of revenues. Then look more closely at those that deviate significantly.
    Dec 22, 2012. 09:03 PM | Likes Like |Link to Comment
  • Can Annaly Capital Management's Reduced Dividend Be Sustained? [View article]
    I don't regard the investment advisory business to be a core business and therefore exclude it. Tax reduces the amounts available to pay dividends. Having said that, you can certainly make the adjustments you suggest if my approach strikes you as too conservative.
    Dec 22, 2012. 08:33 PM | Likes Like |Link to Comment
  • Can Annaly Capital Management's Reduced Dividend Be Sustained? [View article]
    I agree that the deterioration was caused by the Fed's policies rather than poor management. And, as you point out, these may continue for quite a while. The key question in my mind is not dividend reinvestment but whether to substantially increase the position, substantially decrease it, or just maintain the current level. For now, I have opted for the latter. hold. Sounds to me like you have made the same decision.
    Dec 22, 2012. 08:24 PM | Likes Like |Link to Comment
  • A Closer Look At Boardwalk Pipeline Partners' Distributable Cash Flow As Of Q3 2012 [View article]
    I assume you meant BPL, not BLP. I have not published my research on KMI, QRE and VNR, but have done so for Buckeye Partners. I prefer not to reinvest distributions.
    Dec 20, 2012. 01:22 PM | Likes Like |Link to Comment
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