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Ron Hiram

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  • A Closer Look At Trailing-12-Months Performance Of Selected MLPs [View article]
    My response to a similar question that followed my recent article on EPB was as follows:
    FERC regulates the interstate transmission rates. On the one hand it limits the returns pipeline operators can earn and on the other hand it stabilizes their earnings. FERC, like other government agencies, may be influenced by politics and the policies of, the current administration. From 1992 to 2006 the pipeline inflation indexing methodology there has been only one substantive change to the , and it was a positive for the pipeline owners. Prior to July 2003, the FERC capped tariff increases at PPI minus 1%. In 2003, the FERC raised this to PPI + 0%. In 2006, this again was raised to PPI +1.3%. Future regulatory changes could, theoretically, be detrimental. The FERC issue with respect to Buckeye Pipelines is specific to that MLP and I don't a see it affecting others
    Nov 4 06:35 PM | Likes Like |Link to Comment
  • A Closer Look At El Paso Pipeline Partners' Distributable Cash Flow As Of 3Q 2012 [View article]
    Question 1: the 9% per annum is the average distribution growth rate projcted for the period 2011-2015. In 2012 distribution growth over 2011 will be twice the average (~18%). Therefore distribution growth in 2013-2015 will be less than the average. It works out to 6.7%.

    Question2: FERC regulates the interstate transmission rates. On the one hand it limits the returns pipeline operators can earn and on the other hand it stabilizes their earnings. FERC, like other government agencies, may be influenced by politics and the policies of, the current administration. From 1992 to 2006 the pipeline inflation indexing methodology there has been only one substantive change to the , and it was a positive for the pipeline owners. Prior to July 2003, the FERC capped tariff increases at PPI minus 1%. In 2003, the FERC raised this to PPI + 0%. In 2006, this again was raised to PPI +1.3%. Future regulatory changes could, theoretically, be detrimental. The FERC issue with respect to Buckeye Pipelines is specific to that MLP and I don't a see it affecting others.
    Nov 3 04:42 AM | Likes Like |Link to Comment
  • A Closer Look At American Capital Agency's Cash Flows [View article]
    I plan to do that after I complete the 2Q12 analysis of AGNC
    Aug 29 12:21 PM | Likes Like |Link to Comment
  • A Closer Look At Annaly Capital Management's Cash Flows As Of Q2 2012 [View article]
    You are correct. The dividend and total return amounts for the period beginning 12/31/2008 displayed in Table 1 are wrong. However, I caclulated the last column (Total Return) in Table 1 based on the correct dividend amount ($2.54 for 2009), so those numbers do not ned to be changed. Having corrected row 1, coumns 3 and 4, Table 1data should read as follows:

    12/31/2008 $1.45 $8.74 $10.19 13%
    12/31/2009 ($0.19) $6.20 $6.01 10%
    12/31/2010 ($0.76) $3.54 $2.78 7%
    12/31/2011 $1.20 $1.10 $2.30 15%

    My apologies.
    Aug 28 08:14 PM | 1 Like Like |Link to Comment
  • A Closer Look At Plains All American Pipeline's Distributable Cash Flow As Of Q2 2012 [View article]
    Working on it and will publish shortly
    Aug 19 09:22 AM | 1 Like Like |Link to Comment
  • A Closer Look At Plains All American Pipeline's Distributable Cash Flow As Of Q2 2012 [View article]
    1H11 = first half of 2011 (6 months ending 6/30/11)
    Aug 18 02:01 AM | Likes Like |Link to Comment
  • A Closer Look At Targa Resources Partners' Distributable Cash Flow As Of 2Q 2012 [View article]
    I read that there are at least 10 export terminals are in various stages of planning. But, as I understand it, 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. I cannot hazard guesses as as to who does and who does not get all the approvals and how significant LNG exports can become. For time constraint reasons I am not sure I will be able to do kind of research you are requesting, but I agree with you that there could be significant opportunities in LNG exports.
    Aug 17 10:27 AM | Likes Like |Link to Comment
  • A Closer Look At Enterprise Products Partners' Distributable Cash Flow As Of Q2 2012 [View article]
    Of the MLPs I own: EPD, PAA, WPZ.
    Aug 16 09:50 AM | Likes Like |Link to Comment
  • A Closer Look At Buckeye Partners' Distributable Cash Flow As Of 2Q 2012 [View article]
    You are probably referring to the $300 million issue of 6.050% Notes due January 15, 2018. While I don't think there is cause to worry, there is always a risk. A severe crisis, similar in scale to what we saw in 2008, could make it hard for BPL and other MLPs to refinance debt. Having said that, energy MLPs weathered the 2008 crisis quite well.
    Aug 16 09:39 AM | Likes Like |Link to Comment
  • A Closer Look At Targa Resources Partners' Distributable Cash Flow As Of 2Q 2012 [View article]
    For time constraint reasons I don't currently plan to write about Cheniere or Teekay; perhaps at a future date if time permits.
    Aug 16 09:27 AM | Likes Like |Link to Comment
  • A Closer Look At Williams Partners' Distributable Cash Flow As Of 2Q 2012 [View article]
    Bond investors will sell and rating agencies will downgrade if the debt/equity ratio is too high
    Aug 13 03:57 PM | 3 Likes Like |Link to Comment
  • A Closer Look At Suburban Propane Partners' Distributable Cash Flow As Of 3Q FY2012 [View article]
    Yes - bought some at below $38, but view it as a speculative position
    Aug 13 01:57 PM | Likes Like |Link to Comment
  • A Closer Look At Williams Partners' Distributable Cash Flow As Of 2Q 2012 [View article]
    I don't know whether indeed a bottom has been reached, but have been buying at and below these levels.
    Aug 13 01:53 PM | 1 Like Like |Link to Comment
  • A Closer Look At El Paso Pipeline Partners' Distributable Cash Flow As Of 2Q 2012 [View article]
    EPB continues to operate as before, except the general partner is now KMI. There could, in the future, be some rollup transaction which will combine all the Kinder Morgan partnerships, including KMI, into one partnership that will not be obligated to pay incentive distributions to the general partner. Whether, when and under what terms this will occur is not known.
    Aug 9 10:41 AM | 2 Likes Like |Link to Comment
  • A Closer Look At Kinder Morgan Energy Partners' Distributable Cash Flow As Of 2Q 12 [View article]
    First question: I don't see a quick and dirty way.
    Second question: not a concern because it is quite appropriate to fund expansion capital expendiutres (as opposed to maintenance capex) with a mixture of debt, equity and internally generated cash. Also, net cash from operations may contain non-sustainable items such as working capital liquidation or cash flows related to risk management.
    Aug 1 07:17 AM | Likes Like |Link to Comment
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