A Closer Look At El Paso Pipeline Partners' Distributable Cash Flow As Of 1Q 2014
- No growth in revenues or Adjusted EBDA.
- DCF per unit declining, but coverage of 7.8% yield is still positive, albeit tight.
- Management conservatively aligned distribution to DCF, halt in distribution growth was warranted.
- $1.3 billion capital expansion program targeted at taking advantage of surge in demand for natural gas.
- Main concerns: zero growth in near term, KMI (general partner) conflict of interests.