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  • Linn Energy EPS of -$4.47 [View news story]
    If one wishes to roll the dice I think their bonds are the way to go.
    Nov 5, 2015. 10:47 AM | 2 Likes Like |Link to Comment
  • Energy Transfer Equity beats by $0.02, misses on revenue [View news story]
    And now for the real story...

    "Distributable Cash Flow, as adjusted, for the three months ended September 30, 2015 was $325 million compared to $234 million for the three months ended September 30, 2014, an increase of $91 million.
    For the quarter ended September 30, 2015, ETEs distribution coverage ratio is 1.09x, which was lower than the second quarter due to the cash flow impact from the SUN GP/IDR Exchange.
    During 2015, ETE has repurchased approximately $1.06 billion of ETE common units under its current $2.00 billion buyback program."
    Nov 4, 2015. 05:56 PM | 8 Likes Like |Link to Comment
  • Energy Transfer Partners misses by $0.10, misses on revenue [View news story]
    From the release:
    " Distributable Cash Flow for the third quarter of 2015 was affected by a partial reversal from the second quarter 2015 tax benefit, with $79 million of current income tax expense for the third quarter of 2015. Distributable Cash Flow was also affected this quarter by a lower overall pricing environment for percent-of-proceeds volumes, continued shut-in volumes in the Northeast and unscheduled plant outages in the Permian Basin."

    Raising the distribution signals management's sense that this reduced coverage is transient. More color I am sure on their conference tomorrow. Holding/purchasing MLPs in this stressed energy time requires attention to detail - it is a time where the intelligent investor can significantly differentiate his investing success from the less attentive investor.
    Nov 4, 2015. 05:47 PM | 14 Likes Like |Link to Comment
  • Equity CEFs: Where Are The Best CEF Opportunities Now? [View article]
    I would assume that a new fund would not be able to show assets held more than a year and accordingly their gains might be expected to consist of "income" (dividends) subject to perhaps more favorable gains taxation and short term capital gains subject to more onerous taxation. After a year, one might expect the appearance of long term gains with again, favorable tax status. If ROC is paid and not covered by a rising NAV this is likely destructive and though favorable from a tax standpoint, not a harbinger of a successful fund. CEF connect suggests thus far that THW pays short gain and THW, now just over a year old, is showing it's first long term gain.
    Nov 4, 2015. 04:49 PM | Likes Like |Link to Comment
  • Genesis Energy EPS of $3.38 [View news story]
    Headline "Revenue of $572.33M (-40.6% Y/Y) misses by $224.95M"

    How hard would it be to read the press release and instead report:

    "Distributable Cash Flow increases with new on-line sources, distribution to unit holders increased for the 41st consecutive quarter, while debt leverage increases above 5X with plans in place to return to 3.75X target."
    Nov 3, 2015. 10:16 AM | Likes Like |Link to Comment
  • Enterprise Products misses by $0.01, misses on revenue [View news story]
    As has been stated ad nauseam here, EPS is a poor metric for MLPs. SA insists perversely on reporting only this misleading headline news. Distributable Cash Flow and coverage are the real metrics and are just fine with EPD. Companies doing poorly generally don't raise their distributions...
    Oct 29, 2015. 10:02 AM | 3 Likes Like |Link to Comment
  • Analyzing My Portfolio Concentration Risk In The Energy Sector [View article]
    Good businesses engaged in providing essential infrastructure and necessary commodities, though subject to cyclical pressures, will do well over time. Sometimes poor fodder for traders is long term sustenance for investors. However, with increased concentration comes a mandate for closer surveillance.
    Oct 27, 2015. 10:31 AM | 2 Likes Like |Link to Comment
  • Kinder Morgan Is Still Worth Owning For Dividend Growth Investors [View article]
    Not mutually exclusive...
    Oct 24, 2015. 10:15 AM | 1 Like Like |Link to Comment
  • Kinder Morgan weighing on entire MLP sector [View news story]
    Oh really??? Thanks for your contribution.
    Oct 22, 2015. 04:07 PM | 15 Likes Like |Link to Comment
  • Kinder Morgan weighing on entire MLP sector [View news story]
    KMP clearly stated on the call that they had to be vague about the financing source as a consequence of SEC rules. No purposeful hiding or trickery. As good business stewards they believe that the cost of capital is higher by selling units in the open equity market than the cost of capital that they have identified elsewhere and which will be released when legal to do so. They also believe that their units have been unjustifiably depressed in the open market which is the cause of the higher equity sale cost of capital. If they sold equity now they would be burdened with a 7% distribution cost on each share, indefinitely. These managers may be a bit boastful but they are good managers IMHO.
    Oct 22, 2015. 03:46 PM | 22 Likes Like |Link to Comment
  • Safe, Sustainable 7% Yield From Common And Preferred Share Dividends [View article]
    I guess I am used to "ordinary income" as they call it being just that - not subject to lower capital gains/dividend taxation. The link is for calculating tax rates per bracket and per state and is independent of sponsoring company. Thanks.
    Oct 22, 2015. 02:32 PM | Likes Like |Link to Comment
  • Safe, Sustainable 7% Yield From Common And Preferred Share Dividends [View article]
    I am having some difficulty learning where the "tax-advantaged" aspect is occurring.
    From the fund's "fact sheet": Payment date 9/30/15, Ordinary income .1210 Return of capital 0, Short-term capital gain 0, Long-term capital gain 0, Total .1210
    This would suggest that the distributions are "ordinary income" and taxed as such - where is the tax advantage? "Spendable Income" = 7% distribution minus 44.59% (top tax rate*) of 7% for tax = 3.88%. For many this "spendable income" is what really counts.

    Oct 22, 2015. 02:05 PM | Likes Like |Link to Comment
  • Does Is Still Make Economic Sense For ETP To Build The Bakken Pipeline? [View article]
    The fact that the "visibility" of the contracts may not be evident does not mean that profitable contracts are not in place. There is always a certain amount of trust that a unit holder invests in management and if that trust is not extant then one should not hold the units. Management suggestions from the outside would seem to be problematic. Perhaps attendance at the conference call if credentialed or contact with investor relations might provide those concerned with more clarity.
    Oct 20, 2015. 12:19 PM | 2 Likes Like |Link to Comment
  • Equity CEFs: Where Are The Best CEF Opportunities Now? [View article]
    Yes, both ETW and BUI have characteristics of tax efficiency with non-destructive ROC. ETW is hovering around it's 52 week high however, while BUI may be the better buy currently as it is depressed due to it's proximity to the energy sector.
    Oct 20, 2015. 09:54 AM | Likes Like |Link to Comment
  • Equity CEFs: Where Are The Best CEF Opportunities Now? [View article]
    If the NAV is flat to growing then any ROC is not destructive. For the well resourced CEF investor (highest tax rates) holding CEFs in a taxed account, who will likely then be sensitive to tax issues, a survey of CEFs then would look for a NAV flat to growing coupled with significant ROC or at least a distribution consisting in large part of long term gains as well as the usual advantage of a nice discount. Among Eaton Vance funds, when I last looked a month ago ETB had 69.8% ROC cumulative this year but was selling at a slight premium, while EOS had 38.2% ROC cumulative with a fair discount (I added to my EOS). If you plan to trade these funds rather than hold them for their distributions then the nature of the distributions is less important.
    This type of tax sensitive evaluation is just another dimension of due diligence for some CEF investors and is easily accomplished at CEF Connect and better yet, at the sponsoring company's web site.
    Oct 19, 2015. 01:42 PM | 2 Likes Like |Link to Comment