A 9% Yield And 7 Straight Distribution Hikes For This Niche LP


  • The current forward yield is 8.93%.
  • Trailing coverage is 1.16x.
  • Management has raised the quarterly payout for seven straight quarters.

Do you like ice cream? Do you drive a car? Maybe you like an occasional glass of spirits? A yes answer to any of these three questions would indicate that you've probably experienced the sprawling reach of ethanol, which is used in - food products, from ice cream to tomato sauce, blended gasolines, such as E10 or E15, and the hard stuff, as distillers grains, which are used in the distillation process. Hmm, have a drink, get in the car, and drive to the ice cream parlor? Sounds like the sequence is off - it may be better to drive to the ice cream parlor and drive back home for that drink.

Green plains Partners LP (NASDAQ:GPP) is a fee-based limited partnership formed by its parent, Green Plains Inc. (GPRE), to provide ethanol and fuel storage, terminal and transportation services by owning, operating, developing, and acquiring ethanol and fuel storage tanks, terminals, transportation assets, and other related assets and businesses. GPRE owns 62.5% of GPP, and public unit holders hold 35.5%. GPP IPOd in June 2015 and is headquartered in Omaha, Nebraska.

GPP is the yieldco arm of GPRE - the companies mostly share management.

We've covered GPP in several previous articles. This article will update that information and also will offer updated information on parent company GPRE.

GPP and GPRE are part of the growing US ethanol industry, which has emerged as the world's top ethanol exporter over the past three years. In fact, the US exported 53% more ethanol the first two quarters of 2017, vs. Q1-2 2016. Brazil, Canada, and India were the three biggest customers.

Six countries, led by Mexico and Turkey, bellied up to the bar and consumed 60% of the company's distillers grains in the first half of 2017:

On the blended gasoline front, the

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