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Green Plains Partners: Still Choked In 2021, But 2022 Could See A 10%+ Yield

May 05, 2021 9:37 AM ETGreen Plains Partners LP (GPP)GPRE3 Comments
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  • Green Plains Partners has seen a solid start to 2021 but they are still choked by their credit facility repayment terms for the remainder of the year.
  • Both their net income and their underlying operating cash flow increased modestly during the first quarter of 2021, thereby supporting finances.
  • They are producing ample free cash flow that in theory could easily send their current low distribution yield to a very high-double-digit level of 10% on current cost.
  • The only issue prohibiting this is making their choking credit facility repayment installments and even after these, it will still require refinancing or further asset divestitures before year-end.
  • Given this mixed situation, I believe that maintaining my neutral rating is appropriate for the time being but it could be upgraded in the future once liquidity risks ease.

Ethanol Biorefinery Aerial View
Photo by BanksPhotos/E+ via Getty Images


The small and largely unknown ethanol-focused Green Plains Partners (NASDAQ:GPP) as a Master Limited Partnership would appeal to income investors, if not for their currently low distribution yield of slightly under 4.00%. Whilst

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I am no longer active, as I am taking a hiatus from finance to pursue business ventures in other sectors.  I hope that my analysis was helpful to investors across the years, thank you.

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Comments (3)

So now that the refi is done and the 3Q divvy is going back to $0.48 you must be a huge fan of GPP here at an ~15% yield, no?
Wonder what the future holds for Green Plains Partners LP (GPP) as ParentCo. pivots towards clean protein and other initiatives...See Jan. 2021 investor presentation - investor.gpreinc.com/...

GPP is 100% ethanol?!
Thanks for the heads-up on this company, as I just put in on my watch list!
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