ValuentumAd

Official PayPal Seal
Valuentum Reports













Fundamental data is updated weekly, as of the prior weekend. Please download the Full Report and Dividend Report for any changes.
Latest Valuentum Commentary

Sep 18, 2018
Midstreams Going C-Corp, Should SEC Disallow the Measure Distributable Cash Flow?
It’s important to differentiate the concept of enterprise free cash flow valuation and the idea of capital-market dependence. The uncertainty of the MLP business model remains, as it is clear operators are shunning the MLP business model preferring C-Corps instead. According to work from Global X Funds, now 40% of the energy infrastructure market cap consists of C-Corps, up considerably from just 15% at the end of 2014. Though many simplifications have come with implied distribution cuts, the primary reason for the rise in C-Corps across the midstream space has been the rationalizing of excess MLP valuations to enterprise free cash flow assessments. We encourage the SEC to consider disallowing the use of distributable cash flow, as it is confusing to investors.
Sep 5, 2018
There Is Milk At The Store
"Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning." -- Winston Churchill
Aug 28, 2018
ETF Analysis: Energy
Energy sector ETFs offer a diversified way to capture the potential for higher crude oil prices without being exposed to the capital budget decisions of any one operator.
Aug 24, 2018
The Days of the MLP Model Are Numbered
We applaud Enbridge-Spectra on explaining the MLP business model with transparency. Though we think rollups could bring new capital into the MLP space, we expect the days of the MLP model are numbered. The opportunity to raise capital at yield-based pricing has been eliminated.
Aug 20, 2018
ETE-ETP Rollup and Implied Distribution Cut
We continue to believe that the MLP business model may be a goner, and the recent ETE-ETP rollup is the latest example. Though new capital may come into the space on expectations that there will be premiums in unit-for-unit rollup deals, most of the combinations are coming with implied distribution cuts.
Aug 6, 2018
Valuentum’s Weighted Average Cost of Capital (WACC) Distribution
The weighted average cost of capital is one of the most subjective measures in corporate finance, but it is also one of the most important ones.
Jul 24, 2018
FERC Clarifies MLP Tax Changes
Image shown: The prices of MLPs have collapsed since mid-June 2015 as the stock market has surged. The status quo for many MLPs looks to be restored, though that doesn’t mean MLPs are out of the woods. We continue to expect many to transition to corporates in coming years, and the idea of consolidation/buyouts may bring new investor capital to the space.
Jun 1, 2018
The Free Cash Flow Shortfall in the Master Limited Partnership Space
With the recent acceleration of master limited partnership simplification transactions, we find it appropriate to revisit the internally-generated cash flow shortfall present throughout much of the space. The table provides a breakdown of traditional free cash flow (cash from operating activities less all capital spending) relative to distributions paid, as well as a measure of the elevated financial leverage often found within the group.
May 30, 2018
Study: Valuentum's Best Ideas Newsletter Portfolio
"Though we largely achieved the Best Ideas Newsletter portfolio’s goals in advancing the newsletter portfolio each publication year (ends December 15) and achieving relative outperformance and risk-adjusted superiority to the benchmark, we may have done even better had our equity allocation been full during the measurement period." -- Brian Nelson, CFA
May 17, 2018
Master Limited Partnership Simplifications on the Rise
With the announcement of three separate master limited partnership simplification transactions on May 17 alone, we must revisit our thesis that the business structure may not be in it for the long haul.


Latest News and Media
The High Yield Dividend Newsletter, Best Ideas Newsletter, Dividend Growth Newsletter, Nelson Exclusive publication, and any reports, articles and content found on this website are for information purposes only and should not be considered a solicitation to buy or sell any security. The sources of the data used on this website are believed by Valuentum to be reliable, but the data’s accuracy, completeness or interpretation cannot be guaranteed. Valuentum is not responsible for any errors or omissions or for results obtained from the use of its newsletters, reports, commentary, or publications and accepts no liability for how readers may choose to utilize the content. Valuentum is not a money manager, is not a registered investment advisor and does not offer brokerage or investment banking services. Valuentum, its employees, and affiliates may have long, short or derivative positions in the stock or stocks mentioned on this site.