Valuentum Exclusive Analysis for the Discerning Investor

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.

May 24, 2018

Understanding the Phenomenon of “Price Risk” in High Yield
Image Source: Julien Carnot. We want you to learn about a unique risk innate to the high yield space like the back of your hand. We'll explain the "information contained in prices" and talk about what you should be on the lookout for, the "avalanche effect." Order the new High Yield Dividend Newsletter here.

Dec 27, 2017

Objectivity in Analysis and the MLP Enigma
President of Investment Research Brian Nelson talks about how financial statement analysis keeps analysts objective. He also goes into how the distribution yields of MLPs may not reflect underlying business dynamics. Nelson also explains an inconsistency in the use of financing that supports the idea that MLPs are using external capital market issuances to fund distributions. Running time: ~15 minutes.

Dec 14, 2017

Video: What Cash Flow Are You Talking About?
President of Investment Research Brian Nelson reviews important topics from the first six episodes of "Off the Cuff," and goes into great detail about all the intricacies of "cash flow" from traditional free cash flow to enterprise free cash flow valuation. You know you want to watch. Running Time: ~14 minutes.

Jul 7, 2017

MLP Speak: A Critique of Distributable Cash Flow
Let’s talk about a controversial metric that is used in master limited partnership (MLP) reporting. Just how useful is it, and should it be allowed?

Jan 26, 2017

Alert: Trading MLPs, Adding Boeing, Adding Hanesbrands
Image Source: Ken Teegardin. We’re on the move January 26 in the Dividend Growth Newsletter portfolio.

Oct 25, 2016

Taxes and the Distressed MLP Investor
“Perhaps the worst thing about MLPs is that investors can spend more time doing and thinking about tax-related items than actually evaluating the businesses of the underlying entities. This could result in poor investment decisions.” – Brian Nelson, CFA

Jul 1, 2016

Distributing Truth on MLPs
The near term outlook for many midstream MLPs has cleared up quite a bit, but our concerns with the long-term sustainability of the MLP business model remain.

Apr 25, 2016

Dividend Increases/Decreases for the Week Ending April 22
Let's take a look at companies raising/lowering their dividends this week.

Oct 25, 2015

Dividend Increases/Decreases for the Week Ending October 23
Let's take a look at companies raising/lowering their dividends this week.

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Valuentum Exclusive Analysis for the Discerning Investor