Valuentum Exclusive Analysis for the Discerning Investor

Tallgrass Energy’s Growth Runway Shorter Than Expected
Image Source: Tallgrass Energy LP -- IR Presentation. We parted with Tallgrass as we see greater opportunities in other midstream firms and different parts of the high-yield universe, such as Enterprise Products Partners, which have stronger growth runways and assets that better cater to the ever-evolving needs of North America’s oil & gas industry. Recent weakness in TGE indicates the market is losing faith in Tallgrass’ growth trajectory and its future free cash flows.

Jul 26, 2019

Dividend Increases/Decreases for the Week Ending July 26
Let's take a look at companies that raised/lowered their dividend this week.

Apr 26, 2019

Dividend Increases/Decreases for the Week Ending April 26
Let's take a look at companies that raised/lowered their dividend this week.

Apr 14, 2019

Chevron Joins the Ranks of Exxon Mobil and Shell After Buying Anadarko
Image Source: Chevron Corporation – IR presentation. Chevron is buying Anadarko. Chevron will have to show that the projected operational synergies and related capital intensity reductions actually materialize through this acquisition, as execution risk is very material in the oil & gas world. We will be monitoring the industry as further consolidation is possible with interest rates remaining low for the time being and in light of oil prices moving sharply higher since January.

Feb 17, 2019

S&P Global: "Enterprise's shift on cash flow reflects 'metamorphosis' of US pipeline firms"
S&P Global: "While several major U.S. energy pipeline companies spent 2018 shedding cash-leaking habits and forging a more conventional financial structure as stocks languished, adopting reporting practices that are more accessible to the investing public could be a gradual process for the industry, if it takes flight at all."

Jan 25, 2019

Dividend Increases/Decreases for the Week Ending January 25
Let's take a look at companies that raised/lowered their dividend this week.

Oct 26, 2018

Dividend Increases/Decreases for the Week Ending October 26
Let's take a look at companies that raised/lowered their dividend this week.

Oct 22, 2018

Hi-Crush and EnLink Join Growing List of MLP Simplifications
Image Source: EnLink transaction presentation.A number of master limited partnerships continue to transition to more simplified structures as they attempt to become increasingly nimble organizations.

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.

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Valuentum Exclusive Analysis for the Discerning Investor