Valuentum Exclusive Analysis for the Discerning Investor

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.

Oct 19, 2018

Dividend Increases/Decreases for the Week Ending October 19
Let's take a look at companies that raised/lowered their dividend this week.

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.

Jul 20, 2018

Dividend Increases/Decreases for the Week Ending July 20
We provide a list of firms that raised/lowered their dividends during the week ending July 20. The dividend reports of covered firms on this list will be updated shortly with the new information. To access our dividend reports use the ‘Symbol’ search box in our website header.

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Valuentum Exclusive Analysis for the Discerning Investor