ANDX

S&P Global: “Enterprise’s shift on cash flow reflects ‘metamorphosis’ of US pipeline firms”

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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.” S&P Global: “Enterprise’s shift on cash flow reflects ‘metamorphosis’ of US pipeline firms” Click here to read the article. Tickerized for holdings in the Alerian MLP ETF (AMLP). Pipelines – Oil & Gas: BPL, DCP, ENB, EPD, ET, GMLP, HEP, KMI, MMP, NS, PAA, WES —– Valuentum members have access to our 16-page stock reports, Valuentum Buying Index ratings, Dividend Cushion ratios, fair value estimates and ranges, dividend reports and more. Not … Read more

Hi-Crush and EnLink Join Growing List of MLP Simplifications

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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. By Kris Rosemann The ongoing trend of master limited partnership simplification transactions continued October 22 as proppant and logistics solutions provider Hi-Crush Partners (HCLP) acquired its general partner and slash its quarterly distribution to $0.225 per unit from $0.75 per unit. The now C-Corp used 11 million newly issued units to acquire Hi-Crush Proppants LLC for a total consideration of $96.25 million and eliminated its incentive distribution rights in doing so. Rationale cited for making the change is very similar to other similar transactions, including a lower cost of capital, wider appeal to a range … Read more

Dividend Increases/Decreases for the Week Ending August 3

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Below we provide a list of firms that raised their dividends during the week ending August 3. 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. Firms Raising Their Dividends This Week American States Water (AWR): now $0.275 per share quarterly dividend, was $0.255. Andeavor Logistics (ANDX): now $1.03 per share quarterly dividend, was $1.015. Ares Capital (ARCC): now $0.39 per share quarterly dividend, was $0.38. Astec (ASTE): now $0.11 per share quarterly dividend, was $0.10. BP (BP): now $0.615 per ADS quarterly dividend, was $0.595. BP Midstream Partners (BPMP): now $0.2725 per share quarterly dividend, was $0.2675. … Read more

The Free Cash Flow Shortfall in the Master Limited Partnership Space

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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. In case you missed it, “Nearly 60 Distribution Cuts Later, We Maintain Our View on the Hazards of the MLP Business Model.” By Kris Rosemann We think it is worth noting that the two entities at the top of this list in terms of traditional free cash flow coverage of distributions paid have significantly reduced their … Read more

Understanding the Phenomenon of “Price Risk” in High Yield

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  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 High Yield Dividend Newsletter here. — By Brian Nelson, CFA — I received a question from a dear member of ours, and I think it may be helpful that I share the response. The question had to do with why we may be ultra-cautious on high-yielding stocks that are facing considerable price declines. The risk described below makes the high yield space uniquely different than other equity strategies, in our view, … Read more

Dividend Increases/Decreases for the Week Ending November 3

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Below we provide a list of firms that raised their dividends during the week ending November 3. 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. Firms Raising Their Dividends This Week AllianceBernstein (AB): now $0.51 per share quarterly dividend, was $0.49. Andeavor Logistics (ANDX): now $0.9852 per share quarterly dividend, was $0.971. Arbor Reality Trust (ABR): now $0.19 per share quarterly dividend, was $0.18. Ares Management (ARES): now $0.41 per share quarterly dividend, was $0.31. Artesian Resources (ARTNA): now $0.2352 per share quarterly dividend, was $0.2317. BOK Financial (BOKF): now $0.45 per share quarterly dividend, was $0.44. … Read more

Dividend Increases/Decreases for the Week Ending February 2

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Below we provide a list of firms that raised or lowered their dividends during the week ending February 2. 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. Firms Raising Their Dividends This Week 1st Source (SRCE): now $0.22 per share quarterly dividend, was $0.20. AFLAC (AFL): now $0.52 per share quarterly dividend, was $0.45. Amtek (AME): now $0.14 per share quarterly dividend, was $0.09. Andeavor Logistics (ANDX): now $1.00 per share quarterly dividend, was $0.9852. Apartment Investment (AIV): now $0.38 per share quarterly dividend, was $0.36. AvalonBay Communities (AVB): now $1.47 per share quarterly dividend, was $1.42. … Read more

Dividend Increases/Decreases for the Week Ending April 27

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Below we provide a list of firms that raised their dividends during the week ending April 27. 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. Firms Raising Their Dividends This Week abaxis (ABAX): now $0.18 per share quarterly dividend, was $0.16. Alliance Holdings (AHGP): now $0.7475 per share quarterly dividend, was $0.7425. Alliance Resource Partners (ARLP): now $0.515 per share quarterly dividend, was $0.51. Ames National Corporation (ATLO): now $0.23 per share quarterly dividend, was $0.22. Amphenol (APH): now $0.23 per share quarterly dividend, was $0.19. Ameriprise Financial (AMP): now $0.90 per share quarterly dividend, was $0.83. … Read more

Midstreams Going C-Corp, Should SEC Disallow the Measure Distributable Cash Flow?

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Key Takeaways 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 … Read more