TGE

MLPs Hit 52-Week Low

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Enterprise valuation is paramount. In June 2015, Valuentum released its bearish case to Barron’s on Kinder Morgan (KMI) and the MLPs. This was no small call. Since then, on a price basis, the MLP ETF (AMLP) is down more than 50%, while the S&P (SPY) is up roughly 60% (orange line). Read more about this story in Value Trap. Award-winning book that recently earned acclaim from the prestigious Next Generation Indie Book Awards! Blue Ink Review Notable Book and Readers’ Favorite 5 Stars! Wall Street doesn’t know it has a problem. Index and quantitative investors have been free-riding on the backs of active managers for years, but growth in price-agnostic trading may finally have reached the tipping point. Brian Nelson, … Read more

GasLog MLP Family Highlights Problems with Flawed Model

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Image Source: GasLog Ltd – 2018 Analyst Day Presentation By Callum Turcan We’ve written about it many times in the past and we’re writing about it again: the master limited partnership (‘MLP’) model is fundamentally broken. Equity holders in this arrangement have little to no say over how the family of companies are run, and management is often beholden to no one. Only by converting to a C-Corp can this arrangement be rectified. Massive Payout Cut As you can see in the graphic below, the ownership structure of GasLog Ltd (GLOG), the general partner (‘GP’), and GasLog Partners LP (GLOP), the limited partner (‘LP’), is quite convoluted. This MLP family leases own vessels that transport liquified natural gas (‘LNG’) and … Read more

Chesapeake Energy’s Pain Indicates Nothing “Safe” About Energy MLP Distributions

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Summary There is nothing “safe” in the stock market, and given the track record of the distributions of pipeline MLPs, there is nothing “safe” about pipeline MLP distributions. The MLP business model continues to be phased out, a trend that we anticipated when we made our bearish call on the group in June 2015. Chesapeake Energy’s pain is a yet another reminder of the pipeline MLP group’s exposure to energy resource pricing through the health (or rather ill-health) of its customer base. We continue to encourage pipeline operators to disclose free cash flow (cash flow from operations less all gross capital spending) prominently in press releases, alongside other industry-specific metrics. Investors of Chesapeake could get completely wiped out in a … Read more

Dividend Increases/Decreases for the Week Ending October 11

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Below we provide a list of firms that raised their dividends during the week ending October 11. 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 A.O. Smith (AOS): now $0.24 per share quarterly dividend, was $0.22. American Corporation (AEE): now $0.495 per share quarterly dividend, was $0.475. ConocoPhillips (COP): now $0.42 per share quarterly dividend, was $0.305. Eaton Vance (EV): now $0.375 per share quarterly dividend, was $0.35. Enterprise Products Partners (EPD): now $0.4425 per share quarterly dividend, was $0.44. FS Bancorp (FSBW): now $0.20 per share quarterly dividend, was $0.15. … Read more

Tallgrass Energy’s Growth Runway Shorter Than Expected

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Image Source: Tallgrass Energy LP – IR Presentation By Callum Turcan Valuentum’s High Yield Dividend Newsletter portfolio parted ways with Tallgrass Energy LP (TGE) on August 1, as we wanted to reduce our exposure to the midstream space. We don’t like TGE as much as we once did and think it’s best to move on to better opportunities. Please note Blackstone Group Inc (BX), through affiliates of Blackstone Infrastructure Partners, closed its purchase of Tallgrass’ general partner in March 2019 which included those parties acquiring a 44% economic interest in Tallgrass. In 2018, Tallgrass reorganized as a C-Corp which we were very supportive of. Additionally, the midstream company has been very free cash flow positive historically (when defined as net … Read more

Dividend Increases/Decreases for the Week Ending July 12

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Below we provide a list of firms that raised their dividends during the week ending July 12. 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 Antero Midstream (AM): now $0.3075 per share quarterly dividend, was $0.3025. Bank of America Corporation Deposit Shs Perp Pfd Shs Series E (BAC.PE): now $0.2556 per share quarterly dividend, was $0.2472. BP Prudhoe Bay Royalty Trust (BPT): now $0.5510 per share quarterly dividend, was $0.3449. Clough Global Allocation Fund (GLV): now $0.1032 per share monthly dividend, was $0.1023. Cummins (CMI): now $1.311 per share quarterly dividend, … Read more

Dividend Increases/Decreases for the Week Ending April 12

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Below we provide a list of firms that raised their dividends during the week ending April 12. 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 Antero Midstream (AM): now $0.3025 per share quarterly dividend, was $0.164. Bed Bath & Beyond (BBBY): now $0.17 per share quarterly dividend, was $0.16. Clough Global Allocation Fund (GLV): now $0.1034 per share monthly dividend, was $0.1032. Clough Global Equity Fund (GLQ): now $0.1137 per share monthly dividend, was $0.1123. Clough Global Opportunities Fund (GLO): now $0.0893 per share monthly dividend, was $0.0882. Enterprise Products Partners … Read more

Earnings Not So Hot, High Yield Dividend Newsletter Archives

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No change to newsletter portfolios. By Brian Nelson, CFA Against a backdrop of US-China trade tensions, a Fed that continues to balance the need to hike rates with caution against purposefully and meaningfully inverting the yield curve, US GDP growth humming along at 2%-3%, and news from Tesla (TSLA) CEO Elon Musk, who says something big is in store for tonight. Incidentally, he changed his Twitter name to Elon Tusk. Was it to match our typo yesterday? Elon – if you’re listening, give us a shout out! We love Tesla’s future expected free cash flow! Just some housekeeping items before we get started. For our High Yield Dividend Newsletter members and our Exclusive members, we do not house the archived … Read more

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

Dividend Increases/Decreases for the Week Ending January 18

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Below we provide a list of firms that raised their dividends during the week ending January 18. 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 Alliant Energy (LNT): now $0.355 per share quarterly dividend, was $0.335. Ally Financial (ALLY): now $0.17 per share quarterly dividend, was $0.15. Antero Midstream GP (AMGP): now $0.164 per share quarterly dividend, was $0.144. Antero Midstream Partners (AM): now $0.47 per share quarterly dividend, was $0.44. Apogee (APOG): now $0.175 per share quarterly dividend, was $0.1575. BlackRock (BLK): now $3.30 per share quarterly dividend, was $3.13. … Read more