We recently posted an entry outlining the importance and calculation of distributable cash flow (DCF) when evaluating MLPs.  In a nutshell, DCF represents what the MLP could have paid out in cash to unitholders had it chosen to do so.  However, while investors want to see cash distributions grow over time, they also want to [...]

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Boardwalk Pipeline (NYSE: BWP) posted higher Q3 results Monday. Net income rose to $40 million ($0.35 per common unit) vs. $30.6 million in Q3 of last year, beating analyst expectations of about $0.28 per unit. The MLP also declared an increase in distributions to $0.45 per unit, which is about 16% higher than [...]

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Whether you are dealing with stocks or MLPs, one thing is clear: cash is king. Stock investors typically use a metric called “Free Cash Flow” as a gauge of a company’s ability to generate cash (after adjusting for expenses relating to maintaining its assets). This cash can then be used to fund additional [...]

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Kinder Morgan announced its 30th distribution hike since 1997, increasing distributions to LP unitholders 9% to $0.88. This puts the MLP on track to exceed its annual budget for cash distributions of $3.44. Further, KMP expects the Rockies Express – West pipeline to begin service on Jan. 1, 2008. The project is [...]

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Houston based MLP Plains All American Pipeline LP (NYSE: PAA) announced a quarterly distribution increase of $0.09 to $0.84 payable on November 14, 2007. The increase represents a 12% growth in distributions to LP units (vs. November 2006), and is the 14th consecutive distribution increase by the partnership. This brings 2007 quarterly distributions [...]

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One of the largest MLPs, Enterprise Products Partners LP (NYSE: EPD), increased its quarterly distribution almost 7% from $0.46 in Q3 2006 to $0.49 in Q3 2007. According to the CEO, Michael Creel, it is the MLP’s 22nd distribution increase since its founding in 1998. The announcement comes ahead of EPD’s Q3 earnings [...]

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Tortoise Capital, a leading MLP investment and portfolio management firm, offers several practical reasons why Energy Infrastructure Master Limited Partnerships have a bright future. They make some brief, yet compelling points – I have summarized and expanded upon them below:
Income & Growth Upside

Energy Infrastructure MLPs distribute most of available cash flow to LP unitholders. [...]

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Targa Resources Partners, LP (NASDAQ: NGLS) has been added to the Alerian MLP Select Index as of September 20th. Targa provides midstream gas and natural gas liquids (NGL) services including gas compression, treatment, processing as well as NGL fractionation.
Targa Resources, Inc. (37% owner of Targa Resources Partners, LP) was founded in 2004 with [...]

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