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Andeavor Logistics (was Tesoro Logistics)

5/18: Andeavor, Inc. is being acquired by, Marathon Petroleum, already controls MPLX, a midstream  master limited partnership. It probably doesn't need two midstream MLPs. Thus, it will probably eventually merge Andeavor Logistics into MPLX. In the meantime, it may or may not continue to drop down additional midstream assets to Andeavor Logistics. If it doesn't, that's the end of Andeavor Logistics growth story.

In April, Andeavor raised its quarterly distribution by 1.5% to $1.015 per unit, which was 8% above its year-ago payout.

In January, Andeavor raised its quarterly distribution by 1.5% to $1.00 per unit, which was 10% above its year-ago payout.

Forecast FY 12/2018 EPU Growth: 18%   CF Payout Ratio:  94%

Background
Owns and operates oil, refined products, and natural gas pipeline systems, as well as truck and marine terminals, storage facilities, and natural gas processing plants. Tesoro was formed by Tesoro Corporation, which operates six oil refineries and more than 2,200 gasoline stations. On 8/1/17, Tesoro Logistics (TLLP) changed its name to Andeavor Logistics and its ticker symbol to ANDX, and Tesoro Logistics general partner, Tesoro Corp. (TSO), changed its name to to Andeavor Logistics (ANDV). Changes reflected Tesoro Corp's acquisition of Western Refining. Tesoro said the new name reflects its change from an exploration and production company to a refining, marketing and logistics business.

Quarterly Reports 

December'17 EPU:$0.25 vs. year-ago $0.31. Revenues $1.102 billion vs. $319 million. Distributable cash flow $188 million ($0.92 per unit) vs. year-ago $131 million ($0.82 per unit). In October, distribution up 1.5% to $0.9852. Numerous acquisitions and other reconfigurations made year-ago comparisons not meaningful.

September'17 EPU: $0.90, up 96%. Revenues up 44% to $444 million. Distributable cash flow $148 million ($0.73 per unit) vs. $133 million ($0.88 per unit). Agreed to acquire Western Refining Logistics (WNRL) in a stock transaction worth around $1.5 billion. Western Refining Logistics owned crude oil pipelines and gathering assets in the Permian Basin in West Texas and Southern New Mexico. Andeavor Logistics agreed to give Andeavor Inc. (ANDV) 78 million common units, and in exchange, ANDV canceled its IDR rights. IDRs (incentive distribution rights) give an MLP's general partner the right to take a percentage of its MLP's cash flow before distribution to MLP unit holders.

June'17 EPU: $0.63, up 31%. Revenues up 41% to $413 million. Distributable cash flow $177 million ($1.13 per unit) vs. $126 million ($0.83 per unit). In April, distribution up 3% to $0.94. 

March'17 EPU: $0.51, down 20%. Revenues up 40% to $420 million. Distributable cash flow $152 million ($1.45 per unit) vs. $142 million ($1.52 per unit). Sold 5 million new units for $56.80 per unit. In January, distribution up 4% to $0.91.

December '16 EPU: $0.31 vs. $0.49. Revenues up 9% to $319 million. Distributable cash flow $131 million ($0.855 per unit) vs. $106 million ($0.915). Agreed to pay $700 million to acquire crude oil, natural gas and produced water gathering systems and two natural gas processing facilities in North Dakota, and to pay $400 million for terminaling and storage assets in Northern California. Expects to grow distributions around 14% in 2017. In October, distribution up 4% to $0.875.

September '16 EPU: $0.46, down 26%. Revenues up 9% to $3.08 million. Distributable cash flow $0.875 per unit vs. $0.968. In July, distribution up 4% to $0.842. 

June '16 EPU: $0.48, down 20%. Revenues up 7% to $293 million. Distributable cash flow $0.86 per unit vs. $0.76. Agreed to pay $444 million to acquire storage and terminaling assets in Alaska from general partner, expected to add 7% to annual cash flow. Sold 6.3 million new units at $47.13. In April, distribution up 4% to $0.81.

December '15: EPU $0.49 vs. -$0.34 loss. Revenues up 54% to $292 million. Distributable cash flow up 104% to $104 million ($1.04 per unit). Paid $500 million to acquire oil and refined product storage and pipeline assets in Los Angeles, California from Tesoro Corp. In December, distribution up 4% to $0.75. 

September '15: EPU $0.62 up 88%. Revenues up 88% to $282 million. Distributable cash flow up 119% to $116 million ($1.15 per unit). In July distribution up 4% to $0.7225.

BreitBurn Energy Partners    

2/29/12: Sell BreitBurn Energy
Crude oil accounts for around 35% of BreitBurn's reserves compared to 65% for natural gas. That is exactly what you don't want when crude oil prices are rising while natural gas prices are dropping like a rock.

BreitBurn reported a December quarter loss of -$0.51 per unit vs. a -$1.33 loss in the year-ago quarter. Average daily production rose 21% vs. year-ago to 22,450 Boe/day. Oil and natural gas liquids (NGLs) accounted for 42% of production, vs. year-ago 47%. Thanks to hedging, natural gas sold for average $6.02/Mcf vs. $3.33 spot price. On the downside, crude oil averaged $84/barrel vs. $94 street price. Operating cash flow -$0.2 million (-$0.00/unit) vs. year-ago $41.3 million ($0.77/unit). Year-end 2011 reserves consist of about 65% natural gas and 35% crude oil. Click here for the earnings call transcript. Disappointing numbers.

In January, BreitBurn raised its quarterly distribution by 3% to $0.45 per unit, which was 9% above the year-ago distribution.

In January, BreitBurn raised $250 million by selling senior notes due 2022 paying 7.875%, and $166 million by selling 9.2 million new units at $18.00/unit.

In November, QuickSilver Resources sold 7.1 million BreitBurn units for $16.52/unit in a secondary offering. BreitBurn did not receive any of the proceeds.

In October, BreitBurn increased its quarterly distribution by 3% to $0.435 per unit, which was 11.5% above the year-ago payout.

In October, BreitBurn completed acquisition of natural gas properties in Wyoming for $283 million. Deal added about 3% to BreitBurn's daily production.

Forecast FY 12/2012 CFU Growth: 14%   Div/CFU:  69%

Background
Formed in 1988, BreitBurn was acquired by Canada-based Provident Energy Trust in 2004, but spun off as a separate publicly traded partnership (MLP) in 2006. Provident sold its remaining holdings in 2008. BreitBurn owns oil and natural gas assets in the Antrim Shale (Michigan), the Los Angeles Basin, the Wind River and Big Horn Basins (both in Wyoming), the Sunniland Trend (Florida), the New Albany Shale (Indiana and Kentucky), and the Permian Basin (West Texas). BreitBurn's strategy is to acquire long-lived assets with relatively low-risk exploitation and development opportunities. Triggered by falling oil and natural gas prices, and by an ongoing lawsuit, BreitBurn suspended paying distributions in April 2009. That lawsuit was settled in February 2010 and BreitBurn resumed paying distributions in April 2010. 

Quarterly Reports

September '11: EPU loss (excluding hedging) -$0.15 vs. year-ago +$0.04. Including hedging, EPU $2.87 vs. year-ago -$0.11 loss. Oil, natural gas liquids (NGLs), and natural gas production revenues up 26% vs. year-ago to $97.4 million. Average daily production down 3% to 18,273 Boe/day. Oil and natural gas liquids (NGLs) 49% of production, vs. year-ago 47%. Operating cash flow $41.3 million ($0.70/unit) vs. $62.2 million ($1.15/unit). Earnings call transcript. In July, distribution up 1% to $0.4225.  

June '11: EPU $0.92, down $0.02. Revenues up 6% to $142.4 million. Oil, natural gas liquids (NGLs), and natural gas production revenues up 15% to $94.7 million. Production flat at 18,265 Boe/day. Oil and natural gas liquids (NGLs) 47% of production, vs. 49%. Operating cash flow $33.1 million ($0.53/unit) vs. $36.5 million ($0.64/unit). Earnings call transcript. Quicksilver Resources, which held 15.6 million BreitBurn units, sold 8 million units at $19.78 each. BreitBurn agreed to acquire property in Niobrara County, Wyoming for $58 million that was producing 500 BOE/Day of crude oil. In April, BreitBurn dividend up 1% ($0.005) to $.4175.

March '11: EPU loss -$1.67 vs. +$1.02 profit. Operations were profitable, but hedging activities recorded non-cash -$106.2 million ($1.80/unit) unrealized loss vs. $52.1 million gain. Oil, natural gas liquids (NGLs), and natural gas production revenues up 15% vs. to $92.5 million. Operating cash flow up 22% to $54.4 million ($0.92/unit). Earnings call transcript. Raised $100 million selling 5 million new units at $21.25. In February, distribution up 6% to $0.4125.

December '10: EPU loss -$1.25 vs. -$0.75. Oil, natural gas liquids (NGLs), and natural gas production revenues up 5% to $78.1 million, but hedging activities lost -$60.6 million vs. -$7.8 million loss. Hedging losses were unrealized (non-cash).  Operating cash flow $38.7 million vs. $40.4 million. Oil/NGLs production down 4% to 791 MBoe. Natural gas production down 1% to 5,452 MMcf. Earnings call transcript. In October, distribution up 2% to $0.39. 

September '10: EPU loss -$0.11 vs. -$0.10. Oil, NGLs, and natural gas production revenues up 23% vs. $77.1 million. Commodity derivative hedging activities lost -$8.0 million vs. +$51.7 million profit. Operating cash flow $24.7 million vs. $42.4 million. Oil/NGLs production up 7% to 827 MBoe. Natural gas production up 3% to 5,486 MMcf. Earnings call transcript. Raised $250 million selling unsecured senior notes due in 2020 in private offering. In July, dividend up 2% to $0.3825 per unit.  

June '10: EPU  $0.94 vs. year-ago -$2.06 loss. Oil, natural gas liquids (NGLs), and natural gas production revenues up 37% vs. year-ago to $82.1 million. Commodity derivative gains $52.7 million vs. year-ago -$97.3 million loss. Oil/NGLs production up 7% to 812 MBoe. Natural gas production down 5% to 5,106 MMcf. For first six months, operating cash flow down 43% vs. year-ago to $81.1 million. Unrealized gains on derivative instruments accounted for shortfall. Earnings call transcript. In April, resumed paying quarterly distributions at $0.375. 

March '10: EPU $1.02, up 21%. Revenues up 4% to $133.2 million. Oil, natural gas liquids (NGLs), and natural gas production revenues up 40% to $80.5 million. Commodity derivative gains down 26% to $52.1 million.  Oil/NGLs accounted for 57% of revenues. Oil/NGLs production down 2% to 727 MBoe. Natural gas production up 1% to 5,207 MMcf. Operating cash flow down 37% to $44.6 million. Settled lawsuit with Quicksilver Resources. Quicksilver, which held 41% of BreitBurn, claimed BreitBurn had prevented it from naming members of BreitBurn's board. Quicksilver received $13 million settlement from BreitBurn and gained two seats on the board.

December '09: EPU loss -$0.75 vs. $4.66. Revenues -91% to $38.3 million. Oil, nat gas liquids (NGLs), and nat gas production revenues -8% to $74.7 million. Commodity derivatives lost $36.9 million vs. $361.3 million profit. Oil/NGLs accounted for 56% of revenues. Oil/NGLs production -3% to 744 MBoe. Natural gas production -4% to 5,335 MMcf). Operating cash flow -56% to $73.3 million.

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Calumet Specialty Products

5/1/16:  Calumet Specialty suspended its quarterly dividend. Also said lost around $75 million in March quarter. Sell Calumet Specialty.

Calumet privately placed US$400 million of senior secured notes maturing in 2021 and paying a coupon of 11.5%.

From S&P after downgrade from B to B-:

"The downgrade follows the partnership's debt offering which in our view will cause leverage to be higher than we previously expected, above 5.5x through 2016," said Standard & Poor's credit analyst Mike Llanos. This additional debt and our expectation that refining margins will remain weak more than offset the benefits of the partnership's announcement that it will suspend its first quarter distribution. Future distribution payments will depend upon the partnership achieving a minimum fixed charge coverage ratio, which we believe the partnership will be unlikely to meet, for most of 2016.

The stable outlook reflects our view the partnership will maintain adequate liquidity despite weak refining margins and challenges accessing the equity markets over the next 12 to 24 months. We forecast adjusted debt to EBITDA above 5.5x in 2016 absent an improvement in refining margins.

From Moody's

"Calumet's liquidity will improve following the new $400 million notes issuance and suspension of distributions", said James Wilkins, a Moody's Vice President. "However, the Caa1 ("substantial risk" bond rating) reflects the company's high leverage and likelihood that profitability of the Fuel Products and Oilfield Services segments in 2016-2017 will remain well below peak levels." Moody's gave its rating a "negative outlook," which means it could downgrade its rating. 

In March, Calume named Bruce Fleming to the newly created position of VP of Strategy & Growth. With more than 30 years experience, Fleming spent the last 10 years as VP of Mergers & Acquisitions at Tesoro.

In February, Moody's downgraded Calumet's debt rating by one notch and changed its outlook on CLMT from stable to negative, commenting that the changes "reflect our expectations the company will realize lower profit margins in 2016 and its liquidity will weaken." 

In September 2015, Calumet named Timothy Go as CEO, effective January 1. Go has extensive experience in the refining business, including almost 20 years at ExxonMobil. He replaces interim CEO Bill Hatch, who took that position in March when Calumet's Board "promoted" its then existing CEO to Executive Vice Chairman. No reasons were given for that move.

Forecast FY 12/2016 CFU Growth:   CF Payout Ratio: 

Background
Operates crude oil refineries that produce 1) specialty products including lubricating oils, mineral oils, and solvents, and 2) fuel products including gasoline, diesel fuel, and jet fuel. In 2011, acquired Murphy Oil's Superior, Wisconsin refinery, which gave it a distribution network for fuel and asphalt products operated through terminals in Minnesota, Utah, and Wisconsin. In 2012 acquired aviation and refrigerant lubricants business from Ashland subsidiary Hercules, and Louisiana-based specialty petroleum packaging and distribution company TruSouth Oil.

Quarterly Reports  

December '15 EPU: loss -$1.56, down $1.67 vs. year-ago. Revenues down 33% to $898.0 million. Gross margin 3.6% of sales vs. year-ago 9.2% (higher is better). Distributable cash flow (DCF), excluding special items (DCF) $4.4 million ($0.06/unit) vs. year-ago $94.0 million ($1.35/unit). Drastically lower refined products profit margins smashed results.

September '15 EPU: (adjusted) $0.86, up 79%. Revenues down 32% to $1.140 billion. Gross margin 14.5% vs. 10.8%. DCF $44.9 million ($0.59/unit) vs. $72.3 million ($1.04/unit). 

June '15 EPU: (adj) $0.35 vs. -$0.53 loss. Revenues down 19% to $1.156 billion. DCF $73.3 million ($0.96/unit) vs. -$15.0 million (-$0.22/unit).  Calumet's North Dakota-based Dakota Prairie refinery commenced operations. Calumet and MDU Resources are joint owners. Opened a new distribution center in Mexico City to serve Mexico and Latin American markets. 

March '15 EPU: $0.27 vs. -$0.76 loss. Revenues down 24% to $1.019 billion. DCF $94.1 million ($1.32/unit) vs. $49.4 million ($0.71/unit). Specialty products volumes up 6% to 26,079 barrels/day (bpd). Fuel products volumes up 10% to 121,020 bpd. Gross profit on specialty products up 1% to $42.67/barrel. GP on fuel products (excluding hedging) up 121% to $8.10/barrel. Calumet's Board "promoted" its existing CEO to Executive Vice Chairman, appointed an interim CEO, and began a search for a permanent CEO. Sold 6.9 million new units at $26.75. 

December '14 EPU: (adjusted) $0.86 vs. -$0.34 loss. Revenues up 8% to $1.339 billion. DCF (adjusted) $97.9 million ($1.40/unit) vs. $8.8 million ($0.13/unit). Specialty products volumes down 6% to 25,648 barrels/day (bpd). Fuel products volumes up 22% to 92,325 bpd. GP on specialty products up 36% to $46.97/barrel. GP on fuel products (excluding hedging) -$6.26/barrel vs. $3.81/barrel.

September '14 EPU: 0.08 vs. -$0.54 loss. Revenues up 11% to $1.676 billion. DCF $71.3 million ($0.59/unit) vs. -$16.0 million (-$0.13/unit). Specialty products volumes down 2% to 27,888 barrels/day (bpd). Fuel products volumes up 7% to 92,231 bpd. GP on specialty products up 33% to $41.98/barrel. GP on fuel products (excluding hedging) $3.11/barrel vs. -$1.80/barrel.

June '14 EPU: loss -$0.17 vs. +$0.05. Revenues up 6% to $1.435 billion. DCF -$20.4 million (-$0.29/unit) vs. -$2.5 million (-$0.04/unit). Specialty products volumes down 15% to 25,296 barrels/day (bpd). Fuel products volumes up 8% to 81,212 bpd. GP on specialty products down 8% to $32.67/barrel. GP on fuel products (excluding hedging) -$0.69/barrel vs. $1.69/barrel.

March '14: EPU (adjusted) $0.50 vs. $0.66. DCF $49.4 million ($0.71/unit) vs. $26.4 million ($0.42/unit). Revenues up 2% to $1.341 billion. Specialty products volumes down 9% to 24,594 barrels/day (bpd). Fuel products volumes up 7% to 86,578 bpd. GP on specialty products up 30% to $42.22/barrel. GP on fuel products (excluding hedging) $3.66/barrel vs. $8.25/barrel. Acquired privately held United Petroleum, which sold lubricant products in 35 states. Paid $235 million to acquire Anchor Drilling Fluids, which supplied drilling fluids and production chemicals to oil and gas exploration companies. Sold $900 million of 6.5% senior unsecured notes in a private placement and retired $500 million of existing 9.375% notes.

December '13: EPU loss -$0.27 vs. +$0.73. DCF $10.6 million ($0.15/unit) vs. $54.5 million ($0.94/unit). Revenues up 2% to $1.243 billion. Specialty products volumes down 4% to 27,400 barrels/day (bpd). Fuel products volumes even at 75,608 bpd. GP on specialty products down 13% to $34.45/barrel. GP on fuel products $3.81/barrel vs. $9.70/barrel. Acquired New Jersey-based maker and global distributor of high-performance lubricants. Raised $225 million by selling 7.625% notes in private placement.

September '13: EPU -$0.54 vs. +$0.69/unit. DCF -$16.0 million (-$0.23/unit) vs. $92.6 million ($1.60/unit). Revenues up 28% to $1.505 billion. Specialty products volumes up 3% to 41,157 barrels/day (bpd). Fuel products volumes up 38% to 73,445 bpd. Specialty products GP down 56% to $10.64/barrel. Fuel products  GP (excluding hedging) $1.53/barrel vs. $21.15/barrel. Acquired crude oil loading facilities and related assets in North Dakota and Montana from Murphy Oil. Said deal would allow sourcing increased crude oil volumes directly from local producers in North Dakota and Montana. In July, distribution up 1% to $0.685.

June '13: EPU $0.05 vs. $1.14. DCF -$2.5 million (-$0.04/unit) vs. $94.9 million ($1.72/unit). Revenues up 25% to $1.354 billion. Specialty products volumes down 3% to 41,146 bpd. Fuel products volumes up 34% to 63,792 bpd. Specialty products GP down 27% to $18.50/barrel. Fuel products GP $4.52/barrel vs. $18.90/barrel. In April, distribution up 5% to $0.68.

March '13: EPU $0.66, down 32%. DCF $26.4 million ($0.42/unit) vs. $39.2 million ($0.76/unit). Revenues up 20% to $1.221 billion. Specialty products volumes up 1% to 37,989 bpd. Fuel products volumes up 12% to 73,800 bpd. Specialty products GP down 5% to $18.48/barrel. Fuel products GP up 8% to $12.51/barrel.  In January, sold 5.75 million new units (shares) for $31.81. In March, sold 6 million new units at $37.50. Formed joint venture with MDU Resources to build and operate a diesel refinery in southwestern North Dakota. Calumet and MDU will split profits 50/50. In January, distribution up 5% to $0.65. 

December '12: EPU $0.73, up 46%. DCF $0.87/unit vs $0.62/unit. Revenues up 20% to $1.221 billion. Specialty products volumes up 9% to 30,207 bpd. Fuel products volumes up 23% to 68,478 bpd. Specialty products GP down 11% to $18.90/barrel. Fuel products GP up 113% to $15.41/barrel. Acquired San Antonio, Texas refinery from NuStar Energy LP (NS). In October, distribution up 5% to $0.62.

September '12: EPU $0.69, up 50%. DCF $92.527 million ($1.60/unit) vs. $50.487 ($1.22/unit). Revenues up 52% to $1.180 billion. Specialty products volumes up 33% to 40,392 bpd. Fuel products volumes up 76% to 56,228 bpd. Specialty products GP down 22% to $24.37/barrel. Fuel products GP up 39% to $21.15/barrel. Completed acquisition of Montana Refining Company that produces 9,000 gallons/day of gasoline, middle distillates and asphalt. Raised $275 million by selling 9.625% notes due in 2020. In July, distribution up 5% to $0.59.

June '12: EPU $1.14 vs. -$0.19 loss (hedging activities made earnings comparisons not meaningful). Operating cash flow $27.474 million ($0.50/unit) vs. year-ago loss. Revenues up 48% to $1.087 billion. Specialty products volumes up 27% to 38,352 barrels/day (bpd). Fuel products volumes up 83% to 52,846 bpd. Gross profit on specialty products up 22% to $25.39/barrel. Gross profit on fuel products (excluding hedging) $18.91/barrel vs. $6.47. Agreed to buy high performance lubricants maker Royal Purple for $335 million. Sold 6.9 million new units at $25.50. In April, distribution up 6% to $0.56.  

March '12: EPU $0.97 vs. $0.11. Revenues up 93% to $1.170 billion. Specialty products sales up 28% to 37,659 barrels/day (bpd). Fuel products sales up 148% to 59,857 bpd. Gross margin 7.2% vs. year-ago 7.7%. Operating cash flow $17.090 million ($0.33/unit) vs. loss. Completed acquisition of TruSouth Oil, which produced motor oils, gear oils, engine oils, automotive fluids and specialty engineered fuel and oil mix products. Completed purchase of aviation and refrigerant lubricants business from Ashland, Inc. In January, distribution up 6% to $0.53.

December '11: EPU $0.50, up 92%. Revenues up 71% to $1.018 billion. Operating cash flow $64.337 million ($1.51/unit) vs. $46.441 million ($1.28/unit). Completed acquisition of Superior, Wisconsin refinery from Murphy Oil. Deal increased refining capacity by 50% to 135,000 barrels per day. In October, distribution up 1% to $0.50.

Crestwood Midstream Partners 

7/1/13:  Crestwood Midstream plans to merge with Inergy LP (NRGY) and Inergy Midstream LP (NRGM) in a complex series of transactions. When the smoke clears, sometime in the current September quarter, Crestwood Midstream will become a part of NRGM. Crestwood Midstream unitholders will receive 1.07 common units of NRGM plus $1.03 in cash for each Crestwood unit. Currently, Crestwood is paying distributions of $0.51 per unit, but NRGM is only paying $0.395 per unit. Adjusting for the fact that Crestwood holders get 1.07 units of NRGM for each Crestwood unit, current Crestwood holders will see their quarterly distributions drop from $0.51/unit to $0.42/unit after the merger, an 18% cut. Worse, it's not possible to know the fundamental outlook of the combined companies at this point. We're selling.

Crestwood's general (master) partner, Crestwood Holdings, completed its acquisition of the general partner of Inergy LP, the first step of series of transactions that will result in the absorption of Crestwood Midstream Partners by Inergy Midstream LP (NRGM). 

Forecast FY 12/2013 CFU Growth:   Div/CFU Ratio:  

Background

Crestwood, formerly Quicksilver Gas Services, gathers and processes natural gas and natural gas liquids from the Barnett Shale formation in the Fort Worth, Texas area. Quicksilver Gas Services was spun-off from Quicksilver Resources, then its master partner, in 2007. The partnership has a 10-year exclusive right to gather and process natural gas from specified Quicksilver Resources' assets at predetermined fees based on volumes transported and processed. Thus, the partnership has little exposure to natural gas prices. Quicksilver Resources formerly held around 60% of the partnership's units. In October 2010, Quicksilver Resources sold its interests to Crestwood Gas Services, a unit of private equity manager First Reserve Corporation.

Quarterly Reports    

March '13: EPU $0.07, down 54% vs. year-ago. Distributable cash flow (adjusted) $28.291 million ($0.51/unit) vs. $22.086 million ($0.52/unit). Revenues up 35% to $72.4 million.  Nat-gas gathered 975 Mmcf/day, up 59% vs. year-ago, and up 1% vs. December quarter. Processing volume, 18.322 MMcf, up 52% vs. year-ago, but even with December quarter. Bought remaining 65% interest in Crestwood Marcellus Midstream LLC that it didn't already own from its general partner for $258 million. Sold 5.175 million new units at $23.90 per unit.

December '12: EPU (adjusted) $0.03 vs. $0.25. Revenues down 4% to $56.99 million. Distributable cash flow (adjusted) $23.297 million ($0.48/unit) vs. $23.357 million ($0.59/unit). Volumes nat-gas gathered down 8% vs. year-ago, but even with September quarter. Processing volumes up 48% vs. year-ago. Raised $150 million selling 7.75% Senior Notes. In October, distribution up 2% to $0.51, up 6% vs. year-ago.

September '12: EPU (adjusted) $0.17 vs. $0.24. Revenues down 6% to $55.037 million. Distributable cash flow (adjusted) $25.196 million ($0.61/unit) vs. $22.921 million ($0.58/unit). Volumes of nat-gas gathered down 2%. Completed acquisition of natural gas gathering and processing assets in the Barnett Shale from Devon Energy. Sold 4.6 million new units at $26.00 per unit. 

June '12: EPU (adjusted) $0.10 vs. $0.31. Revenues down 13% to $48.2 million. Distributable cash flow (adjusted) $20.573 million ($0.45/unit) vs. $23.421 million ($0.62). Volumes nat. gas gathered and processed even, but commodity prices down. Earnings call transcript. In April, distribution up 2% to $0.50.  

March '12: EPU (adjusted) $0.16 vs. $0.33. Revenues up 66% to $53.7 million. Distributable cash flow (adjusted) $22.086 million ($0.52/unit) vs. $18.126 million ($0.58). Crestwood, together with its master partner, Crestwood Holdings, completed $375 million acquisition of natural gas gathering pipelines connected to 59 wells in the Marcellus Shale in West Virginia. Sold 4.025 million units at $30.73 per unit. In January, distribution up 2% to $0.49.  

December '11: EPU (adjusted) $0.25 vs. $0.43. Excluding non-recurring, EPS $0.24 vs. $0.18. Revenues up 86% to $59.29 million. Distributable cash flow (adjusted) $23.36 million ($0.59/unit) vs. year-ago $17.53 million ($0.56). Acquired Tristate Sabine, which operated natural gas pipelines in Louisiana. In October, distribution up 4% to $0.48. 

September '11: EPU (adjusted) $0.24 vs. $0.38. Revenues up 93% to $58.6 million. Distributable cash flow (adjusted) $22.91 million ($0.58/unit) vs. $17.60 million ($0.56/unit). In July, distribution up 5% to $0.46.    

June '11: EPU (adjusted) $0.31, even. Revenues up 104% to $55.5 million. Distributable cash flow (adjusted) up 46% to $23.4 million ($0.56/unit). Sold 1.8 million new units for $30.65/unit. In April, distribution up 2% ($0.01) to $0.44. 

March '11: EPU (adjusted $0.33, up 65%. Revenues up 31% to $32.38 million. Distributable cash flow (adjusted) up 50% to $18.1 million. Raised $200 million by selling Senior Notes due 2019 in a private sale. In February, distribution up 2% ($0.01) to $0.43. 

December '10: EPU (adjusted) $0.43, up 34%. Counting non-recurring related to master partner change, EPU $0.18. Distributable cash flow (adjusted) up 27% to $17.5 million. Revenues up 23% to $31.3 million. Issued 2.3 million units to convert (triggered by master partner ownership change) a $57.6 million promissory note. In October, Crestwood Holdings Partners acquired the general partnership interest in Quicksilver. Quicksilver Gas Services (KGS) changed its name to Crestwood Midstream Partners, and changed its ticker symbol to CMLP.

September '10: EPU $0.38, up 46%. Revenues up 31% to $30.4 million. Distributable cash flow up 46% to $16.9 million. In July, dividend up 8% to $0.42. QuickSilver's general partner, QuickSilver Resources, Inc., sold its general partner's position in QuickSilver Gas Services to a unit of First Reserve Corporation for $773 million. 

June '10: EPU $0.31, up 7% vs. year-ago (continuing). Revenues up 17% to $27.2 million. Distributable cash flow up 28% to $15.4 million. Earnings call transcript.  

March '10: EPU 0.20 vs. $0.34. Revenues up 3% to $24.7 million. Distributable cash flow down 10% to $11,421 million. Lower natural gas gathering and processing volumes and higher expenses accounted for shortfalls.

December '09: EPU $0.28 vs. $0.40. Revenues -11% to $21.67 million. Distributable cash flow -29% to $11.5 million. Gathering and transportation revenues -1% to $12.7 million. Gas processing revenues -14% to $7.06 million. Earnings call transcript. Sold 4.6 million units at $21.10. Bought nat gas assets worth $87.1 million from master partner, Quicksilver Resources. In October, distribution +5% to $0.39.   

September '09: EPU $0.31, up 19%. Distributable cash flow +16% to $13.4 million. Revenues +26% to $24.3 million. Gathering and transportation revenues +68% to $14.5 million. Gas processing revenues -5% to $8.45 million.

June '09: EPU $0.27, +17%. Distributable cash flow +20% to $12.6 million. Revenues +32% to $24.0 million. Gathering and transportation revenues +96% to $14.1 million. Gas processing revenues -7% to $8.50 million.

Back to Energy Partnerships 

CSI Compressco

9/1/15 Sell CSI Compressco
Analyst's 2016 cash flow and dividend growth forecasts for CSI Compressco have been trending down, which is a red flag warning of negative surprises ahead.

CSI reported June quarter earnings of $0.02 per unit, $0.12 below analyst forecasts, and down from $0.30 in the year-ago quarter. Revenues up 294% to $126.5 million. Distributable cash flow (DCF) $20.568 million ($0.60/unit) vs. year-ago $9.378 million ($0.58/unit). Compressor fleet utilization 83.6% vs. year-ago 86.2%. Higher costs hurt earnings and cash flow.

In July, CSI raised its quarterly distribution by 1% to $0.50 per unit, which was 10% above its year-ago payout.

In April, CSI Compressco raised its quarterly distribution by 2% to $0.495 per unit, which was 11% above its year-ago payout.

Forecast FY 12/2015 CFU Growth: 3%   CF Payout Ratio: 81%

Background
A June 2011 spin-off from its parent, TETRA Technologies, Compressco offers compression services used by natural gas and oil exploration and production companies to increase production. In August 2014, Compressco acquired compressor manufacturer and service provider Compressor Systems, which owned the fourth largest U.S. compression fleet. The acquisition boosted Compressco's compression assets more than fivefold. 

Quarterly Reports

March '15 EPU: $0.04 vs. year-ago $0.29. Revenues up 245% to $102.889 million. Distributable cash flow (DCF) $21.392 million ($0.62/unit) vs. year-ago $8.530 million ($0.54/unit). Compressor fleet utilization 86.4% vs. year-ago 83.7%. On December 1, Compressco Partners changed its name to CSI Compressco LP, and its ticker symbol to CCLP from GSJK. In January, distribution up 5% to $0.485.

December '14 EPU: $0.12 vs. $0.40. Revenues $124.8 million vs. $32.4 million. DCF $28.443 million ($0.78/unit) vs. ($0.64/unit). Compressor fleet utilization 87.7%. In October, distribution up 2% to $0.46.

September '14 EPU: -$0.10 vs. +$0.26. DCF $18.954 million ($0.73/unit) vs. $36.862 million ($2.28/unit). Revenues up 220% to $95.892 million. Compressor fleet utilization 85.8%. Acquired compressor maker and compression services provider Compressor Systems, Inc. for $825 million. Raised $350 million selling 7.25% notes due 2022. Sold 17.57 million new units at $23.50. In July, distribution up 2% to $0.4525.

June '14 EPU: $0.30, up 100%. DCF $9.378 million ($0.58/unit) vs. $5.979 million ($0.36/unit). Revenues up 14% to $32.108 million. Compressor fleet utilization 85.3%. In April, distribution up 2% to $0.445.

March '14: EPU $0.29, even. DCF $8.530 million ($0.54/unit). Revenues down 3% to $28.810 million.

Emerge Energy Services

U.S. crude oil prices have plunged from $93 or so per barrel in September to $81 last Friday, and are likely to head lower. Fracking is an expensive way to produce oil compared to conventional methods. The per-barrel costs vary with each well, but for some, $80 is the breakeven point, and for others it could be as low as $50/barrel. So, some producers will quit drilling new wells when oil drops below $80, others when it hits $75, etc. The demand for fracking sand drops whenever a producer decides to delay drilling new wells. If crude prices continue to fall, at some point, fracking sand demand would fall short of supply, and sand prices would drop.

Emerge reported September quarter earnings of $1.08 per unit, $0.18 above analyst forecasts and up 69% vs. the year-ago quarter. Total revenues rose 10% to $296.338 million. Fuel sales dropped 10% to $200.555 million. Sand sales up 102% to $96.783 million. Cash available for distribution $1.38 per unit, up 18% from the June Q. Said sand sales unaffected by lower crude prices, but expects weak fuel sales in December quarter. Sand accounted for about 92% of EBITDA (cash flow approx).

Emerge raised its quarterly distribution by 18% to $1.38 per unit, which was 60% above its year-ago payout.

In July, Emerge increased its quarterly distribution by 4% to $1.17 per unit.

Forecast FY 12/2014 CFU Growth: 76%   Div/CFU: 92%

Background
A May 2013 IPO, Emerge operates two businesses: 1) petroleum products storage and distribution, and 2) mining, processing and distributing silica sand, which is necessary for producing crude oil and natural gas using hydraulic fracturing (fracking) methods. 

Quarterly Reports

June '14 EPU: $0.83, up 6% vs. March quarter. Total revenues up 46% vs. year-ago to $298.2 million. Fuel sales up 30% to $220.80 million. Sand sales up 125% to $77.47 million. Cash available for distribution $1.17 per unit, up 3.5% from March Q. Existing holders sold four million units at $109.06. In April, distribution up 13% to $1.13.

March '14: EPU $0.77, up 33% vs. December '13 quarter. Total revenues up 80% vs. year-ago to $274.1 million. Fuel sales up 75% to $209.7 million. Sand sales up 101% to $64.3 million. Cash available for distribution $1.13 per unit, up 13% from December. In January, distribution up 16% to $1.00.  

December '13: EPU $0.58 vs. $0.64 in September Q. Total revenues up 34% to $246.0 million. Fuel sales up 40% to $125.9 million. Sand sales up 184% to $53.8 million. Cash available for distribution $1.00/unit. In November, distribution up 23% to $0.86.  

September '13: EPU $0.64. Revenues up 54% to $270.2 million. Fuel sales up 40% to $221.2 million. Sand sales up 116% to $36.6 million. Declared prorated distribution for partial quarter since IPO of $0.37/unit, equivalent to $0.70 for full quarter.

Energy Transfer Partners  

Energy Transfer's pipelines are not well-located to take advantage of the shift to producing natural gas from underground shale formations. We're selling Energy so that we can focus on natural gas pipeline operator Crestwood Midstream, which has stronger growth prospects.   

10/17:  Energy made a deal to sell its propane operations to AmeriGas Partners for $1.5 billion in cash and $1.3 billion of AmeriGas units.

Energy had formed a 50/50 joint venture with Enterprise Product Partners to build a crude oil pipeline from Cushing, Oklahoma to Houston, Texas. However, on 8/21, citing the lack of sufficient interest from customers, the two firms canceled the project.

In July, Energy made a deal with its master partner whereas the master partner (ETE) will sell to ETP, for $1.9 billion, a 50% interest in Citrus Corp., which owns the Florida Gas Transmission pipeline system. However, the deal is contingent on ETE successfully acquiring Southern Union Company (see following paragraph).

In June, Energy Transfer Partners' master partner, Energy Transfer Equity, made a deal to acquire Southern Union Company, a major natural gas pipeline operator and natural gas distributor operating in the Midwest and Gulf Coast states. While not immediately affecting Energy Transfer Partners, the acquisition would eventually result in additional assets being "dropped-down" to ETP from its master partner. However, since the initial announcement, another bidder for Southern Union has emerged, and the deal may not happen.

Forecast FY 12/2011 CFU Growth: -31%   Div/CFU Ratio: 82%

Quarterly Reports    

June '11: EPU $0.19 vs. year-ago loss -$0.26. Revenues up 28% to $1.628 billion. Distributable cash flow $223.3 million ($1.07/unit) vs. year-ago $200.0 million ($1.07/unit). Revenues from natural gas operations up 32% to $1.382 billion. Propane sales up 12% to $220.3 million. Energy and Regency Energy Partners announced plans to jointly construct a 530-mile natural gas liquids (propane, butane, etc.) pipeline in west Texas. Sold $800 million of senior notes paying 4.65% due 2021, and $700 million of senior notes paying 6.05% due 2041.  

March '11: EPU $0.71, down $0.03. Revenues down 10% to $1.69 billion. Distributable cash flow down 12% to $337.1 million. Revenues from natural gas operations down 14% to $1.127 billion. Propane sales down 1% to $528.5 million. Sold 13.5 million new units at $50.52/unit. Formed joint venture with Regency Energy Partners (RGNC) to acquire natural gas liquids (NGLs) processing, storage, and pipeline facilities in Texas from LDH Energy. NGLs are propane, butane, and methane, which are derived from natural gas. Energy contributed $1.35 billion and owns 70%. 

December '10: EPU $0.65, vs. $0.91. Revenues down 3% to $1.454 billion. Distributable cash flow up 10% to $284.4 million. Revenues from natural gas operations down 8% to $1.019 billion. Propane sales up 11% to $401 million. Plans to build two new pipelines with combined length of 130 miles, to provide natural gas transportation services to Eagle Ford Shale area in South Texas. 

September '10: EPU $0.05 vs. -$0.10 loss. Revenues up 14% to $1.291 billion. Distributable cash flow up 10% to $160.5 million. Revenues from natural gas operations up 15% to $1.083 billion. Propane sales up 13% to $184 million. Sold 9.2 million new units at $46.22/unit, increasing units outstanding by 5%.

June '10: EPU -$0.26 vs. +$0.38. Revenues up 10% to $1.268 billion. EPS loss from lower margins on propane sales and non-cash charge related to transfer of its interest in Midcontinent Express. Distributable cash flow up 49% to $200.0 million. Earnings call transcript. Started construction of 175 mile pipeline with initial capacity of two billion cubic feet per day that will connect the Haynesville Shale and Bossier Sands producing regions in Louisiana and East Texas to interstate pipeline systems. In May, 2010, Energy Transfer Partner's master partner, Energy Transfer Equity, acquired the master partner of Regency Energy Partners (RGNC), and now controls both Energy Transfer Partners and Regency Energy Partners. 

March '10: EPU $0.74 vs. $1.37. Revenues up 15% to $1.872 billion. Distributable cash flow down 15% to $376.8 million. Acquired 120-mile natural gas gathering system located in Louisiana and East Texas (Haynesville Shale), which ties to several interstate and intrastate pipelines. Raised $437 million by selling 9.8 million new units at $44.72.  

December '09: EPU $0.91 vs. $0.45. Revenues -16% to $1.51 billion. Distributable cash flow -4% to $230.4 million. Sold 6.9 million units at $41.27.   

September '09: EPU loss $0.10 vs. $0.94 profit. Revenues -49% to $1.130 billion. Distributable cash flow -26% to $155.6 million. Paid $5 million civil penalty to U.S. government and set up $25 million fund to pay claims resulting from alleged natural gas price fixing in 2003 to 2005 timeframe. 

June '09: EPU $0.38 vs. $0.60. Revenues down 60% to $948 million. Raised $319 million by selling 8.5 million new units at $37.55 per unit.

March '09: EPU $1.37 vs. $1.76. Revenues -8% to $1.63 billion. Raised $1 billion in note sale. Cancelled joint venture with OGE Energy to operate Rocky Mountain pipelines. Made deal with Chesapeake Energy to construct 178-mile nat gas pipeline from Texas to Louisiana. Raised $204 million selling 6 million units at $34.05.

December '08: EPU $0.45 vs. $0.82. Revenues +10% to $1.79 billion. Year-ago comparisons vs. November 2007 quarter. Raised $600 million selling 9.7% senior notes due 2012.

September '08: EPU $0.93, +72% vs. August 2007 (fiscal year change). DCF +27% to $1.07. Revenues +36% to $2.21 billion. Earnings call transcript. In July, distribution +3% to $0.89375.

June '08: EPU $0.60. In May '07 (fiscal year change), EPU $0.71. June Q revenues +55% vs. May '07 to $2.653 billion. In April, distribution +3% to $0.86875. 

March '08: EPU $1.34 vs. $1.33 in February '07 (fiscal year change). Revenues +28% to $2.64 billion. Acquired nine retail propane businesses. Paid $10 million fine to settle charges that it manipulated natural gas prices after Hurricane Rita in September 2005.

Special (re: fiscal year change)
December '07 (four months): EPU $1.21, +73%. Revenues +9% to $2.35 billion. Changed fiscal year-end to December starting in 2008. Paid transitional distribution: $0.84375 for three-months ending 11/31 and 0.28125 for additional month.

November '07: EPU $0.82 vs. $0.15. Revenues +17% to $1.628 billion. Acquired propane assets of three firms. Acquired Canyon Gas Resources, which operated natural gas gathering pipelines and processing facilities in Colorado and Utah. In October, distribution +2% to $0.825. In November, distribution +2% to $0.84375.

August '07: EPU $0.54 vs. loss. Distributable cash flow $0.80 vs. $0.28. Revenues +3% to $1.63 billion. In June, distribution +2% to $0.81. 

May '07: EPU $0.71, up 6%. DCF $0.95 per unit, +20%. Revenues +21% to $1.71 billion. In March, distribution +2% to $0.7875.

February '07: EPU $1.33, down $0.03. Revenues -18% to $2.06 billion. Net income +12%, but units outstanding +27%. In December, distribution +2.5% to $0.76875.

November '06: EPU $0.13 vs. $0.75. Revenues -43% to $1.39 billion. Acquired Transwestern Pipeline, a large interstate system. In September, distribution +18% to $0.75.

August '06: EPU loss $0.07 vs. $0.27 gain. Revenues -14% to $1.57 billion. FY distributable cash flow $4.20 per unit. Paid $0.0325 special (litigation gains) distribution on July 14.

May '06: EPU (operating) $0.67, +139%. DCF +49% to $0.79 per unit. Bought Titan Energy propane assets including retail operations in 33 states. In June, distribution +8.5% to $0.6375. In March, distribution +7% to $0.5875.

February '06: EPU $1.36, up 100%. Revenues +70% to $2.45 billion. Acquired three retail propane businesses. In December, distribution +10% to $0.55.

November '05: EPU $0.76 vs. $0.27. Revenues $2.4 billion vs. $864 million. In October, distribution +2.6% to $0.50. 

August '05: EPU $0.40 vs. $0.11. In June, distribution +5% to $0.4875. 

May '05: EPU (operating) $0.40, +67%.

February '05: EPU $0.82, -31%. Net income up, but units outstanding up more. Acquired four retail propane operators, and sold Oklahoma gathering and processing assets. Split units 2-for-1. Distribution +6% to $0.4625. 

November '04: EPU $0.55, +45%. ETP acquired Texas natural gas pipeline system.

Back to Energy Partnerships 

Enviva Partners

3/1/17:  We're advising selling Enviva. See write-up at top for details.

Enviva reported a December quarter loss of -$0.32 per unit, $0.64 worse than analyst forecasts and vs. year-ago +$0.29 profit. Revenues up 8% to $126.5 million. Distributable cash flow $12.659 million ($0.97/unit) vs. $18.048 million ($1.45/unit). Gross margin 15.9% of sales vs. year-ago 15.5% (higher is better).

In October, Enviva Partners agreed to pay $175 million to acquire Enviva Pellets Sampson, LLC from a related company. Sampson owns a wood pellet production plant in Sampson County, North Carolina.In October, Enviva increased its distribution by 1% to $0.53 per unit, which was 20% above its year-ago payout.

In January, Enviva raised its quarterly distribution by 1% to $0.535 per share, which was 16% above its year-ago payout.

Forecast FY 12/2017 CFU Growth: 8%   CF Payout Ratio:  

Background
An April 2015 IPO, Enviva processes wood fiber into wood pellets. It's factories are in the U.S., but most of Enviva's customers are in Europe, where the pellets are mainly used to replace coal in power generation facilities.

Quarterly Reports

September '16 EPU: $0.50, up 85% vs. year-ago. Revenues down 6% vs. year-ago and down 8% vs. June quarter to $109.8 million. Distributable cash flow $20.873 million ($0.83/unit) vs. $15.487 million ($0.53/unit). Gross margin (adjusted) $54.97 per metric ton vs. year-ago $40.12. In July, distribution up 3% to $0.525. 

June '16 EPU: $0.47, $0.07 up 96%. Revenues up 9% to $119.7 million. Distributable cash flow $19.5 million ($0.77/unit) vs. $15.4 million ($0.64/unit). Gross margin (adjusted) $43.11 per metric ton vs. $41.94. In April, distribution up 11% to $0.51.

March '16 EPU: $0.30. Revenues down 6% vs. to $107.3 million. Distributable cash flow $14.8 million ($0.60 per unit). Gross margin (adjusted) $40.42 per metric ton vs. $34.16. In January, distribution up 4.5% to $0.46.

December '15 EPU: $0.29, up $0.02 vs. September quarter (4/15 IPO). Revenues up 48% vs. year-ago to $116.8 million. Distributable cash flow $18.048 million ($1.45 per share). Gross margin (adjusted) $39.37 per metric ton vs. year-ago $30.93. Paid $131 million to acquire a wood pellet production facility in Virginia. In October, distribution up 7% to $0.44.

September '15 EPU: $0.27. Revenues up 53% to $116.6 million. Distributable cash flow $12.635 million. Gross margin (adjusted) $33.80.

Exterran Partners   

Compression services, used by natural gas and oil exploration and production companies to increase production, are a growing business. However, growth has for slowed Exterran Partners, our pick in that sector. So, we're replacing Exterran with a relatively new (June 2011 IPO) player, Compressco Partners.

In July, Exterran raised its quarterly distribution by 1% to $0.5425. 

In July, Exterran Partners agreed to acquire 162 natural gas compression units from Chesapeake Energy for $135 million. Exterran expected to increase its quarterly distribution by $0.005 per unit starting with the quarter after the deal closes.

Forecast FY 12/2014 CFU Growth: 6%    Div/CFU: 68%

Background
An October ’06 IPO, Exterran provides contract natural gas compression services, which are required to transport natural gas through pipelines, processing, storage, and distribution facilities. Another company, Exterran Holdings (EXH), which was formed by the merger of Hanover Compressor and Universal Compression, owns 51% of EXLP. Growth comes from additional compression assets acquired from EXH.

Quarterly Reports    

June '14 EPU: $0.26 vs. year-ago $0.52. Revenues up 16% to $145.7 million. Distributable cash flow $42.4 million ($0.63/unit) vs. $36.1 million ($0.68/unit). In April, distribution up 1% ($0.005) to $0.5375. 

March '14: EPU (continuing) $0.17 $0.36. Revenues up 14% to $121.0 million. Distributable cash flow $36.1 million ($0.46/unit) vs. $37.1 million ($0.77/unit). Sold $300 million of senior notes in private offering, and sold 6.2 million new units (shares) at $28.36. Agreed to acquire 334 compression units and associated equipment from Chesapeake Energy for $360 million. In January, distribution up 1% to $0.5325. 

December '13: EPU $0.19 vs. $0.31. Distributable cash flow $37.849 million ($0.77/unit) vs. $34.223 million ($0.81/unit). Revenues up 16% to $118.9 million. In October, distribution up 1% to $0.5275.

September '13: EPU  $0.16, down $0.05. Revenues up 17% to $115.8 million. Distributable cash flow $33.282 million ($0.67/unit) vs. year-ago $29.501 million ($0.70/unit). In July, distribution up 1% ($0.005) to $0.5225. 

June '13: EPU $0.52 vs. loss. Revenues up 29% to $125.5 million. DCF $44.739 million ($0.90/unit) vs. $27.342 million ($0.65/unit). In April, distribution up 1% ($0.005/unit) to $0.5175. 

March '13: EPU $0.31 vs. $0.09. Revenues up 20% to $106.1 million. DCF $37.106 million ($0.86/unit) vs. $26.900 million ($0.64/unit). Acquired 50 customers and 370 compressor units used to provide compression services to those customers from general partner. Exterran Partners is issuing 7.1 million common units and 145,000 general partner units to Exterran Holdings to pay for the acquisition. Raised $350 million selling 6.00% senior notes in a private sale. In January, distribution up 1% to $0.5125. 

December '12: EPU $0.31 vs.  $0.10. Revenues up 23% to $102.3 million. DCF $34.223 million ($0.73/unit) vs. $24.475 million ($0.52/unit). In October, distribution up 1% to $0.5275.

September '12: EPU $0.21 vs. $0.06. Revenues up 18% to $99.324 million. DCF $29.501 million ($0.70/unit) vs. $25.720 million ($0.69/unit). In July, distribution up 1% to $0.5025. 

June '12: EPU (adjusted) $0.18 vs. -$0.07 loss. Revenues up 35% to $97.171 million. Distributable cash flow $27.342 million ($0.65/unit) vs. $19.025 million ($0.49/unit). In April, distribution up 1% to $0.4975.    

March '12: EPU $0.09 vs. loss. Revenues up 29% to $88.69 million. Distributable cash flow $26.900 million ($0.70/unit) vs. $21.064 million ($0.56/unit). Agreed to acquire contracts and equipment used to service 40 customers and a natural gas processing plant from Exterran Holdings, its general partner. Sold 5.2 million new units at $24.05 each. In January, distribution up 1% to $0.4925. 

December '11: EPU $0.10, up 77%. Revenues up 22% to $83.3 million. Distributable cash flow $24.475 million ($0.62/unit) vs. $20.37 million ($0.60/unit).  CEO resigned (see June '11). In October, distribution up 1% to $0.4875.

September '11: EPU $0.06 vs. $0.01. Revenues up 35% to $84.4 million. Distributable cash flow $25.270 ($0.68/unit) million vs. $19.27 million ($0.68/unit). Completed acquisition of compression and processing assets from Master Partner, Exterran Holdings for $228 million. Exterran Partners now controls 52% of combined Exterran Holdings and Exterran Partners contract operations business. Exterran Holdings plans to eventually transfer all of its North American contract operations business to Exterran Partners. In July, distribution up 1% to $0.4825.

June '11: EPU loss -$0.08 vs. -$0.07 loss. Distributable cash flow up 49% vs. to $19.03 million. Revenues up 34% to $71.8 million. CEO Ernie Danner, citing disappointment with the results, resigned. Sold 5 million new units at $25.95. In April, Exterran distribution up 1% ($0.005) to $0.4775.

March '11: EPU loss -$0.01 down $0.06. Distributable cash flow up 47% to $21.06 million. Paid 77% of distributable cash to unitholders. Revenues up 30% to $68.7 million. Master partner, Exterran Holdings, sold 6.0 million Exterran Partners' units at $28.65/unit. In February, distribution up 1% to $0.4725. 

December '10: EPU (excluding non-recurring) $0.04 vs. $0.13. Counting non-cash asset impairment charge, Exterran lost -$0.73 per unit. Distributable cash flow up 57% to $20.37 million. Paid 79% of distributable cash to unitholders. Revenues up 45% to $68.4 million. In October, distribution up 1% to $0.4675.  

September '10: EPU loss -$0.01 vs. -$0.07 loss. Distributable cash flow up 81% to $19.3 million. Revenues up 52% to $62.7 million. Gross margin 53.7% of sales vs. 56.9%. Existing unit holders sold 4.6 million units for $21.60/unit. Completed acquisition of contracts, compressors and other assets from Exterran Holdings, its master partner, that served 43 of Exterran Holdings' customers. Exterran Partners issued 8.2 million new units to pay for the deal.   

June '10: EPU (continuing) -$0.07 loss vs. +$0.13. Distributable cash flow $12.8 million, even. Revenues up 2% to $53.8 million. Gross margin 56% of sales vs. 58%. Made deal to build and operate two natural gas processing plants, one in Carlisle, OH, and the other in Schultz, WV, for natural gas utility Dominion. Exterran will own the plants. 

March '10: EPU 0.05 vs. $0.33. Distributable cash flow up 9% to 14.4 million. Revenues up 9% to $52.7 million. 

December '09: EPU (continuing) of $0.14 vs. $0.39. Distributable cash flow -7% to $13.2 million. Revenues -4% to $47.1 million. Completed acquisition of additional contracts serving 18 customers from Exterran Holdings for $144 million. Borrowed $58 million under new asset-backed securitization facility and issued 4.74 million common units and about 97,000 general partner units to Exterran Holdings to pay for the deal. 

September '09: EPU $0.09 vs. $0.49. Revenues -7% to $41.3 million. Distributable cash flow $10.6 million, -28%, but 15% above amount distributed.

June '09: EPU (operating) $0.28 vs. $0.33. Counting non-cash fleet impairment charge, EPU $0.13. Revenues -6% to $45.1 million.  

March '09: EPU $0.33 vs. $0.38. Revenue -2% to $48.2 million. Distributable cash flow -6% to $13.2 million.

December '08: EPU $0.39 vs. $0.42. Revenues +34% to $49.1 million. Distributable cash flow even at $14.1 million.

Back to Energy Partnerships

GasLog Partners

5/18:  Sell GasLog Partners. Despite growing revenues at more or less double-digit rates, GasLog hasn't been able to translate those higher revenues into meaningful distribution growth, which is what MLPs are all about.  

In April, GasLog raised its quarterly distribution by 1% to $0.53 per unit, which was 6% above its year-ago payout.

Forecast FY 12/2018 EPU Growth: -12%   CF Payout Ratio:  80%

Background
Natural gas sells for less than $3 per million BTUs in the U.S. compared to around $8 in Europe. The only practical way to ship natural gas from here to there is by converting it to a liquid by freezing it and then defrosting at the other end. Natural gas in the frozen state is known as LNG (liquefied natural gas). GLOP, a May 2014 IPO, owns ships outfitted to transport LNG that it leases to shippers under long-term contracts. Shipping LNG is a growth business and GLOP participates in that growth by acquiring more ships. Although an MLP, GLOP, based in Monaco, has elected to be taxed as a corporation. That simplifies life at tax time because investor can file 1099 forms, not K-1s. The distributions are subject to the 15%/20% maximum tax rates.

Quarterly Reports

March '18 EPU: $0.54, down 9% vs. year-ago. Revenues flat vs. year-ago at $77.2 million. Distributable cash flow $27.462 million ($0.60/unit) vs. year-ago $23.496 million ($0.57/unit). Expects to increase distribution by around 6% during 2018. Flat revenues and only 5% year-over-year distributable cash flow growth were disappointing numbers. In January, distribution up 1.2%.

December '17 EPU: $0.57, down $0.05 vs. year-ago. Revenues down 2% to $77.347 million. Distributable cash flow $26.934 million ($0.62/unit) vs. year-ago $23.541 million ($0.59/unit). In October, distribution up 1.5% to $0.5175.

September '17 EPU: $0.53, down $0.01. Revenues up 11% to $73.439 million. Distributable cash flow $26.867 million ($0.62/unit) vs. $21.415 million ($0.60/unit). Agreed to pay general partner $186 million to acquire a liquefied natural gas (LNG) carrier (ship) that was built in 2014 and is leased to Royal Dutch Shell through June 2021. In July, distribution up 2% to $0.51.

June '17: EPU: $0.45, down 13%. Distributable cash flow $23.255 million ($0.57/unit) vs. $19.837 million ($0.55/unit). Revenues up 2% to $64.05 million. Paid general partner $211 million for liquefied natural gas (LNG) carrier that is leased to Royal Dutch Shell through September 2023. In April, distribution up 2% ($0.01) to $0.50.

March '17 EPU: $0.54, up 10%. Distributable cash flow $0.57/unit vs. $0.57. Revenues up 15% to $56.993 million. Sold 4.3 million new units (shares) at $20.50. In January, distribution up 2.5% to $0.49.

December '16 EPU: $0.62, up 5%. Distributable cash flow $0.59/unit vs. $0.66. Revenues even at $57.911 million.

September '16 EPU: $0.54, down $0.02. Distributable cash flow $0.60/unit vs. year-ago $0.65. Revenues even with year-ago at $51.453 million. In August, sold 3.16 million new units at $19.50 per unit.

June '16 EPU: $0.52, down 10%. Distributable cash flow up 41% to $19.387 million ($0.59/unit). Revenues up 51% to $49.636 million.

March '16: EPU $0.49, down 27%. Distributable cash flow up 34% to $19.009 million ($0.58/unit). Revenues up 52% to $49.358 million.  

December '15: EPU $0.59 vs. $0.08. Revenues up 56% to $51.953 million. Distributable cash flow (adjusted) $22.546 million ($0.684/unit) vs. $13.028 million. In October, distribution up 10% to $0.478. GLOP forecast around 12% annual future distribution growth. In October, distribution up 10% to $0.478.

September '15: EPU $0.56, even. Revenues (adjusted) up 141% to $51.453 million. Distributable cash flow (adjusted) $21.466 million ($1.75/unit) vs. $9.426 million ($1.69/unit). Said current fleet fully contracted under fixed-rate charters through May 2018. Potential for acquisition (dropdown) of 12 additional vessels from general partner. Added three ships to fleet, bringing  total to 11 LNG carriers, with 8 more on order. Sold 8.625 million new units at $23.90.

June '15 EPU: $0.58 vs. March quarter $0.67. Revenues up 59% from March Q to $32.943 million. Distributable cash flow $14.111 million ($0.65/unit) vs. March Q $14.187 million. Since GLOP was a May 2014 IPO, year-ago comparisons not meaningful. 

March '15 EPU: $0.67, up $0.21 vs. analyst forecasts (May 2014 IPO). Revenues up 57% to $20.743 million. Distributable cash flow up 9% vs. year-ago to $14.187 million. In January, distribution up 16% to $0.4345 per unit.

December '14 EPU: $0.08. Revenues up 57% to $33.302 million. Cash distributions declared 82.3% of distributable cash flow $13.028 million. Agreed to acquire two vessels chartered under leases averaging 10-years in length.  

Global Partners

12/1/15:  We're advising selling Global Partners. Global Partners main growth engine was transporting oil by rail from the Bakken shale oil fields in Montana and surrounding state to the U.S. East Coast. With Bakken production falling, so are growth prospects for that business.

Global reported September quarter earnings of $0.16 per unit, $0.16 below analyst forecasts, and down from $1.50 in the year-ago quarter. Revenues fell 39% to $2.486 billion. Gross margin (GM) 6.1% of sales vs. year-ago 3.8%. Distributable cash flow $29.6 million ($0.88 per unit) vs. year-ago $51.5 million ($1.89/unit). Global is forecasting full year EBITDA around $224 million, about 7% below year-ago.

In October, Global increased its quarterly distribution by 0.7% to $0.6975 per unit, which was 7% above its year-ago payout. 

In July, Global increased its quarterly distribution by 2% to $0.6925 per unit, which was up 9% over its year-ago payout.

Forecast FY 12/2015  CFU Growth:     CF Payout Ratio: 108%

Background
A 2007 IPO, Global was originally a distributor of gasoline, home heating oils, and diesel fuels to wholesalers, retailers, and commercial customers in the Northeast U.S. In 2010 Global acquired gasoline stations and now operates more than 1,000 outlets. In 2011, Global began transporting crude oil from North Dakota to the east coast via rail and has steadily added to its oil transportation and terminaling business via acquisitions.

Quarterly Reports 

June '15 EPU: $0.15 vs. year-ago -$0.50 loss. Revenues down 41% to $2.680 billion. Gross margin (GM) 5.4% of sales vs. year-ago 1.9%. Distributable cash flow $26.2 million ($0.54 per unit) vs. year-ago -$4.2 million (-$0.15/unit). Sold 3.45 million new units at $38.12 per unit. Paid $156 million to acquire 97 Exxon and Mobil branded retail gas stations in New York City and Maryland. Sold $300 million of 7.000% senior unsecured notes, due 2023, in a private sale to institutional investors. In April, distribution up 2% to $0.68.

March '15 EPU: $0.92 vs. $2.03. Revenues down 42% to $2.979 billion. GM 5.7% vs. 3.1%. DCF $53.710 million ($1.75 per unit) vs. $69.520 million ($2.55/unit). Shareholder, AE Holdings, sold 1.956 million existing Global Partners units at $36.10 per unit. In January, distribution up 2% to $0.665 per unit.

December '14: EPU $0.93 vs. $1.20. Revenues down 26% to $3.353 billion. GM 4.0% of vs. 2.8%. DCF $44.4 million ($1.58 per unit) vs. $52.5 million ($1.93/unit). Sold 4.1 million new units at $40.24. Paid $383 million to acquire Warren Equities which marketed gasoline via 147 owned retail convenience stores, and more than 370 agents and dealers in 10 northeastern U.S. states. In October, distribution up 2% to $0.6525.

September '14: EPU $1.50, up 65%. Revenues down 9% to $4.050 billion. GM 3.8% vs. 2.7%. DCF $51.5 million ($1.89 per unit) vs. $44.4 million ($1.62/unit).  In July, distribution up 2% to $0.6375. 

June '14 EPU: loss -$0.50 vs. +$0.15. Revenues down 4% to $4.570 billion. GM 1.9% vs. 2.0%. DCF -$4.164 million (-$0.15 per unit) vs. $18.986 million ($0.69/unit). In April, distribution up 2% to $0.625.  

March '14: EPU $2.03 vs. -$0.83 loss. Revenues down 8% to $5.117 billion. GM 3.1%  vs. 1.0%. DCF $69,520 million ($2.55 per unit) vs. -$10.579 million.  In January, distribution up 2% to $0.6125. 

December '13: EPU  $0.84, up 4%. Revenues down 6% to $4.795 billion, but GM 2.8% vs. 2.0%. Lower income taxes hiked earnings by $0.03/unit. DCF $52.504 million ($1.93 per unit) vs. $32.068 million ($1.17 per unit). In October, distribution up 2% to $0.60.   

September '13: EPU $0.09 vs. $0.24. Revenues down 4% to $4.433 billion. DCF $23.177 million ($0.81 per unit) vs. $14.954 million ($0.54 per unit). In July, distribution up 1% to $0.5875. 

June '13: EPU $0.29, down $0.37. Revenues up 21% to $4.772 billion. DCF $23.397 million ($0.85 per unit) vs. $26.679 million ($0.97 per unit). In April, distribution up 2% to $0.5825.

March '13: EPU $0.51 vs. -$0.06 loss. Revenues up 41% to $5.589 billion. DCF $26.574 million ($0.97 per unit) vs. $7.068 million ($0.30 per unit). Completed acquisition of crude oil and ethanol facility near Portland, Oregon. In January, distribution up 7% to $0.57.

December '12: EPU  $0.81, up 80%. Revenues up 25% to $5.117 billion. DCF $32.068 million ($1.17 per unit) vs. $16.452 million ($0.76 per unit). Made deal with Getty Realty to supply and operate 90 of Getty's New York City area gas stations. Paid $80 million for 60% interest in Basin Transload LLC, which operates two transloading facilities in North Dakota. In October, distribution up 1% to $0.5325.

September '12: EPU $0.24 vs. year-ago $0.08. Revenues up 23% to $4.617 billion. DCF $15.0 million ($0.55 per unit) vs. $8.598 million ($0.40 per unit). In July, distribution up 5% to $0.525.

June '12: EPU $0.66 vs. loss -$0.04. Revenues up 15% to $3.916 billion. Distributable cash flow $26.479 million ($0.96 per unit) vs. $5.948 million ($0.27 per unit).

Hi-Crush Partners

10/18:  Citing a "temporary" drop in frac sand demand, Hi-Crush said it was temporarily closing one of its (Whitehall) frac sand production facilities.  The Whitehall facility accounted for 21% of Hi-Crush total production. Hi-Crush paid a $0.75/unit June quarter distribution. Analysts are forecasting $0.55 September quarter payout and $0.56 for December. While $0.55 still equates to a 20% yield, we expect the distribution cut announcement to further pressure the share price. We're advising selling Hi-Crush Partners.

In July, Hi-Crush agreed to pay $60 million to acquire frac sand management systems maker FB Industries in Manitoba, Canada. Also, based on additional purchase commitments from existing customers, Hi-Crush said it plans to add an additional production facility that would up its annual frac sand production capability by around 25%.

In July, Hi-Crush raised its quarterly distribution by 233% to $0.75 per unit (previous was $0.225).

In July, Hi-Crush said it is considering "conversion of the Partnership from an MLP to a C-Corporation at some point in the future." 

Forecast FY 12/2018 EPU Growth: 133%   CF Payout Ratio:  34%

Background
Hi-Crush is one of the largest producers of “frac sand,” which is a very durable crush-resistant material used to extract oil from rocky formations (fracking). Business was good for Hi-Crush until crude oil prices plunged in 2015, ending the need for drilling new wells. Business dropped precipitously and Hi-Crush suspended paying its distribution in late 2015. However, in 2017, drilling activity began picking up and that growth trend accelerated as the year progressed. Hi-Crush resumed paying distributions in October 2017.

Quarterly Reports

June '18: EPU 0.67, up 347% vs. year-ago. Revenues up 84% to $248.5 million. Distributable cash flow $66.650 million ($0.74/unit) vs. $22.864 million ($0.25/unit). Average sales price $70 per ton vs. March Q $73.  In April, distribution up 13% to $0.225. In April, Hi-Crush distribution up 13% to $0.225.

March '18: EPU $0.59, up 26% vs. December quarter. Revenues $218.1 million, up 1% vs. December Q. Distributable cash flow $56.4 million vs. December $52.0 million. Average sales price $73 per ton vs. December Q $71. In January, distribution up 33% to $0.20.

December'17: EPU $0.47 vs. year-ago loss. Revenues up 222% to $216.5 million. Distributable cash flow $52.6 million ($0.57 per unit) vs.  loss. Average sales price $71 per ton vs. $49.

September '17: EPU $0.32 vs. -$0.21 loss. Revenues up 260% to $167.6 million. Distributable cash flow $37.5 million ($0.41 per unit) vs. loss.

June '17: EPU $0.18 vs. -$0.26 loss. Revenues up 252% to $135.2 million. Distributable cash flow $22.8 million ($0.25 per unit) vs. year-ago loss.

March '17: EPU -$0.07 loss vs. -$1.39 loss. Revenues up 60% to $83.4 million. Distributable cash flow $0.051 million ($0.00 per unit) vs. loss.

MarkWest Energy Partners

In August 2014, MarkWest paid a $0.88 per unit distribution, exactly 5% above its year-ago payout. By contrast, our new natural gas pipeline operator, Summit Midstream Partners', grew its distributions by 18% over the same period. We're advising replacing MarkWest Energy with Summit Midstream Partners.   

In July, MarkWest increased its quarterly distribution by 1% ($0.01) to $0.88 per unit, which as 5% above its year-ago payout. 1% isn't much to shout about.

Forecast FY 12/2014 CFU Growth: 18%    Div/CFU: 88%

Background
MarkWest Energy was spun off from oil and gas producer MarkWest Hydrocarbon in 2002. However, MarkWest Energy merged with its general partner in February 2008. Thus, 100% of MarkWest Energy's  distributable cash belongs to its unit holders. MarkWest operates natural gas and natural gas liquids pipelines, storage terminals, and gathering and processing facilities in the Appalachian Basin, Michigan, and the Southwest. MarkWest has been successfully targeting the rapidly expanding shale plays in its area and, consequently, has the strongest cash flow growth outlook of any MLP.

Quarterly Reports   

June '14 EPU: $0.05 vs. year-ago $0.55. Distributable cash flow (DCF) $161.734 million ($0.89/unit) vs. year-ago $128.391 million ($0.84/unit). Revenues up 25% to $518.4 million. In April, distribution up 1% to $0.87.

March '14: EPU $0.07 vs. -$0.12 loss. DCF $148.446 million ($0.85/unit) vs. $109.825 million ($0.85/unit). Revenues up 38% to $512.5 million.  In January,  distribution up 1% to $0.86.

December '13: EPU loss -$0.05 vs. +$0.22. DCF $127.242 million ($0.84/unit) vs. $111.774 million ($0.78/unit). Revenues up 23% to $453.5 million. Sold 4.75 million new units for $63.40 per unit. In October, distribution up 1% ($0.01) to $0.85. 

September '13: EPU  -$0.17 vs. -$0.13. DCF $117.9 million ($0.83/unit) vs. $104.3 million ($0.91/unit). Revenues up 49% to $420.5 million. In July, distribution up 1% ($0.01) to $0.84. 

June '13: EPU  $0.55 vs. $1.47. Revenues down 6% to $395.4 million. DCF $128.4 million ($0.84/unit) vs. $91.183 million ($0.72/unit). Sold gas gathering pipelines and associated facilities in West Virginia for $210 million. Agreed to pay Chesapeake Energy $245 million for a cryogenic gas processing plant, 22 miles of gas gathering pipelines and other assets in the Anadarko Basin. In April, distribution up 1% ($0.01) to $0.83.

March '13: EPU -$0.12 vs. +$.14. Revenues up 7% to $375.9 million. DCF $110.194 million ($0.85/unit) vs. $109.177 million ($0.93/unit). Raised $1 billion by selling 4.5% notes due in 2023. In January, distribution up 1% ($0.01) to $0.82.

December '12: EPU  $0.22 vs. -$0.87 loss. Revenues up 11% to $371.5 million. DCF $106.995 million ($0.75/unit) vs. $83.449 million ($0.98/unit). Sold 9.8 million new units at $46.50. In October, distribution up 1% to $0.81. 

September '12: EPU loss -$0.13 per vs. 1.77 profit. DCF $104.289 million ($0.91/unit) vs. $85.311 million ($1.08/unit). Revenues (excluding hedging) down 20% to $310.0 million. Sold 6.9 million new units for $50.72 and raised $700 million by selling 5.5% senior notes. In July, distribution up 1% ($0.01) to $0.80. 

June '12: EPU $1.47, up 43%. Revenues (excluding hedging) down 14% to $310.0 million. Distributable cash flow $91.183 million ($0.72/unit) vs. $82.944 million ($1.10). Completed acquisition of gas gathering system, gas processing plants, and associated facilities in Butler County, Pennsylvania. Sold 9.2 million new units at $55.28/unit. In April, distribution up 4% to $0.79.  

March '12: EPU $0.14 vs. loss. Revenues up 14% to $399.2 million. Distributable cash flow $109.177 million ($0.93/unit) vs. $76.136 million ($1.02). Announced projects to increase processing capacity serving Marcellas and Utica Shales to 2.3 billion cubic feet per day. Sold 6.8 million new units at $59.54. In January, distribution up 4% to $0.76.

December '11: EPU loss -$0.87 vs. -$0.76. Revenues up 11% to $424.8 million. Hedging operations lost $20.0 million (-$0.23/unit) vs. $19.8 million loss (-$0.28/unit). Distributable cash flow $88.405 million ($1.03/unit) vs. $69.138 million ($0.97/unit). Earnings call transcript. Completed buyout of joint venture partner of pipeline operator MarkWest Liberty Midstream & Resources, LLC. Raised $600 million by selling 11.5 million new units at $54.25 (December). Raised $700 million by selling 6.25% notes due in 2022, and raised $251 million by selling 5.75 million new units at $45.52/unit (October). In October, distribution up 4% to $0.73. 

September '11: EPU $1.77 vs. loss. Revenues up 37% to $400.9 million. Hedging operations earned $106.9 million ($1.36/unit) vs. $37.0 million loss (-$0.52/unit). Distributable cash flow $85.31 million ($1.08/unit) vs. $54.69 million ($0.77/unit). Raised $182 million by selling 4.03 million new units at $48.00. In August, distribution up 5% to $0.70.

June '11: EPU $1.03, up 23%. Revenues up 30% to $439.9 million. Hedging operations earned $40.59 million ($0.54/unit) vs.$46.9 million ($0.66/unit). Distributable cash flow $82.94 million ($1.10/unit) vs. $52.91 million ($0.74/unit).

March '11: EPU loss -$1.13 vs. +$0.32. Revenues up 11% to $348.9 million. Hedging operations lost -$85.68 million (-$1.15/unit) vs. -$7.24 million (-$0.11/unit). Distributable cash flow $76.14 million ($1.02/unit) vs. $64.34 million ($0.97/unit).

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Natural Resource Partners 

2/29/12 Sell Natural Resource Partners
Falling natural gas prices are causing many utilities and other users to speed up their plans to convert from coal to natural gas. This trend will only accelerate in coming months. The long-term outlook for coal property owners such as Natural Resource Partners is not good.

NRP reported December quarter earnings (continuing) of $0.52 per unit, $0.05 above analysts' forecasts and 33% above the year-ago quarter. Counting non-cash impairment charge, EPU was -$0.13 loss. Total revenues rose 26% to $97.65 million. Distributable cash flow $79.55 million ($0.75/unit) vs. year-ago $75.15 million ($0.71/unit). Coal royalty revenues rose 19% to $67.6 million. Non-coal revenues grew 43% to $30.0 million. Coal production fell 1% vs. year-ago to 12.0 million tons. Average royalty revenue up 20% to $5.62 per ton. NRP said unseasonably warm weather, low natural gas prices and lower global demand for metallurgical coal are impacting the coal markets. December quarter numbers were below September. Not a good sign.

In December, NRP acquired 3,600 acres in the Mississippian Lime oil play in North Central Oklahoma for an undisclosed cash amount. The property is leased to two oil and gas operating companies, which are developing the properties with horizontal drilling. NRP expects the deal to add to cash flow in 2012.

In October, Natural Resource increased its quarterly distribution by 2% to $0.55 per unit.

In October, Natural Resource raised $50 million by selling notes in a private sale. NRP didn't reveal the terms.  

Forecast FY 12/2012 CFU Growth: 4%   Div/CFU Ratio: 101% 

Background

Owns coal properties in the Appalachia and in the Northern Powder River Basin and the Illinois Basin. Also owns preparation plants, coal handling facilities, and transportation infrastructure, as well as owns and manages aggregate reserves in Washington, Texas, Arizona, and West Virginia. NRP leases it properties to mine operators in exchange for royalty payments based on quantity of coal produced and selling prices. In September 2010, NRP issued 32 million new units (106 million previously outstanding) to its master partner to eliminate its master partner's incentive distribution rights. Prior to the deal, the master partner was entitled to receive 24% of current distributions, and 48% of any increases, before limited partners got their payouts. Under the new agreement, those payouts are eliminated. 

Quarterly Reports  

September '11: EPU (continuing) $0.57, up 13% vs. year-ago. Counting non-recurring expenses, EPU -$0.27. Total revenues up 29% to $103.8 million. Distributable cash flow $71.92 million ($0.68/unit) vs. year-ago $54.23 million ($0.70/unit). Coal royalty revenues up 27% to $76.4 million. Non-coal revenues up 33% to $27.3 million. Coal production up 10% vs. year-ago to 13.6 million tons. Average royalty revenue up 15% to $5.61 per ton. Book value $6.77/unit.

June '11: EPU $0.48, up 26%. Total revenues up 15% to $91.41 million. Distributable cash flow up 32% to $83.94 million ($0.79/unit). Coal royalty revenues up 21% to $69.8 million. Non-coal revenues down 1% to $21.6 million. Coal production down 2% to 11.5 million tons. Average royalty revenue up 23% to $6.05 per ton. Acquired royalty interest in frac sand reserves on 711 acres near Tyler, Texas for $16.5 million. Frac sand is used in the fracturing process during the completion of wells. Sold $200 million senior notes due 2026 and paying 5.0% in private placement. Paid $21 million to acquire 160 million tons of limestone reserves in Kentucky and Tennessee.  

March '11: EPU $0.42, up 75%. Revenues up 34% to $84.9 million. Distributable cash flow up 15% to $39.0 million. Coal royalty revenues up 39% to $65.4 million. Non-coal revenues up 19% to $19.5 million. Coal production 11.9 million tons, up 11%. Average royalty revenue up 25% to $5.47 per ton.

December '10: EPU $0.39, even. Revenues up 18% to $77.5 million. Distributable cash flow up 18% to $75.2 million. Coal royalty revenues up 17% to $56.6 million. Non-coal revenues up 19% to $20.9 million. Coal production 12.1 million tons, up 7%. Average royalty revenue up 9% to $4.67 per ton.  

September '10: EPU $0.51, up 42%. Distributable cash flow up 80% to $54.2 million. Total revenues up 26% to $80.6 million. Coal royalty revenues up 22% to $60.1 million. Non-coal revenues up 41% to $20.6 million. Coal production 12.4 million tons, up 10%. Average royalty revenue up 25% to $4.91 per ton.

June '10: EPU $0.38 vs. $.07. Distributable cash flow up 30% to $63.8 million. Total revenues up 24% to $79.6 million. Coal royalty revenues up 23% to $57.8 million. Non-coal revenues up 33% to $21.8 million. Coal production  11.8 million tons, even. Average royalty revenue up 25% to $4.91 per ton. Netted $112.5 million by selling 4.6 million new units at $25.17. Formed joint venture with International Paper to own and manage 7 million mineral acres currently held by IP. NRP will pay IP $42.5 million for 51% interest. Properties, located in 31 states, consist of reserves of oil and gas, coal and aggregates, and rights to develop coal bed methane, geothermal, CO2 sequestration, water rights, cell towers, other precious metals, industrial minerals and base metals.  

March '10: EPU $0.24 vs. $0.39. Distributable cash flow down 47% to $33.8 million. Total revenues down 4% to $63.5 million. Coal royalty revenues down 2% to $47.2 million. Non-coal revenues up 16% to $16.3 million. Coal production down 4% to 10.8 million tons. Average royalty revenue up 2% to $4.37 per ton.

December '09: EPU $0.39 up 8%. Distributable cash flow +112% to $63.8 million. Total revenues +3% to $65.9 million. Coal royalty revenues -2% to $48.3 million. Non-coal revenues +2% to $17.6 million. Coal production flat at 11.3 million tons. Average royalty revenue -2% to $4.28 per ton.

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PAA Natural Gas Storage   

11/1/13:  PAA's general partner, Plains All American Pipeline LP (PAA), finalized its offer to buy the units of PNG that it didn't already own. PNG unit holders will receive 0.445  (formerly 0.435) Plains units for each PNG unit. With PAA trading at $50.93, that equates to $22.15 of PAA units for each PNG unit. Plains expects to close the deal by year's end. PAA Natural Gas will pay what presumably is its last distribution ($0.3575/unit) on November 14. The ex-dividend date was 10/30/13. So you can sell now and still collect the distribution.

Forecast FY 12/2013 CFU Growth: 7%   Div/CFU Ratio:  99% 

Background

Formed in 2005 by Plains All American Pipeline, PAA, a May 2010 IPO, owns and operates underground natural gas storage facilities (caverns). Plains is the general partner and also holds 75% of the limited partner units. At the IPO, PAA owned two facilities, Pine Prairie in Louisiana, and Bluewater in Michigan. Pine Prairie's storage current storage capacity is 24 Bcf (billion cubic feet), but PAA plans to increase it to 42 Bcf by mid-2012. Bluewater's storage capacity is 26 Bcf. In December 2010, PAA agreed to purchase a third facility located in Mississippi that could potentially store 40 Bcf. PNG collects storage fees. Its income is not contingent on natural gas prices.

Quarterly Reports

PAA reported September quarter earnings of $0.20 per unit, $0.01 above analyst forecasts, but $0.04 below the year-ago quarter. Revenues fell 16% to $55.47 million.

June '13: EPU $0.22, down $0.01 vs. year-ago. Revenues up 15% to $115.6 million. Distributable cash flow $26.739 million ($0.37/unit) vs. year-ago $27.185 million ($0.38). Said "market conditions for natural gas storage weakened considerably."

March '13: EPU (adjusted) of $0.26, up 13%. Revenues up 19% to $128.9 million. Distributable cash flow $29.144 million ($0.41/unit) vs. $25.873 million ($0.36).

December '12: EPU $0.30, even. Revenues down 29% to $112.7 million. Distributable cash flow $32.565 million ($0.46/unit) vs. $31.377 million ($0.44).

September '12: EPU $0.24, up 14%. Revenues down 17% to $66.127 million. Distributable cash flow $27.779 million ($0.39/unit) vs. $25.143 million ($0.35).

June '12: EPU (adjusted) $0.25, up $0.02. Revenues up 84% to $100.1 million. Costs and expenses up 120%. Distributable cash flow $27.185 million ($0.38/unit) vs. $25.353 million ($0.36).

March '12: EPU $0.22 up 120%. Revenues up 116% to $108.7 million. Distributable cash flow $25.873 million ($0.36/unit) vs. $18.041 million ($0.30). 

December '11: EPU $0.30, up 36%. Distributable cash flow $31.38 million ($0.44/unit) vs. $11.30 million ($0.33). Revenues $158.8 million vs. $28.8 million. In October, distribution up 4% to $0.3575. 

September '11: EPU $0.21, even. Distributable cash flow (attributable to limited partners) $24.28 million ($0.34/unit) vs. $13.49 million ($0.30). Revenues up 216% to $79.33 million.

June '11: EPU $0.22, up 100%. Distributable cash flow $25.35 million ($0.36/unit) vs. $11.23 million ($0.25). Revenues up 125% to $54.4 million.

March '11: EPU (adjusted) $0.20. Revenues up 127% to $50.4 million. Distributable cash flow $18.04 million ($0.30/unit) vs. $5.68 million. Completed acquisition of natural gas storage facility in Mississippi.

December '10: EPU $0.22. Revenues up 53% to $29.8 million. Gross margin 76.2% vs. 68.2%. Operating margin 36.8% vs. 24.4%. In October, declared $0.375/unit distribution, its first full-period payout. 

September '10: EPU $0.21. Revenues up 33% to $25.1 million. Gross margin 79.7% vs. 84.0%. Operating margin 41.4% vs. 33.7%.  

June '10: EPU $0.11. Revenues up 26% to $24.2 million. Gross margin 79.5% vs. 86.1%. Operating margin 41.3% vs. 46.6%.

Phillips 66 Partners

Quarterly Reports

September '16: EPU $0.57, up 14%. Revenues $228 million. Distributable cash flow up 58% to $101.9 million ($0.66/unit). Agreed to acquire additional 2.5% equity interest in Explorer Pipeline Company bringing its total to 22%. Explorer's 1,830-mile pipeline transports gasoline, diesel, fuel oil and jet fuel to major cities in 16 states. Agreed to acquire natural gas liquids (NGL) facilities in Louisiana and also entered into a joint venture to develop a pipeline system to transport crude oil from northwestern Oklahoma to Cushing Oklahoma. In July, distribution up 5% to $0.505. 

June '16 EPU: $0.51 vs. $0.50. Revenues up 60% to $140.4 million. Distributable cash flow up 77% to $84.4 million. Sold 12.65 million new units at $52.40.

March '16 EPU: $0.44, up 13%. Revenues up 47% to $103.3 million. Distributable cash flow up 53% to $64.1 million. 

Suburban Propane Partners 

Forecast FY 9/2012 CFU Growth: 0%   Div/CFU Ratio: 119% 

4/2/12:  More efficient heating and cooking products are enabling propane consumers to use less propane, which doesn't bode well for Suburban and other propane sellers. We don't see this trend reversing anytime soon. We're selling Suburban Propane.

Background

Suburban serves roughly 900,000 residential, commercial, industrial and agricultural customers through more than 300 locations in 30 states. Sells propane, fuel oil and residual fuels, natural gas and electricity, but propane accounts for most of revenues.

Last Quarterly Report  

December '11: EPU $0.65, down $0.56 vs. year-ago. Operating cash flow -$25.32 million loss vs. year-ago -$4.86 million loss. Revenues down 9% to $299.9 million. Retail propane gallons sold down 14% to 74.3 million gallons. Propane revenues down 7% to $240.4 million. Fuel oil and other refined fuels revenues down 19% to $30.9 million. Natural gas and electricity revenues down 5% to $18.1 million. Gross margins 38.8% of sales vs. year-ago 43.2%. Earnings call transcript. Warmer than usual winter weather cut demand for propane, thus the big shortfalls in the numbers vs. year-ago.

Previous Quarterly Reports  

September '11: EPU loss -$0.61 vs. -$0.70 loss. Operating cash flow $22.95 million ($0.65/unit) vs. $26.07 million ($0.74/unit). Revenues up 9% to $181.6 million. Retail propane gallons sold down 3% to 154.6 million gallons. Propane revenues up 15% to $142.5 million. Fuel oil and other refined fuels revenues up 5% to $15.1 million. Natural gas and electricity revenues down 10% to $16.4 million. Gross margins 41.0% vs. 44.7%. Earnings call transcript.   

June '11: EPU loss -$0.19, even. Operating cash flow $60.00 million ($1.69/unit) vs. $72.4 million ($2.05/unit). Revenues up 9% to $216.6 million. Retail propane gallons down 3% to 154.6 million gallons. Propane revenues up 9% to $169.3 million. Fuel oil and other refined fuels revenues up 12% to $22.5 million. Natural gas and electricity revenues up 23% to $16.69 million. Gross margins 42.2% vs. 46.2%. Earnings call transcript.   

March '11: EPU $2.82, up 2%. Operating cash flow down 24% to $54.7 million ($1.52/unit). Revenues down 1% to $464.1 million. Retail propane gallons down 8% to 114.0 million gallons. Propane revenues down 3% to $358.3 million. Fuel oil and other refined fuels revenues up 4% to $63.5 million. Natural gas and electricity revenues up 14% to $132.7 million. Gross margins 44.0% vs. 47.0%. Earnings call transcript. In February, distribution up $0.0025 (0.3%) to $0.8525.

December '10: EPU $1.21 vs. $1.36. Operating cash flow -$4.86 million loss vs. -$14.7 million loss. Revenues up 9% to $328.3 million. Retail propane gallons down 4% to 86.2 million gallons, but propane revenues up 11% to $259.4 million. Fuel oil and other refined fuels revenues down 2% to $38.4 million. Natural gas and electricity revenues up 12% to $19.0 million. Gross margins 43.2% vs. 50.1%. Earnings call transcript. In October, distribution up 0.6% to $0.85.

September '10: EPU loss -$0.70 vs. -$0.67 loss. Operating cash flow $26.1 million ($0.74/unit) vs. $23.1 million ($0.68/unit). Revenues up 12% to $168.0 million. Retail propane gallons down 4% to 47.4 million gallons, but propane revenues up 12% to $127.0 million. Fuel oil and other refined fuels revenues down 16% to $14.4 million. Natural gas and electricity revenues up 78% to $18.3 million. Gross margins 44.7% vs. 53.1%. Earnings call transcript. In July, distribution up 1.7% to $0.845. 

June '10: EPU -$0.19 loss vs. -$0.23 loss. Revenues up 7% to $198.1 million. Retail propane gallons sold down 9% to 156.0 million gallons. Fuel oil and other refined fuels revenues down 32% to 6.6 million gallons. Gross margins 46.2% of sales vs. 52.6%. Operating cash flow $72.4 million ($2.05/unit) vs. $64.6 million ($1.96/unit). Earnings call transcript. In April, distribution up 0.6% to $0.84.

March '10: EPU $2.78 vs. $3.48. Revenues up 5% to $469.2 million. Retail propane gallons sold down 8% to 124.5 million gallons. Fuel oil and other refined fuels revenues down 24% to 18.4 million gallons. Gross margins 47.0% vs. 53.2%. Operating cash flow $72.1 million vs. $133.9 million. Earnings call transcript. Sold $250 million of 10-year senior notes paying 7.375%. In January, distribution up 0.6% to $0.835.

December '09: EPU $1.37 vs. $2.46. Revenues down 17% to $301.4 million. Retail propane gallons sold down 9% to 90.0 million gallons. Fuel oil and other refined fuels down 22% to 13.1 million gallons. Gross margins 50.1% of sales vs. 52.0%. Cash flow negative $14.7 million vs. positive $25.0 million. In October, distribution up 0.6% to $0.83.

September '09: EPU loss $0.67 vs. $0.35 loss. This year included $0.14 per unit debt extinguishment charge. Revenues down 41% to $150.2 million. Retail propane gallons -13% to 49.1 million gallons. Fuel oil and other refined fuels -23% to 6.9 million gallons. Earnings call transcript. Sold 22.2 million units at $41.50. In July, distribution +1% to $0.825.

June '09: EPU $0.23 vs. $0.42 loss. Operating cash flow +33% to $64.5 million. Propane revenues -36% to $139.6 million. Fuel oil revenues -58% to $23.1 million. Total revenues -40% to $184.4 million. In April, distribution +0.6% to $0.815.

March '09: EPU $3.48, +21%. Revenues -24% to $445.2 million. Propane revenues -20% to $336.9 million. Fuel oil sales -43% to $65.1 million. Natural gas and electricity sales -16% to $32.1 million. Earnings call transcript. In January, distribution +0.6% to $0.810. 

December '08: EPU $2.46 vs. $2.61. Revenues -15% to $363.3 million. Retail propane gallons sold 99.0 million gallons vs. 111.9 million gallons. Fuel oil and other refined products 16.7 million gallons vs. 23.6 million. In October, distribution +0.6% to $0.805.

September '08: EPU -$0.35 loss vs. -$0.99 loss. Revenues +19% to $256.4 million. Retail propane gallons sold 56.6 million gallons, -11%. Fuel oil and other refined fuels 8.9 million gallons, -31%. In July, distribution +3% to $0.80.

Back to Energy Partnerships 

Summit Midstream Partners

12/1/15:  Summit didn't generate enough cash to fund its September distribution, which doesn't bode well for future distribution growth. We're selling so we can focus on firms with stronger dividend growth prospects.

Summit reported September quarter earnings of $0.32 per unit, up from year-ago $0.08. Revenues rose 22% to $103.249 million. Distributable cash flow (DCF) (adjusted) $34.677 million ($0.46/unit) vs. $38.021 million ($0.64/unit). Average daily throughput down 5% vs. year-ago to 1.390 million Mcf. Cash flow totaled only 85% of distributions.

In October, Summit raised its quarterly distribution by 1% to $0.575 per share, which was 6% above its year-ago payout.

In September, a media report said that Summit's general partner, Energy Capital Partners, was looking for a buyer for its Summit holdings. 

In July, Summit increased its quarterly distribution by 1% to $0.57 per unit, which was up 10% over its year-ago payout.

Forecast FY 12/2015 CFU Growth: 12%   CF Payout Ratio: 95%

Background
An October 2012 IPO, Summit Midstream Partners, provides natural gas gathering, compression, and processing services, mostly under long-term, fee-based contracts. It offers its services in the shale areas of North Dakota (Bakken Shale), Utah and Colorado (Piceance Basin), Texas ((Barnett Shale) and West Virginia (Marcellus Shale).

Quarterly Reports

June '15 EPU: $0.05, even with year-ago. Revenues down 10% to $77.274 million. Distributable cash flow (DCF) (adjusted) $40.357 million ($0.57/unit) vs. $37.548 million ($0.57/unit). Average daily throughput up 8% to 1.519 million Mcf. In April, distribution up 1% to $0.565. 

March '15 EPU: $0.00 vs. $0.08. Revenues down 10% to $68.579 million. DCF (adjusted) $35.902 million ($1.04/unit) vs. $33.733 million ($1.12/unit). Average daily throughput up 21% to 1.583 million Mcf. In January, distribution up 4% to $0.56.

December '14: EPU loss -$0.65 vs. +$0.29. Revenues up 13% to $94.658 million. DCF (adjusted) $35.148 million ($1.02/unit) vs. $35.158 ($1.20/unit). Average daily throughput up 22% to 1.491 million Mcf.  In October, distribution up 4% to $0.54.

September '14: EPU $0.08 vs. $0.12. DCF (adjusted) $35.036 million ($1.01/unit) vs. $33.112 million ($1.13/unit). Revenues up 4% to $79.03 million. Average daily throughput 1.465 million Mcf, up 25%.  In September, general partner sold five million new Summit units at $53.88. Raised $300 million selling 5.5% notes due in 2022. In July, distribution up 4% to $0.52.

June '14: EPU $0.05 vs. year-ago $0.16. DCF $34.746 vs. $30.314 million. Revenues up 13% to $80.796 million.

Vanguard Natural Resources 

6/1/12: Vanguard Natural Resources is a crude oil and natural gas producer. Prices for both commodities are down. Natural gas prices will likely stay down for years and we don't see a recovery in crude oil prices in the near future either.

6/5/12:  Vanguard paid $445 million to acquire natural gas assets in the Arkoma Basin in Arkansas and Oklahoma.

In April 2012, Vanguard raised its quarterly distribution by 1% to $0.5925 per unit.

Forecast FY 12/2012 CFU Growth: 0%   Div/CFU: 72%

Background
Vanguard, a November 2007 IPO, acquires working interests in, and develops long-lived natural gas and crude oil properties in the Appalachian Basin, the Permian Basin, and South Texas. In December 2010, Vanguard acquired the general partner of Encore Energy Partners (ENP), and about 46% (20.9 million units) of Encore's limited partner units. Encore owned oil and natural gas reserves (43.4 MMBoe) in Wyoming, Montana, West Texas, New Mexico, Arkansas and Oklahoma. Encore will continue to operate independently. Vanguard is not a master limited partnership, instead it's a limited liability company (LLC). The difference is that Vanguard has no master or general partner to take 25% to 50% of distributable cash flow off the top before unit holders (that's us) get their share. Thus, all else equal, Vanguard's distributions should grow faster than similar MLPs. 

Quarterly Reports 

March '12: EPU $0.41, down 25% vs. year-ago. Revenues up 15% to $82.7 million. Average daily production up 2%. vs. year-ago to 13,569 boe. Distributable cash flow (DCF) up 57% to $44.498 million, but number of units outstanding up 75%. DCF per unit down 9% vs. year-ago to $0.86. Earnings call transcript. Sold 5.2 million new units, and existing holder Denbury Onshore sold 3.1 million Vanguard units at $27.71/unit. Raised $300 million in a note sale. In January, distribution up 2% to $0.5875. 

December '11: EPU (adjusted) $0.76, up 69%. Oil, natural gas and natural gas liquids revenues up 271% to $86.00 million. Distributable cash flow $37.083 million ($1.03/unit) vs. $16,883 million ($0.65/unit). Production 13,866 Barrels of oil equivalent (BOE)/day, up 180% vs. year-ago, but only up 2% from September quarter. Crude oil, natural gas liquids and natural gas accounted for 54%, 11%, and 35% of production. Including hedging, realized prices averaged $7.54 per Mcf for natural gas, $90.66 per Bbl of crude oil. Earnings call transcript. Closed acquisition of Encore Energy Partners. In October, distribution up 0.4% to $0.5775. 

September '11: EPU (adjusted) $0.47, down $0.10. Oil, natural gas, and natural gas liquids' sales up 228% to $74.4 million (growth due to acquisition). Distributable cash flow (DCF) $19.0 million (0.63/unit) vs. $14.5 million ($0.67/unit). Crude oil production 695,306 barrels, up 247% (acquisition). Average selling price $78.19 (excluding hedges). Natural gas production 2.59 million Mcf and sold for $5.34/Mcf. Crude oil 57% of production. Earnings call transcript. Vanguard, already its master partner, said it would acquire Encore Energy Partners, and would make it a wholly-owned unit of Vanguard's operating company, Vanguard Natural Gas, LLC. In July, distribution up 1% to $0.575.

June '11: EPU  $1.05 vs. $0.19. Oil, natural gas, and natural gas liquids' sales up 313% to $80.4 million. Distributable cash flow (DCF) $54.0 million (1.80/unit) vs. $11.1 million ($0.55/unit). Crude oil production 670,541 barrels vs. 154,445 (increase reflects acquisition). Average selling price $92.76 (excluding hedges). Natural gas production 2.68 million Mcf and sold for $4.55/Mcf. Crude oil 59% of production. Earnings call transcript. Acquired 50% interest in oil and natural gas properties in West Texas Permian Basin. Encore Energy Partners purchased the other 50%. In April, distribution up 2% to $0.570.  

March '11: EPU loss -$1.01 vs. +$1.15 profit. Unrealized non-cash hedging losses cut earnings by $2.44/unit. Oil, natural gas, and natural gas liquids sales up 258% to $72.0 million. Distributable cash flow (DCF) up 88% to $28.3 million ($0.95/unit). Crude oil production 685,047 barrels vs. 132,411 (increase reflects acquisition). Average selling price $81.81 (excluding hedges). Natural gas production 2.53 million Mcf and sold for $4.36/Mcf. In January, distribution up 2% ($0.01) to $0.56.

December '10: EPU (adjusted) $0.46, up 53%. DCF $0.65/unit vs. $0.64. Natural gas, natural gas liquids, and crude oil revenues up 44% to $23.16 million. Hedging revenues -$9.68 million vs. -$3.01 million. Crude oil production 195,302 barrels, up 87%. Average selling price $77.92 (excluding hedges). Natural gas production 1.23 million Mcf and sold for $4.47/Mcf. Natural gas liquids production 2.095 million gallons and sold for $1.18/gallon. Crude oil, natural gas, and NGLs accounted for 65%, 24%, and 11% of sales. Earnings call transcript. Netted $116 million selling 4.8 million units at $25.40. Acquired general partner of Encore Energy Partners (ENP), and 46% of Encore's limited partner units. Encore owned oil and natural gas reserves (43.4 MMBoe) in Wyoming, Montana, West Texas, New Mexico, Arkansas and Oklahoma. Mix was 67% crude oil and 33% natural gas.

September '10: EPU (adjusted) down $0.01. DCF up 12% to $14.5 million. Natural gas, natural gas liquids, and crude oil revenues up 100% to $22.68 million. Hedging activity revenues -$3.34 million vs. year-ago -$4.67 million. Excluding hedging, natural gas revenues $6.41 million (up 35% vs. year-ago), crude oil revenues totaled $14.12 million (up 159%), and natural gas liquids revenues $2.17 million (up 90%). In July, dividend up 5% to $0.55.

June '10: EPU $0.50 vs. $0.58. Counting non-recurring, EPU $0.19 vs. loss. Revenues $25.4 million. vs. $2.89 million. DCF even at $11.1 million. Earnings call transcript. Acquired producing oil and natural gas assets in Mississippi, Texas and New Mexico. Expected acquired properties to add 3% to production. Raised $71.5 million selling 3.25 million units at $23.00.

March '10: EPU (adjusted) $0.59, up 37%. DCF +50% to $15.1 million. Natural gas revenues +118% to $20.0 million. Average daily production +46% to 26,067 Mcf/day. Net realized gas prices (excluding hedges) +12% to $6.22/Mcf. Earnings call transcript. In January, distribution +5% to $0.525.

December '09: EPU (adjusted) $0.29 vs. $0.32. DCF +80% to $10.8 million. Natural gas revenues +22% to $16.1 million. Average daily production +6% to 13,629 Mcf/day, but net realized gas prices $5.16/Mcf vs. $7.32. Earnings call transcript. Bought additional reserves in Permian Basin for $55 million. Raised $50 million selling 2.6 million units at $18.00. 

September '09: EPU (operating) $0.58 vs. $0.48. Natural gas sales -46% to $11.3 million. DCF +130% to $13.0 million.

June '09: EPU (operating) $0.58, +26%. Natural gas sales -55% to $9.4 million. DCF +88% to $11.3 million.

Back to Energy Partnerships 

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