MLPs: Come for the Yield, Stay for the Total Return
For MLPs, the paradigm has shifted from focusing primarily on distribution growth to more of a total-return focus, as financial flexibility, self-funding equity, and capital discipline become greater...
MLP and Energy Infrastructure Conference 2019: M&A, Attracting Generalists, and More
Last week, we attended the 2019 MLP and Energy Infrastructure Conference (MEIC) hosted by the Master Limited Partnership Association. In today’s post, we discuss our main takeaways from the...
1Q19 MLP Distribution Recap: Outlook Improving in Spite of Cuts
Most AMZ and AMZI constituents grew their 1Q19 distributions sequentially and on a year-over-year basis. The 20% increase from Plains All American (PAA) helps soften the impact of...
BPL: What does Buckeye’s Buyout Mean for MLPs and Midstream?
Buckeye Partners (BPL) announced this morning that it has agreed to be acquired by IFM Investors for $41.50 per unit – a 27.5% premium to BPL’s closing price yesterday. In this post, we discuss the...
After Years of Growth, Is Midstream Capex Peaking?
Capital spending has been a hot topic across energy as investors focus on returns and free cash flow generation. The challenge for midstream companies continues to be balancing fiscal discipline with...
Why Yesteryear’s Valuation Metrics Aren’t Sufficient for Today’s MLP
MLPs have become more total-return focused than in the past, making yield-focused valuation metrics less meaningful and causing a shift in the investor base. This piece explores historical valuation...