7, 2017 - mlp protocol · 2017-04-10 · investment/trading advice and is not meant to be a...
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1 MLP Protocol
Contact Information / Table of Contents
PHILIP TRINDER PRESIDENT MLP Protocol EMAIL: [email protected] TWITTER: @MLP_Protocol
DISCLAIMER
M L P P R O T O C O L . C O M
RESOURCES • COMPANY PRESENTATIONS • LINKS • DEFINITIONS • BACKGROUND • SEEKING ALPHA
MLP Protocol (“MLPP”) is not registered as an Investment Advisor or Broker/Dealer with the SEC or in any state or lawful jurisdiction. MLPP relies upon the “publisher’s” exemption from the definition of “investment adviser” as provided under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. To the extent any of the content published on this website, including e-mail transmissions, faxes, recorded voice messages, and any other associated messages/media (hereinafter collectively referred to as “Information”) may be deemed investment advice, such Information is impersonal and not tailored to the investment needs or objectives of any specific person. The Information contained within this Web site is provided for informational and educational purposes only, and should be construed as opinion only and not as investment/trading advice and is not meant to be a solicitation regarding any securities mentioned. Opinions expressed herein are MLPP’s present opinions only. Any Information is based upon information that MLPP considers reliable, but MLPP does not represent, guarantee, or warrant, expressly or implicitly, that the Information is accurate, complete, or suitable for any particular purpose, and it should not be relied upon as such. MLPP is not obliged to update or periodically review the Information. MLPP accepts no liability with respect to, or arising directly or indirectly out of, the Information. In addition, there can be no guarantee that any projection, forecast or opinion in this presentation will be realized. Opinions expressed herein are subject to change without notice. You are strongly advised to make an independent review and reach your own conclusions regarding the economic risks and benefits of any investment and the legal, credit, tax, accounting and other aspects of such investment in relation to your particular circumstances. We may from time to time have long or short positions in such securities or in options, futures, or other derivative instruments based thereon and all positions are subject to change without notice. Current position data shown for full disclosure purposes only and is in no way to be considered a recommendation for that specific position. All trade names, trade marks, service marks, and logos herein are the property of their respective owners who retain all proprietary rights over their use. No part of this website or Information may be reproduced in any manner without written permission. © 2011-2017 All rights reserved.
I can be available for direct discussions about specific Master Limited Partnership concepts and/or project related work. If interested, please email me with any specific requests (total cost based upon the scope of the work).
TABLE OF CONTENTS
I MARKETS AND LEVELS 3 II GROUP DATA 12 III SEGMENT YIELD DATA 22 IV GLOSSARY 27
MLP Protocol
MARKETS AND LEVELS SECTION I
3 MLP Protocol
MAR
KET
S AN
D L
EVEL
S
Markets and Levels / Forward Yields / MLP IPO Scorecard
Source: www.alerian.com, www.bakerhughes.com, www.treasury.gov, www.eia.gov. Historical commodity prices are spot prices at the futures contract delivery locations as per the EIA, there is a one week lag in the EIA reporting, so there will always be a slight discrepancy in the most recent price data.
Highest Estimated Forward Yield by Segment Price Performance Since IPO
Note: The NYMEX 3:2:1 Crack Spread is calculated using 3 barrels of crude at the WTI Crude Oil price, 2 barrels of gasoline at the NY Harbor Gasoline price and 1 barrel of heating oil at the NY Harbor Heating Oil price. This is an indicative estimate only and individual refiners will have materially different effective crack spreads for their operations due to varying crude input mixes, varying product slate outputs and cash price basis differentials for every single input and output at their various locations.
RED tickers indicate a past distribution cut. ORANGE tickers indicate VARIABLE distributions.
NBLX
122
%
EVA
40%
GPP
34%
HESM
13%
CNXC
12%
KRP
9%
EQG
P 1%
TEG
P (2
%)
BSM
(13%
)
PTXP
(14%
)
(40%)(20%)
0%20%40%60%80%
100%120%140%
10.1
%
8.6% 11
.0%
12.5
%
9.7%
9.2% 10.5
%
15.1
%
8.0%
6.1%
11.2
%
9.3%
0%2%4%6%8%
10%12%14%16%
ETP NS AMID ARCX SPP SPH GMLP SXCP NSH TNH SUN STON
Nat Gas &NGL Pipes
Crude & RefProd Pipes
G & P T & S Upstream Propane &NGL Logistics
Marine Coal Gener al Par tner s
(“GP”)
Variable D & M Other
Showing the 10 most recent MLP IPOs
52 Weeks Ago FYE 2016 4 Weeks Ago Week Ago Current ChangeIndices 4/8/16 12/31/16 3/10/17 3/31/17 4/7/17 1 Year YTD 1 Month 1 WeekMLP Index (AMZ) 268.4 316.1 320.2 323.1 325.6 21.3% 3.0% 1.7% 0.8%MLP Total Return Index (AMZX) 1,048.0 1,305.7 1,345.0 1,357.3 1,367.6 30.5% 4.7% 1.7% 0.8%S&P 500 2,047.6 2,238.8 2,372.6 2,362.7 2,355.5 15.0% 5.2% (0.7%) (0.3%)
YieldsMLP Index Yield (AMZ Yield) 8.72% 7.07% 7.04% 6.99% 6.93% (178 bps) (13 bps) (11 bps) (5 bps)10 Year Treasury Yield 1.72% 2.45% 2.58% 2.40% 2.38% 66 bps (7 bps) (20 bps) (2 bps)20 Year Treasury Yield 2.13% 2.79% 2.94% 2.76% 2.74% 61 bps (5 bps) (20 bps) (2 bps)Yield Curve Steepness (20 Year - 3 Month) 190 bps 228 bps 219 bps 200 bps 192 bps 2 bps (36 bps) (27 bps) (8 bps)AMZ Yield Spread to 10 Year UST 700 bps 462 bps 446 bps 459 bps 455 bps (244 bps) (6 bps) 9 bps (3 bps)AMZ Yield Spread to 20 Year UST 659 bps 428 bps 410 bps 423 bps 419 bps (239 bps) (8 bps) 9 bps (3 bps)
Rigs and Commodity PricesU.S. Total Rig Count 443 658 768 824 839 89.4% 27.5% 9.2% 1.8%Natural Gas $1.98 $3.74 $2.98 $3.10 $3.23 63.1% (13.6%) 8.4% 4.2%Mont Belvieu Propane ($ / Gallon) $0.43 $0.68 $0.65 $0.59 $0.65 50.8% (4.7%) 0.6% 10.0%WTI Crude Oil ($ / Bbl) $36.72 $53.28 $50.50 $49.14 $52.25 42.3% (1.9%) 3.5% 6.3%Brent Crude Oil ($ / Bbl) $37.51 $54.34 $52.78 $51.33 $54.24 44.6% (0.2%) 2.8% 5.7%Brent / WTI Differential ($ / Bbl) $0.79 $1.06 $2.28 $2.19 $1.99 151.9% 87.7% (12.7%) (9.1%)NYMEX 3:2:1 Crack Spread ($ / Bbl) $15.70 $17.18 $12.33 $15.57 $14.25 (9.2%) (17.1%) 15.6% (8.5%)
4 MLP Protocol
672
165 0%
25%
50%
75%
100%
0
500
1,000
1,500
2,000
12/31/99 12/31/02 12/31/05 12/31/08 12/31/11 12/31/14U.S. Oil Rig Count Current Oil Rig Count U.S. Natural Gas Rig CountCurrent Nat Gas Rig Count % Oil
(1%)0%1%2%3%4%5%6%7%8%
20 Year - 3 Month U.S. 20 Year Treasury U.S. 10 Year Treasury
325.57
2355.54
02104206308401,0501,2601,4701,6801,8902,1002,3102,520
070
140210280350420490560630700770840
12/31
/99
12/31
/00
12/31
/01
12/31
/02
12/31
/03
12/31
/04
12/31
/05
12/31
/06
12/31
/07
12/31
/08
12/31
/09
12/31
/10
12/31
/11
12/31
/12
12/31
/13
12/31
/14
12/31
/15
12/31
/16
AMZ AMZ Current Level S&P 500 S&P 500 Current Level
0%200%400%600%800%
1000%1200%1400%1600%
12/31
/99
12/31
/00
12/31
/01
12/31
/02
12/31
/03
12/31
/04
12/31
/05
12/31
/06
12/31
/07
12/31
/08
12/31
/09
12/31
/10
12/31
/11
12/31
/12
12/31
/13
12/31
/14
12/31
/15
12/31
/16
AMZX AMZ S&P 500
U.S. Rig Count Treasury Yields
MAR
KET
S AN
D L
EVEL
S
Indices / Rig Counts / Yields
Alerian MLP Index vs. S&P 500
5 MLP Protocol
2.86%2.53%
4.19%
325.57
0
50
100
150
200
250
300
350
400
450
500
550
600
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
11%
12%
Jan-
96
Jan-
97
Jan-
98
Jan-
99
Jan-
00
Jan-
01
Jan-
02
Jan-
03
Jan-
04
Jan-
05
Jan-
06
Jan-
07
Jan-
08
Jan-
09
Jan-
10
Jan-
11
Jan-
12
Jan-
13
Jan-
14
Jan-
15
Jan-
16
Jan-
17
AMZ
Inde
x
AMZ Yield STT (20 YR UST) Average STT Median STT Current STT 20 YR Yld AMZ Current AMZ
MAR
KET
S AN
D L
EVEL
S
Spread to Treasury
AMZ Yield Spread to 20 Year U.S. Treasury (“STT”)
Source: www.alerian.com, www.treasury.gov
STT Relative Value Concern STT Relative Value Warning
STT Seriously Consider Selling Some MLPs
6 MLP Protocol
$0.00$0.20$0.40$0.60$0.80$1.00$1.20$1.40$1.60$1.80$2.00
12/31
/99
12/31
/00
12/31
/01
12/31
/02
12/31
/03
12/31
/04
12/31
/05
12/31
/06
12/31
/07
12/31
/08
12/31
/09
12/31
/10
12/31
/11
12/31
/12
12/31
/13
12/31
/14
12/31
/15
12/31
/16
$52.25
$54.24
$0$20$40$60$80
$100$120$140$160
12/31
/99
12/31
/00
12/31
/01
12/31
/02
12/31
/03
12/31
/04
12/31
/05
12/31
/06
12/31
/07
12/31
/08
12/31
/09
12/31
/10
12/31
/11
12/31
/12
12/31
/13
12/31
/14
12/31
/15
12/31
/16
WTI Crude WTI Current Brent Crude Brent Current
$0
$2
$4
$6
$8
$10
$12
$14
$16
12/31
/99
12/31
/00
12/31
/01
12/31
/02
12/31
/03
12/31
/04
12/31
/05
12/31
/06
12/31
/07
12/31
/08
12/31
/09
12/31
/10
12/31
/11
12/31
/12
12/31
/13
12/31
/14
12/31
/15
12/31
/16
$0$5
$10$15$20$25$30$35$40$45
12/31
/99
12/31
/00
12/31
/01
12/31
/02
12/31
/03
12/31
/04
12/31
/05
12/31
/06
12/31
/07
12/31
/08
12/31
/09
12/31
/10
12/31
/11
12/31
/12
12/31
/13
12/31
/14
12/31
/15
12/31
/16
Mont Belvieu Propane NYMEX 3:2:1 Crack Spread
MAR
KET
S AN
D L
EVEL
S
Commodities
Crude Oil Natural Gas
Source: www.alerian.com, www.treasury.gov, www.eia.gov. Historical commodity prices are spot prices at the futures contract delivery locations as per the EIA, there is a small lag in the EIA reporting, so there will always be a slight discrepancy in the most recent price data.
7 MLP Protocol
$- $5
$10 $15 $20 $25 $30 $35
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
4Q15
1Q16
2Q16
3Q16
4Q16
1Q17
NYMEX 3:2:1 Crack Gulf Coast 3:2:1 CrackNYMEX 2:1:1 Crack Gulf Coast 2:1:1 Crack
$-
$40
$80
$120
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
4Q15
1Q16
2Q16
3Q16
4Q16
1Q17
WTI Crude Brent Crude
$- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
4Q15
1Q16
2Q16
3Q16
4Q16
1Q17
NY Harbor Gasoline Gulf Coast Gasoline
$- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
2Q15
3Q15
4Q15
1Q16
2Q16
3Q16
4Q16
1Q17
NY Harbor Heating Oil Gulf Coast Diesel
MAR
KET
S AN
D L
EVEL
S
Quarterly Average Crude Value Chain Prices
Source: U.S. Energy Information Administration, www.eia.gov
Crude Oil Gasoline
Heating Oil / Diesel Crack Spreads
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 QoQ Change YoY ChangeWTI Crude 94.36$ 94.04$ 105.85$ 97.51$ 98.60$ 103.53$ 98.21$ 74.43$ 48.83$ 57.43$ 46.12$ 41.69$ 33.34$ 45.73$ 44.83$ 49.14$ 50.47$ 2.7% 51.4%
Brent Crude 112.47$ 102.56$ 110.28$ 109.24$ 108.26$ 109.97$ 102.35$ 77.67$ 53.99$ 61.35$ 49.82$ 43.24$ 33.93$ 45.79$ 45.77$ 49.19$ 51.40$ 4.5% 51.5%Natural Gas 3.51$ 3.97$ 3.53$ 3.84$ 4.86$ 4.56$ 3.91$ 3.74$ 2.82$ 2.71$ 2.69$ 2.06$ 1.96$ 2.12$ 2.83$ 3.02$ 2.99$ (0.8%) 52.5%
NY Harbor Gasoline 2.94$ 2.73$ 2.89$ 2.70$ 2.74$ 2.90$ 2.75$ 2.12$ 1.54$ 1.90$ 1.63$ 1.35$ 1.13$ 1.51$ 1.39$ 1.54$ 1.55$ 0.4% 36.8%Gulf Coast Gasoline 2.82$ 2.69$ 2.78$ 2.49$ 2.65$ 2.81$ 2.66$ 1.89$ 1.50$ 1.85$ 1.58$ 1.24$ 1.06$ 1.42$ 1.39$ 1.46$ 1.50$ 3.0% 41.2%
NY Harbor Heating Oil 3.06$ 2.74$ 2.93$ 2.96$ 3.02$ 2.88$ 2.74$ 2.21$ 1.71$ 1.76$ 1.45$ 1.24$ 1.02$ 1.33$ 1.32$ 1.48$ 1.51$ 2.0% 47.7%Gulf Coast Diesel 3.08$ 2.86$ 3.01$ 2.92$ 2.94$ 2.92$ 2.80$ 2.23$ 1.68$ 1.82$ 1.50$ 1.27$ 1.03$ 1.35$ 1.37$ 1.52$ 1.55$ 1.5% 49.8%
Mont Belvieu Propane 0.87$ 0.91$ 1.03$ 1.19$ 1.30$ 1.06$ 1.04$ 0.78$ 0.53$ 0.46$ 0.41$ 0.42$ 0.39$ 0.50$ 0.47$ 0.58$ 0.65$ 11.0% 65.9%NYMEX 3:2:1 Crack 30.78$ 20.78$ 16.12$ 19.46$ 20.42$ 17.91$ 17.06$ 15.86$ 18.06$ 20.52$ 19.74$ 13.32$ 12.55$ 15.13$ 12.58$ 14.64$ 13.87$ (5.2%) 10.5%
Gulf Coast 3:2:1 Crack 27.76$ 21.41$ 14.17$ 12.93$ 16.60$ 16.05$ 15.38$ 9.70$ 16.74$ 19.89$ 18.98$ 10.81$ 10.86$ 13.11$ 13.41$ 12.95$ 13.19$ 1.8% 21.5%NYMEX 2:1:1 Crack 31.65$ 20.89$ 16.44$ 21.34$ 22.34$ 17.78$ 16.99$ 16.44$ 19.26$ 19.52$ 18.46$ 12.57$ 11.78$ 13.86$ 12.10$ 14.20$ 13.60$ (4.2%) 15.4%
Gulf Coast 2:1:1 Crack 29.56$ 22.58$ 15.80$ 15.95$ 18.63$ 16.85$ 16.38$ 12.10$ 18.04$ 19.67$ 18.45$ 11.06$ 10.64$ 12.62$ 13.27$ 13.41$ 13.50$ 0.6% 26.9%
8 MLP Protocol
MAR
KET
S AN
D L
EVEL
S
Rig Count
U.S. Oil and Natural Gas Drilling Rig Count
Oil Rig Count vs. WTI Crude Prices Natural Gas Rig Count vs. Natural Gas Prices
Source: www.bakerhughes.com, www.eia.gov
672
$0$20$40$60$80$100$120$140$160$180
0200400600800
1,0001,2001,4001,6001,800
D-99
D-00
D-01
D-02
D-03
D-04
D-05
D-06
D-07
D-08
D-09
D-10
D-11
D-12
D-13
D-14
D-15
D-16
U.S. Oil Rig Count Current Oil Rig Count WTI Crude Oil
165 $0$2$4$6$8$10$12$14$16$18
0200400600800
1,0001,2001,4001,6001,800
D-99
D-00
D-01
D-02
D-03
D-04
D-05
D-06
D-07
D-08
D-09
D-10
D-11
D-12
D-13
D-14
D-15
D-16
U.S. Natural Gas Rig Count Current Nat Gas Rig Count Natural Gas
ANNUAL MONTHLY PEAK ANALYSIS TROUGH ANALYSIS
Last Year Annual Current 4 Wks Ago Monthly Current Peak Current Peak Days Trough Current Trough Days4/8/16 Change 4/7/17 3/10/17 Change 4/7/17 Count vs. Peak Date Since Count vs. Trough Date Since
Oil Rig Count 354 318 672 617 55 672 1,609 (58.2%) 10/10/14 910 316 112.7% 5/27/16 315% of Total 79.9% 80.3% 80.3% 80.3%Annual/Monthly Change % 89.8% 8.9%
Natural Gas Rig Count 89 76 165 151 14 165 1,606 (89.7%) 9/12/08 3,129 81 103.7% 8/26/16 224% of Total 20.1% 19.7% 19.7% 19.7%Annual/Monthly Change % 85.4% 9.3%
Total Rig Count 443 394 837 768 69 837 2,031 (58.8%) 9/12/08 3,129 404 107.2% 5/27/16 315Annual/Monthly Change % 88.9% 9.0%
9 MLP Protocol
0
2
4
6
8
10
12
0
2
4
6
8
10
12
J-00
J-01
J-02
J-03
J-04
J-05
J-06
J-07
J-08
J-09
J-10
J-11
J-12
J-13
J-14
J-15
J-16
J-17
Crud
e + R
efin
ed Pr
oduc
ts E
xpor
ts
Crud
e Im
ports
Mill
ion
Bbl
s / D
ay
4 Wk Avg Daily U.S. Crude Oil Exports 4 Wk Avg Daily U.S. Refined Products Exports4 Wk Avg Daily U.S. Crude Oil Imports
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
J-00
J-01
J-02
J-03
J-04
J-05
J-06
J-07
J-08
J-09
J-10
J-11
J-12
J-13
J-14
J-15
J-16
J-17
Mill
ion
Bbl
s / D
ay
4 Wk Avg Daily U.S. Crude Oil Exports 4 Wk Avg Daily U.S. Refined Products Exports
MAR
KET
S AN
D L
EVEL
S
Rig Count vs. Production / Imports Exports
Oil Rig Count vs. Crude Production Natural Gas Rig Count vs. Natural Gas Production
Source: www.bakerhughes.com, www.eia.gov, EIA production data lags by roughly 3 months
Crude Oil Imports vs. Refined Products Exports Refined Products Exports
02004006008001,0001,2001,4001,6001,8002,000
- 1 2 3 4 5 6 7 8 9
10
Jan-88 Jan-92 Jan-96 Jan-00 Jan-04 Jan-08 Jan-12 Jan-16
Mill
ion
Bbl
s / D
ay
Oil Production Oil Rig Count
02004006008001,0001,2001,4001,6001,8002,000
0102030405060708090
100
J-05 J-06 J-07 J-08 J-09 J-10 J-11 J-12 J-13 J-14 J-15 J-16 J-17
Bcf
/ D
ay
Nat Gas Production Nat Gas Rig Count
10 MLP Protocol
0
200
400
600
800
1,000
1,200
1,400
1,600
$-
$2
$4
$6
$8
$10
$12
$14
$16
J-05
J-06
J-07
J-08
J-09
J-10
J-11
J-12
J-13
J-14
J-15
J-16
J-17
Henry Hub Nat Gas Price Nat Gas Rig Count
MAR
KET
S AN
D L
EVEL
S
U.S. Rig Count vs. Production vs. Price
Rig Count vs. Production Price vs. Production
Source: www.bakerhughes.com, www.eia.gov, EIA production data lags by roughly 3 months
Nat
ural
Gas
Rig Count vs. Price
Cru
de O
il
- 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000
- 1 2 3 4 5 6 7 8 9
10
J-05
J-06
J-07
J-08
J-09
J-10
J-11
J-12
J-13
J-14
J-15
J-16
J-17
Mill
ion
Bbls
/ D
ay
Oil Production Oil Rig Count
$- $20 $40 $60 $80 $100 $120 $140 $160 $180 $200
- 1 2 3 4 5 6 7 8 9
10
J-05
J-06
J-07
J-08
J-09
J-10
J-11
J-12
J-13
J-14
J-15
J-16
J-17
Millio
n Bb
ls / D
ay
Oil Production WTI Crude Oil Price
-
200
400
600
800
1,000
1,200
1,400
1,600
$0
$20
$40
$60
$80
$100
$120
$140
$160
J-05
J-06
J-07
J-08
J-09
J-10
J-11
J-12
J-13
J-14
J-15
J-16
J-17
WTI Crude Oil Price Oil Rig Count
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
0
10
20
30
40
50
60
70
80
90
100
J-05
J-06
J-07
J-08
J-09
J-10
J-11
J-12
J-13
J-14
J-15
J-16
J-17
Bcf /
Day
Nat Gas Production Nat Gas Rig Count
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
$20
0
10
20
30
40
50
60
70
80
90
100
J-05
J-06
J-07
J-08
J-09
J-10
J-11
J-12
J-13
J-14
J-15
J-16
J-17
Bcf /
Day
Nat Gas Production Henry Hub Nat Gas Price
MLP Protocol
GROUP DATA SECTION II
12 MLP Protocol
26%74%
86%14%
74%26%
80%20%50%50%74%
26%
200
260
320
380
440
500
560
0%
1000%
2000%
3000%
4000%
5000%
6000%
3/1/12
6/1/12
9/1/12
12/1/
123/1
/136/1
/139/1
/1312
/1/13
3/1/14
6/1/14
9/1/14
12/1/
143/1
/156/1
/159/1
/1512
/1/15
3/1/16
6/1/16
9/1/16
12/1/
163/1
/17
Total Moving Average Heat Index AMZ
-
100
200
300
400
500
600
0%
1000%
2000%
3000%
4000%
5000%
6000%
3/1/12
6/1/12
9/1/12
12/1/
123/1
/136/1
/139/1
/1312
/1/13
3/1/14
6/1/14
9/1/14
12/1/
143/1
/156/1
/159/1
/1512
/1/15
3/1/16
6/1/16
9/1/16
12/1/
163/1
/17
Total Moving Average Heat Index AMZ
General Partners 388%Marine 382%Natural Gas & NGL Pipelines 344%Terminal & Storage 333%Gathering & Processing 328%Other 286%Crude & Refined Products Pipelines 275%Upstream 257%Variable / Plants 250%Downstream & Marketing 243%Coal 217%Propane & NGL Logistics 160%Total 3,462%
Current Price vs. 20 Day Moving Average1
Current Price vs. 50 Day Moving Average1
Current Price vs. 200 Day Moving Average1
20 Day Moving Average / 200 Day Moving Average1
50 Day Moving Average / 200 Day Moving Average2
20 Day Moving Average / 50 Day Moving Average1
GR
OU
P D
ATA
Moving Averages
Key: % Abov e % Below
Moving Average Heat Index
NOT SCALE ADJUSTED AMZ SCALE ADJUSTED
(1) Included in the Moving Average Heat Index calculation, by segment. (2) NOT included in the Moving Average Heat Index calculations.
13 MLP Protocol
EPD
5.1
%
TGP
0.0
%
TOO
0.0
%
WP
Z (2
9.4%
)
(35%)
(30%)
(25%)
(20%)
(15%)
(10%)
(5%)
0%
5%
10%
EPD
1.2
%
TGP
0.0
%
TOO
0.0
%
WP
Z (2
9.4%
)
(35.0%)
(30.0%)
(25.0%)
(20.0%)
(15.0%)
(10.0%)
(5.0%)
0.0%
5.0%
GR
OU
P D
ATA
1Q17 Distributions (Paid in 2Q17)
Quarter over Quarter
Year over Year
14 MLP Protocol
SMLP
0.0
%
TGP
0.0%
EQ
GP
0.0%
BK
EP 0
.0%
DM
(0.2
%)
RMP
(0.2
%)
SXL
(0.2
%)
WLK
P (0
.2%
)SP
Y (0
.2%
)PA
GP
(0.3
%)
VTTI
(0.3
%)
APU
(0.3
%)
PBFX
(0.5
%)
ETP
(0.5
%)
PTXP
(0.5
%)
EVA
(0.5
%)
SGU
(0.5
%)
OCI
P (0
.6%
)CQ
P (0
.6%
)M
EP (0
.6%
)TE
GP
(0.8
%)
KMI (
0.8%
)M
CEP
(0.8
%)
TRG
P (0
.9%
)VN
OM
(1.1
%)
TLP
(1.2
%)
CNXC
(1.2
%)
GM
LP (1
.2%
)AR
CX (1
.4%
)NS
(1.5
%)
TNH
(1.5
%)
CINR
(1.6
%)
DCP
(1.7
%)
KNO
P (1
.7%
)M
MLP
(1.8
%)
BIP
(1.8
%)
PAA
(1.8
%)
CCLP
(1.8
%)
CAPL
(1.9
%)
APLP
(2.0
%)
ETE
(2.3
%)
WNR
L (2
.4%
)CL
MT
(2.6
%)
DLNG
(2.7
%)
SPP
(2.9
%)
NSH
(3.0
%)
CPLP
(3.1
%)
SPH
(3.2
%)
CVRR
(3.2
%)
GLO
P (3
.3%
)FE
LP (3
.4%
)EM
ES (3
.7%
)AL
DW (3
.7%
)CN
NX (3
.9%
)NB
LX (4
.2%
)CE
LP (4
.4%
)NG
L (4
.6%
)NA
P (5
.4%
)DK
L (5
.7%
)SD
LP (1
7.2%
)
(20%)
(15%)
(10%)
(5%)
0%
GR
OU
P D
ATA
1 Week Price Performance
Source: www.finviz.com
SUN
21.6
%
SXE
21.6
%
TOO
8.5
%
ARO
C 6.
9%
WM
LP 5
.4%
W
PT 5
.4%
EV
EP 4
.7%
M
PLX
4.2%
AR
LP 4
.2%
AH
GP
4.2%
PS
XP 3
.9%
NM
M 3
.9%
LM
RK 3
.0%
W
PZ 2
.7%
G
EL 2
.6%
US
DP 2
.4%
NR
P 2.
4%
CEQ
P 2.
3%
SXCP
2.3
%
UAN
2.2%
EQ
M 2
.1%
HC
LP 2
.0%
SH
LX 1
.7%
EN
LK 1
.7%
O
KS 1
.7%
G
LP 1
.5%
ST
ON
1.5%
LG
CY 1
.3%
FU
N 1.
3%
ENBL
1.2
%
BWP
1.1%
BP
L 1.
1%
HMLP
1.0
%
HEP
1.0%
EP
D 0.
9%
KRP
0.8%
AM
Z 0.
8%
TLLP
0.8
%
AMID
0.7
%
FGP
0.7%
W
GP
0.6%
US
AC 0
.6%
DM
LP 0
.6%
TC
P 0.
6%
WES
0.5
%
TEP
0.5%
BS
M 0
.5%
EE
P 0.
4%
AM 0
.4%
EE
Q 0
.4%
M
MP
0.4%
VL
P 0.
4%
SEP
0.3%
G
PP 0
.2%
SR
LP 0
.2%
EN
LC 0
.0%
0%
5%
10%
15%
20%
25%
15 MLP Protocol
NS 2
.8%
NG
L 2.
6%
RMP
2.4%
EQ
M 2
.4%
M
MP
2.1%
TC
P 2.
0%
CAPL
1.9
%
ENLC
1.8
%
GLP
1.8
%
GPP
1.8
%
AHG
P 1.
7%
ETP
1.5%
SX
L 1.
5%
ENLK
1.0
%
LMRK
1.0
%
DCP
0.5%
AR
LP 0
.4%
AR
OC
0.4%
ET
E (0
.2%
)TL
P (0
.2%
)CC
LP (1
.1%
)DM
LP (1
.4%
)BK
EP (
1.5%
)US
AC (1
.8%
)AP
U (2
.0%
)KN
OP
(3.0
%)
CINR
(3.2
%)
SRLP
(3.4
%)
CNNX
(3.7
%)
PAA
(3.9
%)
SEP
(4.4
%)
SMLP
(4.6
%)
TNH
(5.8
%)
NSH
(6.2
%)
FELP
(6.5
%)
CLM
T (7
.5%
)G
EL (7
.7%
)AL
DW (8
.1%
)G
MLP
(8.2
%)
CNXC
(8.2
%)
MCE
P (9
.6%
)ST
ON
(9.7
%)
PAG
P (1
0.1%
)W
MLP
(10.
3%)
HCLP
(10.
6%)
FGP
(10.
8%)
BSM
(11.
7%)
ARCX
(11.
8%)
CVRR
(12.
0%)
SPH
(13.
1%)
SGU
(15.
0%)
CELP
(17.
5%)
AMID
(17.
9%)
SXCP
(18.
4%)
USDP
(20.
3%)
UAN
(21.
0%)
EEP
(25.
1%)
EVEP
(25.
8%)
EEQ
(28
.6%
)SD
LP (2
9.0%
)
(35%)
(30%)
(25%)
(20%)
(15%)
(10%)
(5%)
0%
5%
GR
OU
P D
ATA
YTD Price Performance
Source: www.finviz.com
SXE
213.
3%
NMM
52.
5%
NBLX
38.
6%
SPP
29.2
%
OKS
27.
6%
TGP
21.5
%
OCI
P 19
.0%
PB
FX 1
7.9%
VT
TI 1
7.3%
W
NRL
16.4
%
WLK
P 15
.9%
G
LOP
15.3
%
NRP
14.6
%
PTXP
14.
4%
BIP
13.5
%
MEP
13.
5%
SHLX
12.
7%
TEP
12.7
%
HEP
12.4
%
CQP
11.4
%
VNO
M 1
1.2%
W
PZ 1
0.3%
DK
L 10
.0%
PS
XP 9
.7%
W
GP
9.5%
LG
CY 9
.4%
SU
N 9.
3%
KRP
9.2%
CP
LP 8
.8%
TO
O 8
.7%
EQ
GP
8.6%
VL
P 8.
6%
MPL
X 8.
6%
EMES
8.4
%
TLLP
8.0
%
DM 8
.0%
AM
7.8
%
ENBL
7.4
%
DLNG
7.3
%
MM
LP 7
.1%
FU
N 7.
0%
BWP
6.7%
TE
GP
6.5%
TR
GP
5.8%
NA
P 5.
7%
SPY
5.2%
CE
QP
5.1%
AP
LP 4
.9%
BP
L 4.
8%
HMLP
4.5
%
EVA
4.3%
KM
I 4.1
%
WPT
3.6
%
WES
3.4
%
EPD
3.0%
AM
Z 3.
0%
0%
50%
100%
150%
200%
250%
16 MLP Protocol
CNNX TL
PBK
EPNA
PET
PAH
GP
USAC TG
PSU
NPA
GP
DKL
NSH
PSXP
GM
LPSH
LXLM
RKAR
LP GEL
MM
LPNG
LBS
MAR
CXAM
IDTO
OTN
HNR
PSG
USX
LSP
HHC
LPW
MLP
CNXC EE
PAL
DWSX
CPUS
DPCC
LPNM
MFE
LPEE
QCV
RRCE
LPLG
CYM
CEP
EMES
SDLP
UAN
EVEP
STO
NFG
PCL
MT
(80%)
(70%)
(60%)
(50%)
(40%)
(30%)
(20%)
(10%)
0%
WPZ
FUN
BWP
ENBL
HMLP
ETE
WG
PBI
PTE
GP
GPP
BPL
CQP
TEP
WNR
LDL
NGO
CIP
TRG
PEQ
GP
WPT
WLK
PSP
PAP
UHE
PCE
QP
OKS
GLO
PM
PLX
RMP
PTXP
SXE
KNO
PEN
LKEN
LCO
KE DMEQ
MPB
FXM
MP
VLP
CAPL
VTTI
KMI
NS EVA
AMPA
AM
EPSM
LPTC
PSE
PG
LPEP
DAP
LPCP
LPVN
OM
SRLP
TLLP
DMLP
WES
(12%)
(10%)
(8%)
(6%)
(4%)
(2%)
0%
GR
OU
P D
ATA
% Below 52 Week Highs Positive number indicates close at a new high.
Source: www.finviz.com
17 MLP Protocol
NSH
BKEP
MPL
XBI
PSU
NTO
OTL
LPNS DM
VNO
MCE
LPW
NRL
ETP
TCP
CLM
TBW
PKM
ITL
PHM
LPNA
PW
PTSH
LXPB
FXM
MLP
CQP
VTTI
EQG
PFU
NPS
XPM
MP
LMRK
VLP
HEP
CAPL
FGP
EEP
GEL
WM
LPAP
UAL
DWBS
MEQ
MUA
NBP
LSG
USX
LEE
QSE
PSD
LPEP
DSP
HEV
EPST
ON
TNH
0%
10%
20%
30%
40%
50%
60%
FELP
422
%
NRP
415%
EM
ES 3
45%
HC
LP 2
94%
SX
E 28
5%
NGL
223%
ET
E 20
3%
CEQ
PAM
IDLG
CYSX
CPCN
XCW
PZTR
GP
ENBL
AHG
PAR
LPM
EPO
KECC
LPO
CIP
OKS
ENLC
CNNX
PTXP
TGP
NMM
RMP
APLP
TEG
PEN
LKG
LPUS
ACUS
DPG
MLP
DLNG
GPP
SMLP
AM MCE
PCV
RRPA
ADM
LPAR
CXG
LOP
TEP
SPP
SRLP
PAG
PCP
LPW
ESKN
OP
EVA
WLK
PDK
LW
GP
0%50%
100%150%200%250%300%350%400%450%500%
GR
OU
P D
ATA
% Above 52 Week Lows Negative number indicates close at a new low.
Source: www.finviz.com
18 MLP Protocol
y = -0.02x2 - 0.13x + 0.07R² = 0.41
0%2%4%6%8%
10%12%14%16%18%20%
(100%) (80%) (60%) (40%) (20%) 0% 20% 40%
Cur
rent
Yie
ld
3 Year Forward Distribution Growth Rate
y = 0.04x2 - 0.15x + 0.09R² = 0.14
0%2%4%6%8%
10%12%14%16%18%20%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Cur
rent
Yie
ld
3 Year Historical Distribution Growth Rate
GR
OU
P D
ATA
Yield versus Growth
Current Yield vs. 3 Year Historical Distribution Growth Rate
Current Yield vs. 3 Year Forward Distribution Growth Rate
Includes data set for flat or positive 3 year historical growth rates.
Source: Internal estimates, variable distribution MLP estimates are the least accurate and will vary materially from any data shown.
19 MLP Protocol
y = 1.26x2 - 0.58x + 0.10R² = 0.34
0%1%2%3%4%5%6%7%8%9%
10%
5% 10% 15% 20% 25%
Cur
rent
Yie
ld
3 Year Forward Distribution Growth Rate
GR
OU
P D
ATA
Yield versus Growth
Source: Internal estimates, variable distribution MLP estimates are the least accurate and will vary materially from any data shown.
Current Yield vs. 3 Year Forward Distribution Growth Rate ≥ 5%
20 MLP Protocol
GR
OU
P D
ATA
Tickers by Segment
RED tickers indicate a past distribution cut / RED border indicates current distribution/dividend is zero / ORANGE tickers indicate VARIABLE distributions / YELLOW highlighting indicates companies & MLPs that DO NOT send a K-1 tax form. All other tickers send a K-1 tax form, MLP positions that generate a K-1 tax form are not appropriate for any type of tax advantaged accounts (i.e. IRAs, etc.). / General Partner list is not exhaustive, others include MPC, PSX, VLO, WMB, etc. ,etc. / BSM, DMLP and VNOM are oil and gas Mineral Interest owners / Expect more bankruptcies
Click Here for Links to Company
Presentations
Natural Gas & NGL
Pipelines
Crude & Refined Product
Pipelines
Gathering & Processing
Terminal & Storage Upstream
Propane & NGL
LogisticsMarine Coal General
PartnersVariable / Plants
Downstream & Marketing Other
BWP BPL AM ARCX SPP APU CPLP ARLP AHGP TNH ALDW BIPEPD EEP AMID BKEP BSM FGP DLNG CNXC AROC WLKP CAPL CINRETP EEQ APLP CQP DMLP NGL GLOP NRP ENLC GLP EVAKMI HEP CCLP DKL KRP SGU GMLP SXCP EQGP SRLP FUNOKS MMP CELP DM VNOM SPH HMLP WMLP ETE SUN LMRKSEP MPLX CEQP GEL KNOP NSH STONTCP NS CNNX GPP NAP OKETEP PAA DCP MMLP SDLP TEGPWPZ PAGP ENBL PBFX TGP WGP
PSXP ENLK TLLP TOOSHLX EQM TLPSXL HESM USDPVLP MEP VTTI
NBLX WNRLPTXP WPTRMP
SMLPTRGPUSAC EVEPWES LGCY OCIP CLMT EMESSXE MCEP NMM UAN CVRR HCLP
BANKRUPTCY / RESTRUCTURED / DELISTED
AZUR ARP FELP ATLSBBEP
LINE/LNCOMEMPNSLP
MLP Protocol
SEGMENT YIELD DATA SECTION III
22 MLP Protocol
6.0%
4.4%
8.5%
12.2%
6.3% 5.8%
8.1%
4.2%
11.6%
7.1% 6.3%
5.7% 5.5% 4.3%
2.3%
7.1%
3.4% 3.4%
0%
2%
4%
6%
8%
10%
12%
14%
EPD MMP SXL EEP SEP OKS WPZ PSXP ETP PAA TCP WES MPLX EQM KMI BPL SHLX VLP
6.0%
4.6%
8.5%
7.1% 6.4%
5.8% 5.7% 4.5%
10.1%
7.1% 6.4%
5.7% 5.6% 4.7%
2.3%
7.3%
3.5% 3.7%
0%
2%
4%
6%
8%
10%
12%
EPD MMP SXL EEP SEP OKS WPZ PSXP ETP PAA TCP WES MPLX EQM KMI BPL SHLX VLP
SEG
MEN
T YI
ELD
DAT
A
Investment Grade Names
Source: Internal estimates, variable distribution MLP estimates are the least accurate and will vary materially from any data shown.
Forward Yield
RED tickers indicate a past distribution cut. ORANGE tickers indicate VARIABLE distributions.
Current Yield
Ticker EPD MMP SXL EEP SEP OKS WPZ PSXP ETP PAA TCP WES MPLX EQM KMI BPL SHLX VLPS&P Debt Rating / Outlook BBB+ BBB+ BBB BBB BBB BBB BBB BBB BBB- BBB- BBB- BBB- BBB- BBB- BBB- BBB- (Neg) GP: AA GP: BBB
Current Yield* 6.0% 4.4% 8.5% 12.2% 6.3% 5.8% 8.1% 4.2% 11.6% 7.1% 6.3% 5.7% 5.5% 4.3% 2.3% 7.1% 3.4% 3.4%Forward Yield 6.0% 4.6% 8.5% 7.1% 6.4% 5.8% 5.7% 4.5% 10.1% 7.1% 6.4% 5.7% 5.6% 4.7% 2.3% 7.3% 3.5% 3.7%
Maximum IDR Level 0% 0% 50% 25% 50% 50% 0% 50% 50% 0% 25% 50% 50% 50% 0% 0% 50% 50%Estimated Fee Based Cash Flow 88% 85% 85% 92% 100% 81% 85% 100% 86% 74% 100% 76% 100% 100% 87% 92% 98% 100%
3 Year Distribution Growth Rates:Trailing 5.3% 13.5% 16.2% 2.4% 8.0% 2.7% (12.8%) 35.4% 4.7% (3.7%) 5.1% 12.7% 18.5% 22.7% (32.7%) 4.4% NA 24.1%
Projected 2.3% 6.0% 0.0% (16.5%) 4.0% 0.0% (11.0%) 12.5% (9.6%) 0.0% 2.7% 0.0% 3.0% 12.5% 0.0% 2.5% 12.9% 15.0%
General Partner and/or IDR Owner - - ETE ENB SE OKE WMB PSX ETE - TRP WGP MPC EQT - - RDS-A VLOC-Corp tracking stock** - - - EEQ - - - - - PAGP - - - - - - - -*Current Yield is calculated based on most recently announced distribution annualized.**Entities that hold underlying LP units on a one for one basis but have elected to be taxed as a C-Corp. EEQ pays distributions in kind, while PAGP pays in cash.
23 MLP Protocol
11.0
%10
.6%
9.6%
9.5%
9.4%
8.9%
8.4%
8.1%
7.3%
7.1%
6.9%
6.1%
5.7%
5.0%
4.7%
4.6%
4.2%
3.9%
3.6%
3.1%
0.0%
0%2%4%6%8%
10%12%
AMID
CCLP
SMLP
MEP
USAC
CEQP
ENLK DC
PCE
LPEN
BLPT
XPTR
GP WES
CNNX
EQM
HESM RM
PAP
LP AMNB
LX SXE
12.5
%11
.0%
10.2
%9.
1%8.
8%8.
7%8.
7%8.
6%7.
3%7.
2%7.
0%7.
0%6.
6%5.
3%3.
5%
0%2%4%6%8%
10%12%14%
ARCX
USDP
MMLP DK
LGE
LPB
FX GPP
BKEP
WNR
LVT
TITL
LPW
PT TLP
CQP
DM
8.6%
8.5%
7.4%
7.3%
7.1%
7.1%
7.1%
6.9%
5.6%
4.6%
4.5%
3.7%
3.5%
0%
2%
4%
6%
8%
10%
NS SXL
EEQ
BPL
EEP
PAA
PAGP HE
PMP
LXMM
PPS
XP VLP
SHLX
10.1
%
6.6%
6.4%
6.4%
6.0%
5.8%
5.7%
2.3%
2.2%
0%
2%
4%
6%
8%
10%
12%
ETP
TEP
SEP
TCP
EPD
OKS
WPZ KM
I
BWP
SEG
MEN
T YI
ELD
DAT
A
Forward Yields by Segment
Natural Gas & NGL Pipelines
Gathering & Processing
Crude & Refined Product Pipelines
Terminal & Storage
Source: Internal estimates, variable distribution MLP estimates are the least accurate and will vary materially from any data shown.
24 MLP Protocol
15.1
%
7.8%
5.6%
5.3%
4.9%
0.0%
0%2%4%6%8%
10%12%14%16%
SXCP
ARLP
WML
P
CNXC NR
P
FELP
10.5
%
9.9%
9.2%
9.1%
8.3%
8.3%
7.8%
7.7%
3.1%
1.6%
0.0%
0%2%4%6%8%
10%12%
GMLP
DLNG
CPLP
KNOP
GLOP
HMLP NA
P
TOO
TGP
SDLP
NMM
9.7%
7.4%
6.0%
5.0%
4.8%
0.0%
0.0%
0.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
SPP
KRP
BSM
VNOM
DMLP
EVEP
LGCY
MCEP
9.2%
7.2%
6.8%
4.5%
3.8%
0%
2%
4%
6%
8%
10%
SPH
NGL
APU
FGP
SGU
SEG
MEN
T YI
ELD
DAT
A
Forward Yields by Segment
Upstream
Marine
Propane & NGL Logistics
Coal
Source: Internal estimates, variable distribution MLP estimates are the least accurate and will vary materially from any data shown.
25 MLP Protocol
8.0%
7.7%
5.8%
5.3%
4.5%
4.4%
4.1%
3.0%
2.9%
0%1%2%3%4%5%6%7%8%9%
NSH
AHG
P
ETE
ENLC
TEG
P
OK
E
WG
P
ARO
C
EQG
P
6.1%
5.6%
1.1%
0.9%
0%
2%
4%
6%
8%
TNH
WLK
P
UAN
OCIP
11.2
%
9.7%
9.3%
9.1%
4.5%
2.2%
0.0%
0%
2%
4%
6%
8%
10%
12%
SUN
CAPL GL
P
SRLP
ALDW
CVRR
CLMT
9.3%
9.3%
8.4%
8.1%
5.1%
4.7%
0.0%
0.0%
0%
2%
4%
6%
8%
10%
STON
LMRK EV
A
CINR FU
N
BIP
EMES
HCLP
SEG
MEN
T YI
ELD
DAT
A
Forward Yields by Segment
General Partners
Downstream & Marketing
Variable / Plants
Other
Source: Internal estimates, variable distribution MLP estimates are the least accurate and will vary materially from any data shown.
MLP Protocol
GLOSSARY SECTION IV
27 MLP Protocol
GLO
SSAR
Y
Lower 48 Shale Plays
28 MLP Protocol
GLO
SSAR
Y
Glossary
• Max GP IDR Tier – Maximum General Partner (“GP”) Incentive Distribution Right Tier, typically publicly traded Master Limited Partnerships (“MLPs”) will have a General Partner that will receive an increasing share of distributable cash flow upon achieving certain levels of distributions to the Limited Partners up to a maximum of 50%.
• Tax Form – Typically MLPs send annual K-1s which add complexity to individual tax returns and also can cause issues if MLPs are held in an IRA account due to UBTI (“Unrelated Business Taxable Income”). If UBTI from MLPs exceeds $1,000 in an IRA then taxes should be paid out of the IRA.
• Est. Tax Deferral – Estimated Tax Deferral represents the amount of the expected distributions that will be treated as a return of capital and used to adjust down the investment tax basis so not taxable until the unit holder sells the security.
• Distribution – Distribution/Dividend, either the most recently announced quarterly distribution or the last distribution until the next one is announced. For recent IPOs the Next Dist is shown as the Minimum Quarterly Distribution (“MQD”) as per the prospectus; however, the first distribution will typically be pro-rated over the period of the quarter that the MLP was public so it will be less than the amount shown in the charts.
• Current Yield – Yield calculated based on annualizing the most recent distribution. • Forward Yield – Yield calculated based on the next four estimated distributions. • Current / Forward Yield AT – Estimated Yields After Tax, basically after taking into account the amount of distributions that are tax deferred and the effective tax rate on
the taxable portion of the distribution. Assumes non-tax deferred MLP distributions are taxed at the highest income tax rate of 43.4%. Deferred portion of MLP distributions received will lower investor’s cost basis over time and result in “deferred tax recapture” upon sale of the MLP units.
• Historical Dist Growth – Historical Distribution Growth rates, QoQ is Quarter over Quarter, YoY is Year over Year, 3YR and 5YR are the 3 year and 5 year compound annual growth rate (“CAGR”) in the distributions respectively, information will be rolled forward each quarter.
• U.S. 10 or 20 Year Treasury – 10 or 20 Year Treasury forward yields after tax assume a 43.4% tax rate over the projected periods, so the 3 Year Forward Yield After Tax Undiscounted would be calculated as follows if the Current Treasury Yield was 3.00%: (3.00% x (1-.434 tax rate)) x 3 years = 5.09%.
• 3 YR / 5 YR FWD Dist Growth – 3 Year or 5 Year Forward Distribution Growth rate assumptions. • 3 YR / 5 YR FYAT – 3 Year or 5 Year Forward Yield After Tax, the undiscounted sum of the projected quarterly distributions taking into account the projected growth rate
and also the estimated tax deferral divided by the current unit price. • 3 YR / 5 YR FYAT / Beta – 3 Year or 5 Year Forward Yield After Tax divided by Beta, an attempt to utilize Beta to rank the MLPs by taking into account risk as measured by
Beta. • 20 / 50 / 200 DMA – The 20 Day Moving Average, 50 Day Moving Average and 200 Day Moving Average. • EV – Enterprise Value, sum of total equity market cap plus total debt less cash. • EBITDA – Earnings Before Interest Taxes Depreciation and Amortization and other non-cash charges, generally interim period annualized except for Propane segment
which is trailing twelve months. • ADJ EBITDA – Adjusted EBITDA, EBITDA less the cash distributions paid to the GP, effectively represents EBITDA available for the LP unit holders since the EV is
calculated using only the outstanding LP units and any related subordinated units and i-shares/units. • TTM – Trailing Twelve Months, YTD – Year to Date, MRQ – Most Recent Quarter. • Financial data is trailing twelve months as per most recently filed financial statements, unless otherwise noted.
29 MLP Protocol
GLO
SSAR
Y
• Distributable Cash Flow (“DCF”) – generally EBITDA less cash interest expense less maintenance capital expenditures less any cash taxes, represents the amount of cash available to pay distributions.
• Dist Cov Ratio (“DCR”) – Distribution Coverage Ratio, Distributable Cash Flow divided by L.P. plus G.P. distributions, the higher the ratio the better, a ratio below 1.00x means that the MLP is effectively paying some of the distribution using debt (although some MLPs like the Propane MLPs have substantial seasonality of cash flows so in those cases the ratio is better suited to be viewed over a rolling four quarter period). Calculated using actual distributions paid (typically using declared distributions results in a lower DCR).
• Valuation Coverage Ratio (“VCR”) – (EV / ADJ EBITDA) / Distribution Coverage Ratio. The DCR is generally TTM DCR unless the MRQ DCR is less than 1.00x, if so then the VCR calculation uses the lower MRQ DCR, if both TTM and MRQ are less than 1.0x the VCR calculation uses the lower DCR.
• M Cap – Maintenance capital expenditures or sustaining capital expenditures as reported by the companies, generally the amount of capital required to replace partially or fully depreciated/obsolete assets, maintain the existing operating capacity or operating income of an MLP’s assets (replace reserves/production for Upstream MLPs), and extend the useful life of assets (routine equipment and pipeline maintenance).
• Price / DCF LP – Current price divided by the Distributable Cash Flow per LP Unit, so total Distributable Cash Flow less the Distributions that the General Partner receives. • % GP Dist – % of total distributions that the General Partner receives, as the distributions increase over time the Incentive Distribution Rights (“IDRs”) provide for more of
the distributions to go to the General Partner. • STSPY – Spread to S&P 500 dividend yield, however, calculated based on the 3 or 5 year estimated forward yield after tax for the S&P 500 using data from SPY ETF as a
proxy (assuming a 15% dividend tax rate and a 5% annual growth rate for SPY dividends), then in the chart it is compared to the 3 or 5 year estimated forward yield after tax for the MLP group average to come up with the “spread.”
• Avg / SPY Ratio – 3 or 5 YR FWD Yield AT for the full MLP group divided by the 3 or 5 year forward dividend yield after tax for the SPY ETF. • SEC PV10 – The present value of estimated future revenues to be generated from the production of proved reserves calculated in accordance with Securities and Exchange
Commission (“SEC”) guidelines, net of estimated lease operating expense, production taxes and future development costs, using price and costs as of the date of estimation without future escalation, without giving effect to non-property related expenses such as general and administrative expenses, debt service, depreciation, depletion and amortization, or Federal income taxes and discounted using an annual discount rate of 10%.
• PIPE – Private Investment in Public Equity. • MMBOE / BOE / BCFE / MCFE – Million Barrels of Oil Equivalent, Barrels of Oil Equivalent, Billion cubic feet equivalent, Thousand cubic feet equivalent, converted using a
6,000 cubic feet of natural gas to 1 barrel of oil ratio. • Moving Average Heat Index – calculated by the sum of the percentages of five moving average metrics that are “Above,” i.e. if the current price is Above the simple 20 day
moving average, so the maximum Heat Index for each MLP segment is 500% and minimum Heat Index is 0%. • AMZ – Alerian MLP index. • Unit and share prices as of market close on the date shown on the cover.
Glossary