A Closer Look At Energy Transfer Partners' 2011 Distributable Cash Flow
By Ron Hiram:In an article titled "Distributable Cash Flow ("DCF)" I present the definition of DCF used by Energy Transfer Partners, L.P. (ETP) and provide a comparison to definitions used by other MLPs. Using ETP's definition, DCF for the 12 month period ending 12/31/11 was $1,137 million ($5.46 per unit), essentially unchanged from 2010 ($1,029.6 million, also $5.46 per unit). My first question is how do these figures compare with what I call sustainable DCF for these periods and whether distributions were funded by additional debt or issuing additional units. My second question is what factors must, given recent significant changes in ETP's asset base, be taken into account if one wishes to use the 2011 numbers as a basis for estimating distributable cash flows in 2012.The generic reasons why DCF as reported by the MLP may differs from call sustainable DCF are reviewed in an article titled "Estimating sustainable DCF-whyComplete Story »
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