A Closer Look At Plains All American Pipeline's 2011 Distributable Cash Flow
By Ron Hiram:In an article titled Distributable Cash Flow ("DCF") I present the definition of DCF used by Plains All American Pipeline L.P. (PAA) and provide a comparison to definitions used by other master limited partnerships. Using PAA's definition, DCF for the 12-month period ending December 31, 2011, was $1,149 million ($7.66 per unit), up from $757 million in 2010 ($5.49 per unit). As always, I first attempt to assess how these figures compare with what I call sustainable DCF for these periods and whether distributions were funded by additional debt or issuing additional units.The generic reasons why DCF as reported by the MLP may differ from sustainable DCF are reviewed in an article titled Estimating Sustainable DCF-Why and How. Applying the method described there to PAA results through December 31, 2011, generates the comparison outlined in the table below:
12 months ending:
12/31/11
12/31/10
Net cash provided by operating activitiesComplete Story »
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