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WEEKLY SNAPSHOT
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MLP Protocol MLP
1 MLP Protocol
This presentation and the information contained herein, as well as any additional documents and explanations (together the “Presentation”), are for
information purposes only, and MLP Protocol (“MLPP”) is not soliciting any action based upon it. Opinions expressed herein are MLPP’s present opinions
only. This Presentation is based upon information that MLPP considers reliable, but MLPP does not represent, guarantee, or warrant, expressly or implicitly,
that the Presentation 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 Presentation. MLPP accepts no liability with respect to, or arising directly or indirectly out of, the Presentation.
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 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. 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 document may be
reproduced in any manner without written permission. © 2011-2013 All rights reserved.
Contact Information
Philip Trinder PRESIDENT MLP Protocol
4020 MARLOWE
HOUSTON, TEXAS 77005
OFFICE: 832.408.5571
MOBILE: 713.854.7485
EMAIL: ptrinder@mlpprotocol.com
STOCKTWITS / TWITTER: @MLP_Protocol
DISCLAIMER
W W W . M L P P R O T O C O L . C O M
RECENT ARTICLES AND BLOG POSTS
MLP’s And Interest Rates, How Right is Mr. Gundlach?
QR Energy’s units offered value and we pounced
Tier 3 EPA Panic for Refiners
KNOT Offshore Partners LP Roadshow Slides
CenterPoint, OGE Energy and ArcLight Go Big in the MLP Game
Deloitte Oil and Gas Conference Summary Report
Investing as War
ADDITIONAL MLP PROTOCOL RESOURCES
Portfolio Analyzer – NEW! Resources
Company Presentation Links
ARTICLES ADDRESSING KEY CONCEPTS
MLP IPO Review: Alon USA Partners, L.P. (“ALDW”)
Upstream MLP Protocol Rankings
Gathering and Processing MLP Protocol Rankings
MLPs and Relative Value Versus U.S. Treasuries
A Ranking Protocol for the MLP Space SUBSCRIBE
2 MLP Protocol
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
6/27/12 7/27/12 8/27/12 9/27/12 10/27/12 11/27/12 12/27/12 1/27/13 2/27/13 3/27/13 4/27/13
MLP Protocol Sprint Portfolio Alerian MLP Index S&P 500 Index
MLP Protocol Sprint Portfolio
IMPORTANT INFORMATION 6. Benchmark returns have been calculated by Covestor using a time-weighted calculation of daily index valuations and do not include cash, dividends and
earnings distributions, or transaction costs. More
7. Leverage indicates the level of margin utilized and is calculated by dividing gross exposure by portfolio net liquidation value.
8. All Model Manager information including personal data, profiles, strategies, monthly investment reports, and historical results outside of Covestor has
been provided by the Model Manager. Covestor makes no representation or warranty of its accuracy, completeness or relevance and it does not represent
the opinions of Covestor. Transaction history is available upon request. Model classifications (Approach, Asset Class) are provided by Covestor, and are
intended to serve as a general guide.
9. Top Replicable Holdings: These securities are currently held in the model manager’s brokerage account. Those marked as “Replicable Holdings” currently
pass Covestor's trading rules, subject to individual client constraints. Eligibility for replication may change over time. Actual client subscription holdings may
vary.
10. Latest Transactions: These transactions were executed in the model manager’s brokerage account. Those marked as “Replicable” () passed Covestor’s
trading rules and were eligible for replication at the time of execution, subject to individual client constraints. Eligibili ty for replication may change over time.
Actual client subscription trade activity may vary.
11. S&P 500 Index is an unmanaged index compiled by Standard & Poor’s Corp. Index returns do not reflect any management fees, transaction costs or
expenses. Individuals cannot invest directly in an Index. S&P 500 index data: S&P/Dow Jones Indices LLC, a subsidiary of The McGraw-Hill Companies
Copyright © 2013.
The MLP Protocol Sprint Portfolio’s strategy pursues a higher risk, higher potential total return using Master Limited Partnerships (“MLPs”).
Mirror my strategies
trade for trade
MLP Protocol Sprint 1.50% Subscription Fee p.a.
$30,000 Subscription Minimum
Invest like me at Covestor.com
All rights reserves © Covestor Ltd
Performance Detail as of date shown on cover Performance Inception Date June 27, 2012
as of May 23, 2013
Best
Performer Manager
Alerian
MLP
S&P
500
Past 30 days S&P 500 1.3% 1.0% 4.5%
Past 90 days S&P 500 1.8% 8.6% 8.9%
Since Inception Manager 43.7% 26.1% 23.9%
2013 (YTD) Alerian MLP 15.4% 20.7% 15.7%
Risk Metrics Since Inception
as of May 23, 2013
Best
Performer Manager
Alerian
MLP
S&P
500
Best 30 days Alerian MLP 12.3% 13.1% 8.2%
Worst 30 days S&P 500 (9.7%) (10.3%) (7.0%)
Volatility S&P 500 17.3% 12.6% 12.0%
Sharpe Ratio Manager 2.79 2.28 2.20
Sortino Ratio Manager 3.78 3.70 3.39
Maximum Drawdown S&P 500 (11.2%) (10.8%) (7.7%)
Value-at-Risk (95%, 1 week) S&P 500 (4.0%) (2.9%) (2.8%)
vs.
Alerian
MLP
vs.
S&P
500
Information Ratio 1.40 1.53
Alpha 19.6% 21.4%
Beta 0.84 0.83
R-Squared 0.37 0.33
Ranked #1 out of 22 yield focused real money portfolios for Performance vs. the S&P 500
Ranked in the Top 15 out of 130+ total real money portfolios for Performance vs. the S&P 500
1. Past performance is no guarantee of future results.
2. Performance of the model manager’s account is calculated by Covestor on a daily time-weighted basis, including cash, dividends and earnings
distributions, and broker commissions. Manager returns include trades that fail Covestor's trading rules, do not reflect any Covestor suitability or risk score
restrictions and are exclusive of Covestor fees. More
3. Average subscription returns (“Avg Sub” or “Avg Client”) are calculated by Covestor and are composed of the average, daily, time weighted returns of all
active subscriptions to the underlying model. These daily average returns are then linked together for the timeframe requested. In addition, these returns
include cash, dividends and earnings distributions, brokerage commissions, Covestor advisory fees, and reflect individual client suitability and risk score
restrictions. More
4. All graph data is as of the end of day for the referenced period, unless otherwise specified. The subscription minimum is the minimum subscription
required to follow a particular model. The minimum amount is determined by Covestor, based on the characteristics of the underlying model. It should not be
considered as specific investment advice for your investment situation.
5. The performance charts are provided for informational purposes only, and should not be used as the basis for making an investment decision. Variables
such as corporate actions or foreign exchange may affect daily performance displays. We rely on mathematical formulas, computer programs, and pricing
information from third-party vendors to provide these returns. Neither Covestor nor any of its data or content providers shall be liable for any errors in this
information or any actions taken by you in reliance upon this information.
3 MLP Protocol
What is the MLP Protocol?
MLP Protocol – Subscriber Analytics
The MLP Protocol includes analytical reports covering substantially all of the energy related Master Limited
Partnerships. The full Monthly Analytics reports include the following:
• Forward Yield After Tax (“FYAT”) projections, Valuation Coverage Ratios (“VCR”), FYATs / VCR and segment
rankings on all metrics (updated rankings each week in subscriber version of the Weekly Snapshot reports)
• Long term trend charts including the MLP index yield spread to treasury yields
• Distribution history chart showing years that each MLP has maintained or increased their distributions (color
coded by segment within the MLP coverage universe)
• Recent IPO scorecard, IPO forward calendar and IPO reviews
• Full peer group analysis for 12 comparable group segments with relative value analysis, and valuation and
leverage vs. yield charts, segment rankings by key metrics
• Distribution Coverage Ratio (“DCR”) studies for each segment comparing DCRs to historical distribution growth,
current yields, projected distribution growth and resulting 3 year forward yield after tax, maintenance capex,
Total Enterprise Valuation, and Distributable Cash Flow per L.P. unit
• DCR Watchlist for MLPs with a concerning Distribution Coverage Ratio trend, which may lead to distribution cuts
• Paid subscribers also receive the enhanced Weekly Snapshot reports
Allows comparison of the estimated minimum yield investors net across the broad MLP group and is based upon
the following assumptions for each MLP:
• Distribution growth rates
• Estimated “tax deferral” of the distributions
• Highest effective current individual tax rate of 43.4%
Forward Yield After Tax (“FYAT”)
Segment Comp Groups
Ke
y E
nerg
y T
ren
d D
ata
L
on
g T
erm
Tre
nd
s
Se
gm
en
t R
an
kin
gs
Relative valuation tools for investors to use to make more informed MLP investment decisions
4 MLP Protocol
52 Weeks Ago FYE 2012 4 Weeks Ago Week Ago Current Change
5/25/12 12/31/12 4/26/13 5/17/13 5/24/13 1 Year YTD 1 Month 1 Week
MLP Index (AMZ) 373.4 385.1 454.2 459.0 463.3 24.1% 20.3% 2.0% 0.9%
MLP Total Return Index (AMZX) 1,151.9 1,224.5 1,471.7 1,500.7 1,514.9 31.5% 23.7% 2.9% 0.9%
S&P 500 1,317.8 1,426.2 1,582.2 1,667.5 1,649.6 25.2% 15.7% 4.3% (1.1%)
10 Year Treasury Yield 1.75% 1.78% 1.70% 1.95% 2.01% 26 bps 23 bps 31 bps 6 bps
20 Year Treasury Yield 2.44% 2.54% 2.47% 2.77% 2.80% 36 bps 26 bps 33 bps 3 bps
Yield Curve Steepness (20 Year - 3 Month) 235 bps 249 bps 242 bps 273 bps 276 bps 41 bps 27 bps 34 bps 3 bps
U.S. Total Rig Count 1,983 1,763 1,754 1,769 1,762 (11.1%) (0.1%) 0.5% (0.4%)
Natural Gas $2.65 $3.35 $4.16 $3.89 $4.16 56.7% 24.2% 0.0% 6.9%
WTI Crude Oil ($ / Bbl) $91.13 $91.82 $91.00 $94.65 $94.12 3.3% 2.5% 3.4% (0.6%)
Brent Crude Oil ($ / Bbl) $108.14 $110.80 $100.61 $102.91 $100.46 (7.1%) (9.3%) (0.1%) (2.4%)
Brent / WTI Differential ($ / Bbl) $17.01 $18.98 $9.61 $8.26 $6.34 (62.7%) (66.6%) (34.0%) (23.2%)
NYMEX 3:2:1 Crack Spread ($ / Bbl) $27.79 $30.18 $21.63 $21.56 $23.06 (17.0%) (23.6%) 6.6% 6.9%
EQ
M 1
40
%
NT
I 7
7%
WG
P 7
6%
MP
LX
76
%
DK
L 6
5%
SM
LP
60
%
AL
DW
56
%
SU
SP
46
%
SD
LP
29
%
LG
P 2
8%
US
AC
22
%
CV
RR
21
%
HC
LP
17
%
KN
OP
15
%
SX
CP
14
%
SX
E 8
%
NS
LP
6%
EM
ES
5%
LN
CO
4%
TE
P 3
%
38.5%
0%
20%
40%
60%
80%
100%
120%
140%
160%
WE
EK
LY
SN
AP
SH
OT
Markets and Levels / Current 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 small lag in the EIA reporting, so there will always be a slight discrepancy in the most recent price data.
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.
6.9
% 9.0
%
8.4
%
9.7
% 12
.9%
9.4
% 12
.0%
12
.7%
7.4
% 10
.0%
12
.4%
14
.0%
0%
2%
4%
6%
8%
10%
12%
14%
16%
ETP NS PVR NKA LRE FGP NMM RNO NSH UAN CVRR EMES
Nat Gas &NGL
Pipes
Crude &Ref Prod
Pipes
G & P T & S Upstream Propane& NGL
Logistics
Marine Coal General Partners
(“GP”)
VariableRate
D & M Other
Highest Current Yield by Segment Price Performance Since IPO
Ticker Company Risk Current
Rating Position?
ETP Energy Transfer Partners L.P. Baseline None
NS NuStar Energy L.P. Extremely Risky Short via Puts
PVR PVR Partners L.P. Extremely Risky None
NKA Niska Gas Storage Partners LLC Extremely Risky None
LRE LRR Energy, L.P. Extremely Risky Exited 5/2/13
FGP Ferrellgas Partners L.P. Extremely Risky None
NMM Navios Maritime Partners, L.P. Extremely Risky Long
RNO Rhino Resource Partners, L.P. Extremely Risky None
NSH NuStar GP Holdings, LLC Extremely Risky Short via Puts
UAN CVR Partners, L.P. Extremely Risky Long
CVRR CVR Refining, L.P. Extremely Risky Long
EMES Emerge Energy Services, LP Extremely Risky Long
5 MLP Protocol
Marine 500%
Propane & NGL Logistics 483%
Gathering & Processing 469%
General Partners 444%
Terminaling & Storage 425%
Crude & Refined Products Pipelines 425%
Other 400%
Coal 400%
Natural Gas & NGL Pipelines 367%
Downstream & Marketing 350%
Upstream 315%
Variable Rate 300%
Total 4,879%
55%45%
Current Price vs.
20 Day Moving Average1
63%37%
Current Price vs.
50 Day Moving Average1
76%
24%
Current Price vs.
200 Day Moving Average1
77%
23%
20 Day Moving Average /
200 Day Moving Average1
90%10%
50 Day Moving Average /
200 Day Moving Average2
80%
20%
20 Day Moving Average /
50 Day Moving Average1
-
100
200
300
400
500
600
0%
1000%
2000%
3000%
4000%
5000%
6000%
3/1/
12
4/1/
12
5/1/
12
6/1/
12
7/1/
12
8/1/
12
9/1/
12
10/1
/12
11/1
/12
12/1
/12
1/1/
13
2/1/
13
3/1/
13
4/1/
13
5/1/
13
Total Moving Average Heat Index AMZ
350
370
390
410
430
450
470
0%
1000%
2000%
3000%
4000%
5000%
6000%
3/1/
12
4/1/
12
5/1/
12
6/1/
12
7/1/
12
8/1/
12
9/1/
12
10/1
/12
11/1
/12
12/1
/12
1/1/
13
2/1/
13
3/1/
13
4/1/
13
5/1/
13
Total Moving Average Heat Index AMZ
WE
EK
LY
SN
AP
SH
OT
Heat Index / Group Moving Averages
Key: % Above % 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.
6 MLP Protocol
WE
EK
LY
SN
AP
SH
OT
1 Week and YTD Price Performance
1 Week Price Performance
Year to Date Price Performance
TL
LP
7%
C
QP
6%
A
HG
P
6%
S
XE
5%
B
PL
5%
E
ME
S 5
%
HC
LP
5%
S
ML
P 4
%
AM
ID 4
%
GS
JK
4%
M
PL
X 4
%
OIL
T 3
%
EQ
M 3
%
MM
P 3
%
XTX
I 3%
AL
DW
3%
E
XL
P 2
%
LG
CY 2
%
NS
LP
2%
S
XL
2%
E
EQ
2%
X
TE
X 2
%
ETP
2%
A
RL
P 2
%
PV
R 2
%
TC
P 2
%
NG
L 2
%
KN
OP
2%
M
ML
P 2
%
RN
F 2
%
CL
MT
2%
L
GP
2%
E
VE
P 2
%
FG
P 2
%
HE
P 2
%
AC
MP
2%
O
KS
2%
M
WE
1%
N
GL
S 1
%
TO
O 1
%
CM
LP
1%
E
EP
1%
E
PD
1%
E
RO
C 1
%
ET
E 1
%
AM
Z 1%
R
RM
S 1
%
RG
P 1
%
GM
LP
1%
N
KA
1%
P
AA
1
%
BB
EP
1%
P
SE
1%
L
NC
O 0
%
SE
P 0
%
WP
Z 0
%
KM
I 0
%
WE
S 0
%
GE
L 0
%
TG
P 0
%
RN
O 0
%
CP
LP
0%
S
XC
P 0
%
NR
GM
0%
N
RP
0%
A
PL
(0
%)
KM
R (
0%
)S
PH
(0%
)L
INE
(0
%)
SG
U (
0%
)V
NR
(0%
)W
GP
(0%
)B
WP
(0
%)
EX
H (
0%
)T
EP
(0
%)
US
AC
(0%
)C
VR
R (
0%
)Q
RE
(1
%)
NR
GY (
1%
)T
NH
(1
%)
NM
M (
1%
)K
MP
(1%
)P
DH
(1%
)P
NG
(1%
)T
RG
P (
1%
)D
KL
(1%
)S
PY
(1
%)
SD
LP
(1
%)
DP
M (
1%
)AP
U (
1%
)E
PB
(1%
)B
IP (1%
)S
TO
N (
1%
)M
EM
P
(2%
)N
S (
2%
)A
TL
S
(2%
)A
RP
(2
%)
MC
EP
(3%
)G
LP
(3%
)S
US
P (
3%
)F
UN
(3
%)
TL
P (
3%
)C
EP
(3
%)
BK
EP
(4%
)N
SH
(4%
)L
RE
(5%
)O
XF
(6
%)
UAN
(6%
)N
TI
(8%
)
(10%)
(8%)
(6%)
(4%)
(2%)
0%
2%
4%
6%
8%
SM
LP
62
%
EQ
M 6
2%
T
LL
P 5
4%
AM
ID 5
4%
B
PL
53
%
DK
L 5
1%
A
TL
S 4
8%
M
ML
P 4
7%
G
EL
47
%
PS
E 4
7%
X
TE
X 4
6%
E
XL
P 4
6%
X
TX
I 4
4%
G
LP
43
%
CQ
P 4
2%
C
EP
42
%
OIL
T 3
8%
L
GP
38
%
CP
LP
37
%
AH
GP
3
6%
M
WE
34
%
NR
GY 3
4%
E
XH
34
%
NK
A 3
3%
M
CE
P 3
2%
A
CM
P
32
%
HC
LP
32
%
NG
LS
31
%
ET
E 3
1%
A
RL
P 3
1%
B
KE
P 3
1%
W
GP
30
%
PAA
29%
W
ES
29
%
NG
L 2
9%
T
OO
28
%
TR
GP
27%
F
UN
27
%
FG
P 2
7%
S
TO
N 2
6%
S
XL
26%
B
WP
25
%
NR
P 2
5%
E
PD
24
%
MM
P 2
4%
S
PH
24
%
MP
LX
24%
R
RM
S 2
4%
AP
L 2
3%
U
SA
C 2
2%
C
VR
R 2
1%
G
SJ
K 2
1%
S
GU
21
%
AP
U 2
1%
A
MZ
2
0%
N
MM
20
%
RG
P 2
0%
E
TP
20
%
CM
LP
19
%
SU
SP
19
%
DP
M 1
9%
C
LM
T 1
9%
L
GC
Y 1
7%
T
LP
16
%
SE
P 1
6%
T
GP
16
%
SP
Y 1
6%
E
PB
15
%
NS
15
%
KM
I 15%
K
NO
P 1
5%
H
EP
15%
G
ML
P 1
4%
S
XC
P 1
4%
K
MR
14
%
VN
R 1
4%
T
CP
14
%
PN
G 1
3%
S
DL
P 1
1%
K
MP
10%
E
EP
9%
M
EM
P
9%
B
IP 9
%
WP
Z 7
%
EE
Q 7
%
NS
H 6
%
NS
LP
6%
A
RP
5%
N
RG
M 5
%
EM
ES
5%
L
NC
O 5
%
BB
EP
5%
Q
RE
5%
A
LD
W 4
%
TE
P 3
%
RN
O 2
%
TN
H 1
%
PD
H 1
%
ER
OC
1%
P
VR
1%
L
INE
(1
%)
OK
S (
1%
)N
TI
(2%
)U
AN
(3
%)
SX
E (
9%
)R
NF
(1
1%
)L
RE
(13%
)E
VE
P (
27
%)
OX
F (
31%
)
(40%)
(20%)
0%
20%
40%
60%
80%
7 MLP Protocol
EX
HT
LL
PE
QM
NT
IG
EL
SX
LA
CM
PG
SJ
KG
LP
AT
LS
CL
MT
OIL
TE
TE
AH
GP
XTX
IS
ML
PR
RM
SC
QP
EX
LP
RN
FF
UN
TR
GP
DK
LM
ML
PX
TE
XA
MID
MM
PP
SE
NK
AC
PL
PB
PL
PA
AA
LD
WN
GL
SM
WE
LG
PH
CL
PN
RG
YT
LP
WE
SN
GL
MP
LX
HE
PP
DH
AR
LP
AP
LS
PH
MC
EP
FG
PB
KE
PC
EP
DP
MW
GP
EP
BO
XF
NR
PE
PD
VN
RS
GU
TO
OS
TO
NP
NG
KM
IG
ML
PS
EP
ME
MP
SU
SP
BW
PU
AN
RG
PN
RG
MA
PU
LR
ETG
PE
TP
CM
LP
KM
RN
SB
BE
PN
MM
LG
CY
BIP
TC
PT
NH
SD
LP
PV
RQ
RE
NS
HK
MP
RN
OS
XE
WP
ZE
EP
EE
QE
RO
CA
RP
LN
CO
OK
SL
INE
EV
EP
0%
50%
100%
150%
200%
TL
LP
SM
LP
FG
PN
GL
BP
LE
QM
BW
PV
NR
LG
PM
ML
PL
GC
YC
QP
SG
UN
GL
SA
CM
PX
TE
XE
PD
PA
AE
EP
KM
IAP
UT
OO
MP
LX
AH
GP
TG
PN
MM
AM
IDP
SE
PV
RN
RP
ET
PO
ILT
EX
HA
RL
PA
PL
DP
MT
RG
PW
PZ
EP
BM
EM
PW
ES
DK
LM
MP
KM
RN
RG
YS
PH
FU
NR
GP
MW
EATL
SC
ML
PK
MP
WG
PG
LP
ETE
GE
LE
XL
PX
TX
IS
DL
PC
PL
PG
ML
PP
NG
ST
ON
BIP
NK
AB
BE
PM
CE
PR
RM
ST
CP
SX
LS
EP
BK
EP
EE
QN
RG
MC
LM
TS
US
PAL
DW NS
AR
PQ
RE
HC
LP
TL
PO
KS
TN
HN
SH
LN
CO
RN
OP
DH
LIN
EH
EP
ER
OC
CE
PU
AN
SX
EL
RE
GS
JK
NTI
RN
FE
VE
PO
XF
(80%)
(70%)
(60%)
(50%)
(40%)
(30%)
(20%)
(10%)
0%
10%
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% Below 52 Week Highs and % Above 52 Week Lows
% Below 52 Week Highs
% Above 52 Week Lows
Positive number indicates close at a new high.
Negative number indicates close at a new low.
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Glossary and Assumptions
• 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 AT – Estimated Current Yield 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 35%. 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 35% 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-.35 tax rate)) x 3 years = 5.85%.
• 3 YR FWD Dist Growth – 3 Year Forward Distribution Growth rate assumptions.
• 3 YR FYAT – 3 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.
• 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.
9 MLP Protocol
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• 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).
• 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.
• 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 TTM Distributable Cash Flow per LP Unit, so total Distributable Cash Flow less the TTM 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 maximum Heat Index 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 and Assumptions
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