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Exterran Partners Sees Growth in Distributable Cash Flow

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Mar. 30 2015, Updated 9:06 a.m. ET

4Q14 earnings

Exterran Partners, L.P. (EXLP) reported its 4Q14 earnings on February 26, 2015. The company announced that its fourth quarter DCF (distributable cash flow) was $53.4 million compared to $37.8 million in the corresponding quarter in 2013. This was an increase of ~42.3%. Sequentially, DCF grew ~17% over the previous quarter.

DCF is the amount of cash left over for an MLP to distribute to its unitholders or shareholders. DCF for 2014 grew ~16% to $177.6 million, from ~$153 million in 2013.

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Distribution

EXLP’s fourth quarter 2014 cash distribution was $0.5575 per limited partner unit, or $2.23 per limited partner unit on an annualized basis. The distribution was $0.005 higher than the previous quarter’s distribution of $0.5525 per limited partner unit and $0.025 higher than the 4Q13 distribution of $0.5325 per limited partner unit.

Distribution coverage, excluding the benefit of cost caps, was 1.41x for the quarter and 1.20x for the year.

In the following part, we’ll look at the key reasons behind EXLP’s consistent increase in its quarterly distributions.

EXLP is a subsidiary company of Exterran Holdings (EXH), which also holds EXLP’s general partners, and makes up ~0.11% of the Vanguard Energy ETF (VDE) and 0.12% of the iShares U.S. Energy ETF (IYE).

A company similar in structure to EXLP is Williams Partners (WPZ), an MLP that was formed after Access Midstream Partners merged with Williams. WPZ’s general partner is owned by Williams Companies Inc. (WMB).

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