By Marc Lichtenfeld In the summer of 2018, I analyzed the safety of master limited partnership (MLP) Energy Transfer Partners. At the time, the stock received a “C” rating.
The issues were that cash available for distribution (CAD), a measure of cash flow for MLPs, was heading lower and the company’s debt was too high.
Four months later, the MLP merged with its parent company, Energy Transfer Equity, and renamed itself Energy Transfer LP (NYSE: ET).
Let’s take a look at the new combined company and see if the distribution (partnerships pay distributions instead of dividends) is any safer.
CAD is soaring. This chart says it all.
This …read more
