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MLP PROTOCOL – WEEKLY SNAPSHOT ™
MLP Protocol FREE VERSION
WEEK 6
FEBRUARY 8, 2013
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: [email protected]
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
Northern Tier Energy (NTI) 4Q12 Distribution Estimate
CVR Refining is poised to ride the shale boom
CVR Partners, L.P. (UAN) 4Q12 Distribution
The Yield Curve Curve
New taxes, corporate dividends and MLPs
MLP IPO Review: Alon USA Partners, L.P. (“ALDW”)
The fiscal cliff’s shadow over Energy MLPs
ADDITIONAL MLP PROTOCOL RESOURCES
MLP Protocol Monthly Analytics
Company Presentation Links
ARTICLES ADDRESSING KEY CONCEPTS
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
2 MLP Protocol
(5%)
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
27 Jun 27 Jul 27 Aug 27 Sep 27 Oct 27 Nov 27 Dec 27 Jan
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 an opportunistic and concentrated approach
that leverages Master Limited Partnerships (“MLPs”) and related C-Corps. The model also invests in recent MLP IPOs.
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 Performance Inception Date June 27, 2012
as of February 07, 2013
Best
Performer Manager
Alerian
MLP
S&P
500
Past 30 days Manager 6.6% 4.0% 3.6%
Past 90 days Manager 14.2% 8.2% 9.4%
Since Inception Manager 37.2% 14.9% 13.3%
2013 (YTD) Manager 10.1% 10.0% 5.8%
Risk Metrics Since Inception
as of February 07, 2013
Best
Performer Manager
Alerian
MLP
S&P
500
Best 30 days Alerian MLP 12.3% 13.1% 7.5%
Worst 30 days S&P 500 (9.7%) (10.3%) (7.0%)
Volatility S&P 500 15.0% 12.7% 12.3%
Sharpe Ratio Manager 4.02 1.90 1.75
Sortino Ratio Manager 6.26 3.30 2.96
Maximum Drawdown S&P 500 (11.2%) (10.8%) (7.7%)
Value-at-Risk (95%, 1 week) S&P 500 (3.5%) (2.9%) (2.8%)
vs.
Alerian
MLP
vs. S&P
500
Information Ratio 3.08 3.05
Alpha 35.0% 38.1%
Beta 0.77 0.71
R-Squared 0.43 0.34
Ranked #1 out of 20 yield focused real money investment models for Performance vs. the S&P 500
Ranked in the Top 10 out of 137 total real money investment models 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 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
WE
EK
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SN
AP
SH
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Markets and Levels
• 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
• The full Subscriber Version includes long term charts for all of the data sets in order to provide additional historical context.
– The rig count chart also breaks out the detail of crude oil versus natural gas drilling rigs
52 Weeks Ago FYE 2012 4 Weeks Ago Week Ago Current Change
2/10/12 12/31/12 1/11/13 2/1/13 2/8/13 1 Year YTD 1 Month 1 Week
MLP Index (AMZ) 397.7 385.1 413.7 431.2 425.7 7.0% 10.5% 2.9% (1.3%)
MLP Total Return Index (AMZX) 1,208.1 1,224.5 1,315.5 1,380.8 1,372.0 13.6% 12.0% 4.3% (0.6%)
S&P 500 1,342.6 1,426.2 1,472.1 1,513.2 1,517.9 13.1% 6.4% 3.1% 0.3%
10 Year Treasury Yield 1.96% 1.78% 1.89% 2.04% 1.99% 3 bps 21 bps 10 bps (5 bps)
20 Year Treasury Yield 2.75% 2.54% 2.65% 2.83% 2.79% 4 bps 25 bps 14 bps (4 bps)
Yield Curve Steepness (20 Year - 3 Month) 266 bps 249 bps 258 bps 277 bps 272 bps 6 bps 23 bps 14 bps (5 bps)
U.S. Total Rig Count 1,989 1,763 1,761 1,764 1,759 (11.6%) (0.2%) (0.1%) (0.3%)
Natural Gas $2.49 $3.35 $3.22 $3.34 $3.27 31.7% (2.3%) 1.5% (2.0%)
WTI Crude Oil ($ / Bbl) $98.51 $91.82 $93.36 $97.33 $95.72 (2.8%) 4.2% 2.5% (1.7%)
Brent Crude Oil ($ / Bbl) $117.21 $110.80 $112.37 $115.03 $118.90 1.4% 7.3% 5.8% 3.4%
Brent / WTI Differential ($ / Bbl) $18.70 $18.98 $19.01 $17.70 $23.18 24.0% 22.1% 21.9% 31.0%
NYMEX 3:2:1 Crack Spread ($ / Bbl) $29.91 $30.18 $28.10 $31.33 $35.26 17.9% 16.9% 25.5% 12.6%
Source: www.alerian.com, www.bakerhughes.com, www.treasury.gov, www.eia.gov, www.cmegroup.com. Historical commodity prices are spot prices at the futures contract delivery locations as per the EIA, most
recent data points are based on NYMEX futures prices due to the lag in EIA spot price reporting, so the data will always be slightly apples and oranges.
5 MLP Protocol
PD
H 3
3.3
%
BIP
14.7
%
AR
P 1
1.6
%
AT
LS
11.1
%
TR
GP
8.3
%
GL
P 7
.0%
G
SJK
5.7
%
SX
L 5
.3%
G
ML
P 5
.3%
EP
B 5.2
%
CL
MT
4.8
%
OIL
T 4
.0%
W
ES
4.0
%
TL
LP
3.8
%
PA
A 3
.7%
O
KS
3.6
%
AC
MP
3.4
%
MM
P 3
.1%
A
HG
P 2
.8%
K
MI 2.8
%
NG
L 2
.8%
G
EL
2.6
%
NG
LS
2.6
%
SP
H 2
.6%
R
RM
S 2
.5%
M
EM
P 2
.5%
S
ML
P 2
.5%
W
PZ
2.5
%
KM
P 2
.4%
B
KEP
2.2
%
AR
LP
2.1
%
MC
EP
2.1
%
PV
R 1
.9%
A
PL
1.8
%
HEP
1.6
%
ET
E 1.6
%
EP
D 1.5
%
DP
M 1
.5%
N
RG
M 1
.3%
V
NR
1.3
%
MW
E 1
.2%
B
BEP
1.1
%
SEP
1.0
%
EX
LP
1.0
%
LG
CY
0.9
%
LR
E 0
.5%
EV
EP
0.1
%
AM
ID 0
.0%
A
PU
0.0
%
CM
LP
0.0
%
CP
LP
0.0
%
CP
NO
0.0
%
CQ
P 0
.0%
D
KL
0.0
%
EEP
0.0
%
EQ
M 0
.0%
ER
OC
0.0
%
HC
LP
0.0
%
LG
P 0
.0%
L
INE 0
.0%
L
NC
O 0
.0%
M
ML
P 0
.0%
M
PL
X 0
.0%
N
KA
0.0
%
NM
M 0
.0%
N
RG
Y 0.0
%
NR
P 0
.0%
N
S 0
.0%
N
SH
0.0
%
PN
G 0
.0%
P
SE 0
.0%
Q
RE 0.0
%
RG
P 0
.0%
S
DL
P 0
.0%
S
GU
0.0
%
ST
ON
0.0
%
SX
E 0
.0%
T
CP
0.0
%
TG
P 0
.0%
T
LP
0.0
%
TO
O 0
.0%
W
GP
0.0
%
0%
5%
10%
15%
20%
25%
30%
35%
RN
F 4
1.5
%
TR
GP
3
6.1
%
NG
L 3
2.1
%
TL
LP
30
.3%
S
XL
29
.8%
A
TL
S 2
5.0
%
MM
P 2
2.7
%
CL
MT
2
2.6
%
EP
B 2
2.0
%
KM
I 1
9.4
%
WE
S 1
8.2
%
OK
S 1
6.4
%
GM
LP
1
6.3
%
AH
GP
1
6.1
%
AC
MP
1
5.4
%
OIL
T 1
4.7
%
BIP
14
.7%
G
LP
1
4.0
%
NG
LS
1
2.9
%
AR
LP
1
1.9
%
KM
P 1
1.2
%
RR
MS
1
1.0
%
GE
L 1
0.2
%
PA
A 9
.8%
X
TX
I 9
.1%
W
PZ
8.5
%
GS
JK
8
.4%
M
WE
7.9
%
PV
R 7
.8%
T
GP
7
.1%
N
SH
6
.9%
M
EM
P 6
.8%
E
PD
6
.5%
H
EP
6
.2%
D
PM
6.2
%
AP
L 5
.5%
N
RG
M 5
.4%
L
INE
5
.1%
A
PU
4
.9%
E
RO
C 4
.8%
B
KE
P 4
.5%
B
BE
P 4
.4%
M
CE
P 4
.2%
S
EP
4.2
%
CM
LP
4.1
%
EX
LP
4
.1%
L
GC
Y
3.6
%
VN
R 3
.4%
X
TE
X 3
.1%
S
PH
2.6
%
QR
E 2
.6%
T
OO
2.5
%
EE
P 2
.1%
P
SE
2.0
%
ET
E 1
.6%
T
LP
1.6
%
TC
P 1
.3%
L
RE
1
.1%
M
ML
P 1
.0%
S
TO
N 0
.9%
N
MM
0.6
%
EV
EP
0
.5%
C
PN
O 0
.0%
P
NG
0
.0%
C
QP
0.0
%
SG
U 0
.0%
C
PL
P 0
.0%
N
RP
0
.0%
A
MID
0
.0%
N
S 0
.0%
R
GP
0
.0%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
RN
F (
11.8
%)
TN
H (
11.9
%)
UA
N (
61.3
%)
OX
F (
100.0
%)
(100%)
(75%)
(50%)
(25%)
0%
RN
O (
7.3
%)
TN
H (
19
.9%
)N
RG
Y
(58
.9%
)U
AN
(6
7.3
%)
OX
F (
10
0.0
%)
(100%)
(75%)
(50%)
(25%)
0%
WE
EK
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SN
AP
SH
OT
4Q 2012 Distributions
Quarter over Quarter Distribution Growth
Year Over Year Distribution Growth
SMLP is showing an increase of 2.5% quarter over quarter even though it’s paying its first public
distribution because the announced distribution is 2.5% above its Minimum Quarterly Distribution.
6 MLP Protocol
33
.8%
32
.7%
32
.3%
31
.7%
30
.9%
27
.8%
25
.5%
23
.5%
22
.2%
21
.2%
18
.9%
16
.2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
CPLP MEMP ALDW NKA RNO USAC STON NGL EEP BWP UAN AHGP
Marine Upstream D & M T & S Coal G & P Other Propane Crude &Ref Prod
Pipes
Nat Gas &NGL
Pipes
VariableRate
General Partners
(“GP”)
21
.2%
22
.2%
27
.8%
31
.7%
32
.7%
23
.5%
33
.8%
30
.9%
16
.2%
18
.9%
32
.3%
25
.5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
BWP EEP USAC NKA MEMP NGL CPLP RNO AHGP UAN ALDW STON
Nat Gas &NGL
Pipes
Crude &Ref Prod
Pipes
G & P T & S Upstream Propane Marine Coal General Partners
(“GP”)
VariableRate
D & M Other
WE
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Top Ranked by 3 Year Forward Yield After Tax
ALL RANKINGS ARE BASED ON THE SUM OF PROJECTED 3 YEARS OF DISTRIBUTIONS/DIVIDENDS AFTER ADJUSTING FOR ESTIMATED TAXES WITHHELD AT THE
HIGHEST APPLICABLE RATE DIVIDED BY THE CURRENT UNIT OR STOCK PRICE. HIGHER YIELDS EQUATE TO HIGHER RISK. PLEASE RE-READ THE DISCLAIMER.
Top Ranked by Segment Highest to Lowest with Relative Risk
*Additional MLPs in the chart shown at higher risk levels may also have Distribution Coverage Ratios (DCRs) less than 1.0x.
Top Ranked Summary Table
Risky
Relative Risk Scale
DCR < 1.0x*
Very Risky
Extremely Risky
Top Rankings Current Yield 3YR FYAT
Nat Gas & NGL Pipes BWP 7.8% BWP 21.2%
Crude & Ref Prod Pipes NS 8.7% EEP 22.2%
Gath & Process (“G & P”) AMID 10.3% USAC 27.8%
Terminal & Storage (“T & S”) NKA 11.6% NKA 31.7%
Upstream QRE 11.5% MEMP 32.7%
Propane FGP 10.3% NGL 23.5%
Marine NMM 13.0% CPLP 33.8%
Coal RNO 12.5% RNO 30.9%
General Partners (“GP”) NSH 7.1% AHGP 16.2%
Variable Rate UAN 8.1% UAN 18.9%
Downstream & Marketing ALDW 13.8% ALDW 32.3%
Other HCLP 10.8% STON 25.5%
7 MLP Protocol
Downstream & Marketing 500%
Crude & Refined Products Pipelines 488%
Propane 483%
General Partners 478%
Natural Gas & NGL Pipelines 478%
Terminaling & Storage 475%
Variable Rate 450%
Marine 450%
Other 450%
Gathering & Processing 441%
Upstream 362%
Coal 350%
Total 5,404%
61%39%
Current Price vs.
20 Day Moving Average1
80%
20%
Current Price vs.
50 Day Moving Average1
76%
24%
Current Price vs.
200 Day Moving Average1
78%
22%
20 Day Moving Average /
200 Day Moving Average1
66%34%
50 Day Moving Average /
200 Day Moving Average2
98%
2%
20 Day Moving Average /
50 Day Moving Average1
-
100
200
300
400
500
600
0%
1000%
2000%
3000%
4000%
5000%
6000%
2/17
/12
3/17
/12
4/17
/12
5/17
/12
6/17
/12
7/17
/12
8/17
/12
9/17
/12
10/1
7/12
11/1
7/12
12/1
7/12
1/17
/13
Total Moving Average Heat Index AMZ
350
365
380
395
410
425
440
0%
1000%
2000%
3000%
4000%
5000%
6000%
2/17
/12
3/17
/12
4/17
/12
5/17
/12
6/17
/12
7/17
/12
8/17
/12
9/17
/12
10/1
7/12
11/1
7/12
12/1
7/12
1/17
/13
Total Moving Average Heat Index AMZ
WE
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SN
AP
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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.
8 MLP Protocol
NT
I 10
7%
EQ
M 7
4%
AL
DW
65%
MP
LX
56%
WG
P 5
6%
SU
SP
42%
SD
LP
30%
DK
L 2
8%
CV
RR
28%
SX
E 1
4%
SM
LP
9%
SX
CP
8%
LN
CO
5%
HC
LP
3%
LG
P 1
%
US
AC
(0%
)
NS
LP
(3%
)
PD
H (
5%)
28.7%
(20%)
0%
20%
40%
60%
80%
100%
120%
0%
5%
10%
15%
20%
25%
7/1/
11
7/22
/11
8/12
/11
9/2/
11
9/23
/11
10/1
4/1
1
11/4
/11
11/2
5/1
1
12/1
6/1
1
1/6/
12
1/27
/12
2/17
/12
3/9/
12
3/30
/12
4/20
/12
5/11
/12
6/1/
12
6/22
/12
7/13
/12
8/3/
12
8/24
/12
9/14
/12
10/5
/12
10/2
6/1
2
11/1
6/1
2
12/7
/12
12/2
8/1
2
1/18
/13
2/8/
13
Average 3YR FYAT STSPY SPY 3YR FYAT ST20YR UST 20Y UST 3YR FYAT
WG
P 1
.9%
MP
LX
3.1
%
EQ
M 3
.8%
SD
LP
5.4
%
DK
L 5
.6%
SU
SP
6.0
%
PD
H 6
.1%
SX
E 7
.0%
LN
CO
7.4
%
SM
LP
7.5
%
SX
CP
8.1
%
LG
P 8
.7%
US
AC
9.5
%
CV
RR
10.4
%
NS
LP
10.8
%
HC
LP
10.8
%
NT
I 11.4
%
AL
DW
13.8
%
7.6%
0%
2%
4%
6%
8%
10%
12%
14%
16%
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Forward Yield Summaries / MLP IPO Scorecard
3 Year Forward Yield After Tax (“FYAT”)
18
.3%
15
.6%
20
.1%
18
.2%
23
.6%
20
.4%
23
.6%
20
.4%
10
.0%
17
.1%
23
.9%
20
.2%
5.2
%
4.7
%
0%
5%
10%
15%
20%
25%
30%
2/8/2013
NGas Pipe Crude Pipe G & P T & S Upstream Propane Marine
Coal GP Variable Rate D & M Other SPY 20Y UST
Segment Averages
Recent IPO Current Yields Price Performance Since IPO
Source: Company filings, press releases, presentations and internal estimates, Recent IPOs are defined as being public for less than 365 calendar days or the 10 most recent IPOs.
9 MLP Protocol
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1 Week and YTD Price Performance
1 Week Price Performance
Year to Date Price Performance
CE
P 3
1%
A
LD
W 1
2%
N
TI
12
%
CV
RR
10
%
CL
MT 9
%
XT
EX
7%
B
IP 6
%
OIL
T 5
%
GE
L 5
%
SU
SP
4%
TL
LP
4%
N
GL
S 4
%
GS
JK
3%
W
PZ
3%
D
KL
3%
S
XC
P 3
%
EQ
M 3
%
XT
XI
3%
E
XH
3%
N
GL
3%
S
PH
2%
T
CP
2%
T
GP
2%
P
NG
2%
F
UN
2%
W
ES
1%
P
DH
1%
C
QP
1%
B
PL
1%
N
RP
1%
M
WE
1%
G
ML
P 1
%
NR
GM
1%
W
GP
1%
L
GP
1%
P
AA
1
%
US
AC
1%
T
OO
1%
O
XF
1%
P
SE
1%
C
ML
P 0
%
TR
GP
0%
H
EP
0%
S
TO
N 0
%
SP
Y 0
%
KM
I 0%
T
LP
0%
B
WP
0%
AH
GP
0
%
FG
P 0
%
KM
R (
0%
)TN
H (
0%
)M
CE
P (
0%
)C
PN
O (
0%
)S
EP
(0
%)
CP
LP
(0%
)S
ML
P (
1%
)K
MP
(1%
)S
DL
P (1%
)D
PM
(1
%)
HC
LP
(1
%)
AR
LP
(1%
)AM
Z (1
%)
EE
Q (
1%
)S
XL
(1
%)
VN
R (1%
)E
EP
(1
%)
OK
S (
1%
)A
TL
S
(2%
)A
MID
(2
%)
ME
MP
(2
%)
EP
D (
2%
)B
KE
P (
2%
)U
AN
(2
%)
MM
LP
(2%
)E
TP
(2%
)E
PB
(2%
)G
LP
(2
%)
ER
OC
(2%
)L
RE
(2
%)
NS
(2
%)
LG
CY
(2
%)
NS
LP
(3%
)N
KA (
3%
)A
CM
P
(3%
)M
PL
X (
3%
)S
XE
(3
%)
RN
O (3%
)S
GU
(4
%)
EX
LP
(4%
)N
SH
(4%
)AR
P (
4%
)R
NF
(4%
)P
VR
(4
%)
AP
L (
4%
)N
RG
Y (
4%
)L
NC
O (
5%
)E
TE
(5
%)
AP
U (
5%
)R
GP
(5%
)M
MP
(5%
)L
INE
(5
%)
RR
MS
(5
%)
NM
M (
6%
)E
VE
P (
6%
)B
BE
P (
7%
)Q
RE
(8%
)
(15%)
(10%)
(5%)
0%
5%
10%
15%
20%
25%
30%
35%
CE
P 3
8%
C
VR
R 2
8%
G
LP
25
%
CP
LP
24
%
XTE
X 2
3%
A
MID
23
%
CP
NO
22%
R
NF
22%
S
XL
21
%
XTX
I 2
1%
G
SJ
K 2
1%
C
ML
P 2
1%
S
TO
N 2
0%
B
KE
P 2
0%
M
CE
P 1
9%
G
EL
19%
P
DH
19%
N
RP
19%
N
S 1
8%
E
QM
17
%
PA
A
17
%
BP
L 1
7%
D
KL
17
%
HC
LP
16
%
FU
N 1
6%
S
US
P 1
6%
W
ES
16%
T
RG
P 1
5%
F
GP
15
%
CL
MT
15
%
WG
P 1
4%
T
NH
14
%
NT
I 1
4%
P
SE
13
%
MM
P 1
3%
E
XL
P 1
3%
S
GU
13%
B
IP 1
3%
E
XH
12
%
OIL
T 1
2%
N
SH
11
%
SD
LP
11
%
NK
A 1
1%
H
EP
11
%
CQ
P 1
1%
N
GL
S 1
1%
N
MM
11
%
EP
D 1
1%
K
MP
11
%
SE
P 1
1%
M
ML
P 1
1%
A
MZ
1
1%
M
PL
X 1
0%
B
WP
10
%
AL
DW
10%
E
PB
10%
S
ML
P 1
0%
M
WE
10
%
KM
R 9
%
AT
LS
9
%
AR
LP
9%
P
NG
9%
T
CP
9%
A
PU
9%
O
KS
8%
R
GP
8%
L
GP
8%
T
LP
8%
T
GP
8%
S
XC
P 8
%
AC
MP
8
%
ET
P 8
%
WP
Z 7
%
NR
GM
7%
B
BE
P 7
%
DP
M 7
%
ET
E 7
%
SP
H 7
%
SP
Y 7
%
VN
R 7
%
KM
I 6
%
TO
O 6
%
NR
GY 6
%
ER
OC
6%
A
HG
P
6%
N
GL
6%
L
NC
O 6
%
EE
P 6
%
UA
N 6
%
LIN
E 6
%
TL
LP
5%
R
NO
5%
L
GC
Y 4
%
EE
Q 4
%
AP
L 3
%
QR
E 2
%
LR
E 2
%
GM
LP
0%
U
SAC
(0
%)
ME
MP
(0
%)
RR
MS
(1
%)
EV
EP
(1%
)AR
P (
1%
)P
VR
(2%
)N
SL
P (
3%
)S
XE
(4
%)
OX
F (
16
%)
(20%)
(10%)
0%
10%
20%
30%
40%
50%
10 MLP Protocol
NT
IR
NF
EX
HS
XL
GS
JK
CL
MT
AT
LS
GL
PC
PN
OA
CM
PP
DH
GE
LE
QM
TL
LP
FU
NO
ILT
AL
DW
TR
GP
XTX
IL
RE
NK
AM
MP
RR
MS
ET
EB
IPTN
HP
AA
UA
NH
EP
FG
PC
PL
PT
LP
CE
PA
HG
PX
TE
XE
PB
NG
LW
ES
NR
GY
NR
GM
CQ
PM
PL
XH
CL
PA
RL
PB
KE
PM
CE
PN
RP
SG
UN
GL
SC
ML
PP
NG
EV
EP
DK
LAM
IDS
TO
NE
XL
PN
SP
VR
SU
SP
VN
RB
BE
PN
MM
SE
PM
WE
DP
MN
SH
SP
HP
SE
KM
IK
MR
WG
PE
PD
SD
LP
AP
LK
MP
MM
LP
BP
LT
GP
RN
OM
EM
PL
GP
SM
LP
TC
PR
GP
QR
EA
PU
OK
SE
RO
CG
ML
PE
TP
WP
ZA
RP
BW
PT
OO
LIN
EL
GC
YE
EP
LN
CO
EE
QO
XF
SX
E
0%
20%
40%
60%
80%
100%
120%
140%
160%
NT
IC
LM
TB
IPAL
DW
XTE
XS
EP
GE
LC
PL
PE
XH
PAA
EQ
MTL
LP
TR
GP
WE
SX
TX
IS
XL
HE
PP
NG
TL
PK
MR
OIL
TG
SJK
TG
PD
KL
SM
LP
KM
PATL
SB
WP
FU
NE
PD
CP
NO
ETP
OK
SM
ML
PN
RG
MAH
GP
PS
EK
MI
MC
EP
SU
SP
EP
BW
GP
SP
HM
WE
AC
MP
EE
PD
PM
NG
LS
LN
CO
ETE
SD
LP
TC
PM
MP
EX
LP
AP
UG
LP
PD
HM
PL
XR
NF
CM
LP
PV
RTO
OL
GP
VN
RS
TO
NN
KA
FG
PB
KE
PS
GU
RR
MS
RG
PS
XE
AP
LB
BE
PN
MM
CQ
PN
RP
NR
GY
ME
MP
LR
EU
AN
LIN
EB
PL
WP
ZN
SH
NG
LE
RO
CE
EQ
AR
LP
TN
HL
GC
YN
SG
ML
PE
VE
PQ
RE
AM
IDH
CL
PR
NO
AR
PC
EP
OX
F
(80%)
(70%)
(60%)
(50%)
(40%)
(30%)
(20%)
(10%)
0%
10%
20%
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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.
11 MLP Protocol
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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.
• Next Dist – Next Distribution, 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 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 / 5 YR FWD Dist Growth – 3 Year or 5 Year Forward Distribution Growth rate assumptions.
• 3 YR / 5 YR FYAT – 3 Year or 5 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.
• 3 YR / 5 YR FYAT / Beta – 3 Year or 5 Year Forward Yield After Tax divided by Beta, an attempt to utilize Beta to rank the MLPs by taking into account risk
as measured by Beta.
• 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.
12 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