The master limited partnerships Linn Energy (LINEQ) and Vanguard Natural Resources (NASDAQ: VNR) both reported distribution coverage ratios of less than 1.0 in their recent earnings reports, which could be concerning. Linn's was at .993 and Vanguard's was .83; both need to be at 1.0 or higher for distribution to be sustainable.
But as Fool contributor Tyler Crowe and energy and materials analyst Joel South discuss in this video, earnings reports don't tell the whole story with MLPs. Here, cash is king, as well as distribution coverage, and Joel and Tyler break down whether Linn and Vanguard investors have anything to worry about regarding either of those things going forward.
Video segment starts at 9:44
