Sixteen master limited partnerships have begun trading units in 2013. Given that we're through the first three quarters of the year, it's no surprise that some of these young bucks have already begun to pay out distributions to investors who bought in early. Today we're looking at the distribution story for the MLP class of 2013.
Brand-new MLPs
Without further ado, here are the nine MLPs making their debuts in 2013 that have released distribution data for the third quarter, ranked by biggest quarterly increase where applicable:
|
MLP |
Dist. |
Annualized |
QOQ |
Consecutive Increases |
|---|---|---|---|---|
|
Emerge Energy Services (NYSE: EMES) |
$0.8600 |
$3.44 |
22.9% |
1 |
|
Knot Offshore Partners |
$0.4350 |
$1.74 |
16% |
1 |
|
USA Compression Partners |
$0.4600 |
$1.84 |
4.6% |
2 |
|
New Source Energy Partners |
$0.5750 |
$2.30 |
4.5% |
2 |
|
Tallgrass Energy Partners |
$0.2975 |
1.19 |
3.5% |
1 |
|
SunCoke Energy Partners (SXCP) |
$0.4325 |
$1.73 |
2.4% |
1 |
|
World Point Terminals (WPT) |
$0.1565* |
$1.20 |
N/A |
- |
|
Phillips 66 Partners (PSXP) |
$0.1548* |
$0.85 |
N/A |
- |
|
Marlin Midstream Partners (NASDAQ: FISH) |
$0.2300* |
$1.40 |
N/A |
- |
Source: Company releases.
*Indicates a prorated figure.
Emerge Energy Services went public on May 9 and issued a prorated distribution of $0.37. It would've been $0.70 had Emerge had a full quarter's worth of results under its belt, which means this quarter's distribution of $0.86 is nearly 23% higher sequentially. Emerge releases its earnings on Nov. 14, which should give investors better insight into what's behind this outstanding growth.
Several of the listed MLPs are paying distributions for the first time, as is the case with World Point Terminals, Phillips 66 Partners, and Marlin Midstream Partners. These MLPs made their debuts within 20 days of each other between July 23 and Aug. 9. As is fairly common with brand-new MLPs, all three entities paid out the prorated equivalent of their minimum distribution.
Perhaps the most important trend here is that of the distribution increases. Again, this list includes only the MLPs that have reported distribution news at the time of this writing, but so far the partnerships that have been around for more than half the year have managed to increase their quarterly payouts. Even SunCoke Energy Partners, the metallurgical-coke producer, managed to increase its distribution on the back of lackluster earnings. Not bad for a coal miner, though I'd watch this one closely going forward.
Many Fools prefer to watch from a distance for a few quarters after an IPO. So far, the MLP class of 2013 is off to a great start.
