the use of crude oil derivatives to hedge natural gas liquids (NGL) exposure.

cash flow available to common unit holders and the GP. Usually cash flow from operations less maintenance capex.

an MLP’s current yield adjusted for its GP share of cash flow. For example, if the GP is receiving 10% of an MLP’s total distributions and the partnership’s units trade at a 7% yield, the cash yield would be 7.8% (current yield / [1 – % of cash distributions paid to GP]).

current declared quarterly distribution annualized divided by current stock price.

the cash flow available to be paid to common unit holders after payments to the general partner. Some people do not distinguish DCF from Available Cash Flow, so it’s important to pay attention to whether the GP payment have been taken out.

In a typical partnership agreement, the MLP is required to distribute all of its “available cash.” MLPs typically distribute all available cash flow (i.e., cash flow from operations less maintenance capex) to unit holders in the form of distributions. However, management typically has some discretion in how much cash flow it chooses to pay out. Usu [..]

the “cushion” a partnership has in paying its cash distribution. The higher the ratio is, the greater the safety of the distribution. Is calculated either as (1) available cash flow (before taking out GP payments) divided by total cash distributed or (2) distributable cash flow divided by distributions to LPs, usually calculated on a per unit basis [..]

percentage allocations (and the associated thresholds) of available cash flow between common unitholders and the general partner based on specified target distribution levels. Also referred to as “splits”.

the sale of an asset from a parent company (or sponsor company) to the underlying partnership. Drop downs are tricky from a board perspective and usually require a fairness opinion issued by an investment bank indicating that the valuation paid is fair, given that this is a transaction between related parties.

synonymous with a corporation’s earnings per share (EPS). EPU is calculated by dividing net income allocated to the limited partners divided by the weighted average units outstanding at the end of the period.