19 Straight Distribution Hikes And A 10% Yield

Are you a patient income investor, who hangs in there, even when one of your holdings is challenged by the market? Longtime energy investors' mettle has been tested in 2017, as the market has given many energy related equities the cold shoulder. We've been down this road before, only to recover - remember 2015, when oil crashed, and didn't bottom until February 2016? The distribution yield is 9.81%, but coverage dipped to .97 in Q3. Revenue grew 22%, net income rose 28%, EBITDA rose 34%, and DCF rose 13% in Q3. Parent company closed big Permian deal in Q3 - management sees expanded dropdown inventory as key to improving distribution coverage. Management is targeting 10% annual distribution growth through 2019.

Delek Logistics Partners LP (DKL) is an interesting case in point. It has outperformed AMLP, and, given its total return, (including its ~10% yield), has outperformed the market over the past year, but has lagged the market in 2017 thus far. Delek Logistics Partners LP owns and operates logistics and marketing assets for crude oil and intermediate and refined products in the United States. It operates in two segments, Pipelines and Transportation, and Wholesale Marketing and Terminalling.

Source: Seeking Alpha

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