Endangered Dividends List

Our EIA Endangered Dividends List highlights companies in our coverage universe where dividends are at elevated risk of being cut for one or more of the following reasons:

• Cash flow coverage of distributions is inadequate.
• Elevated debt levels with imminent refinancing needs.
• Revenue pressure triggered by weakness for at least one key asset.
• Inability to access the equity market on favorable terms to fund capital spending, forcing management to utilize more internally generated cash flow.
• Exposure to volatility in commodity margins from either rising or falling prices of raw materials.
• Aggressive general partners anxious to buy in limited partners’ cash flows at discounted prices.
• Regulatory reversals.
• Expiring contracts with little hope for renewals at comparable rates.

Since our last EIA issue, three EDL members have announced distribution cuts: American Midstream Partners (NYSE: AMID), Blueknight Energy Partners (NSDQ: BKEP) and Energy Transfer Partners (NYSE: ETP).

Our EIA Endangered Dividends List highlights companies in our coverage universe where dividends are at elevated risk of being cut for one or more of the following reasons:

• Cash flow coverage of distributions is inadequate.
• Elevated debt levels with imminent refinancing needs.
• Revenue pressure triggered by weakness for at least one key asset.
• Inability to access the equity market on favorable terms to fund capital spending, forcing management to utilize more internally generated cash flow.
• Exposure to volatility in commodity margins from either rising or falling prices of raw materials.
• Aggressive general partners anxious to buy in limited partners’ cash flows at discounted prices.
• Regulatory reversals.
• Expiring contracts with little hope for renewals at comparable rates.

Most of the companies on our list suffer from more than one of these afflictions.