CQP has not raised its distribution since going public back in March 2007. But no one believes that the company can play the role that FGP once did, because CQP trades with the perceived fortunes of the US LNG export industry. It also yields just over 6%, which would suggest that more than 80% of MLP distributions are at risk. Even the most bearish of bears will find that hard to swallow.
In second place is NuStar Energy (NS) at 17, which has turned it around under new CEO Brad Barron. Coverage is north of 1.0x for the first time in years, and though no guidance has been given on when management will recommend a distribution increase to the board, NS is believed to be in a position to do so, the current commodity environment notwithstanding. The only other company in double figures is Southcross Energy Partners (SXE), which trades in the single digits, has a yield approaching 30%, and needs sponsor intervention to keep things from getting worse.
Next is Calumet Specialty Products Partners (CLMT) with nine consecutive quarterly distribution of $0.685, but the jury is still out on whether they ought to convert to the variable distribution model utilized by other refining MLPs like Alon USA Partners (ALDW), CVR Refining (CVRR), and Northern Tier Energy (NTI). At eight in a row is Memorial Production Partners (MEMP), but the company has already announced a distribution cut for the upcoming quarter.
That leaves us with one name holding a streak of at least two years paying the same quarterly distribution: World Point Terminals (WPT). The company is headquartered in the Midwest, has paid the same quarterly distribution since its IPO, operates a relatively stable business, and is majority controlled by one individual. Sound familiar? Ladies and gentlemen, our next Ferrellgas. We only have to wait 18 years to see if this plays out.