PVR Partners L.P. ( PVR ) continues to
share more benefits with its unitholders through consistently
increasing the quarterly cash distribution rate. The partnership
announced a new quarterly cash distribution rate of 55 cents per
unit on all of its outstanding limited partner units.
This marks a rise of 1.9% from 54 cents per unit paid in Nov
2012 and 7.8% from 51 cents per unit paid in Feb 2012. The
distribution will be paid on Feb14, 2013, to unitholders of record
as of Feb 8, 2013.
The partnership has a long history of increasing distributions.
With the latest distribution, PVR Partners has hiked the quarterly
distribution to limited partners consecutively in each of the past
PVR Partners' cash distribution depends primarily on cash flow
that includes cash flow from financial reserves and working capital
borrowings. The cash distribution does not solely depend on
profitability, which can be affected by non-cash items. Hence, the
partnership can sustain cash distribution even when it is incurring
However, softness in the coal market continues to impact the
prospects of the partnership. The partnership generates a
substantial amount of revenue through coal royalties, which have
declined significantly as its lessees have curtailed production
owing to lower demand and fall in coal prices. PVR Partners
L.P. currently retains a Zacks #4 Rank (Sell).
Besides PVR Partners, some other partnerships having exposure to
natural gas pipelines have also raised their quarterly cash
distribution rates. Sunoco Logistics Partners L.P.
( SXL ),
Plains All American Pipeline LP ( PAA ) and ONEOK
Partners L.P. ( OKE ) have raised their
fourth quarter distribution by 5%, 3.7% and 3.6% sequentially to
54.50 cents, 56.25 cents and 71 cents, respectively.
Radnor, Pennsylvania-based PVR Partners manages coal and natural
resource properties as well as natural gas gathering and processing
businesses.ONEOK INC (OKE): Free Stock Analysis ReportPLAINS ALL AMER (PAA): Free Stock Analysis
ReportPVR PARTNERS LP (PVR): Free Stock Analysis
ReportSUNOCO LOGISTIC (SXL): Free Stock Analysis
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