I See the IPO was in July, the partnerships often grow their distributions rapidly in their first two years as a public company. At first look the yield seemed a little low compared to some of the other MLP's, but I see why now the cash flows are steady & fee based, doesn't matter if customers use their storage or not they are locked in under capacity reservation deals, average remaining duration of OILT's contracts is 6 yrs. What is also interesting is they have a General Partner which has a large stake in OIlLT (73 percent ownership) and owns the IDR's thus giving the GP an incentive to boost the LP's payout over time and also grow the Business. Definitely a ground floor opp. may buy some next week.
|