GPRE - Green Plains Partners: Still Choked In 2021 But 2022 Could See A 10%+ Yield

• Green Plains Partners has seen a solid start to 2021 but they are still choked by their credit facility repayment terms for the remainder of the year.
• Both their net income and their underlying operating cash flow increased modestly during the first quarter of 2021, thereby supporting finances.
• They are producing ample free cash flow that in theory could easily send their current low distribution yield to a very high double-digit level of 10% on current cost.
• The only issue prohibiting this is making their choking credit facility repayment installments and even after these, it will still require refinancing or further asset divestitures before year-end.
• Given this mixed situation, I believe that maintaining my neutral rating is appropriate for the time being but it could be upgraded in the future once liquidity risks ease.

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