USDP - USD Partners: Small And Overlooked With A Very High Yield

• The Covid-19 market plunge in early 2020 created many, very high yielding opportunities in the midstream industry with small players like USD Partners seemingly overlooked.
• Even after reducing their distributions by a massive 70%, they still offer a very high yield of around 11% that has very strong coverage.
• Sadly their ability to reinstate their previous distributions, nonetheless, appears very limited since these were structurally unaffordable.
• Whilst their leverage is high, it does not pose any material risks due to their strong liquidity and resilient earnings.
• Given this situation, I believe that bullish rating is appropriate.

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