Since my last publication on CNX Midstream Partners (CNXM) in the summer, the stock has returned 3.8%, including distributions. Previously, I was concerned regarding the distribution sustainability primarily due to high capital expenses. Today, my stance is still neutral with a bullish outlook. I will likely rate CNXM buy as soon as I see that management is on track on achieving its 2020 goal regarding capital expenses. Nonetheless, CNXM has five appealing attributes.
- Management is committed to a 15% distribution growth
- Revenue is improving
- EBITDA is improving
- The company is managing costs appropriately,