- Following the first quarter of 2021, Altus Midstream was showing very impressive accrual-based earnings growth, but there was a lack of tangible improvements to their cash-based performance was concerning.
- Thankfully this appears to have only been a temporary anomaly with their results following the second quarter of 2021 seeing their operating cash flow growing impressively.
- This has seen their free cash flow surge and thus their distribution coverage has increased to a strong 133%+.
- Since their financial position is healthy with only moderate leverage and strong liquidity, they can afford to direct more of this free cash flow towards their unitholders.
- Following this positive situation, it should come as no surprise that my previous bullish rating is remaining.
For further details see:
Altus Midstream: Tangible Improvements Lifting Future Distribution Expectations