11% Yield, 15% Distribution Growth Through 2020, 18 Straight Hikes: CNX Midstream Partners

Looking for dividend/distribution growth in the high-yield space? The management at CNX Midstream Partners LP (CNXM) continues to commit to 15% distribution growth through 2023:
"We are reaffirming our 15% annual distribution growth as the target through 2023." (Source: Q3 '19 earnings call)
They've continued to deliver on their 15% growth target over the most recent four quarters, thanks to a large 42.67% growth in distributable cash flow - DCF. Management also has kept the unit count flat, which also has helped:

Performance:
However, in spite of this, CNXM has underperformed the benchmark Alerian MLP ETF and the market over the past year and in 2019 so far, although it has outperformed AMLP over the past month and quarter:
Valuations:
This under performance has driven its yield up to over 11% and has given it a lower than average price/DCF of 6.38X among other high-yield midstream LPs which we follow. Its EV/EBITDA of 6.94 also is lower than the peer average of 8.74X, while its 2.47X price/book is slightly lower.
It also has a higher distribution coverage of 1.48X, vs. the 1.35X average.

Analyst Price Targets:
At $14.36, CNXM is ~10% below analysts' average price target of $16.00 and is ~15.5% below the $17.00 highest price target. There's also a low target of $13.00, which it is 10.5% above.
Distributions:
CNXM pays in a Feb/May/Aug/Nov. schedule, and should go ex-dividend next in early February 2020. At $14.36, it... Read more

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