Yesterday Duncan Energy Partners (DEP: chart, web, Y!) posted its Q4 earnings results for 2008, highlighting a a 58 percent increase in net income to $10.8 million or $0.39 per common unit (diluted).  Compare this to $6.8 million (net), or $0.30 per common unit for Q4 ‘07.

For the quarter, distributable cash flow increased 63 percent to $15.4 million compared to $9.4 million in the same quarter of the previous year.  All told, this represents about a 12% return.

It appears that the distribution is stable on the heals of an increase on January 9th, whereby the board of directors of Duncan Energy Partners’ general partner declared an increase in the quarterly cash distribution rate to $0.4275 per unit for Q4 ‘08.

Unfortunately, the market didn’t appreciate the earnings like I did, as the shares slid another 3% on falling crude oil prices.

While the price action was frustrating, the strength of the business is still appealing, even with a heavy portfolio of oil and gas already.  The yield is still flirting with 10% and the prospects of an ever-increasing distribution look healthy.

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Investing, Stock Thoughts DEP, Duncan Energy Partners, earnings