Duncan Energy Partners (DEP: chart, web, Y!) chairman Dan Duncan passed away in his home on Sunday night.

Duncan was no spring chicken, but in recent interviews, he really didn’t show any signs of, well…. decline.

The company indicated that it does not intend to change ownership or management of the partnerships, but it does leave the average DEP stockholder to question how the interests of the partnership going forward will be aligned with shareholders.

Ideally, you want all parties interests to be aligned.  If the CEO holds 50% of the shares and depends on the value of those shares appreciating in value, as a smaller stakes shareholder, you can feel somewhat secure that he’ll strive to create growth and value in the company to keep the value of the shares going up.  In essence, your general interests in the company are aligned.

Now that Duncan isn’t around, it will be interesting to see how interests of all parties line up.

Investing Dan Duncan, DEP

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.

Flash Player 9 or higher is required to view the chart Click here to download Flash Player now

Investing, Stock Thoughts DEP, Duncan Energy Partners, earnings

I read today that Duncan Energy Partners (DEP: chart, web, Y!) is increasing its quarterly cash distribution by 1.8 percent to 42.75 cents per common unit.  Not bad considering they just raised the distribution last October to $0.42 per common share.

Duncan Energy Partners has been beaten down with the rest of the energy sector lately, and I’ll probably start buying more shares again, although I’m at odds whether to buy in my Roth account or my free trading account.

There are some serious tax advantages to buying an MLP in a regular trading account that you don’t get to capitalize on in a retirement account.

On the other hand, I’m so overweight in oil right now that it really isn’t funny.  I’ve got more Provident Energy than I should, but I’m underwater in those shares too…

Oh the opportunity!

Investing DEP, Duncan Energy Partners, MLP, Partnership