I received a K-1 for Suburban Propane Partners from Inergy and another from Suburban Propane Partners.
My question is do I add these together when doing my taxes (using Turbotax) or is it 2 separate entry's?
Sentiment: Strong Buy
Ok.. now what..I am thinking that nrgy saw a down business and is making the right decisions...who knows??
Like betting on football however this is really a FIXED gAME
What are the terms of this deal. The articles releases so far a lacking detail....
I see NRGY is up in premarket, but based on what? Just that there is a deal happening?
Did I read correctly? That we are receiving units of NRGM as a special dividend .43 unit of ngrm for each unit of INRGY. plus the merger and it is ex-dividend today. At todays price of NRGM that would be a $9 dollar special dividend to INRGY unit holders
I guess. Here is the pertinent part of the release:
"...to Inergy unitholders of record on the record date (as described below) of 56,398,707 common units of Inergy Midstream, L.P. (NRGM) (NRGM) held by Inergy. Payment of the special distribution is contingent on the satisfaction or waiver of all closing conditions under the contribution agreement.
The Board declared a record date of June 14, 2013 for the distribution of the NRGM units. The distribution of the NRGM common units is expected to be approximately 0.4321 NRGM common units for each Inergy limited partner unit outstanding on the record date. The distribution of the NRGM common units is expected to occur after the market closes on June 18, 2013 (the “Distribution Date”). "
NRGM is currently trading at about $23. That equates to about $9.9 of NRGM units (.4321 times $23) to each NRGY unit. What am I missing that NRGY is only up $1.93 today?
Wonder what tax issues that will create?
If it works like the sale to SPH we will receive the NRGM units at a $0 cost basis. 100% capital gain on sale. Not sure why nrgy is up so little? May 8th is ex-div, so people may assume that the news release was for the normal distribution? plus a simularity with nrgy nrgm symbols. I bought 200 more
There no tax on SPH. That was an even swap. The amount of SPH was about 34.50 and the same amount of cash was taken from the value from the NRGY account.I think the same thing is going on here. Midstream is being spun off and nothing more. If I am wrong someone please tell me what they think. My broker is on vacation until the 13th so I haven't talked to an "expert" about this. The price today tells me I'm right .
You most likely are right based on the price action. In my brokerage account my SPH is showing as zero cost basis. Of course my NRGY has a loss so it is a wash.
Contacted investor relations. This deal will be the same as with SPH. Units of NRGY will be adjusted down by (NRGM *0.4321) closing price the date received. The plus side is we will get the NRGM distribution, net result is $0.17 increase over
the current $0.29 or $0.46 a quarter. All assuming the deal happens and the finacials remain stable.
"""Units of NRGY will be adjusted down by (NRGM *0.4321) closing price the date received."""
How is that a special dividend? That sounds like a wash.
What is the actual math of the deal to, say, 1000 units of NRGY at today's 23.75 close? Anyone?
So,in essence,you believe that NRGY is going to drop down to the $13 to $15 range ?? I don't think the Crestwood management people who are going to run the company would let that fly..
The website states the .29 quarterly distribution will remain. That means if the price adjusts down to $15, the yield will become just under $8? Really? And NRGY holders will also get the .395 qtr distributions from their acquired NRGM shares going forward? So, basicially you can add .17 more (from NRGM) to the .29 for each share of NRGY, bringing the net quarterly distribution to .46. Sweet! This thing is horribly confusing.