NRGY usually sells for 50 basis points higher than pure pipelines and is now selling very close to the pure pipeline MLPs.
The problem I have with NRGY is its cost of debt which is very high and that NRGY must buy other suburban propane businesses to grow. Residential propane is not a growth sector and in fact as more homes are hooked in to city utilities (natural gas) it requires NRGY and Suburban propane and APU to buy more and in some instances pay too much.
Even NRGY's CEO mentioned last night on Cramer that "growth" would be a double win situation but you cannot rely on growth because buying other propane providers is consolidation; not growth.
NRGY and several other "riskier" MLP's like RGNC and KGS (these are not propanes) are trading extremely close in yield to their safer MLP pipeline plays. I don't know what that means for the future but I don't see it as some watershed event either. I do think that you are missing the potential of Inergy though by focusing on the comparative yields. I'm not even sure that Cramer is aware of all the potential here. First of all comparing Inergy to APU and SPH is a bit unfair. They are all mostly propane companies, but Inergy has been expanding significantly into natural gas pipelines and storage. That has been the real driver of growth and why they continue to raise their distribution even when most propanes and pipelines have not. The glut of natural gas is creating huge opportunities in storage and that is where there is new money being made. Not all MLP's have significant storage assets. Inergy does and is expanding those assets rapidly. That makes Inergy more of a diversified MLP compared to their propane competitors. That's why I think Cramer doesn't get the story behind this company. Inergy has said many times that they hedge all of their commodity exposure to propane so that their cash flow is stabilizied. So propane going up won't really help Inergy like he thinks. This is a really interesting company with out of the box ideas for growing the partnership and cash flows. Is now a good time to buy? Maybe not, but at weaker moments in the stock price I think it should be.