Price target to $37.50. Dilutive $0.15. Need $810M of accretive acquisitions or organic growth at 9x multiple to match. No distribution increases for next year.
The good news is perhaps NRGY will focus more on midstream pipelines instead of trying to buy more retail propane businesses. I don't think NRGY has been able to create enough cost savings from acquisitions to go any further into the business. The big propane distributors have pretty much squeezed their own ops so acquisitions simply do not create enough accretiveness.
I hate retail propane myself because I would rather own pipelines which are less in need of any labor intensity.
I bought a 1/2 position this morning because of the increased NGL storage meaning more movement away from propane and being well received by the street evidenced by the last minute increase in the offering.