I really never understand on MLP message board why there are so many negative writeups on different stocks. These are meant for long only investors given if you short you pay the dividend and they are hard to borrow. Also many seem to not do any analysis before they make proclamations.
NRGY is a new stock i just bought on this deal. Lets go thru the cash flow. $340m in ebitda (cash flow) this yr. if you remove the interest expense of 83m , tax 1m and maint capex 7m then last fiscal yr they generatewd $229 million in DCF or over $3.60 per unitholder. i dont have the proforma math post merger with the GP but it isnt dilutive they said when announced.
this is a clean story 50% midstream (stable, grower with no commodity exposure really) and propane biz (less sexy but solid cash flow biz)
The only thing about residential propane that I hate is the cost of distribution.... it just costs more to deliver propane house by house versus delivery of large amounts of nat gas to utilities, businesses, etc.
I never load my boat on NRGY for that reason but own enough to play the trading range game with it.