Shouldn't we be getting news on the distribution soon?
The only MLP out of 8 I own that did NOT increase its distribution. This may end up being the worst one of the litter.
Inergy, L.P. Declares Quarterly Cash Distribution Ticker Symbol: U:NRGY
KANSAS CITY, Mo. -- (Business Wire) --
The Board of Directors of Inergy GP, LLC, general partner of Inergy, L.P. (NYSE:NRGY), announced that it has declared the Company’s quarterly cash distribution of $0.705 per limited partner unit ($2.82 annually) for the quarter ended December 31, 2010. The distribution will be paid on February 14, 2011, to unitholders of record as of February 7, 2011.
Inergy plans to release its 2011 fiscal first quarter earnings on February 1, 2011. Inergy will host a live conference call and internet webcast on February 1, 2011, at 10:00 a.m. Central Time to discuss the results of operations for the quarter ended December 31, 2010, and its business outlook. The call-in number for the earnings call is 1-877-405-3427, and the conference name is Inergy. The live internet webcast and the replay can be accessed on Inergy's website, www.inergylp.com. A digital recording of the call will be available for one week following the call by dialing 1-800-642-1687 and entering the pass code 40349650.
Well, to be fair, I think you might want to look at a longer period of comparison. Over the last 2 years, this MLP has doubled in price and has raised the distribution considerably, while at the same time making accretive acquisitions, expanding significantly into the midstream business, taking out their general partner (and thereby reducing their cost of equity) and issuing lower cost debt. While the distribution increases may have stopped temporarily, you get paid 7% to wait for the new acquisitions to kick in.
Might not be a strong buy here, but certainly not a sell.