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Inergy, L.P. Message Board

  • moneyonomics moneyonomics Jul 22, 2011 12:35 AM Flag

    Hope Inergy is not there to turn out the lights of the propane business

    Inergy too could read the tea leaves so to speak on struggles ahead in propane so diversified and streamlined with gp resolution. After they finish next expansion phases of storage in supporting marcellus and eagle ford (two best liquid plays other than granite wash right now) they will be in very good shape and can expand midstream from there in some fashion. Also some companies become so entrenched/in love with their legacy assets or with the size of their legacy assets so they can advertize eg we are so much of entire market, etc that they cannot let go when needed. I would hope Inergy stops trying to be a propane consoldiator on a broad scale of others propane businesses. I would not be surprised and would be disappointed if at some point to not see Inegy contract in some fashion their propane business into more concentrated geographical areas and divest of framgmented areas to cut overhead costs as their midstream business grows. I would imagine a 25% to 30% propane business in the mid term out of total would be much less costly to manage with overhead and thus more profitable and could use the cash to grow midstream, etc. Hopefylly Inergy will not become the blockbuster of propane and instead will become netflix and let companies like ferrellgas, etc be the consolidator and turn out the lights in the propane business so to speak in 20 or so years