NRGY was at $42.75 about 6 months ago. It has always been a profitable company. It is in the propane and midstream business. Midstream has been looking very good lately but propane is getting a little weak. This IPO will be for the midstream operations. That initially scared me thinking that NRGY unit holders would be left holding the bag BUT, short term, NRGY will get a butt load of money from the IPO and will still hold a majority position in the new IPO midstream business. (best of both worlds) IMHO this will give NRGY a pop but the long term prospects may not be as good for NRGY as they will be for NRGM. I loaded up today at 26.39 thinking it will go to about $32 with the IPO publicity. What are others thoughts on this? (Not you, beefstu)
the best growth will be the new company as NRGY will be looked at as a propane business and propane does not appreciate in this market which is very negative. In addition propane is not growing in any significant way.