First, propane consumption has been impacted due to high prices. You will hear all of the propane companies (APU,FGP, NRGY, ETP, SPH) talk about conservation. This is hurting Inergy.
Second, Inergy purchased their GP at a substantial premium which ate into their coverage ratio.
Third, They bought Tres Palacios storage unit. The paid a very high multiple, they bought at the very top of the cycle and the overall deal was very large relative to the size of the company. Tres Palacios has been a real headache for NRGY and will continue to be an issue until margins recover.
Fourth, They have a very lucrative project in Marc I, however, the environmentalist nutjobs have delayed it. When NRGY finally gets approval, it should help them turn the corner.
NRGY's Marcellus storage is world class and the IPO of that segment should ultimately allow NRGY to delever and I suspect also allow NRGY to focus on more propane roll ups while NRGM will focus on more midstream.