Because of low propane prices, the real issue for NRGY is sustainability of the distribution. The current price is an reflection of the risk of a distribution cut. The current yield is twice that of a normal group of MLPs. So, you can see investors are demanding a premium return to compensate for the risk.
The industry is becoming very competitive. More leveraged companies are at a disadvantage. Propane unfortunately is price in relationship to oil rather than natural gas. Customers are hard pressed due to the economy and conserving very hard as well as being very price sensitive.
My question given that dry ng keeps hitting new lows is how hard would it be to covert customers over to ng. Sure it has less energy and burners and such have to be adjusted/replaced but it should not be a tough program for the bigger players.