Sun, Feb 1, 2015, 10:24 AM EST - U.S. Markets closed

Recent

% | $
Quotes you view appear here for quick access.

Inergy, L.P. Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • geotype50 geotype50 Jan 28, 2012 7:27 PM Flag

    Owner bought 75K shares @ $23+

    Alaskan,

    Read yesterday's distribution announcement. Management states that their business has deteriorated and they are having to borrow increasing amounts of money to continue to pay the distribution. They state they are considering cost cutting within their propane operation and reducing the distribution to reflect their reduced distributable cash flow. The market seems to be assuming that the distribution will be reduced in the future from the current $.705 per quarter to $.40 to $.50 per quarter.

    Jim

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • .40 or .50 cents would still be a Fantastic dividend, I am thinking of getting in tuesday or wednesday after the DROP follow thru

    • Is there any possibility that the distribution would go up again?

      • 1 Reply to adesteve
      • I believe the dividend can grow from the reduced rate in the future.
        Core propane operations have become intensely competitive. Every operator is feeling it.
        Consumers are hard pressed and conserving. The winter was warm.
        The natural gas transmission and storage assets are under strain from the collapsing price of gas. Natural gas drilling is pretty much stopping leaving only associated production from liquid and oil.
        These earnings really should reflect trough earning capacity from the record low labor participation rates and a warm winter. Natural gas is so low that drilling is slowing down fast.
        The one wild card is that propane is priced relative to oil. The record spread between oil (propane) and natural gas at 30 to 1 rather than the energy equivalent of 6 to 1 is a huge incentive to go ng. But is producers could export market prices around the world are at 6 to 1 and sometimes even better.
        We will have to see on the call. I imagine management will want to retrench and focus of efficiency and further strengthen the balance sheet in the short term.

 

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.