Prior to the deal with SGH, Moody's bond report said this about NRGY:
"MIDSTREAM ASSETS INCREASE THE STABILITY OF CASH FLOWS, THOUGH DROP DOWNS ELEVATE BUSINESS RISK AND CREATE STRUCTURAL SUBORDINATION ISSUES Approximately half of NRGY's EBITDA is generated by its midstream assets. Compared to propane, the midstream operations have higher margins, lower sustaining capital requirements, lower working capital requirements, more organic growth opportunities, and more stable cash flows due to fee-based contracts. The midstream assets are not exposed to the sector wide decline in volumes faced by the propane business. NRGY has announced plans to sell ("drop down") a significant portion of its midstream assets to NRGM. While proceeds from the drop downs will be used to accelerate leverage reduction at NRGY, the drop downs also increase NRGY's business risk by reducing the amount of midstream assets it owns and create structural subordination issues for the company's debt."
So I read the above to mean that NRGY is getting rid of the worst part of the company, and is keeping the best parts, and will have substantially less debt, too. Eventually, NRGY will get bought out by NRGM in order avoid the expense of paying the GP and paying the costs of two SEC filings where one will do. We are likely to get some real benefits from the deal in 2013 if management can avoid digging itself into another hole. If you have faith in management, this is a good deal for shareholders. If you think they'll dig another hole, take the pop in the share price and go elsewhere.