Can CPNO reach 1.0 coverage ratio in 3rd quarter 2011?
May not be able to. From Oct 12 presentation
Texas Business segment "Expect lower segment gross margin in 3Q 2011 compared to 2Q 2011 due primarily to conditioning (reduced liquids recovery) at Houston Central complex during September as a result of Formosa’s 42-day planned turnaround"
R. Bruce Northcutt, President and Chief Executive Officer of Copano Energy, said, "We estimate that our third quarter distribution coverage will be lower than our second quarter coverage primarily due to reduced liquids recoveries at our Houston Central complex as a result of Formosa Hydrocarbons' planned turnaround at its Point Comfort petrochemical complex, which is scheduled to be completed in mid-October.
"Eagle Ford volumes gathered and NGLs recovered should increase as the bulk of our Eagle Ford projects are completed and placed into full service during the fourth quarter, and we expect that fourth-quarter distribution coverage will improve significantly as a result," added Northcutt.