Mr. Prewitt I have need a stock holder since the company went public in 1994 and have enjoyed the divides every quarter. There has been a lot of talk on chat boards about the company possibly cutting the dividend and that’s why the stock has been dropping some much lately, or is it because the company has been making so many acquisitions which means you are taking on more debt.
Wondering also why the Company has not came out and made any statements about the stock price dropping 30% in the past 3 months. I personally do think the company is going to cut divides your pension fund bought $25,000,000 of stock. Just wondering what your thoughts are on the price drop and company not coming out with any press releases.
Thanks you in advance for your reply
Good afternoon, John.
I received your email that you sent Troy Prewitt over the weekend and hope to address your question(s). First off, I would like to thank you for your investment in Ferrellgas…you are a long-term unitholder and for that we are very appreciative. With respect to our current unit price, the market continues to be negative on the propane MLPs knowing that the industry is dependent on cold winter temperatures to drive residential heating demand. Certainly, it comes as no surprise if you watch the news that this winter, nationwide temperatures have been materially warmer than normal and as such the market is anticipating that negative impact to show up in industry earnings. As we have just closed our second fiscal quarter, we will be addressing in the coming weeks both earnings and the quarterly distribution and as such there isn’t anything material that we should be commenting to the market at this time.
Over the next couple of weeks, please look for these announcements and do not hesitate to contact me if you have any questions about the information released.
Thank you again for your investment and I hope you have a great week.
Ryan VanWinkle Senior Vice President and Chief Financial Officer Ferrellgas, Inc.
The message from FGP doesn't really say anything...in essence, when data is compiled an announcement(s) will follow.
What the analysts are missing is propane is a versatile source of energy beyond heat. Published reports indicate nearly 300,000 commercial fleet vehicles use propane autogas, conversions are occuring approx 2000 per month and will likely accelerate with higher diesel prices and/or subsidies. Potential savings from imported oil amounts to about 117 million barrels by 2021. Ferrellgas is probably the primary player if one looks at FGP increasing market share.