If this is a point to argue that FGP's distribution is sustainable it is very misleading:
1) FGP generates most of it's cash flow in the winter months, so extrapolating the January quarter-end is of little use.
2) FGP's definition of "distributable cash flow" dramatically overstates real cash flow as it excludes a large portion of capital expenditures (that actually consume 10s of millions in cash), and of course ignores the additional costs of the constant acquisitions.
Subtracting capex from distributable cash flow is a false premise. It is like saying Federal Express has inadequate cash flow if they can't pay for 10 airplanes out of their annual cash flow. Whats more, the weather from Feb 1-April 30, will approximate in temperature October- January. You also miss that FGP receives $100 million in gross margins not attributed to propane fuel sales. The list goes on, the details are there for those who aren't easily swayed by the fearmongers on this and other boards out to make a quick buck buying puts. I might add that only 56 million shares approx. are publicly held; the rest are in the FGP pension plan ESOT or owned by Mr. Ferrell and executives. In reality, FGP only needs a little more cash than it earned last quarter, as it can buy shares in the open market to compensate employees. Duh! 18 years of dividends, lets scratch our heads?