Does anyone have any info that EPD is going to buy NRGY for $5B stock offering? I'm in INERGY and have also followed EPD in the sector as it is the leader in market cap. NRGY has also made the top 5 list with EPD in the energy sector for dividend increases over the past 5 years. NRGY has had 23+ striaght increases in dividends and earnings and falls inline with EPD's business model and the rumor seems to fit. I get rumor alerts all the time, however, with the announcement of the Pickens Plan scheduled to pass this year, I just had to take a second look at this UNVERIFIED RUMOR and ask this board if EPD is planning to buy any energy companies this year to provide growth to the company. This would be a win for me as a NRGY holder and would for a fact be a winner for EPD in a stock transaction. It makes cent$, however, I do not believe that NRGY is looking to any merger options and want to grow also. I have some great DD posted on the NRGY board that may benefit your DD with EPD in the energy sector. EPD is a great growth company like NRGY and both have a stellar future either way.
Just like I stated, this is just a rumor and nothin is verifiable at this time. I did notice tha the original first post said the balance sheet in so many words sucked. Not true, NRGY is ranked top 5 right up there with EPD. I believe that either one of these companies are undervalued and will be here for many yars to come due to the exceptional management of both companies. As for this merger or buyout I realy was caught off guard considering that I have done a to of DD and this just seemed to fit beyond a common rumor that passes my way. On another note, prior to the mess in the gulf with the oil spill. T. Boone Pickens (PICKENS PLAN) had came out on CNBC stating that his plan is expected to pass both houses by the end of the year and specifically stated that there was support on both sides of the aisles both Dem & Rep. Now after this ecological disaster all I have seen all weekend is lawmakers saying that we need to turn to alternative fuel sources such as natural gas and wind power. The Pickens Plan is quite a remarkable plan that would make the US totally 100% free from OPEC and allow all the dollars to stay here in the US and millions of jobs would be created. I won't repost all my DD here, if you would like the info, check out the NRGY message board. I have everything from Fords rollout of natural gas fleet vechiles, the Pickens Plan, to clean energy. I would like everyone here to know that over $1 TRILLION USD is going to be invested under the Pickens Plan, this is great news for both companies. Like I stated before, I do not believe that NRGY is looking to be acquired considering that they are already positioned for an independent future, however, like I also stated I've done the DD in this sector and said to myself, "this one makes too much cent$". Again, thank you all for your input and I've taken some great notes to add to my DD.
NRGY has a high cost, highly seasonal propane gas unit. The cost of capital is way too high and the returns frankly suck big time.
NRGY paid a fortune for two propane businesses on a per customer basis. The distribution system to deliver propane to homeowners is inefficient, archaic, and very high cost.
Granted NRGY has some interesting pipeline and storage assets but I doubt EPD would have any interest in owning the retail propane operations. Perhaps if NRGY were to be acquired in two pieces... one being the retail propane businesses by another retail propane distributor like Suburban Propane or the other big propane MLP leaving EPD to get the pipeline and storage assets..... that may be possible but highly unlikely.
I wondered about the NRGY propane unit,too. Then I remembered the kind of close cooperation between EPD and ETP in some matters. Since ETP has a big propane unit, might EPD buy NRGY and merge the NRGY propane unit with ETP's? The combined propane unit could be spun off as a big, separate company to everyone's benefit.