As discussed above, the $0.695 per limited partner unit distribution by Inergy, L.P. results in Inergy Holdings, L.P. receiving a total distribution of $20.8 million with respect to the second fiscal quarter of 2010. As a result of this Inergy, L.P. distribution, Inergy Holdings, L.P. declared a quarterly distribution of $0.975 per limited partner unit, or $3.90 on an annualized basis. This represents an approximate 30% increase over the $0.75 per limited partner unit paid for the same quarter of the prior year. The distribution will be paid on May 14, 2010.
Inergy Holdings, L.P. announced this morning that its board of directors has approved a three-for-one split of its outstanding limited partnership units. The unit split will entitle unitholders of record at the close of business on May 24, 2010, to receive two additional limited partnership units for each limited partnership unit held. Inergy Holdings expects certificates for the additional partnership units to be issued and mailed on or about June 1, 2010.
I am NOT a fan of splits. I strongly doubt that the trading liquidity on a ~$76/unit is hurting badly, especially for an MLP investment that is primarily designed for long term buy-and-hold investing. The market obviously likes the news though: NRGP was up 1.7% on a generally down day on the street, and for energy MLPs especially (AMZ index was down 2.08%)
<<<NRGP was up 1.7% on a generally down day on the street>>
Where are you looking that I am not looking? I am showing NRGP down $1.16 for today?
I kind of favor splits, mainly going back to the DELL shares I held through numerous splits just to see the share price rise again to previous levels. It lets smaller players get in and feel good about the price, even if valuations can sometimes get higher than they might have otherwise.
Here is what was said regarding splitting the units:
“Our common units have more than tripled in value since our initial public offering, and we believe this unit split will result in improved trading liquidity and more access to a broad group of investors,” Inergy CEO John Sherman said in a written statement.