Did you see today's new on Inergy. Apparantly, they've agreed to buy an operation from EOTT (not sure who these folks are) on the west coast. The announcement was a bit sketchy, but it does mention gas processing and fractionation, which is Inergy's first shot at something besides weather driven propane business. This is what I was hoping to see per my earlier message. On the surface, not a big deal ($10M), but I bet their California presence will bring other opportunities. I sure hope.
On your question about the recent unit price run up,and then pull back. If you look at other MLP's, they've done the same, so it appears it is not driven soley by what is going on within Inergy's. I still this is still a keeper!
I did take note of the deal and even though I don't have a clue as to what fractionation is all about I took the leap today and am now long. Hope they made a good deal. I guess I better read up on it. Wondering about possible impact if any regarding all the talk of natural gas shortages. (even though storage level is high) I don't know about their profitability but in my neck of the woods propane is a very important commodity as there are many small communities nowhere near natural gas mains. We used propane for years before natural gas made it to our area.(northern CA)
strong performer/over performer; but I'm a bit concern that the unit price might have exceeded the company's real value. Remember, Inergy is still only a propane retail/wholesale player, with no real hard assets (except small tanks, trucks, etc). If it were to get into the more stable EBITDA midstream sector, I suspect it could support it's unit price. But, to date, no operations/assets in midstream. Hopefully they are exploring this.
Isn't that the direction they're headed through acquisitions. I'm interested and have been following for short time. I like the distributions and have found only positive recommendations from analysts. About my only concern(aside from wanting colder winter weather in their market area if I buy) is how thinly traded it is. Have I really found a good one that's still under the radar.Some of the few posts on the board seem to be from people close to the propane scene. I hope they will bring this board alive. Any thoughts on the recent runup and return to 37 area.