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Inergy, L.P. Message Board

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  • rrb1981 rrb1981 Nov 16, 2011 4:54 PM Flag

    NRGY cash flow does not cover dividend

    None of this is new information. Most of the analysts have been predicting this for almost a year.

    Between the Marc I, North-South II and other projects, they are likely to muddle through '12 with a .8x coverage ratio. I believe '13 is projected closer to 1.0x from what Merrill Lynch report showed.

    At worst, you are looking at a 20% distribution cut and I think it is unlikely once they spin the midstream. They look to net $200 million which should cover a lot of the expansion projects, which incidently might be financed at the midstream level.