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Inergy, L.P. Message Board

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  • farmlegend farmlegend Jan 24, 2012 3:11 PM Flag

    dividend aanoucement

    As a long, I'd prefer they cut the divy now and get it over with.

    NRGY is in for rough cashflow sledding for a good 1-2 years; and that assumes next winter is a cold one.

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    • I think you are correct. Going over the financial statements this seems like a good business in a very tough industry which needs to consolidate. As you say until the recent storms this has been a warm winter. Judging by the big layoffs over at FGP it has been tough for business.

      In a recovered economy and normal winter I bet they can get back to this distribution - at least.

      I agree it is probably better to take the hit and make sure they can invest in every short payback efficiency project. The spread between natural gas and propane is a real killer. The call will be very interesting.

      Good Fortune to you.

    • Been looking at NRGY- Propane biz has been bad but Wells F recomending as outperform. Do you know what biz they have other than propane-- one service list them as propane and service P Line--- TNX

      • 1 Reply to nsupper1
      • NRGY has some midstream assets as well as propane. They are the GP for and own 75% of the LP units of NRGM, which owns NRGY's midstream assets in the NE. NRGY also owns some NGL storage assets in California and a natural gas storage facility in Texas.

        NRGY has not been able to cover their distribution for the last couple of years, which means they have had to borrow money to pay the distribution. They do not expect to cover the distribution in 2012 either, which means more borrowing or a distribution cut. Fear of a distribution cut has depressed the stock price to where the yield is in excess of 12.5%.