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PetroLogistics LP Message Board

  • earthlingseven earthlingseven Apr 6, 2013 2:06 AM Flag


    Heard a lot about this quarters pay out earlier but not much lately. Has the outlook changed or is the recent pullback more forward looking? I wouldn't expect the sales outlook has changed much.

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    • I don't think the sales outlook (production) will change much; most of the contracts have minimum purchases, so I think production is pretty stable except for outages. But the price that PDH will get for that production is an issue.

      The price of propylene has been weak recently. Not as bad as Q3 and the beginning of Q4 last year, but weaker than the start of Q1 this year. And the price of propane has been rising, and I think that has been the bigger factor in PDH's price weakness. Q1 results should be good, but I suspect guidance won't be that great going forward.

      • 1 Reply to jrad52
      • agreed. upcoming div 65-70c. tad lower as they might reserve into Q4 planned outage. PGP down 7c in April prob another few in May, getting back to more "normal" spread. Looks like smoothed annual div in the 1.5-1.75 range so even at the low end sporting a 11+% dist yield. Low volume of late - i think some partner equity got distributed late last year and street joined the ride for a bit. Should trade better into earnings...good luck