NGL Energy Partners LP (NGL)

[pete807]

Last question from the CC transcript questions section:
The CEO was asked about returning the distribution to the previous level...

Great question. And I won’t – unfortunately I don’t have short answer, in our Board meeting, actually that came up this is our second quarter we had $0.39, so we have two more quarters and then we would our managements steps are going to recommend an increase in the distribution. So then the question becomes what’s the right number and we look it today. We really think of our distribution not at $1.56, we think of it as and we make our decisions on investing based on $2.50 distribution. So when you see unit price that’s makes the math easy at $16 and if we were to pay $2.56, again, that’s a 16% yield. I think we all agree that paying that kind of yield is nonsense, but the money, a portion of that money is better spent reinvested in the business earning 20% to 25% returns. So we will be recommending an increase. At this point, I can’t tell you how much of an increase but I can tell you we think of it as 250 distribution.

Dang! looks awfully good for us into the next fiscal year and beyond with NGL! GLy'all!
link:
http://seekingalpha.com/article/3995978-ngl-energy-partners-ngl-ceo-mike-krimbill-q1-2017-results-earnings-call-transcript?auth_param=i4ud:1bq7c00:5ed69bd750ac54614d5189cdbd5f3db0&uprof=46