NGL Energy Partners LP (NGL)

[pete807]

They are covering their distribution so well it is logical that it will rise, They have stated a goal of $2.50... From my August 5th post and their CC for Q2. (see quote below)

I am not expecting it to happen early in 2017 but maybe before 2018. A year ago the distribution went from .64 to .39 and the pps was below $7 and is now above $18.
Buy the dips!

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.