NGL Energy Partners LP (NGL)

[jugs]

A few weeks ago I spoke with NGL's CFO regarding providing Loyal unitholders with an update. My hope was that the company would demonstrate concern for the retail segment brutalized by a lack of coordination between management and the BOD.

Four days later, Reuters published a revised version of the shareholders conference call in which items discussed in our phone call were addressed. Needless to say I was very pleased.

Tonight I read Motley Fool's Thursday publication covering five hi-yield sticks to avoid as their distributions are at risk. NGL is one of the five. Now, at first glance one might shudder if holding a pick shunned by the MFs. (Sorry for the inference.) But before jumping off the nearest roof, consider the MF basis for conclusions:

NGL has lost money in each of the past two years.

I've been hinting for several months that I am not counting on anything here. However I have bumped up my ownership position from 7,700 units to the current 14,000 units as of late this past week. At the same time I've been stating clearly that my build-out has been predicated on my 2018 expectations.

If the $1.56/yr. payout is cut to $1, the distribution will be 25¢ per unit. That's $3,500 to me, a nice paycheck in my book.
So whether distributions rise, hold, or fall, I'm good with it as I'm in for the coming year.

Study the revised transcript and you'll find MF was hasty in drawing conclusions based on one factor. I base my conclusions on a broader range of indicators and since I brung me to the dance, I'm not going anywhere else.

And for the record, I'm presently showing a thousand dollar gain in NGL. Knowing we're at the lower end of the stock's range, I'm delighted for I know what to expect of 2018, given projects already in motion pointing to organic growth and development.