Am listening in on the conference call as I type this.
Coverage for the next two or more quarters stands at better than 1.2 times. This means they've got the next two quarters---at a minimum---already covered. This, it should be noted, had to be approved by banks providing lines of credit facilities critical to daily operations and longer. For the distribution-minded, this is the overriding essential.
As presented earlier, steps have already been taken to stave the bleeding. In fact, Trey, the CFO, humorously noted that their focus of late has been that of establishing safe grounds on which they can now state that the bleeding has effectively stopped. Trey is the IR boss and CFO with whom I spoke several weeks ago. Very sharp fellow, indeed.
The warm winter, second of the last two as a matter of record and fact, accounts for some of the losses incurred. New hedges have been put into place, particularly where the potential for losses depends upon utilization of line space. This is a reference to volumetric issues (using our pipeline space) with up and/or downsides due to difficulties experienced by companies with which we have larger contracts. Cited was the Northeast which, due to winter's above average temperatures, failed to deliver as anticipated. NGL has reworked contracts and now there are hedges in place guaranteeing that NGL will be protected meaningfully should we have another hot winter.
I'll suggest everyone listen to the replay as there's much more than I've reiterated above. I'll be doing the same thing, myself.
As for how I've handled my NGL stock position:
I've added a thousand units and now hold 17,0900 units of NGL. My cost basis is $13.31. I currently show a paper loss of $50,800.
That's a major ouch! but I find it tolerable. This is where an investor has to decide whether or not to stand strong in his convictions or sell out to negative forces in play. And make no mistake, they are definitely out there working their bags of tricks.
So much of today's sour attitude is based on the simple issue of NGL having lost money this past quarter. It doesn't consider steps taken to stave the bleeding. Nor does it begin to recognize that the next couple of quarters paying 39 cents per each) and a reiterated rate of $1.56 per annum means units bought today at, say, $10---are in line to receive a yield of about 16%.
Good luck to all and please----do not jump off a bridge because forces out there are painting things in the most absurdly horrid ways. This is, after all, how shorts make a living. Besides, you won't be the one having to wipe your splatter off the sidewalk. lol
Not so funny but it needed to be addressed.
