NGL Energy Partners LP (NGL)

[jugs]

Those of us here who've made out so well in the refinery MLPs are carving out positions in NGL, believing there's ample opportunity here as well. There are market stressors influencing our unit price.

The most obvious of these is the illusion that because NGL's BOD has declared a $2.56 distribution schedule beginning with the next payout in the amount of $0.64 payable in February, therefore we should expect the investing community to embrace all that we are.

Not going to happen.

Why? Glad you asked!

Folks involved in the stock market are not uniformly inquisitive, let alone bent upon understanding everything to be known that could influence valuations at any given time. Thus we find the multitudes follow the fragrance of the moment. And that fragrance right now is the stench of the oil sector struggling under the weight of uncertainties of various sorts. That NGL does not lift oil is of little or no meaning to these media followers.

The fact that the moment's $11.10 translates into a yield north of 23% should mean a lot but instead it's lost in the shuffle. But not by me.

Despite being extremely low on dry powder and holding 9,000 units of NGL, I will be a buyer at around $10.50, should it drop to that point. That represents a yield of about 25%. Not to be dismissed.

Similarly, SDLP is an outrageous steal right now despite having climbed strongly the past few days. At $2.85 and just declared a distribution of 25 cents per quarter, the yield is north of 35%.

These may fall back a bit as investor memory fails to keep stride. I'm certain NGL is suffering for this reason. Their loss, my gain--although I prefer to see people rejoicing as we do.

So we spread the word in the hopes that others will benefit. I'm hoping this sort of analysis will drive visitors to our board for we are definitely helping people find profitable value-makers.