This is my take on what is happening:
1. The earnings transcript shows losses and gains. NGL is not the simplest of companies. It has five primary segments, each one representing exposure to the potential for pitfalls destined to impact upon an investor.
2.The report itself contains both good and not good. It's for the investor to make use of such reportage by examining the pluses and minuses. As this is done, key to eventual enrichment lies in a carefully drawn overall assessment of opportunity at hand. This means a temporal scheme is all-important.
In simpler English, each of us absolutely MUST scale things to our particular timelines. If I didn't feel confident that I'd live another six months, I'd not have invested in NGL heavily as I've done of late. Simple!
NGL, as I've been declaring for several months running, won't begin to mature (in my opinion) as a viable wealth-creator for us until we move into 2018. A lot of things come into this and now is not the time to dwell on it as I want to help others steer their ships without my cluttering things up.
3. NGL is not taking in its recognition of inadequacies lying down, not by a longshot. In fact, within the transcript is an acknowledgement of the company's having taken measures to correct imbalances and clearly states that the month of July has already produced desirable changes/reversals.
Bottom line here is easy to understand:
a. They got whacked.
b. They designed changes.
c. They gave it a month (so far) to reassess.
d. They can ALREADY report positive enhancements.
Something many of us either don't realize or have trouble even considering:
Most MLPs in the energy space have run into problems since 2016. NGL is hardly the only one to have found it necessary to implement a cut due to DCF. Notwithstanding, it's currently paying about 14.25% in terms of yield. Is this sustainable? According to the company, it most definitely is. They aim for coverage in the amount of 1.3% to 1.5% as I recall. That works for me despite the fact that distributions are nowhere near as meaningful to me as is the overall value of a unit.
As I've divulged numerous time on this board, I maxed out in terms of position size when I hit 16,000 units last week. But I'm now weighing the addition of more at sub-$11.00. It will require my using borrowed funds (margin) but if I can't justify a buy now, then I don't deserve your faith and confidence as a moderator.
Best of good fortune to all!
