Tuesday, September 26, 2017 10:29:06 AM
Sure wish you could come out 'n play. Guess yer gettin' caught by fish, huh?
With NGL at $11.40, it's looking more an more like $12 is becoming more approachable. Hardly a week ago I saw $11.50 as a distinct possibility and when we hit it four days later on Thursday of last week, I was so happy for all of us on this board. I felt the rush of a family member in a way.
Now, with the second of two excellent NGL-inspired articles from Rida Morwah in less than a month if I'm correct on the temporal span, we're moving higher once again. Rida, for those who aren't in the know, is Seeking Alpha's most widely recognized newsletter publisher, along with his partner.
Rida has an analytical style not unlike my own and probably for that reason alone, I especially appreciate his contributions. You see, he doesn't get mired in numerical extremes. Instead, he adds things up this way and that, always searching for commonalities that will most probably result in widespread investor appeal. So it's no surprise to me that he'll point to the yield, distribution sustainability and also measures being taken to prevent previous quarterly disasters accounting for serious valuation issues. And especially to my liking is that he and I both see that $20 valuation not very far ahead.
So many analysts get bogged down with numbers, somehow forgetting that numbers may explain results but they aren't capable of predicting anything other than the history from whence they are derived. I know that sounds funny in a way yet it is built on a truism.
As with technical analysis, charts and projections built of not more than things historical will collapse under the pressure of things not yet seen. In the case of NGL, measures are being taken to lessen the likelihood of repeat circumstances known to have been deleterious.
It is partly for this reason that I've been so supportive of the company. We can lead a blind donkey to the well but we can't force him to drink. NGL, however, is most definitely responding to community concerns and that gives me plenty of confidence.
Regarding our ascent of the moment? The articles most assuredly are adding to the momentum side but allure of the expected 39 cent distribution is hovering closer all the time. Also, when it's officially declared by the BOD to remain in force, folks will return to the pool of believers. This will drive the valuation much higher, and quickly, at that.
Energy-based MLPs currently provide investors with a yield of 7.7%. NGL, if able to stay on track at the $1.56/annum yield point, should rise to $20.50 for the sake of parity. This is what we've been recognizing as the likely scenario on this board. And those of us here will be enjoying sizable gains soon enough.
By the way, if I had cash available, I'd be adding units today and also going forward until such time as I'm no longer underwater. My cost basis is $12.06 so we're not there yet. But we're getting there, aren't we?
Happy hunting. And remember: It's better to eat chicken than to be chicken.
Recent NGL News
- NGL Energy Partners LP Announces Quarterly Cash Distribution for the Class B, Class C, and Class D Preferred Units • Business Wire • 09/19/2024 10:30:00 AM
- NGL Energy Partners LP Announces First Quarter Fiscal 2025 Financial Results • Business Wire • 08/08/2024 08:35:00 PM
- NGL Energy Partners LP Announces Availability of Its 2023 Schedule K-3s • Business Wire • 08/01/2024 10:30:00 AM
- NGL Energy Partners Announces Earnings Call • Business Wire • 07/26/2024 10:30:00 AM
- NGL Energy Partners LP Announces Quarterly Cash Distribution for the Class B, Class C, and Class D Preferred Units • Business Wire • 06/21/2024 10:25:00 AM
- DocuSign Stocks Drop 8.5%, Braze Surges 15% as 1Q Results Beat Expectations, and More in Earning • IH Market News • 06/07/2024 12:09:36 PM
- NGL Energy Partners LP Announces Fourth Quarter and Full Year Fiscal 2024 Financial Results; Guidance for Fiscal 2025 • Business Wire • 06/06/2024 08:33:00 PM
- NGL Energy Partners LP Announces $50 Million LP Common Unit Repurchase Program • Business Wire • 06/06/2024 08:20:00 PM
- US Index Futures Mixed; Oil Prices Rise • IH Market News • 06/06/2024 11:29:43 AM
- NGL Energy Partners Announces Earnings Call • Business Wire • 05/16/2024 08:33:00 PM
- NGL Energy Partners LP Announces the Payment of All Outstanding Distribution Arrearages for Class B, Class C and Class D Preferred Units as of Payment Date April 25, 2024 • Business Wire • 04/09/2024 09:15:00 PM
- NGL Energy Partners LP Announces Sale of the New Mexico Ranches • Business Wire • 04/05/2024 04:46:00 PM
- NGL Energy Partners LP Announces Cash Distribution of 55.4% of Outstanding Arrearages for Class B, Class C and Class D Preferred Units • Business Wire • 04/04/2024 10:26:00 PM
- NGL Energy Partners LP Announces Status of Investor Tax Packages • Business Wire • 03/04/2024 09:45:00 PM
- NGL Energy Partners LP Announces Third Quarter Fiscal 2024 Financial Results • Business Wire • 02/08/2024 09:33:00 PM
- NGL Energy Partners LP Announces Cash Distribution of 50% of Outstanding Arrearages for Class B, Class C and Class D Preferred Units • Business Wire • 02/06/2024 10:33:00 PM
- NGL Closes $2.9 Billion Debt Refinancing Transactions and Amends and Extends Asset-Based Revolving Credit Facility • Business Wire • 02/02/2024 05:55:00 PM
- NGL Energy Partners Announces Earnings Call • Business Wire • 01/30/2024 09:45:00 PM
- NGL Energy Partners LP Announces Pricing of $2.2 Billion Offering of Senior Secured Notes • Business Wire • 01/25/2024 09:58:00 PM
- NGL Energy Partners LP Announces $2.1 Billion Offering of Senior Secured Notes • Business Wire • 01/23/2024 09:35:00 PM
- NGL Energy Partners LP Announces LEX II Large Diameter Pipeline Supported by New MVC and Extension of Acreage Dedication • Business Wire • 01/22/2024 11:30:00 AM
- NGL Energy Partners LP Announces $700 Million Senior Secured Term Loan Facility and Provides Financial Update • Business Wire • 01/17/2024 10:48:00 PM
- NGL Energy Partners LP Announces 2023 Open Season for Grand Mesa Pipeline Starting December 6, 2023 • Business Wire • 12/06/2023 11:30:00 AM
- NGL Energy Partners LP Announces Second Quarter Fiscal 2024 Financial Results • Business Wire • 11/09/2023 09:23:00 PM
- NGL Energy Partners Announces Earnings Call • Business Wire • 10/20/2023 10:30:00 AM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM