Propane divestiture will undoubtedly impact meaningfully on the bottom line---because of the cost of maintaining operations shown to be risky due to weather conditions...and also because other avenues of operating have proved to be more rewarding. How the savings is to be applied is another matter. Self-funding in order to avoid going hat-in-hand to the capital markets is number 1 on the collective minds of management as was made clear in the CC ended just a moment ago.
Also coming up was the expectation of restoring the cut of a couple of years back at a rate of 10% per quarter if I have it correctly. I believe the distribution cut was a dollar, so we're talking about roughly two and a half years to restore that cut. Help me out, somebody, if I don't have it quite right!
We may be looking at a late Fall distribution of 39 cents plus 10% of the earlier cut for a total of 49 cents---again, I may not have it right. These numbers are adding up quickly, aren't they?
By the way, a unit price of $13 has our yield at 12%---still unreasonably high for this MLP with its improving focus. $16/unit would bring the yield down to slightly beneath 10% but compounding over the course of four quarters should bring the true unit value to 10%.
The big question is this:
How long will it take people to recognize how valuable this company is becoming for its investors?
Tomorrow, then, should prove to be extremely interesting as well as important as it will probably mark the beginning of details coming together meaningfully as investors from places other than our board here at IHUB finally begin to grasp opportunity such as we're now enjoying. We know how this works and we're about to find ourselves hugely enriched in more than one way.
I'm eager to taste the morning's "sunshine!"
See you all in the morning!
