NGL Energy Partners LP (NGL)

[jugs]

From Mike K's comments on the quarterly results:

“Our Board has made the strategic decision to adjust our annualized common unit distribution to $0.40 per unit,” stated Mike Krimbill, NGL’s CEO. “Numerous considerations factored into this decision. Our business segments performed in-line with our expectations during the fiscal second quarter and we expect over 5.0x common unit coverage for the period. We are working with our bank group to extend our credit facility maturity. This distribution adjustment should benefit those discussions. We were also yielding over 20% on our common units and we believe the best use of our cash at this time is to reduce indebtedness, improve leverage and reduce bank commitments in the short-term.”

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Clearly much has transpired this year as is well known and I needn't belabor the point.

This year has been too unkind to NGL Partners for me to consider resuming a position, at least not in the foreseeable future.

I continue to wish all NGL followers the very best.

P.S. My conscience is nagging me so I'm adding a point:

I've been building a large position in EPD. This is my response to NGL's recent failings. (for me) If I'm going to pursue a roughly 10% return via distributions, I know which stock is most likely to stand the test of time.