A Closer Look At Inergy's 2011 Distributable Cash Flow

Mon, 03/19/2012 - 08:03 EDT - Seeking Alpha

By Ron Hiram:In a January 29, 2012 article titled "What to expect following Inergy, L.P.'s (NRGY) announcement on January 27, 2012" I made a preliminary assessment that a 55% cut in distributions (to ~$1.27) accompanied by a further ~14% drop in unit price (to around $15 or lower) would be a good entry point for an investment in Inergy, L.P., but noted that a full analysis will have to wait until NRGY publishes quarterly results. NRGY has since submitted its Form 10-Q for the quarter ended 12/31/11 (the first fiscal quarter of 2012) and the unit price has dropped further (from $17.33 on 1/27/12 to $15.97 on 3/16/12). So this is an appropriate time for an update.The definition of DCF used by NRGY is described in an article titled Distributable Cash Flow ("DCF") and compared to definitions used by other master limited partnerships. Using NRGY's definition, DCF for the 12 monthComplete Story »

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A Closer Look At Inergy's 2011 Distributable Cash Flow

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