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Gold/Mining/Energy : NGL to da moon (well, maybe to $10?)!!
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To: Elroy who wrote (24)12/6/2023 8:53:25 AM
From: Elroy   of 127
 
Hmmm, it appears NGL has twice before held "Open Seasons" for the Grand Mesa pipeline, once in 2016 and once in 2021.

Here's the 2021 announcement:

feeds.issuerdirect.com

I don't see any press release indicating the results of that 2021 open season, so perhaps there will not be a press release indicating the results of the current Open Season.

I'm not really sure what to make of this, but it seems like bad news as we'd prefer to have the Grand Mesa pipeline already be at capacity, and since NGL is (evidently) trying to sell 40k barrels per day of capacity in this Open Season, I guess it means that there is 40k barrels of capacity which are not currently purchased by customers.

And the wording in the press release about a "discounted rate" doesn't seem appealing. I guess there is a trade off between spot prices and pre-contracted prices, so it's probably normal wording, but still, I'd prefer it if demand were so high that they were selling capacity at elevated rates.....

NGL is holding the current open season to contract available capacity on the Grand Mesa pipeline at a discounted rate.

Not really sure what to make of this announcement. I guess it's normal, but whether it's a positive or negative indicator I don't know. I suppose it depends on the results of the Open Season, something we may not get to see until future quarterly results are released.
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