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Gold/Mining/Energy : NGL to da moon (well, maybe to $10?)!!
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To: Area51 who wrote (112)4/30/2025 8:44:22 PM
From: Elroy1 Recommendation

Recommended By
Area51

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Yeah, I don't know the affect of reduced oil prices on NGL. Some of their water transport business is on fixed volume contracts, but I don't know what percentage.

I would guess the preferred will continue to pay the distributions for a while, as their annual EBITDA (about $620m) is plenty to cover debt interest ($230m), preferred distributions ($115m) and maintenance Cap Ex ($100m?). They've got about $170m cushion, and if EBITDA drops I would imagine growth projects vanish before preferred distributions get suspended.

The partnership's silence since Q1 2025 ended is sort of odd, though. They could give an update with how their previously announced plans turned out (minor asset sales, line of credit is supposed to have zero borrowed on it by March 31st 2025).

My hunch is the three months Jan to March was good for them because it was super cold.
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