Inergy L.P. Reports Operating Results (10-Q)

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Feb 04, 2011
Inergy L.P. (NRGY, Financial) filed Quarterly Report for the period ended 2010-12-31.

Inergy Lp has a market cap of $3.25 billion; its shares were traded at around $41.82 with and P/S ratio of 1.8. The dividend yield of Inergy Lp stocks is 6.7%.Hedge Fund Gurus that owns NRGY: Jim Simons of Renaissance Technologies LLC. Mutual Fund and Other Gurus that owns NRGY: Jean-Marie Eveillard of First Eagle Investment Management, LLC, Mario Gabelli of GAMCO Investors.

Highlight of Business Operations:

Revenues. Revenues for the three months ended December 31, 2010, were $596.0 million, an increase of $94.3 million, or 18.8%, from $501.7 million during the same three-month period in 2009.

Revenues from retail propane sales were $277.7 million for the three months ended December 31, 2010, compared to $221.3 million during the same three-month period in 2009. This $56.4 million, or 25.5%, increase was due to acquisition-related sales and a higher overall average selling price of propane, which resulted in higher retail propane revenues of $51.5 million and $39.5 million, respectively. The overall average selling price of propane increased due to an increase in the wholesale cost of propane. These factors were partially offset by a $34.6 million revenue decline arising from a decrease in gallons sold to existing customers as described above.

Revenues from wholesale propane sales were $149.4 million in the three months ended December 31, 2010, a decrease of $1.6 million or 1.1%, from $151.0 million in the three months ended December 31, 2009. This decrease resulted from lower volumes sold to existing and new customers which contributed $25.9 million to the decrease. This decrease was partially offset by $24.3 million due to the higher average sales price of propane.

Revenues from other retail sales, which primarily includes distillates, service, rental, appliance sales and transportation services, were $60.8 million for the three months ended December 31, 2010, an increase of $4.7 million, or 8.4%, from $56.1 million during the same three-month period in 2009. Revenue from other retail sales increased mostly as a result of acquisition related-sales of $2.9 million and an increase in distillate revenues of $2.8 million, partially offset by a $1.0 decline in other retail revenues. Distillate revenues from existing locations increased as a result of a higher comparable average selling price of distillates due to a higher wholesale cost, partially offset by lower volume sold.

Revenues from storage, fractionation and other midstream activities were $108.1 million for the three months ended December 31, 2010, an increase of $34.8 million or 47.5% from $73.3 million during the same three-month period in 2009. Revenues from our West Coast NGL operations increased $19.4 million primarily as a result of increased natural gas liquid products sold, along with higher average selling prices of natural gas liquids. Additionally, the acquisition of our Tres Palacios gas storage facility and the commencement of Thomas Corners gas storage contracts in April 2010 increased revenues by $11.1 million and $2.9 million, respectively.

Cost of Product Sold. Cost of product sold for the three months ended December 31, 2010, was $391.1 million, an increase of $64.6 million, or 19.8%, from $326.5 million during the same three-month period in 2009.

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