Inergy L.P. (NRGY, Financial) filed Quarterly Report for the period ended 2010-06-30.
Inergy L.p. has a market cap of $2.86 billion; its shares were traded at around $43.37 with a P/E ratio of 123.91 and P/S ratio of 1.82. The dividend yield of Inergy L.p. stocks is 6.5%. Inergy L.p. had an annual average earning growth of 10.7% over the past 10 years.
Revenues from other retail sales, which primarily includes distillates, service, rental, appliance sales and transportation services, were $38.3 million for the three months ended June 30, 2010, an increase of $1.4 million, or 3.8%, from $36.9 million during the same three-month period in 2009. Revenue from other retail sales increased mostly as a result of acquisition related-sales of $2.6 million partially offset by a $1.2 million decline in distillate revenues at existing locations. Distillate revenues from existing locations declined as a result of lower volume sold, partially offset by an increase in the comparable average selling price of distillates resulting from a higher wholesale cost.
Revenues from storage, fractionation and other midstream activities were $85.5 million for the three months ended June 30, 2010, an increase of $22.9 million or 36.6% from $62.6 million during the same three-month period in 2009. Revenues from our West Coast NGL operations increased $19.5 million primarily as a result of increased commodity sales and processing fees associated with the Butamer addition. Higher average selling prices of natural gas liquids also contributed to the revenue increase. Additionally, the in-servicing of our Thomas Corners facility and the related firm storage contracts resulted in an increase of $3.1 million.
Retail propane cost of product sold was $56.5 million for the three months ended June 30, 2010, an increase of $18.6 million, or 49.1%, when compared to $37.9 million for the same three-month period in 2009. This higher retail cost of product sold was driven by a $13.7 increase associated with acquisition-related sales and an $11.5 million increase arising from a higher average per gallon cost of propane. Also contributing to a higher cost of product sold was a $0.4 million increase due to changes in non-cash charges on derivative contracts associated with retail propane fixed price sales contracts. These factors were partially offset by a $7.0 million decline in cost of product sold resulting from lower volume sales at our existing locations as discussed above.
Other retail cost of product sold was $21.1 million for the three months ended June 30, 2010, compared to $19.6 million during the same three-month period in 2009. This $1.5 million, or 7.7%, increase was primarily due to a $1.2 million increase in the cost of product sold associated with acquisition-related sales and a $0.3 million increase in the cost for distillates. The increase in the cost of product sold for distillates was driven by a $2.9 million increase due to a higher overall commodity cost, mostly offset by a $2.6 million decline due to lower volumes sold at existing locations.
Retail propane gross profit was $47.8 million for the three months ended June 30, 2010, compared to $49.6 million in the same three-month period in 2009. This $1.8 million, or 3.6%, decline was mostly attributable to lower retail gallon sales at existing locations as discussed above coupled with a slightly lower cash margin per gallon, which resulted in a $9.2 million and $2.5 million reduction in retail propane gross profit, respectively. The lower cash margin per gallon in the current period is primarily attributable to the higher overall average cost of propane compared to the prior year period. In addition, we tend to earn a higher margin per gallon in periods of declining propane costs and the cost of propane declined at a greater rate in last years period as compared to this years period. Gross profit also decreased by $0.4 million related to changes in non-cash charges on derivative contracts associated wi
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Inergy L.p. has a market cap of $2.86 billion; its shares were traded at around $43.37 with a P/E ratio of 123.91 and P/S ratio of 1.82. The dividend yield of Inergy L.p. stocks is 6.5%. Inergy L.p. had an annual average earning growth of 10.7% over the past 10 years.
Highlight of Business Operations:
Revenues from retail propane sales were $104.3 million for the three months ended June 30, 2010, compared to $87.5 million during the same three-month period in 2009. This $16.8 million, or 19.2%, increase was due to acquisition-related sales and a higher overall average selling price of propane, which resulted in higher retail propane revenues of $24.0 million and $9.0 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 $16.2 million revenue decline arising from a decrease in gallons sold to existing customers as described above.Revenues from other retail sales, which primarily includes distillates, service, rental, appliance sales and transportation services, were $38.3 million for the three months ended June 30, 2010, an increase of $1.4 million, or 3.8%, from $36.9 million during the same three-month period in 2009. Revenue from other retail sales increased mostly as a result of acquisition related-sales of $2.6 million partially offset by a $1.2 million decline in distillate revenues at existing locations. Distillate revenues from existing locations declined as a result of lower volume sold, partially offset by an increase in the comparable average selling price of distillates resulting from a higher wholesale cost.
Revenues from storage, fractionation and other midstream activities were $85.5 million for the three months ended June 30, 2010, an increase of $22.9 million or 36.6% from $62.6 million during the same three-month period in 2009. Revenues from our West Coast NGL operations increased $19.5 million primarily as a result of increased commodity sales and processing fees associated with the Butamer addition. Higher average selling prices of natural gas liquids also contributed to the revenue increase. Additionally, the in-servicing of our Thomas Corners facility and the related firm storage contracts resulted in an increase of $3.1 million.
Retail propane cost of product sold was $56.5 million for the three months ended June 30, 2010, an increase of $18.6 million, or 49.1%, when compared to $37.9 million for the same three-month period in 2009. This higher retail cost of product sold was driven by a $13.7 increase associated with acquisition-related sales and an $11.5 million increase arising from a higher average per gallon cost of propane. Also contributing to a higher cost of product sold was a $0.4 million increase due to changes in non-cash charges on derivative contracts associated with retail propane fixed price sales contracts. These factors were partially offset by a $7.0 million decline in cost of product sold resulting from lower volume sales at our existing locations as discussed above.
Other retail cost of product sold was $21.1 million for the three months ended June 30, 2010, compared to $19.6 million during the same three-month period in 2009. This $1.5 million, or 7.7%, increase was primarily due to a $1.2 million increase in the cost of product sold associated with acquisition-related sales and a $0.3 million increase in the cost for distillates. The increase in the cost of product sold for distillates was driven by a $2.9 million increase due to a higher overall commodity cost, mostly offset by a $2.6 million decline due to lower volumes sold at existing locations.
Retail propane gross profit was $47.8 million for the three months ended June 30, 2010, compared to $49.6 million in the same three-month period in 2009. This $1.8 million, or 3.6%, decline was mostly attributable to lower retail gallon sales at existing locations as discussed above coupled with a slightly lower cash margin per gallon, which resulted in a $9.2 million and $2.5 million reduction in retail propane gross profit, respectively. The lower cash margin per gallon in the current period is primarily attributable to the higher overall average cost of propane compared to the prior year period. In addition, we tend to earn a higher margin per gallon in periods of declining propane costs and the cost of propane declined at a greater rate in last years period as compared to this years period. Gross profit also decreased by $0.4 million related to changes in non-cash charges on derivative contracts associated wi
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