2. Inergy (NRGY) owns and operates retail and wholesale propane supply, marketing and distribution business. The company also operates a midstream business that includes four natural gas storage facilities, including Stagecoach, Steuben, Thomas Corners, and Tres Palacios.
During the first quarter ended Dec. 2010, total revenue grew 18.8% to $596 million from $501.7 million owing to higher retail propane sales, attributed to acquisition-related sales coupled with higher average selling price of propane. Moreover, adjusted EBITDA for the quarter stood at $130.1 million, up 23% from $106.1 million in the comparable quarter last year.
During the December quarter, the company's board of directors approved a 3% year-over-year increase in quarterly dividend on its common stock which now stands at 0.705 cents per unit, or $2.82 per unit annually. Total dividend payout during the quarter was $76.1 million.During Jan. 2011, the company declared a dividend of 0.705 cents per unit for a total distribution of $77.4 million with respect to the first quarter of 2011. The company currently has a dividend yield of 7.1%. Of the 12 analysts covering the stock, 33% rate a buy and the remaining rate a hold. On average, analysts estimate an upside of 7.1% to $42.88 in value from current levels. The stock has gained 5.6% in the past one year.