This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Inergy's CEO Hosts Investor Conference Call (Transcript)

With that John, I will turn it to you.

John Sherman

Thank you, Brooks, and thank you, everyone, for your attendance on the call today. From my perspective, today’s announcement is another step in a strategic progress that began when we announced we were going to IPO our Northeast natural gas business. That IPO completed in December structurally began the process of separating our two primary businesses.

Our objective as stated at the time was to ultimately create two focused MLPs with their own pools of capital and unique M&A opportunities.

In the process, we started the de-leveraging of NRGY and expect it to unlock the embedded value of our high-growth fee-based midstream business. The transaction we announced today accelerates that process.

We have been proponents of propane industry consolidation for some time. This transaction accomplishes participation in that for us. The combining of operations with Suburban Propane creates scale, geographic diversity and the efficiencies needed to be competitive in the propane industry.

Our investors will retain an investment in that business acquired by Suburban and participate in those synergies and Inergy will focus on growing our midstream business.

I want to take the next few minutes to talk about the propane transaction, what it means for us going forward, and then we will also discuss some detail around the distribution that we announced this morning at NRGY.

I’m going to start referring you to the slides here just for a minute. I’m looking at slide five which says Retail Propane Transaction Overview at the top. Just to kind of describe the transaction as announced. We’re selling our retail propane operations to Suburban Propane for $1.8 billion. The acquisition is financed through a $1.2 billion bond exchange and a combination of Inergy and our investors will receive $600 million worth of SPH units. As I mentioned, our unit holders will have an opportunity to participate in propane industry consolidation via that investment.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,698.18 -77.94 -0.44%
S&P 500 2,059.69 -8.20 -0.40%
NASDAQ 4,880.2280 -20.6570 -0.42%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs