SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : NGL to da moon (well, maybe to $10?)!!
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
From: Elroy1/29/2024 11:39:57 AM
   of 109
 
NGL 52 week high.

I think the next two interesting things are........

-perhaps they're going to pay the arrearage and refinance the preferred stock? By my calculations they generated perhaps $200m free cash in the recent long term debt refinance. Upsizing the offering from $2.1b to $2.2b obviously gives them an additional $100m cash. The arrearage is about $300m and will accumulate interest at about 13% from April 15th. Much better to pay that off with all the cash on hand than earn that 13% obligation.

-peraps they're going to give some guidance on fiscal 2025 (ends March) EBITDA when they report Dec Q results in Feb. They're building this new pipleline, and they said in the previous call that new biz would ramp a bit in the March Q and moreso for during fiscal 2025. They may give some idea of what to expect in fiscal 2025, and if EBITDA is going above $700m per year, well, the long term story looks great.

I think they probably reinstate distributions by Q2 2025 latest. I think they'll have the cash to do it sooner if they choose, it just depends on whether they want to keep delevering, or they want to pay some distributions.

I think it's reasonable to expect NGL to be $8-$10 a year from now, with the fiscal 2025 EBITDA guidance being the main question mark. If they guide to $700m+ EBITDA, then I think the unit price gets above $8.00 by March 2025 easily.

NGL story is about half way done from what was expected when this board launched. Is anybody else on the NGL train? Here I am talking to myself again...... :-)
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News