best outdoor gas grills Ferrellgas, 9% Yield-To-Maturity, Maturing June 2020

by:Longzhao BBQ     2020-01-07
best outdoor gas grills Ferrellgas, 9% Yield-To-Maturity, Maturing June 2020
This week we the third times attention American's second-largest propane dealersS.We reviewed Ferrellgas for the first time in September 2015 and September 2016 (NYSE: FGP ).There have been several positive developments since our last review: Ferrellgas is seeking to redeem its oil and gas midstream assets as it continues to focus on the core of its propane distribution.James Ferrer, who has a large personal stake in the company, has made management changes and has committed to supporting the balance sheet.As these steps begin to affect the Company's ongoing business, this should benefit shareholders and bondholders.The bonds issued by the company in June 2020 rose at a price of £ 8.625%, the yield due is about 9%, adding a solid portfolio to the additional diversity of the energy sector.We like the competitive yields of these bonds and will consider their additional weights in our FX1 and FX2 income portfolios.Since our last review, our last review of Ferrellgas Partners was in September 2016, just before the company released its fourth quarter and full-year results for 2016.Since then, there have been some notable changes in Ferrellgas.The biggest change occurred at the end of last September, when Stephen Wambold, CEO of Ferrellgas, was replaced by former CEO and founder James Ferrell.Ferrer has helped build a company named after him and has a personal vested interest in ensuring the company's continued success --He personally owns about 5 million Ferrellgas Partners.Ferrellgas's results for fiscal 2016 were impressive because of the adverse factors of winter warming in North America over the past few years.The adjusted EBITDA for fiscal year (FY) 2016 was $0.345 billion, compared with an increase of 0.3 billion for fiscal year 15%.In addition, gross profit increased by 9 for the whole year.75% year-over-It will reach $0.878 billion this year, compared to $0.8 billion in fy2015.This increase is mainly due to the increased contribution of the company's Bridger Logistics Department.Ferrellgas's latest quarterly results (three months as of January 31, 2017) showed that operating income performed well in the twelve months ended January 31, 2017.There is no significant impairment of assets of $628.In the fourth quarter of fiscal 2016, Ferrellgas earned $114.Operating income was $3 million, compared to $74.The previous year was 2 million per cent, reflecting an outstanding growth of 54% per cent.This review will provide a more detailed account of this impairment of assets later.Since one of the main uses of propane in this country is home heating, sales of propane in Ferrellgas are severely affected by seasonal temperatures, especially in the cold winter months.(Source: market realists) this winter is 4% colder than last year, but still 14% higher than normal.Still, Ferrellgas was able to increase the number of propane gallons sold this year by 7%-over-Of the most recent quarterly results (the second fiscal quarter ended January 31, 2017), it was mainly due to its efforts to increase market share.About issuerferllgas is a leading U.S.Dealer of related equipment.Headquartered in KS's Land Park, the company currently employs nearly 4000 employees nationwide.80 in ferrargas-In the past year, the company has developed mainly through acquisitions, which have acquired more than 235 companies.The company also provides oil and gas midstream services to major energy companies in the United States through its two midstream divisions, Sable Environmental mental (acquired in May 2014) and Bridger Logistics (acquired in June 2015.The company also obtains sales from portable tank exchanges of national brands through an independent and cooperative network --Have distribution outlets.Its residential and agricultural customers usually live in rural areas, while its Industrial/Commercial and tank exchange customers usually live in more urban areas.At present, the propane industry consists of several large companies and many small companies, most of which are small regional suppliers.Today, Ferrellgas is the second largest propane distributor in the United States and has operations in all 50 states.In addition to what most people think is used, propane has a wide range of usesBackyard BBQ and portable stove.Farmers use propane on irrigation pumps, grain dryers, backup generators and other agricultural equipment.It is an essential fuel for crop drying, flame cultivation, fruit ripening, space and hot water, and food refrigeration.Millions of households across the country also use propane on stoves, water heaters, stoves, outdoor grills, fireplaces, generators and other appliances every day.In rural areas of the country, in essence, the distribution of propane is often geographically monopolized, meaning that there is usually only one distributor in an extended rural area.Ferrellgas takes advantage of this advantage to actively acquire and continue to solicit regional propane suppliers/distributors who may be interested in selling their business.This strategy has been successful, making Ferrellgas the second largest propane distributor in the country.(Source: LPGasMagazine.com-Part list of the top 50 propane retailers) corporate bondholders are particularly interested in financial interest insurance because it shows the company's ability to pay bond interest when payments are due.Ferrellgas's most recent quarterly results (the three months ended January 31, 2017) earned $75 in operating income.Interest expenditure of $2 million and $36.8 million interest guarantee 2.0x.Ferrellgas also has a lot of cash on hand.The company had $14 as of January 31, 2017.7 million cash on handFerrellgas also continues to pay its unit quarterly.The company recently announced a cash allocation of $0 for the second quarter.10 Public units each.While these allocations do not affect bondholders, bondholders should be encouraged because such dividend levels provide additional cash buffers if there is a quarterly fluctuation in the company's cash flow.Asset write in stream-Another development recorded in Ferrellgas's fiscal 2016 is a large investment of $0.658 billion.Related to the oil and gas midstream business (black beer environment and breje logistics.This is mainly due to the loss of Bridger's biggest customers through Jamex marketing.Ferrellgas terminated the agreement with Jamex Marketing and provided Jamex's secured promissory note and settlement of Ferrellgas's remaining arrears.However, Ferrellgas does not expect any substantial contribution from Jamex or customers to EBITDA revenue in the future.Since 80% of the adjusted EBITDA from FY2016 from Bridger was generated by that customer, ferrelllgas decided to write-A lot of value is reduced.Risk default risk is the execution capability of ferrellgas.It is encouraging to have a member of the company's founding family recently returned to the position of CEO, especially given his huge personal ownership position in Ferrellgas.Also, although the company recently wrote down most of the value of its Bridger Logistics division, it has installed new management at Bridger and is driving new procurement transactions.Finally, Ferrellgas did show outstanding revenue growth in the 12 months ended January 31, 2017, up 54% year on yearover-year.In view of these factors, excellent 9.5% yield-to-The maturity of these bonds in June 2020 seems to exceed the identified risks.Due to changes in seasonal temperatures, revenue sources for ferrellgas sales and distribution of propane vary throughout the year.Demand for winter (heating for residential and commercial buildings) has increased.As a result, the company has higher revenues in the second and third Fiscal Quarters (peak winter periods.One of Ferrelgas's ways to increase these revenues over the rest of the year is to sell portable cans to exchange propane through its Blue Rhino division.These sales increased operating profits in the first and fourth quarter of the company.Seasonal Business activitiesIn general, bond prices rise when interest rates fall, and vice versa.This effect is more obvious for lower Coupe, longerTerm debt instruments.Any fixed income securities sold or redeemed before maturity may have gains and losses.Bonds with higher yields typically have a lower credit rating, if any, and therefore involve a higher level of risk and may not be suitable for all investors.This bond issue of Ferrellgas is similar to the yield and duration of other bond issuance reviewed by The BondYields.Com, including 9.5% to 11.2% health care for relatives and 17.5% of Northern Oil and Gas bonds.Summary and conclusion ferrellgas has achieved excellent results in fy2016.Now, while starting to rebuild mid-stream assets, it is re-focusing on its propane core.James Ferrer's return as CEO is a clear positive because he has a vested interest in ensuring the company's continued profitability.The latest financial data show that the number of propane sold has increased, the interest coverage is very good, impressive 12-Monthly revenue growth.So the company's 37-8 consecutive rise in monthly debt.625% and yield-to-The expiry date of about 9% marks the additional weight of the revenue portfolio managed by our FX1 and FX2.Issuer: LPCoupon, Ferrellgas Partners: 8.625% due date: 6/15/2020 rating: B3/BPays: Half Year Price: 98.75 yield to maturity :~ 9.09% disclosure: In order to get higher returns and reduce costs as much as possible, we usually bundle smaller retail orders with larger institutional orders from many global trading companies and bond platforms.Our professional services enable us to get more kinds of bonds, higher yields and lower prices.Most of our customer account hosting agencies are in their own name at TD Ameritrade Institutional, a big discount service provider covered by SPIC, or at an interactive broker.Before finding any target criteria that meet or exceed what we believe to be successful, we have followed thousands of bond offerings and their underlying fundamentals for months, sometimes even years.Our top priority is to provide the best opportunities for our customers.Our bond reviews are posted on the Internet and distributed to thousands of potential customers and competitive companies through our free email newsletter after we first met customer needs.If the availability or liquidity of the bond selection is very limited, or is deemed not to be in the best interests of our customers, it may not be published.When high-yield bonds with improved fundamentals are available at a lower cost, Durig Capital believes that investors will receive higher revenue through our superior high-income, low-cost trust services.Please note that all yield and price indicators are shown from the beginning of our study.Our report is by no means an offer to buy or sell any securities.We are not a broker/distributor and the report is intended to be distributed to our customers.Due to our institutional associations, we often get better revenue/price execution for our clients than originally shown in our report.We welcome inquiries from other consultants who may also be interested in the possibility of higher returns for our work and retail customers.Support document disclosure: I/we have no positions in any of the stocks mentioned and no plans to start any positions in the next 72 hours.This article was written by myself and expressed my views.I was not compensated.I have no business relationship with any stock company mentioned in this article.
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