Profile: Inergy LP (NRGY.N)
15.28USD
10:59am EDT
$0.08 (+0.53%)
$15.20
$15.20
$15.52
$15.04
19,186
110,245
$25.33
$13.90
Inergy, L.P. (Inergy) owns and operates a wholesale propane supply, marketing and distribution business. The Company also owns and operates a growing midstream business with natural gas storage and transportation operations, natural gas liquids (NGL) processing, fractionation, storage and marketing operations, and salt production operations. Inergy operates in two segments: propane operations and midstream operations. Inergy’s propane operations include propane sales to end users, the sale of propane-related appliances and service work for propane-related equipment, the sale of distillate products and wholesale distribution of propane and marketing and price risk management services to other users, retailers and resellers of propane. Its midstream operations include storage of natural gas and natural gas liquids for third parties, fractionation of natural gas liquids, processing of natural gas, distribution of natural gas liquids and the production and sale of salt. On October 19, 2010, it acquired the propane assets of Schenck Gas Services, LLC (Schenck). In May 2012, Inergy Midstream LP announced that it acquired 100% of the membership interests in US Salt, LLC (US Salt) from Inergy. On August 1, 2012, Suburban Propane Partners, L.P. acquired its retail propane operations.
On November 15, 2010, the Company acquired the propane assets of Pennington Energy Corporation (Pennington). On October 14, 2010, it acquired the Tres Palacios facility. On July 13, 2011, the Company acquired the Seneca Lake facility.
Propane Operations
As October 31, 2011, the Company distributed propane to retail customers from 338 customer service centers in 33 states. It markets propane primarily in the eastern half of the United States through its customer service centers using multiple regional brand names. From its customer service centers, the Company also sells, installs and service equipment related to its propane distribution business, including heating and cooking appliances. Typical customer service centers consist of an office and service facilities, with one or more 12,000 to 30,000 gallon bulk storage tanks. The capacity of these tanks range from 100 gallons to 1,200 gallons, with a tank having a capacity of 100 to 300 gallons in milder climates and 500 to 1,000 gallons in colder climates. It also delivers propane to retail customers in portable cylinders, which has a capacity of 5 to 35 gallons. It also delivers propane to certain customers in trucks known as transports, which has an average capacity of 10,000 gallons. During fiscal, 2011, it delivered approximately 44% of its propane volume to retail customers and 56% to wholesale customers. Approximately half of its residential customers receive their propane supply under an automatic delivery program.
Under the automatic delivery program, the Company delivers propane to its heating customers approximately six times during the year. In addition, it provides emergency service around the clock. Its transportation assets are operated by L&L Transportation, LLC, a wholly owned subsidiary of Inergy Propane. As of September 30, 2011, Inergy owned a fleet of 145 tractors, 234 transports, 1,281 bobtail and rack trucks and 797 other service vehicles. Its fleet is also used to deliver butane and ammonia for third parties and to distribute natural gas for various processors and refiners. The Company owns truck maintenance facilities located in Indiana, Ohio and Mississippi. It also has a trucking operation located in California as part of its NGL business.
Midstream Operations
The Company’s natural gas storage facilities include Stagecoach, Thomas Corners, Steuben, Tres Palacios and Seneca Lake. Stagecoach is a multi-cycle natural gas storage facility located in Tioga County, New York and Bradford County, Pennsylvania with 26 billion cubic feet (Bcf) of certificated working gas capacity. Thomas Corners is a multi-cycle natural gas storage facility located in Steuben County, New York with seven Bcf of certificated working gas capacity. The facility generates fee-based revenues and is 100% contracted primarily with investment grade customers. Steuben is a single-turn natural gas storage facility located in Schuyler County, New York with six Bcf of certificated working gas capacity. Tres Palacios is a multi-cycle salt dome natural gas storage facility located in Matagorda and Wharton Counties, Texas with approximately 38 Bcf of certificated working gas capacity, located approximately 100 miles southwest of Houston. Seneca Lake, a multi-cycle natural gas storage facility in Schuyler County, New York with one Bcf of certificated working gas capacity.
The Company’s midstream business primarily includes natural gas transportation assets, including the 37 mile Inergy East intrastate pipeline located in New York and the Stagecoach pipeline laterals and added compression and related facilities (collectively North/South Project). West Coast NGL business located near Bakersfield, California, which includes a 24 million gallon NGL storage facility, a 25 million cubic feet (MMcf) day natural gas processing plant, 12,000 barrels per day NGL fractionation plant, an 8,000 barrels per day butane isomerization plant, NGL rail and truck terminals, and NGL transportation and marketing operations. The Bath NGL storage facility is a one million barrel salt cavern propane and butane storage facility located near Bath, New York, located approximately 210 miles northwest of New York City.
The company owns natural gas pipelines, including storage pipeline laterals, located in New York and Pennsylvania that provide shippers with 30 MMcf/d of intrastate transportation capacity. Its proposed MARC I pipeline is a 39-mile, 30-inch diameter bidirectional natural gas pipeline that will connect the Stagecoach south lateral and TGP’s 300 Line in Bradford County, Pennsylvania, with Transco’s Leidy Line in Lycoming County, Pennsylvania.
The Company competes with Dominion Resources, Inc., NiSource Inc. and El Paso Corporation.
Company Address
Inergy LP
Suite 200, 2 Brush Creek Blvd.
KANSAS CITY MO 64112
P: +1816.8428181
F: +1816.8421904
Company Web Links
| Name | Compensation |
|---|---|
Robert Phillips |
-- |
Michael Campbell |
815,750 |
William Gautreaux |
1,192,930 |
Laura Ozenberger |
1,373,580 |
Michael Lenox |
-- |

