Why NGL Energy Partners Units Plunged 15% Today
Units of midstream energy player NGL Energy Partners (NYSE: NGL) nose-dived 15% by 2:30 p.m. EDT on Oct. 27. The units started the day off in the red and then continued to trickle lower and lower as investors digested the master limited partnership's business update. It wasn't good.
The big news from NGL Energy's update can be summed up pretty quickly: another distribution cut. After trimming the payment from $0.39 per unit per quarter to $0.20 in April, the partnership has now cut the payment to just $0.10 per unit per quarter. All in, that's a roughly 75% haircut for income-oriented investors. It's not surprising that NGL Energy's units sold off.
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Source Fool.com
