Seeking Alpha

Niska Gas Storage +3.5% as StreetAuthority offers bullish view

  • "The best MLP you've never heard of" is Niska Gas Storage Partners (NKA +3.5%), according to a favorable profile by StreetAuthority's Daniel Cross, who says NKA stands out with a price-to-free cash flow ratio of ~14 while vs. a negative average for the industry, and a 9.6% dividend yield.
  • This strength gives NKA the ability to make acquisitions and capital expenditures to grow at a much faster pace than other utility companies, Cross writes.
  • Competitors such as Buckeye Partners (BPL) and TransCanada (TRP) also should also benefit from the rising tide in natural gas production since both companies trade at roughly NKA's P/E, but neither offers NKA's potential for double digit growth, according to Cross.
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Comments (3)
  • njolsson
    , contributor
    Comments (30) | Send Message
     
    Oh, did they get new management and stop selling their assets to fund their distribution? Or did they promise not cut their distribution again, because they are "committed" to it?

     

    Their price is depressed because they can't be trusted. Buyer beware.
    11 Apr 2014, 02:47 PM Reply Like
  • SaltyDog62
    , contributor
    Comments (791) | Send Message
     
    Since they never increase distribution, I am staying away!!!
    12 Apr 2014, 12:53 AM Reply Like
  • Hector_Torres
    , contributor
    Comments (18) | Send Message
     
    NKA seems like a great short to me. Need to do more research. But to start their 9% dividend is unsustainable. I dont know how the hell they're continuing to pay that out but soon they'll have to lower it.
    28 Apr 2014, 11:07 AM Reply Like
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