RE:RE:RE:RE:RE:OPEC cut not the best for Superior.Becky/BigBear, to add to a couple of your comments.
BigBear, Scotia increased their price targets to $12.50, not reduce.
It's true that two years ago they had a monster year based on the super cold winter that increased sales and lower propane cost base. Retail prices stayed flatish from prior year, wholesale prices came down a little but not as much as costs. Last winter was very warm which reduced sales volume. This winter will be colder and provide great YoY volume increases. Not sure if they can move up pricing materially.
A lot of propane profits are volume related and maintaining margins by controlling distribution costs. Barring any mid season spike in Propane costs SPB can pass through most increases to the consumer over time.
Generally I think increased energy prices are good for chemical producers but not as important as demand increases and a healthy consumer economy as the chems are used in everything from diapers to lumber and manufacturing.
I like where SPB is for the yield and am neither a strong buyer or seller at this level. I think the next major catalyst for the company is an acquisition and I don't have any idea on timing.
Good luck.