August 2021: Energy emergency risk areas

Each month, LP Gas provides updates on the U.S. propane market, as well as the latest trends. The data for August 2021 focuses on U.S. energy emergency risk areas.

Stock information for Ferrellgas and Suburban Propane is also provided.

PROPANE MARKET METRICS

Parts of the U.S. are at elevated or high risk for potential electricity emergencies, according to the North American Electric Reliability Corp.’s 2021 Summer Reliability Assessment. Electric supply shortages may occur in the western U.S., Texas, New England and parts of the Midwest. The highest risk of emergency is in California, a Western Electricity Coordinating Council (WECC) subregion, which relies heavily on energy imports during normal peak summer demand and when solar generation declines in the late afternoon. The Electric Reliability Council of Texas (ERCOT) typically has one of the smallest anticipated reserve margins in the U.S., with relatively little unused electric generating capacity during peak load times.

Source: Map by U.S. Energy Information Administration, based on North American Electric Reliability Corp. 2021 Summer Reliability Assessment

STOCK WATCH

Company	12-month chart (as of July ’21)	Price (7/16/21)	Current Yield	52-Week Low	52-Week High	YTD Price Performance
Ferrellgas – FGPR		$20.50	N/A	10.00	25.12	28.6%
Suburban Propane – SPH		15.32	7.9%	12.50	18.18	3.1%

Source: Company data, FactSet and Wells Fargo Securities LLC 

Note: Ferrellgas was relisted as FGPR, trading on OTC Markets, on 4/5/2021 due to corporate action.

Featured photo: monsitj/iStock / Getty Images Plus/Getty Images