January 2021: LPG tank car sublease rates

Each month, LP Gas provides updates on the U.S. propane market, as well as the latest trends. The data for January 2021 focuses on LPG tank car sublease rates. This month’s data comes from the U.S. Energy Information Administration and Energy Transport Insider. Subscribe to Energy Transport Insider’s sublease price assessment here.

Stock information for Ferrellgas and Suburban Propane is also provided.

PROPANE MARKET METRICS

Chart: Energy Transport Insider

LPG tank car sublease rates are depressed. For shippers that book cars at these levels, economic opportunities to ship and store propane and butane by rail could be opening.

Chart: U.S. Energy Information Administration and Energy Transport Insider

Declines in propane-and butane-by-rail shipments have resulted in weaker 12-month LPG tank car sublease rates.

STOCK WATCH

Company	12-month chart (as of December ’20)	Price (12/18/20)	Current Yield	52-Week Low	52-Week High	YTD Price Performance
Ferrellgas – FGP		$0.29	0.0%	0.14	0.71	(13.9%)
Suburban Propane – SPH		15.28	7.9%	8.64	22.87	(30.1%)

Source: Company data, FactSet and Wells Fargo Securities LLC

Note: Ferrellgas delisted from the New York Stock Exchange in January 2020 and now trades on the OTC Markets.

Featured image: avgust01/iStock/Getty Images