September 2021: Tank car sublease rates versus propane exports
Each month, LP Gas provides updates on the U.S. propane market, as well as the latest trends. The data for September 2021 focuses on LPG tank car sublease rates versus propane exports.
Stock information for Ferrellgas and Suburban Propane is also provided.
PROPANE MARKET METRICS
Five-year LPG tank car sublease rates versus propane exports (April 2019 to July 2021)
Commentary: A rise in propane exports, due to the completion of key pipelines, has reduced the need to ship propane by rail. The five-year sublease, a long-term measure of tank car lease rates, has fallen below $600/car/month as exports have trended higher. LPG marketers are either storing cars or sending them to scrap.
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STOCK WATCH
Source: Company data, FactSet and Wells Fargo Securities LLC (SPH); Yahoo Finance (FGPR)
Note: Ferrellgas was relisted as FGPR, trading on OTC Markets, on 4/5/2021 due to corporate action.
Featured photo: MF3d/iStock / Getty Images Plus/Getty Images