I did a quick review of Niska Gas Storage Partners (NYSE: NKA) since I was curious about companies that store natural gas. NKA was trading relatively low and had an abnormally high yield ($1.40/unit or 12.2% at the end of today’s trading price).
Given its governance structure (majority-controlled by another shareholder), this is purely a cash flow play – and it appears that the distributions are well above what the company is generating in cash. It doesn’t even appear to be an asset play either – once you subtract the goodwill and intangibles, book value is considerably lower than existing market prices.
Notably, the bonds that mature on March 15, 2018 have a coupon of 8.875% and some trades went off at a yield to maturity as high as 10.6%, which is probably the safer play if you were to buy into this one for cash flow reasons.