asset values, page-11

The NGPL regulatory decision could be the nail in the coffin. NGPL returns are geulated by the FERC in the USA and they have just initiated a review of the rates charged by NGPL. FERC has major concerns which have been tabled in the US Federal Energy Regulatory Commission paper. It's strong view is that NGPL is overcharging. NGPL has until February to submit a cost and revenue study to FERC. That will be a tough ask given the capabilities management have shown over the past 12 months. If NGPL's charges are slashed, it will have grave consequences for the business and will impact on the equity value of NGPL. Equity could be a little as $55M after the changes which would value the entire PIH portfolio at $2.60 per share.