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Ngl Energy Partners Lp (NGL)
NYSE:NGL
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NGL Energy Partners
(NYSE:NGL)
Rating:58Neutral
Price Target:
$4.50
▼(-3.02% Downside)
Positive Factors
Financial Performance
Free cash flow per unit exceeded expectations, coming in above forecasted levels.
Growth Prospects
Management anticipates growth in the Crude Oil Logistics segment driven by future production expansion in the DJ Basin.
Operational Performance
Butane blending margins and volumes were higher than management's targets, showing strong operational performance into the fiscal second quarter.
Negative Factors
Earnings Guidance
Management reduced FY25 EBITDA guidance by 3% due to lower expectations for the Liquids segment and declining crude oil prices.
Earnings Miss
Fiscal second quarter adjusted EBITDA was below both consensus and internal estimates.
Segment Performance
All three business segments delivered contributions below internal estimates, affecting overall performance.
NGL Energy Partners (NGL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$593.21M
Dividend YieldN/A
Average Volume (3M)514.04K
Price to Earnings (P/E)―
Beta (1Y)0.50
Revenue Growth-33.19%
EPS Growth81.02%
CountryUS
Employees607
SectorEnergy
Sector Strength48
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)0.04
Shares Outstanding127,847,420
10 Day Avg. Volume503,269
30 Day Avg. Volume514,040
Financial Highlights & Ratios
PEG Ratio-0.13
Price to Book (P/B)0.00
Price to Sales (P/S)0.17
P/FCF Ratio11.60
Enterprise Value/Market Cap7.35
Enterprise Value/Revenue1.26
Enterprise Value/Gross Profit6.03
Enterprise Value/Ebitda7.30
Forecast
1Y Price Target
$4.50Price Target Upside-3.02% Downside
Rating ConsensusHold
Number of Analyst Covering1
NGL Energy Partners Business Overview & Revenue Model
Company DescriptionNGL Energy Partners is a publicly traded master limited partnership that provides a diverse range of services primarily in the energy and water sectors. The company operates through several segments, including crude oil logistics, water solutions, and liquid hydrocarbons. NGL specializes in the transportation, storage, and disposal of crude oil, as well as the management of produced water and other fluids associated with oil and gas production. With a focus on operational excellence and strategic asset acquisitions, NGL aims to deliver value to its partners and customers in the energy industry.
How the Company Makes MoneyNGL Energy Partners generates revenue through multiple key streams, primarily from its logistics and water solutions segments. The crude oil logistics segment earns income by offering transportation and storage services for crude oil, charging fees based on the volume of oil handled and the distance transported. In the water solutions segment, the company provides services related to the disposal and treatment of produced water, which includes charging customers for the handling and processing of wastewater from oil and gas operations. Additionally, NGL earns revenue from liquid hydrocarbons by selling refined products and by-products. The company also benefits from strategic partnerships with major oil and gas companies, enhancing its service offerings and expanding its customer base, which contributes significantly to its earnings.
NGL Energy Partners Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q1-2026)
| % Change Since: 16.00%|
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive sentiment, with significant improvements in the Water Solutions segment and strategic debt reduction measures overshadowing the declines in Crude Oil and Liquids Logistics segments. The company's focus on opportunistic capital allocation and cost management further supports a positive outlook.Q1-2026 Updates
Positive Updates
Water Solutions Business Segment Performance
The Water Solutions business segment reported an adjusted EBITDA of $142.9 million, up 13.8% from the prior year's first quarter, driven by higher disposal revenues and water pipeline revenue.
Increase in Physical Water Disposal Volumes
Physical water disposal volumes increased by 12.4% year-over-year, reaching 2.77 million barrels per day in the first quarter.
Cost Reduction in Water Solutions
Operating expenses in the Water Solutions segment decreased by $0.02 per barrel compared to the previous year, with costs at $0.22 per barrel.
Debt Reduction and Strategic Capital Allocation
The company paid off $17 million of debt on their ABL and repurchased $19 million of outstanding 2032 notes at a discount.
Common Unit and Preferred Unit Repurchase
The company repurchased approximately 4.7 million common units and 70,000 Class D preferred units, reflecting a strategic use of cash to improve balance sheet strength.
Negative Updates
Decrease in Crude Oil Logistics EBITDA
Crude Oil Logistics adjusted EBITDA fell to $9.6 million from $18.6 million year-over-year, primarily due to reduced sales from lower production and crude oil prices.
Decline in Liquids Logistics Segment
Liquids Logistics adjusted EBITDA decreased to $2.9 million from $5.7 million in the previous year, adjusted for asset sales.
Company Guidance
During the NGL Energy Partners 1Q fiscal year 2026 earnings call, the company reported a consolidated adjusted EBITDA of $144 million for the quarter, a 4% increase from the previous year's first quarter, driven primarily by their Water Solutions segment. The Water Solutions segment recorded an adjusted EBITDA of $142.9 million, up 13.8% from the prior year, with physical water disposal volumes rising by 12.4% to 2.77 million barrels per day. The Crude Oil Logistics segment experienced a decrease in adjusted EBITDA to $9.6 million, attributed to lower production and crude oil prices, though volumes on the Grand Mesa pipeline saw a 25% increase in July compared to June. The Liquids Logistics segment's adjusted EBITDA fell to $2.9 million, with emphasis now on the butane blending business. The company reaffirmed their full-year adjusted EBITDA guidance of $615 million to $625 million, and discussed strategic asset sales, debt reduction, and opportunistic capital allocation, including the repurchase of 4.7 million common units and $19 million of 2032 notes.NGL Energy Partners Financial Statement Overview
Summary
NGL Energy Partners shows a mixed financial performance. The income statement indicates modest profitability improvements, but declining revenues are a concern. The balance sheet reveals high financial leverage, posing risks despite some improvement in equity standing. The cash flow analysis is more favorable, with strong operational cash flow, yet external cash flows show volatility. Overall, the company needs to focus on revenue growth and debt reduction to enhance financial stability.Income Statement
NGL Energy Partners' income statement shows mixed performance over the years. The gross profit margin for the latest period is approximately 20.39%, with a slight improvement compared to previous periods. The net profit margin for the latest year is 1.13%, indicating a turnaround from previous losses. Revenue has decreased significantly in the latest year, down by 50%, suggesting challenges in maintaining growth. The EBIT and EBITDA margins are modest at 9.49% and 17.15%, respectively, demonstrating reasonable operational efficiency but room for improvement. Overall, the income statement reflects moderate profitability with recent improvements, but declining revenue is a concern.55
Neutral
Balance Sheet
The balance sheet of NGL Energy Partners indicates a high level of debt with a debt-to-equity ratio of 4.56, which is considerably high and suggests financial leverage risk. However, the equity ratio improved to 14.68%, indicating better equity coverage compared to previous periods. Return on Equity (ROE) is low at 5.82%, reflecting limited profitability on shareholder investments. The company has been reducing total assets, which may impact future growth potential. Overall, the balance sheet shows high leverage with some improvement in equity position but remains risky due to high debt levels.49
Neutral
Cash Flow
NGL Energy Partners' cash flow statement shows a positive trend in free cash flow, growing from $22 million to $51 million year over year. The operating cash flow to net income ratio is strong at 7.56, indicating effective cash generation from operations. The free cash flow to net income ratio is also positive at 1.31, reflecting solid operational cash performance. Despite these strengths, the volatility in cash flow from financing and investing activities indicates potential instability in cash management. Overall, the cash flow situation is stable with strong operational cash generation, but external cash flows require monitoring.61
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.47B | 3.47B | 6.96B | 8.69B | 7.95B | 5.23B |
| Gross Profit | 723.68M | 707.38M | 723.25M | 798.28M | 519.88M | 415.97M |
| EBITDA | 597.50M | 594.99M | 395.99M | 602.10M | 377.51M | -124.48M |
| Net Income | 39.37M | 39.37M | -143.75M | 51.39M | -184.10M | -637.42M |
Balance Sheet | ||||||
| Total Assets | 4.61B | 4.61B | 5.02B | 5.46B | 6.07B | 5.95B |
| Cash, Cash Equivalents and Short-Term Investments | 13.55M | 13.55M | 38.91M | 5.43M | 3.82M | 4.83M |
| Total Debt | 3.08B | 3.08B | 2.95B | 2.95B | 3.47B | 3.47B |
| Total Liabilities | 3.91B | 3.91B | 4.02B | 4.14B | 4.80B | 4.45B |
| Stockholders Equity | 676.70M | 676.70M | 1.03B | 1.35B | 1.30B | 1.48B |
Cash Flow | ||||||
| Free Cash Flow | 51.65M | 51.65M | 223.87M | 297.42M | 63.49M | 117.19M |
| Operating Cash Flow | 297.46M | 297.46M | 376.16M | 445.19M | 205.85M | 303.99M |
| Investing Cash Flow | -122.81M | -122.81M | -83.76M | 64.19M | -212.41M | -221.49M |
| Financing Cash Flow | -207.91M | -207.91M | -258.93M | -507.76M | 5.55M | -100.38M |
NGL Energy Partners Technical Analysis
Positive
4.64
Price Trends
4.20
Positive
3.88
Positive
4.32
Positive
Market Momentum
0.03
Negative
66.58
Neutral
69.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NGL, the sentiment is Positive. The current price of 4.64 is above the 20-day moving average (MA) of 4.26, above the 50-day MA of 4.20, and above the 200-day MA of 4.32, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 66.58 is Neutral, neither overbought nor oversold. The STOCH value of 69.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NGL.
NGL Energy Partners Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $1.71B | 19.28 | 13.89% | 6.05% | 3.74% | -4.49% | |
58 Neutral | $593.21M | ― | 8.32% | ― | -33.19% | 81.02% | |
57 Neutral | £7.56B | -1.56 | -6.62% | 6.65% | 6.83% | -87.26% | |
49 Neutral | $2.04B | ― | -14.68% | 3.97% | -28.72% | -1173.53% | |
49 Neutral | $127.32M | 33.55 | -6.93% | 0.64% | -1.06% | -340.61% | |
48 Neutral | $456.00M | 5.86 | -28.13% | ― | -4.69% | -418.50% |
* Energy Sector Average
Performance Comparison
NGL
NGL Energy Partners
4.64
0.49
11.81%
GEL
Genesis Energy
16.63
4.41
36.09%
GLP
Global Partners
49.00
13.83
39.32%
MMLP
Martin Midstream
3.26
-0.48
-12.83%
SMC
Summit Midstream
24.30
-10.10
-29.36%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.