NGL Energy Partners (NGL) AI Stock Analysis

• Market Cap: $698.05M
• Dividend Yield: N/A
• Average Volume (3M): 697.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.47
• Revenue Growth: -33.19%
• EPS Growth: 81.02%
• Country: US
• Employees: 607
• Sector: Energy
• Sector Strength: 67
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.04
• Shares Outstanding: 127,847,420
• 10 Day Avg. Volume: 923,861
• 30 Day Avg. Volume: 697,046
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 6.25
• Enterprise Value/Revenue: 1.61
• Enterprise Value/Gross Profit: 3.73
• Enterprise Value/Ebitda: 7.02
• 1Y Price Target: $5.50
• Price Target Upside: -0.54% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: $5.50 ▼(-0.54% Downside)

NGL Energy Partners' overall score is driven by strong technical momentum and improvements in profitability and cash flow. However, valuation concerns due to a negative P/E ratio and challenges in certain business segments weigh down the score.

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 Business Overview & Revenue Model

Company Description

NGL Energy Partners LP engages in the transportation, storage, blending, and marketing of crude oil, natural gas liquids, refined products / renewables, and water solutions. The company operates in three segments: Water Solutions, Crude Oil Logistics, and Liquids Logistics. The Water Solutions segment transports, treats, recycles, and disposes produced and flowback water generated from oil and natural gas production; aggregates and sells recovered crude oil; disposes solids, such as tank bottoms, and drilling fluid and muds, as well as performs truck and frac tank washouts; and sells produced water for reuse and recycle, and brackish non-potable water. The Crude Oil Logistics segment purchases crude oil from producers and marketers, and transports it to refineries for resale at pipeline injection stations, storage terminals, barge loading facilities, rail facilities, refineries, and other trade hubs; and provides storage, terminaling, and transportation services through pipelines. The Liquids Logistics segment supplies natural gas liquids, refined petroleum products, and biodiesel to commercial, retail, and industrial customers in the United States and Canada through its 24 terminals, third-party storage and terminal facilities, and nine common carrier pipelines, as well as through fleet of leased railcars. This segment is also involved in the marine export of butane through its facility located in Chesapeake, Virginia. NGL Energy Holdings LLC serves as the general partner of the company. The company was founded in 1940 and is headquartered in Tulsa, Oklahoma.

How the Company Makes Money

NGL 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 Financial Statement Overview

Summary

NGL Energy Partners shows improved profitability and cash flow metrics, with a strong free cash flow growth rate. However, challenges persist with revenue decline and high leverage, despite some reduction in debt.

Income Statement

NGL Energy Partners has shown improvement in profitability metrics over the TTM period, with a gross profit margin of 43.23% and a net profit margin of 3.65%. However, the company experienced a significant revenue decline of 22.05% in the TTM, indicating potential challenges in maintaining revenue growth. The EBIT and EBITDA margins have improved to 12.90% and 22.98% respectively, reflecting better operational efficiency.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 0.89 in the TTM, which is a significant improvement from previous years but still indicates leverage risk. The return on equity has improved to 17.30%, suggesting better profitability relative to shareholder equity. The equity ratio stands at 3.40%, indicating a low proportion of equity financing compared to total assets.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth rate of 141.56% in the TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.71, and the free cash flow to net income ratio is 0.37, both reflecting a healthy conversion of income to cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.70B	3.47B	6.96B	8.69B	7.95B	5.23B
Gross Profit	1.17B	707.38M	723.25M	798.28M	519.88M	415.97M
EBITDA	621.48M	594.99M	395.99M	602.10M	377.51M	-124.48M
Net Income	98.61M	39.37M	-143.75M	51.39M	-184.10M	-637.42M
Balance Sheet
Total Assets	4.19B	4.61B	5.02B	5.46B	6.07B	5.95B
Cash, Cash Equivalents and Short-Term Investments	5.44M	13.55M	38.91M	5.43M	3.82M	4.83M
Total Debt	126.48M	3.08B	2.95B	2.95B	3.47B	3.47B
Total Liabilities	4.05B	3.91B	4.02B	4.14B	4.80B	4.45B
Stockholders Equity	142.45M	676.70M	1.03B	1.35B	1.30B	1.48B
Cash Flow
Free Cash Flow	124.76M	51.65M	223.87M	297.42M	63.49M	117.19M
Operating Cash Flow	332.78M	297.46M	376.16M	445.19M	205.85M	303.99M
Investing Cash Flow	48.12M	-122.81M	-83.76M	64.19M	-212.41M	-221.49M
Financing Cash Flow	-396.67M	-207.91M	-258.93M	-507.76M	5.55M	-100.38M

NGL Energy Partners Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 5.53 is above the 20-day moving average (MA) of 4.93, above the 50-day MA of 4.53, and above the 200-day MA of 4.39, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 77.52 is Negative, neither overbought nor oversold. The STOCH value of 86.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NGL.

NGL Energy Partners Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.47B	7.31	3.20%	5.32%	4.22%	-60.66%
NGL	61 Neutral	$698.05M	―	8.32%	―	-33.19%	81.02%
GLP	61 Neutral	$1.81B	20.24	13.89%	5.62%	3.74%	-4.49%
GEL	56 Neutral	$2.08B	―	-14.68%	3.96%	-28.72%	-1173.53%
MMLP	49 Neutral	$130.44M	33.55	-6.93%	0.59%	-1.06%	-340.61%
SMC	44 Neutral	$432.00M	5.86	-25.85%	―	2.91%	-432.03%
PBT	―	$781.16M	50.03	9136.56%	1.49%	―	―