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NGL Energy Partners (NGL)
:NGL
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NGL Energy Partners
(NYSE:NGL)
Rating:53Neutral
Price Target:
$4.00
▼(-2.68%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
$542.57M
Dividend YieldN/A
Average Volume (3M)471.90K
Price to Earnings (P/E)―
Beta (1Y)0.44
Revenue Growth-24.39%
EPS Growth72.08%
CountryUS
Employees607
SectorEnergy
Sector Strength56
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)-0.12
Shares Outstanding132,012,770
10 Day Avg. Volume337,120
30 Day Avg. Volume471,897
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap8.36
Enterprise Value/Revenue1.31
Enterprise Value/Gross Profit6.27
Enterprise Value/Ebitda7.59
Forecast
1Y Price Target
$5.00Price Target Upside21.65% Upside
Rating ConsensusHold
Number of Analyst Covering0
NGL Energy Partners Business Overview & Revenue Model
Company DescriptionNGL 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 MoneyNGL Energy Partners generates revenue through several key segments. The Crude Oil Logistics segment involves the transportation, terminaling, and marketing of crude oil, utilizing a network of pipelines, storage terminals, and other logistics assets. The Water Solutions segment provides water management services to the oil and gas industry, including the treatment, recycling, and disposal of produced water, which is a byproduct of oil and gas production. The Liquids Logistics segment deals with the transportation, storage, and marketing of liquefied petroleum gases (LPGs) and refined products. The company leverages long-term contracts and relationships with producers and refiners to ensure a steady flow of business. Additionally, strategic partnerships and joint ventures play a role in expanding its asset base and service offerings, contributing to its overall earnings.
NGL Energy Partners Earnings Call Summary
Earnings Call Date:May 29, 2025
(Q4-2025)
| % Change Since: 27.64%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook with strong performance in the Water Solutions segment, successful asset sales leading to debt reduction, and a strategic focus on core business areas. However, there are challenges in the Crude Oil and Liquids Logistics segments and potential headwinds from oil price uncertainty. Despite these lowlights, the highlights significantly outweigh the challenges.Q4-2025 Updates
Positive Updates
Successful Non-Core Asset Sales
NGL Energy Partners LP closed on the sale of 18 natural gas liquids terminals and monetized several other non-core assets, generating proceeds at a double-digit multiple.
Water Solutions Segment Growth
Water Solutions adjusted EBITDA was $154.9 million in Q4, up from $123.4 million in the prior year, driven by higher disposal volumes and fees. Total disposal volumes increased by 11% year-over-year.
Reduction in Operating Costs
Operating cost per barrel in the Water Solutions segment decreased to 22¢ for fiscal 2025 from 24¢ in fiscal 2024.
Full-Year Adjusted EBITDA Exceeds Guidance
Full-year adjusted EBITDA was $622.9 million, surpassing the previous guidance of $620 million.
Debt Reduction and Capital Structure Improvement
Proceeds from asset sales helped pay off the entirety of the outstanding indebtedness on the ABL, and 20,000 units of Class D preferreds were purchased in the open market.
Strategic Focus on Core Water Solutions Business
NGL Energy Partners LP is concentrating on its Water Solutions segment, which will generate approximately 85% of adjusted EBITDA.
Negative Updates
Decline in Crude Oil Logistics EBITDA
Crude oil logistics adjusted EBITDA was $13.1 million in Q4, down from $15.3 million in the prior year's Q4, primarily due to lower volumes on the Grand Mesa pipeline.
Liquids Logistics Segment Challenges
Liquids Logistics adjusted EBITDA decreased to $17.7 million in Q4 from $22.2 million in the prior year, with butane margins declining due to a weak gasoline blending season.
Potential Headwinds from Oil Price Uncertainty
The guidance for fiscal 2026 accounts for a $20 million decline in skim oil revenues due to lower crude prices, indicating potential challenges if oil prices remain volatile.
Company Guidance
During the NGL Energy Partners LP 2025 Q4 earnings call, CFO Brad Cooper outlined several key financial metrics and strategic moves. The quarter's consolidated adjusted EBITDA from continuing operations was reported at $176.8 million, marking a 20% increase from the prior year's $147.9 million, primarily due to the Water Solutions segment's performance. For the full fiscal year, adjusted EBITDA reached $622.9 million, surpassing their guidance of $620 million. The Water Solutions segment alone reported an adjusted EBITDA of $154.9 million for the quarter, with a notable increase in water disposal volumes to 2.73 million barrels per day, an 11% rise compared to the previous year. The company's asset sales, including non-core assets and the wind-down of the biodiesel business, resulted in reduced volatility and seasonality of adjusted EBITDA, freeing up over $100 million of working capital. These proceeds were used to pay off outstanding indebtedness, including the purchase of 20,000 Class D preferred units. For fiscal 2026, NGL Energy Partners guides an EBITDA range of $615 million to $625 million, with capital expenditures totaling $105 million, $60 million of which will be allocated to growth projects within the Water Solutions segment.NGL Energy Partners Financial Statement Overview
Summary
NGL Energy Partners shows moderate profitability improvements with a net profit margin of 1.13% and stable EBIT and EBITDA margins. However, declining revenue by 50% and a high debt-to-equity ratio of 4.56 are significant concerns. The cash flow is stable with strong operational cash generation, but external cash flows show volatility.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 | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.47B | 6.96B | 8.69B | 7.95B | 5.23B |
| Gross Profit | 707.38M | 723.25M | 771.26M | 519.88M | 415.97M |
| EBITDA | 594.99M | 395.99M | 602.10M | 377.51M | -124.48M |
| Net Income | 39.37M | -143.75M | 51.39M | -184.10M | -637.42M |
Balance Sheet | |||||
| Total Assets | 4.61B | 5.02B | 5.46B | 6.07B | 5.95B |
| Cash, Cash Equivalents and Short-Term Investments | 13.55M | 38.91M | 5.43M | 3.82M | 4.83M |
| Total Debt | 3.08B | 2.95B | 2.95B | 3.47B | 3.47B |
| Total Liabilities | 3.91B | 4.02B | 4.14B | 4.80B | 4.45B |
| Stockholders Equity | 676.70M | 1.03B | 767.43M | -308.00K | -266.00K |
Cash Flow | |||||
| Free Cash Flow | 51.65M | 223.87M | 297.42M | 63.49M | 117.19M |
| Operating Cash Flow | 297.46M | 376.16M | 445.19M | 205.85M | 303.99M |
| Investing Cash Flow | -122.81M | -83.76M | 64.19M | -212.41M | -221.49M |
| Financing Cash Flow | -207.91M | -258.93M | -507.76M | 5.55M | -100.38M |
NGL Energy Partners Technical Analysis
Negative
4.11
Price Trends
4.10
Positive
3.90
Positive
4.32
Negative
Market Momentum
0.02
Positive
42.76
Neutral
31.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NGL, the sentiment is Negative. The current price of 4.11 is below the 20-day moving average (MA) of 4.27, above the 50-day MA of 4.10, and below the 200-day MA of 4.32, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 42.76 is Neutral, neither overbought nor oversold. The STOCH value of 31.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NGL.
NGL Energy Partners Peers Comparison
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $1.75B | 16.37 | 16.23% | 5.69% | 6.04% | 18.28% | |
56 Neutral | C$4.11B | -0.36 | -1.33% | 6.55% | 5.54% | -67.49% | |
53 Neutral | $542.57M | ― | 4.63% | ― | -24.39% | 72.08% | |
48 Neutral | $2.08B | ― | -14.68% | 3.88% | -28.72% | -1173.53% | |
48 Neutral | $456.38M | 5.86 | -28.13% | ― | -4.69% | -418.50% | |
40 Underperform | $114.04M | 33.55 | -6.93% | 0.68% | -1.06% | -340.61% |
* Energy Sector Average
Performance Comparison
NGL
NGL Energy Partners
4.11
0.01
0.24%
GEL
Genesis Energy
17.02
4.78
39.05%
GLP
Global Partners
51.58
14.94
40.78%
MMLP
Martin Midstream
2.92
-0.68
-18.89%
SMC
Summit Midstream
24.32
-11.77
-32.61%
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.