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NGL Energy Partners (NGL)
:NGL
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NGL Energy Partners
(NYSE:NGL)
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Rating:61Neutral
Price Target:
$5.50
▼(-15.38% 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
Strong Cash Flow Growth
Robust cash flow growth enhances NGL's ability to fund operations, reduce debt, and invest in growth opportunities, supporting long-term financial stability.
Water Solutions Segment Growth
The strong performance in the Water Solutions segment indicates a growing demand for water management services, positioning NGL well in a critical industry segment.
Debt Reduction Initiatives
Proactive debt reduction improves NGL's balance sheet, reducing financial risk and interest expenses, which supports long-term financial health.
Negative Factors
Revenue Decline
A substantial revenue decline poses challenges for NGL in maintaining growth and profitability, potentially impacting its market position and financial performance.
High Leverage
High leverage can constrain NGL's financial flexibility, increasing vulnerability to economic downturns and limiting its ability to invest in growth.
Decline in Crude Oil Logistics EBITDA
The decline in Crude Oil Logistics EBITDA reflects challenges in the segment, potentially affecting NGL's overall profitability and market competitiveness.
NGL Energy Partners (NGL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$802.88M
Dividend YieldN/A
Average Volume (3M)797.07K
Price to Earnings (P/E)―
Beta (1Y)0.50
Revenue Growth-33.19%
EPS Growth81.02%
CountryUS
Employees607
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)0.04
Shares Outstanding127,847,420
10 Day Avg. Volume696,889
30 Day Avg. Volume797,067
Financial Highlights & Ratios
PEG Ratio-0.21
Price to Book (P/B)0.89
Price to Sales (P/S)0.17
P/FCF Ratio11.60
Enterprise Value/Market Cap5.43
Enterprise Value/Revenue0.97
Enterprise Value/Gross Profit3.78
Enterprise Value/Ebitda7.02
Forecast
1Y Price Target
$5.50Price Target Upside-15.38% 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: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call presents a mixed picture. While the Water Solutions segment performed strongly and the company successfully reduced its debt, the Crude Oil and Liquids Logistics segments faced challenges. The company has been proactive in capital management, suggesting potential for future growth.Q1-2026 Updates
Positive Updates
Increase in Consolidated Adjusted EBITDA
Consolidated adjusted EBITDA for the quarter was $144 million, a 4% increase from $138.6 million in the prior year's first quarter.
Strong Performance of Water Solutions Segment
Water Solutions adjusted EBITDA increased by 13.8%, reaching $142.9 million versus $125.6 million in the prior year's first quarter. Physical water disposal volumes also increased by 12.4%.
Successful Debt Reduction and Asset Sales
The company closed sales of its Rack marketing business, Limestone Ranch interest, and a majority of the wholesale propane business, using proceeds to pay down the ABL and other debts.
Opportunistic Capital Allocation
The company purchased $19 million of outstanding 2032 notes at a discount and repurchased 70,000 units of Class D preferred units. Additionally, they repurchased 4.7 million common units.
Negative Updates
Decrease in Crude Oil Logistics EBITDA
Crude Oil Logistics adjusted EBITDA decreased from $18.6 million in the prior year's first quarter to $9.6 million, due to reduced sales and lower crude oil prices.
Decline in Liquids Logistics EBITDA
Liquids Logistics adjusted EBITDA was $2.9 million, down from $5.7 million in the prior year's first quarter, adjusted for asset sales.
Company Guidance
During the NGL Energy Partners' first-quarter fiscal year 2026 earnings call, the company provided several key metrics and guidance updates. Consolidated adjusted EBITDA for the quarter was $144 million, marking a 4% increase from the prior year's first quarter, primarily driven by the Water Solutions segment. The Water Solutions adjusted EBITDA rose by 13.8% to $142.9 million, with physical water disposal volumes increasing by 12.4% to 2.77 million barrels per day. The company reaffirmed its full-year adjusted EBITDA guidance of $615 million to $625 million. Crude Oil Logistics faced a decline with adjusted EBITDA at $9.6 million, impacted by reduced sales and lower crude oil prices. Liquids Logistics EBITDA was $2.9 million, focusing on butane blending for future growth. The company also engaged in strategic financial maneuvers, purchasing $19 million of 2032 notes at a discount and repurchasing a significant portion of Class D preferred units and common units. Management remains focused on reducing leverage and improving the balance sheet while being open to revising guidance based on future performance.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.65
Positive
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.55
Neutral
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.70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.49B | 3.47B | 6.96B | 8.69B | 7.95B | 5.23B |
| Gross Profit | 1.15B | 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
Positive
6.50
Price Trends
5.05
Positive
4.43
Positive
4.50
Positive
Market Momentum
0.44
Negative
66.68
Neutral
52.45
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 6.5 is above the 20-day moving average (MA) of 5.89, above the 50-day MA of 5.05, and above the 200-day MA of 4.50, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 66.68 is Neutral, neither overbought nor oversold. The STOCH value of 52.45 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 (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $802.88M | ― | 8.32% | ― | -33.19% | 81.02% | |
60 Neutral | 1.68B | 18.92 | 15.97% | 6.02% | 3.74% | -4.49% | |
47 Neutral | 413.05M | -0.98 | -31.64% | ― | 2.91% | -432.03% | |
46 Neutral | 118.73M | -7.91 | 21.05% | 0.64% | -1.06% | -340.61% | |
45 Neutral | 1.99B | -10.56 | -191.96% | 4.01% | -28.72% | -1173.53% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
Performance Comparison
NGL
NGL Energy Partners
6.42
1.68
35.44%
GEL
Genesis Energy
16.46
3.96
31.68%
GLP
Global Partners
50.84
7.83
18.21%
MMLP
Martin Midstream
3.12
-0.41
-11.61%
SMC
Summit Midstream
21.95
-12.43
-36.15%
PBT
Permian Basin
18.83
7.56
67.08%
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.