Download PDF

1. Company Snapshot

1.a. 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.

Show Full description

1.b. Last Insights on NGL

NGL Energy Partners LP's recent performance was negatively impacted by a slow Q1, with earnings missing expectations. The company's decision to exit the underperforming liquids business is a positive step, but the short-term effects of this transition are unclear. The LEX II expansion, which will significantly boost capacity and free cash flow, is a long-term growth driver. However, recent asset sales and debt refinancing have not yet translated into improved financial performance. The company's recent asset sales and cash proceeds totaling approximately $270 million have not been fully utilized to reduce debt or improve operations.

1.c. Company Highlights

2. NGL Energy Partners' Q3 Earnings: A Strong Performance Amidst Strategic Priorities

NGL Energy Partners reported a robust third quarter, with adjusted EBITDA from continuing operations reaching $172.5 million, a 9.2% increase from the prior year. The company's EPS came in at $0.1, slightly below estimates of $0.16. Revenue growth was not explicitly stated, but the Water Solutions segment achieved an all-time daily record of approximately 3.3 million barrels of water, underscoring the company's operational strength. The company's financial performance was marked by a continued focus on its financial strategy, including the repurchase of 1.6 million common units during the quarter.

Publication Date: Mar -08

📋 Highlights
  • EBITDA Growth & Repurchases: Adjusted EBITDA rose 9.2% YoY to $172.5M; 8.7M units repurchased since program start.
  • 2027 EBITDA Projection: Full-year 2026 guidance at $650–$660M; 2027 expected to exceed $700M (first time).
  • Water Solutions Record: 3.3M barrels of water processed daily, with AI driving OpEx reductions and capital savings.
  • Dilution Reduction: Common unit repurchases eliminated 25% dilution; 1.6M units repurchased in Q3.
  • Class D Preferred Focus: Strategy prioritizes eliminating Class D preferred units and scaling water growth projects in 2027.

Operational Highlights and Strategic Focus

The Water Solutions segment was a key driver of the company's performance, with Doug White, President of Water Solutions, noting that the company received over 3.5 million barrels of water in a single day on January 16. The company is leveraging AI machine-based learning to identify opportunities to increase revenues and decrease expenses, with White stating that the project is having a significant impact on expenses and revenues. The company's strategic priorities are centered around eliminating the Class D preferred units and driving growth through water projects.

Growth Prospects and Guidance

NGL Energy Partners is guiding its full-year EBITDA to a range of $650 to $660 million and is projecting to exceed $700 million of EBITDA for the first time in the history of the partnership in 2027. The company's growth prospects are underpinned by its water growth projects, which are described as financially firm, with Doug White noting that the company is seeing large opportunities for large-scale projects prospectively.

Valuation and Metrics

With an EV/EBITDA ratio of 7.15 and a P/E Ratio of 9.05, the company's valuation appears reasonable, particularly given its projected EBITDA growth. The company's ROE of 24.42% and ROIC of 10.84% also indicate a strong return on equity and invested capital. However, the Net Debt / EBITDA ratio of 4.92 suggests that the company still has significant leverage, which may impact its ability to return capital to shareholders.

Outlook and Analyst Estimates

3. NewsRoom

Card image cap

NGL Energy Partners LP (NGL) Shares Fall 4.0% -- GF Value Says Still Overvalued

Apr -13

Source: gurufocus.com

Card image cap

NGL Energy Partners LP Announces $100 Million LP Common Unit Repurchase Program

Apr -09

Source: businesswire.com

Card image cap

Plains All American Pipeline and Plains GP Holdings Provide Updated Timing for Completion of Sale of NGL Business

Mar -30

Source: globenewswire.com

Card image cap

Kitsault Energy: The Best Kept Secret of the Canadian Pacific Gateway Pipeline Advancing Crude Oil and NGL Exports to Asia

Mar -24

Source: businesswire.com

Card image cap

PGIM Jennison Energy Infrastructure Fund Q4 2025: Who Moved The Needle

Mar -17

Source: seekingalpha.com

Card image cap

NGL Energy Partners (NYSE:NGL) Stock Price Passes Above 200-Day Moving Average – Should You Sell?

Mar -13

Source: defenseworld.net

Card image cap

NGL Energy Partners (NYSE:NGL) Stock Crosses Above Two Hundred Day Moving Average – Here’s Why

Feb -21

Source: defenseworld.net

Card image cap

Energy Transfer Suffers Electrification/NGL Export Tailwinds - Robust Income/Upside Potential

Feb -19

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.38%)

6. Segments

Liquids Logistics

Expected Growth: 4.65%

NGL Energy Partners LP's Liquids Logistics segment growth of 4.65% is driven by increasing demand for crude oil transportation, strategic acquisitions, and expansion of existing infrastructure. Additionally, growing production in the Permian Basin and increasing exports of US crude oil contribute to the segment's growth.

Crude Oil Logistics

Expected Growth: 6.15%

NGL Energy Partners LP's Crude Oil Logistics segment growth of 6.15% is driven by increasing demand for crude oil transportation, expansion of pipeline infrastructure, and strategic acquisitions. Additionally, growing production in the Permian Basin and increasing exports of US crude oil contribute to the segment's growth.

Water Solutions

Expected Growth: 8.5%

NGL Energy Partners LP's Water Solutions segment growth is driven by increasing demand for water management services in the Permian Basin, coupled with the company's strategic acquisitions and expansion of its water infrastructure. Additionally, the growing need for water recycling and reuse in the oil and gas industry, as well as increasing regulatory pressures, contribute to the segment's 8.5% growth.

7. Detailed Products

Crude Oil Logistics

NGL Energy Partners LP provides crude oil logistics services, including transportation, storage, and marketing of crude oil.

Refined Products and Renewables

NGL Energy Partners LP offers refined products, including gasoline, diesel, and jet fuel, as well as renewable energy products, such as biodiesel and ethanol.

Water Solutions

NGL Energy Partners LP provides water disposal and treatment services for the oil and gas industry.

Liquids and Refined Products Terminaling

NGL Energy Partners LP operates terminals for the storage and distribution of refined products, including gasoline, diesel, and jet fuel.

Gathering and Processing

NGL Energy Partners LP provides gathering and processing services for natural gas and natural gas liquids.

8. NGL Energy Partners LP's Porter Forces

Forces Ranking

Threat Of Substitutes

NGL Energy Partners LP operates in the midstream energy sector, which has limited substitutes. However, the company's services can be substituted with other forms of energy transportation and storage, posing a moderate threat.

Bargaining Power Of Customers

NGL Energy Partners LP's customers are primarily large energy companies, which have limited bargaining power due to the company's strategic position in the midstream energy sector.

Bargaining Power Of Suppliers

NGL Energy Partners LP relies on a diverse range of suppliers for its operations, which reduces the bargaining power of individual suppliers. However, the company is still exposed to fluctuations in commodity prices and supply chain disruptions.

Threat Of New Entrants

The midstream energy sector has high barriers to entry, including significant capital requirements and regulatory hurdles, which limits the threat of new entrants.

Intensity Of Rivalry

The midstream energy sector is highly competitive, with several established players competing for market share. NGL Energy Partners LP faces intense rivalry from its peers, which can lead to pricing pressure and reduced margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 79.36%
Debt Cost 8.81%
Equity Weight 20.64%
Equity Cost 11.96%
WACC 9.46%
Leverage 384.46%

11. Quality Control: NGL Energy Partners LP passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Delek Logistics Partners

A-Score: 6.7/10

Value: 4.0

Growth: 3.0

Quality: 6.0

Yield: 10.0

Momentum: 8.5

Volatility: 8.7

1-Year Total Return ->

View Full Report
Stock-Card
Global Partners

A-Score: 5.8/10

Value: 7.5

Growth: 3.9

Quality: 3.1

Yield: 10.0

Momentum: 3.0

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
Genesis Energy

A-Score: 5.7/10

Value: 4.9

Growth: 3.4

Quality: 1.5

Yield: 9.0

Momentum: 9.0

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
NGL Energy Partners

A-Score: 4.9/10

Value: 7.2

Growth: 3.6

Quality: 5.8

Yield: 0.0

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
Overseas Shipholding Group

A-Score: 4.5/10

Value: 7.2

Growth: 5.9

Quality: 5.4

Yield: 0.0

Momentum: 6.0

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
Martin Midstream Partners

A-Score: 3.7/10

Value: 9.8

Growth: 2.7

Quality: 3.6

Yield: 1.0

Momentum: 1.0

Volatility: 4.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

13.19$

Current Price

13.19$

Potential

-0.00%

Expected Cash-Flows