NGL Energy Partners (NYSE:NGL) Posts Earnings Results, Beats Estimates By $0.02 EPS

NGL Energy Partners (NYSE:NGL) released its quarterly earnings results on Thursday. The oil and gas company reported $0.24 earnings per share for the quarter, topping the consensus estimate of $0.22 by $0.02, Zacks reports. The business had revenue of $986.55 million during the quarter, compared to analysts’ expectations of $869.29 million. NGL Energy Partners had a negative return on equity of 39.51% and a negative net margin of 3.76%.

Here are the key takeaways from NGL Energy Partners’ conference call:

• Water Solutions delivered record results: disposal volumes rose 23% year over year to 3.45 million barrels per day, while segment adjusted EBITDA increased 17% to $178.3 million.
• NGL raised fiscal 2027 adjusted EBITDA guidance by $10 million to $735 million–$745 million, citing strong performance and contracted customer demand.
• The partnership increased fiscal 2027 growth capital guidance to $250 million–$270 million to expand water takeaway and disposal capacity. Management said most of the resulting EBITDA contribution is expected in fiscal 2028, with new capacity filling quickly.
• Management expects leverage to fall to approximately 4x by fiscal year-end and says improving cash flow should support further debt reduction and addressing most remaining Class D Preferred Units; over 90% of produced water comes from investment-grade customers.
• Crude Oil Logistics adjusted EBITDA declined to $11.9 million from $16.6 million year over year, alongside lower Grand Mesa pipeline volumes.

NGL Energy Partners Stock Performance

Shares of NGL stock traded up $0.38 during trading on Friday, hitting $15.12. The company had a trading volume of 43,327 shares, compared to its average volume of 278,781. The firm has a market capitalization of $1.89 billion, a P/E ratio of -5.33 and a beta of 0.89. NGL Energy Partners has a one year low of $8.62 and a one year high of $19.06. The stock’s 50-day moving average price is $16.22 and its 200 day moving average price is $14.89.

Insiders Place Their Bets

In related news, Director James Collingsworth acquired 10,808 shares of the company’s stock in a transaction on Tuesday, August 25th. The stock was purchased at an average cost of $16.82 per share, with a total value of $181,790.56. Following the acquisition, the director directly owned 764,308 shares of the company’s stock, valued at approximately $12,855,660.56. The trade was a 1.43% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO H. Krimbill sold 300,000 shares of the company’s stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $17.00, for a total value of $5,100,000.00. Following the sale, the chief executive officer owned 3,378,615 shares of the company’s stock, valued at approximately $57,436,455. The trade was a 8.16% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have purchased a total of 339,923 shares of company stock worth $5,750,003 in the last 90 days. Company insiders own 7.30% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on NGL. Weiss Ratings lowered NGL Energy Partners from a “hold (c-)” rating to a “sell (d+)” rating in a report on Friday, October 30th. Wall Street Zen raised NGL Energy Partners from a “hold” rating to a “buy” rating in a report on Saturday, August 8th. Finally, Zacks Research downgraded shares of NGL Energy Partners from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, October 6th. One research analyst has rated the stock with a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, NGL Energy Partners presently has an average rating of “Reduce”.

NGL Energy Partners Company Profile

NGL Energy Partners LP is a publicly traded master limited partnership that provides energy logistics and water-management services in the United States. The company serves producers and other participants in the domestic crude oil and oilfield-water markets through infrastructure, transportation, handling and related services.

NGL’s Water Solutions segment gathers, transports, treats, recycles and disposes of produced water generated during oil and natural gas production. Its operations include water pipelines, storage facilities, treatment and recycling assets, disposal wells, freshwater services and truck transportation.