NGL Energy Partners LP (NGL) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

NGL Energy Partners LP (NGL) Energy Operations & Outlook

NGL Energy Partners LP is a diversified midstream energy company focused on transporting, storing, and marketing crude oil, natural gas liquids, refined products, and water solutions. Operating across three segments, NGL serves commercial, retail, and industrial customers in the United States and Canada, positioning itself as a key player in the energy value chain.

What Is the Investment Thesis for NGL?

NGL Energy Partners LP presents a compelling, albeit complex, investment case. With a P/E ratio of 11.90 and a profit margin of 5.0%, the company demonstrates profitability within the energy sector. Key value drivers include its diversified operations across water solutions, crude oil logistics, and liquids logistics, allowing it to capture value at various points in the energy value chain. Growth catalysts include increasing demand for water solutions in oil and gas production, expansion of its terminal and pipeline infrastructure, and potential acquisitions to expand its market presence. However, potential risks include fluctuations in commodity prices, regulatory changes impacting water disposal and transportation, and competition from larger, more established midstream companies. Investors should carefully weigh these factors when considering an investment in NGL.

Based on FMP financials and quantitative analysis

NGL Key Highlights

Market capitalization of $2.20B reflects its position as a mid-sized player in the energy midstream sector.

• P/E ratio of 11.90 indicates a potentially undervalued stock compared to its earnings.
• Gross margin of 23.8% demonstrates its ability to generate profit from its operations.
• Beta of 0.39 suggests lower volatility compared to the overall market, potentially appealing to risk-averse investors.
• The company operates in three segments: Water Solutions, Crude Oil Logistics, and Liquids Logistics, providing diversification.

Who Are NGL's Competitors?

NGL is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are NGL's Key Strengths?

Diversified operations across multiple segments.

• Strategic asset locations in key energy producing regions.
• Expertise in water solutions for the oil and gas industry.
• Established relationships with producers and refiners.

What Are NGL's Weaknesses?

Exposure to commodity price fluctuations.

• Dependence on oil and gas production levels.
• Smaller scale compared to larger midstream competitors.
• High debt levels.

What Could Drive NGL Stock Higher?

NGL catalyst: Increasing demand for water solutions in oil and gas production due to stricter environmental regulations.

• Potential acquisitions to expand market presence and service offerings.
• Infrastructure development projects to increase capacity and efficiency.
• Potential for new partnerships and collaborations in the renewable energy sector.

What Are the Key Risks for NGL?

Financial-distress signal — its Altman Z-Score of 1.54 sits in the distress zone (elevated bankruptcy risk).

• Negative return on equity (-36.8%) — the business is not currently generating profit on shareholder capital.
• Inconsistent delivery — missed Wall Street EPS estimates in 5 of the last 8 reported quarters.
• Fluctuations in commodity prices impacting profitability.
• Regulatory changes impacting water disposal and transportation costs.
• Competition from larger, more established midstream companies.
• Economic downturn impacting energy demand and production levels.
• Geopolitical events disrupting energy markets.

What Are the Growth Opportunities for NGL?

• Expansion of Water Solutions Segment: The increasing focus on sustainable water management in the oil and gas industry presents a significant growth opportunity for NGL's Water Solutions segment. As environmental regulations become stricter and water scarcity becomes more prevalent, the demand for water treatment, recycling, and disposal services is expected to rise. NGL can capitalize on this trend by expanding its water infrastructure and developing innovative water treatment technologies. The market for oilfield water management is projected to reach $40 billion by 2028, providing a substantial addressable market for NGL.
• Strategic Acquisitions: NGL can pursue strategic acquisitions to expand its geographic footprint and service offerings. By acquiring smaller midstream companies or assets, NGL can gain access to new markets, increase its pipeline and terminal capacity, and diversify its customer base. Targeted acquisitions in key shale basins or areas with growing energy production can enhance NGL's competitive position and drive long-term growth. This strategy allows NGL to consolidate its position in a fragmented market and achieve economies of scale.
• Infrastructure Development: Investing in new pipeline and terminal infrastructure can enhance NGL's capacity to transport and store crude oil, natural gas liquids, and refined products. Expanding its infrastructure network will enable NGL to serve a wider range of customers and capitalize on growing energy demand. This includes building new pipelines to connect production areas with refineries and export terminals, as well as expanding storage capacity to accommodate increased volumes. These infrastructure projects can generate long-term revenue streams and strengthen NGL's competitive advantage.
• Renewable Energy Initiatives: NGL can explore opportunities to integrate renewable energy sources into its operations. This includes investing in biodiesel production, developing renewable natural gas projects, or partnering with renewable energy companies to transport and store renewable fuels. By diversifying into renewable energy, NGL can reduce its carbon footprint, attract environmentally conscious investors, and position itself for long-term growth in a changing energy landscape. The global renewable energy market is expected to reach $2.15 trillion by 2027, offering significant opportunities for NGL.
• Marine Export Expansion: NGL's marine export facility in Chesapeake, Virginia, provides a platform for expanding its export capabilities. By increasing its butane export capacity and targeting new international markets, NGL can capitalize on growing global demand for natural gas liquids. This includes investing in additional storage and loading infrastructure, as well as developing relationships with international customers. Expanding its marine export business will diversify NGL's revenue streams and reduce its reliance on domestic markets.

What Are NGL's Competitive Advantages?

• Extensive network of pipelines and terminals.
• Strategic locations in key energy production areas.
• Integrated service offerings across multiple segments.
• Expertise in water solutions for the oil and gas industry.

What Does NGL Do?

Founded in 1940 and headquartered in Tulsa, Oklahoma, NGL Energy Partners LP has evolved into a significant player in the midstream energy sector. The company operates through three primary segments: Water Solutions, Crude Oil Logistics, and Liquids Logistics. The Water Solutions segment focuses on the transportation, treatment, recycling, and disposal of produced and flowback water generated from oil and natural gas production. This segment also aggregates and sells recovered crude oil, disposes of solids, and offers truck and frac tank washouts. The Crude Oil Logistics segment purchases crude oil from producers and marketers, transporting it to refineries via pipelines, storage terminals, barge loading facilities, rail facilities, and other trade hubs. It also provides storage, terminaling, and transportation services. 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. This is facilitated through its 24 terminals, third-party storage facilities, nine common carrier pipelines, and a fleet of leased railcars. The segment is also involved in the marine export of butane through its facility in Chesapeake, Virginia. NGL Energy Holdings LLC serves as the general partner of the company, guiding its strategic direction and operational execution.

What Products and Services Does NGL Offer?

• Transports crude oil, natural gas liquids, and refined products.
• Stores crude oil, natural gas liquids, and refined products.
• Blends crude oil, natural gas liquids, and refined products.
• Markets crude oil, natural gas liquids, and refined products.
• Provides water solutions for oil and natural gas production.
• Treats and recycles produced and flowback water.
• Disposes of produced and flowback water.
• Aggregates and sells recovered crude oil.

How Does NGL Make Money?

• Generates revenue from transportation and storage fees.
• Profits from the sale of crude oil, natural gas liquids, and refined products.
• Provides water treatment and disposal services for a fee.
• Engages in butane marine export.

What Industry Does NGL Operate In?

NGL Energy Partners LP operates within the dynamic and competitive oil & gas midstream industry. This sector is characterized by the transportation, storage, and processing of crude oil, natural gas, and related products. Market trends include increasing demand for midstream services driven by growing oil and gas production, particularly in shale basins. The competitive landscape includes major players like Enterprise Products Partners and Kinder Morgan, as well as smaller regional operators. NGL differentiates itself through its integrated service offerings, including water solutions, which is becoming increasingly important due to environmental regulations and water scarcity concerns.

Who Are NGL's Key Customers?

• Oil and gas producers
• Refineries
• Commercial customers
• Retail customers
• Industrial customers

NGL Energy Partners LP Financial Trajectory

NGL Energy Partners LP (NGL) reported $990.0M in revenue for Q1 FY2027, reflecting 4.3% growth compared to the prior quarter. The company recorded net income of $78.7M, with diluted EPS of $0.61. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this mid-cap Energy company. Across the four most recent quarters, NGL averaged $-0.34 in diluted EPS.

Company Profile

NGL Energy Partners LP operates in the Oil & Gas Midstream industry within the Energy sector. It is headquartered in Tulsa, US. The company is led by CEO H. Michael Krimbill. NGL has traded publicly since 2011.

How NGL Energy Partners LP Is Valued

NGL Energy Partners LP carries a market capitalization of $2.20B, placing it in the mid-cap category. Relative to its peer group, NGL's quantitative score of 48/100 is below the peer average of 64/100.

Return on equity for NGL Energy Partners LP stands at -36.8%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -4.3%, showing how much profit it generates from its asset base. Its free cash flow yield is 12.9%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.05 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -9.0%, the inverse of the P/E and a quick read on earnings relative to price.

NGL Energy Partners LP's Piotroski F-Score is 4/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.54 places it in the distress zone, a signal of elevated financial risk.

NGL Energy Partners LP has missed Wall Street's EPS estimate in 5 of its last 8 reported quarters — a mixed record worth weighing. Reported results have landed about 197.6% below estimates on average.

Over the past six months, NGL Energy Partners LP insiders filed 13 SEC Form 4 transactions — 1 sales and 12 purchases. On net that is roughly 1.4M shares acquired (about $650K) — insiders putting money in tends to read as conviction.

NGL Financials

NGL Latest News

NGL Analyst Consensus

NGL MoonshotScore

NGL Energy Partners LP Energy Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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