NGL Energy Partners (NYSE:NGL) Releases Quarterly Earnings Results, Misses Expectations By $0.73 EPS

Key Points

• NGL Energy Partners reported a quarterly loss of $0.51 per share, missing analyst expectations of $0.22 earnings per share by $0.73, despite revenue of $986.55 million exceeding estimates.
• Water Solutions posted record results, with disposal volumes up 23% year over year and adjusted EBITDA up 17% to $178.3 million. NGL also raised fiscal 2027 adjusted EBITDA guidance by $10 million, to $735 million–$745 million.
• Crude Oil Logistics adjusted EBITDA fell to $11.9 million from $16.6 million a year earlier, and NGL shares declined 4.7% during Thursday trading.

NGL Energy Partners (NYSE:NGL - Get Free Report) issued its quarterly earnings results on Thursday. The oil and gas company reported ($0.51) earnings per share for the quarter, missing analysts' consensus estimates of $0.22 by ($0.73), FiscalAI reports. NGL Energy Partners had a negative net margin of 3.76% and a negative return on equity of 39.51%. The business had revenue of $986.55 million for the quarter, compared to analysts' expectations of $869.29 million.

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 Trading Down 4.7%

NGL stock traded down $0.73 during mid-day trading on Thursday, hitting $14.79. 289,566 shares of the company were exchanged, compared to its average volume of 231,913. The business has a 50 day simple moving average of $16.22 and a 200-day simple moving average of $14.89. The stock has a market capitalization of $1.85 billion, a PE ratio of -5.21 and a beta of 0.89. NGL Energy Partners has a 1-year low of $8.35 and a 1-year high of $19.06.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on the company. Zacks Research lowered NGL Energy Partners from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, October 6th. Wall Street Zen upgraded NGL Energy Partners from a "hold" rating to a "buy" rating in a research report on Saturday, August 8th. Finally, Weiss Ratings lowered NGL Energy Partners from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, October 30th. One equities research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Reduce".

Insider Activity

In other news, CEO H. Krimbill sold 300,000 shares of the company's stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $17.00, for a total value of $5,100,000.00. Following the transaction, the chief executive officer owned 3,378,615 shares of the company's stock, valued at approximately $57,436,455. This represents a 8.16% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director James Collingsworth bought 10,808 shares of the stock in a transaction dated Tuesday, August 25th. The shares were purchased at an average price of $16.82 per share, for a total transaction of $181,790.56. Following the purchase, the director owned 764,308 shares of the company's stock, valued at $12,855,660.56. This trade represents a 1.43% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last quarter, insiders have bought 339,923 shares of company stock valued at $5,750,003. 7.30% of the stock is owned by insiders.

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.

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