NGL Energy Partners (NYSE:NGL) Board Announces Stock Repurchase Program

Key Points

• The Board authorized a $100.0 million stock repurchase, allowing the company to buy up to 6.1% of outstanding shares — a move commonly interpreted as management signaling the stock may be undervalued.
• Analyst sentiment is negative with a MarketBeat consensus of "Reduce" after recent downgrades (including Zacks to "strong sell"), and analysts forecast -0.22 EPS for the current year.
• Most recent quarter showed an EPS miss (reported $0.10 vs. $0.16 expected) despite revenue beating estimates; the stock trades at a market cap of ~$1.64 billion with a high P/E of 331.71.

NGL Energy Partners (NYSE:NGL - Get Free Report) announced that its Board of Directors has authorized a stock buyback plan on Thursday, April 9th, RTT News reports. The company plans to repurchase $100.00 million in outstanding shares. This repurchase authorization permits the oil and gas company to purchase up to 6.1% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's leadership believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on NGL. Zacks Research downgraded shares of NGL Energy Partners from a "hold" rating to a "strong sell" rating in a research report on Thursday, March 12th. Weiss Ratings reissued a "hold (c)" rating on shares of NGL Energy Partners in a report on Wednesday, January 28th. One 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 company currently has a consensus rating of "Reduce".

NGL Energy Partners Trading Up 0.0%

NGL traded up $0.01 on Thursday, reaching $13.27. The company had a trading volume of 193,747 shares, compared to its average volume of 252,005. The company has a fifty day moving average of $12.06 and a 200-day moving average of $9.83. The company has a market capitalization of $1.64 billion, a P/E ratio of 331.71 and a beta of 0.39. NGL Energy Partners has a one year low of $2.64 and a one year high of $13.92.

NGL Energy Partners (NYSE:NGL - Get Free Report) last announced its earnings results on Tuesday, February 3rd. The oil and gas company reported $0.10 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.16 by ($0.06). The company had revenue of $909.82 million during the quarter, compared to the consensus estimate of $700.76 million. NGL Energy Partners had a net margin of 5.01% and a negative return on equity of 66.52%. Research analysts predict that NGL Energy Partners will post -0.22 EPS for the current year.

About NGL Energy Partners

NGL Energy Partners LP is a publicly traded master limited partnership that provides midstream infrastructure and marketing services for the energy industry. The company focuses on the transportation, storage, fractionation and marketing of natural gas liquids (NGLs) and refined petroleum products. Through its integrated operations, NGL Energy Partners serves producers, processors, refiners and industrial customers across key U.S. energy-producing regions.

The partnership's asset base includes pipelines, storage terminals, fractionation plants, and distribution facilities.

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