NGL Energy Partners (NYSE:NGL) Releases Quarterly Earnings Results, Beats Estimates By $0.37 EPS

Key Points

• NGL Energy Partners beat quarterly earnings estimates, reporting EPS of $0.48 versus the $0.11 consensus estimate, while revenue reached $989.99 million compared with expectations of $346.13 million.
• Consolidated adjusted EBITDA rose nearly 30% year over year to $186.2 million, prompting management to raise fiscal 2027 adjusted EBITDA guidance by $10 million to $725 million–$735 million. Water Solutions also posted record disposal volumes and a 26% increase in segment EBITDA.
• The company signed more than 200,000 barrels per day of new commitments, authorized a $100 million share repurchase program, and expects to redeem about half of its remaining Class D preferreds; shares nevertheless fell 1.3% in Tuesday trading.

NGL Energy Partners (NYSE:NGL - Get Free Report) announced its quarterly earnings data on Tuesday. The oil and gas company reported $0.48 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.11 by $0.37, FiscalAI reports. NGL Energy Partners had a negative return on equity of 47.64% and a negative net margin of 4.51%.The firm had revenue of $989.99 million during the quarter, compared to analysts' expectations of $346.13 million.

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

• Fiscal 2027 adjusted EBITDA guidance was raised by $10 million to $725 million–$735 million after consolidated first-quarter adjusted EBITDA rose nearly 30% year over year to $186.2 million.
• Water Solutions delivered record physical disposal volumes of 3.32 million barrels per day, up 19.6% year over year, while contracted volumes and higher skim-oil revenue drove segment adjusted EBITDA up 26% to $179.9 million.
• NGL signed more than 200,000 barrels per day of new volume commitments during the quarter and plans to develop another 300,000 barrels per day of contracted capacity this fiscal year, supporting continued growth into fiscal 2028.
• Growth capital spending is expected to exceed $200 million this fiscal year and will be concentrated in the first half, keeping long-term debt relatively flat before leverage declines in the second half.
• Management expects to redeem approximately 50% of the remaining Class D preferreds this fiscal year and said a common-unit distribution could potentially be reinstated in fiscal 2027, while also evaluating another large water pipeline and future M&A.

NGL Energy Partners Trading Down 1.3%

Shares of NYSE NGL traded down $0.21 during trading on Tuesday, reaching $15.79. 156,743 shares of the company traded hands, compared to its average volume of 301,106. The firm's fifty day simple moving average is $15.86 and its 200 day simple moving average is $14.01. The stock has a market cap of $1.97 billion, a P/E ratio of -4.81 and a beta of 0.60. NGL Energy Partners has a 12-month low of $3.94 and a 12-month high of $18.80.

NGL Energy Partners announced that its Board of Directors has authorized a stock repurchase program on Thursday, April 9th that authorizes the company to buyback $100.00 million in outstanding shares. This buyback authorization authorizes the oil and gas company to repurchase up to 6.1% of its shares through open market purchases. Shares buyback programs are often a sign that the company's board believes its shares are undervalued.

Institutional Trading of NGL Energy Partners

Hedge funds have recently modified their holdings of the stock. Wells Fargo & Company MN increased its position in shares of NGL Energy Partners by 9.4% in the fourth quarter. Wells Fargo & Company MN now owns 34,800 shares of the oil and gas company's stock valued at $348,000 after buying an additional 3,000 shares in the last quarter. XTX Topco Ltd lifted its position in shares of NGL Energy Partners by 9.0% during the 4th quarter. XTX Topco Ltd now owns 37,579 shares of the oil and gas company's stock valued at $376,000 after buying an additional 3,103 shares in the last quarter. Massar Capital Management LP lifted its position in shares of NGL Energy Partners by 23.2% during the 2nd quarter. Massar Capital Management LP now owns 28,143 shares of the oil and gas company's stock valued at $120,000 after buying an additional 5,295 shares in the last quarter. CreativeOne Wealth LLC grew its stake in NGL Energy Partners by 33.2% in the 3rd quarter. CreativeOne Wealth LLC now owns 23,571 shares of the oil and gas company's stock valued at $141,000 after acquiring an additional 5,871 shares during the period. Finally, Royal Bank of Canada grew its stake in NGL Energy Partners by 71.2% in the 4th quarter. Royal Bank of Canada now owns 14,454 shares of the oil and gas company's stock valued at $145,000 after acquiring an additional 6,009 shares during the period. Hedge funds and other institutional investors own 40.62% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on the stock. Zacks Research upgraded shares of NGL Energy Partners from a "hold" rating to a "strong-buy" rating in a report on Tuesday, July 14th. Weiss Ratings cut shares of NGL Energy Partners from a "hold (c)" rating to a "hold (c-)" rating in a research note on Thursday, June 4th. One analyst has rated the stock with a Strong Buy rating and one has issued a Hold rating to the company. According to MarketBeat, the company has a consensus rating of "Buy".

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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