NGL Energy Partners (NYSE:NGL) Shares Up 9.6% Following Better-Than-Expected Earnings

Key Points

• NGL Energy Partners shares jumped 9.6% after the company reported quarterly EPS of $0.48, far exceeding the $0.11 consensus estimate. Revenue reached $989.99 million versus expectations of $346.13 million.
• The board authorized a $100 million share-repurchase program, allowing the company to buy back up to 6.1% of its outstanding shares—typically viewed as a sign management considers the stock undervalued.
• Analyst sentiment remains generally positive, with a consensus “Buy” rating, although ratings are mixed. Hedge funds and other institutional investors own approximately 40.62% of the company’s stock.

NGL Energy Partners LP (NYSE:NGL - Get Free Report)'s share price rose 9.6% on Wednesday following a stronger than expected earnings report. The stock traded as high as $18.00 and last traded at $17.3660. 393,642 shares changed hands during mid-day trading, an increase of 30% from the average daily volume of 301,688 shares. The stock had previously closed at $15.85.

The oil and gas company reported $0.48 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.11 by $0.37. 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 for the quarter, compared to the consensus estimate of $346.13 million.

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NGL Energy Partners declared that its Board of Directors has authorized a share repurchase plan on Thursday, April 9th that allows the company to repurchase $100.00 million in shares. This repurchase authorization allows the oil and gas company to buy up to 6.1% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's board believes its stock is undervalued.

Analyst Ratings Changes

NGL has been the subject of several research reports. Weiss Ratings downgraded shares of NGL Energy Partners from a "hold (c)" rating to a "hold (c-)" rating in a research note on Thursday, June 4th. Zacks Research upgraded NGL Energy Partners from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, July 14th. One research analyst has rated the stock with a Strong Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, NGL Energy Partners has a consensus rating of "Buy".

Institutional Investors Weigh In On NGL Energy Partners

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. CIBC Private Wealth Group LLC acquired a new position in NGL Energy Partners in the 3rd quarter valued at about $70,000. CIBC Bancorp USA Inc. purchased a new stake in NGL Energy Partners in the 3rd quarter valued at approximately $70,000. Massar Capital Management LP increased its position in 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 worth $120,000 after purchasing an additional 5,295 shares during the period. LPL Financial LLC purchased a new position in shares of NGL Energy Partners during the 4th quarter worth approximately $120,000. Finally, State of Wyoming raised its stake in shares of NGL Energy Partners by 184.0% during the 2nd quarter. State of Wyoming now owns 32,202 shares of the oil and gas company's stock worth $138,000 after buying an additional 20,864 shares in the last quarter. 40.62% of the stock is owned by hedge funds and other institutional investors.

NGL Energy Partners Stock Performance

The firm has a market capitalization of $2.17 billion, a price-to-earnings ratio of -5.31 and a beta of 0.63. The firm has a fifty day moving average price of $15.82 and a 200 day moving average price of $14.06.

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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