NGL Energy Partners (NGL) Financials

NGL Energy Partners has shown a clear turnaround from the weak profitability seen a year ago, but the latest quarter also shows that the business remains highly levered and still exposed to large one-time items.

For Q4 2026, revenue rose to $949.5 million, up from $909.8 million in the prior quarter and well above the same period last year. Gross profit was $217.3 million, but the company posted a net loss of $286.8 million, largely because of $257.2 million in other special charges and heavy interest costs. That means underlying operations were not the main issue in the quarter; unusual items and leverage were.

Cash flow was stronger than earnings suggest. NGL generated $110.0 million in operating cash flow in Q4 2026, even with a net loss. That kind of conversion is a positive sign, especially for a capital-intensive business. Over the last several quarters, operating cash flow has generally been positive, though volatile.

The balance sheet improved in some areas, but leverage remains substantial. At the end of Q3 2026, NGL held $4.38 billion in assets against $3.79 billion in liabilities, plus a large $470.4 million redeemable noncontrolling interest. Long-term debt stood at $2.92 billion, and current liabilities were $646.8 million. Common equity was still negative at -$247.6 million, which is a sign of a highly stressed capital structure.

Looking back across the last four years, the trend is mixed:

• Revenue has recovered meaningfully from the weak periods in 2025, with quarterly revenue back near the $900 million to $950 million range in recent quarters.
• Operating cash flow has often been solid, even when reported earnings were weak or negative.
• Gross profit remains positive and sizable, showing the core business can still generate margin before overhead, interest, and special items.
• Q4 2026 cash from operations exceeded net income by a wide margin, which suggests earnings were hit by non-cash or non-recurring charges.
• Recent quarters show recurring debt activity, including both large borrowings and repayments, which reflects active balance-sheet management.
• Asset growth has been uneven, with large swings in working capital, PP&E, and intangibles over the past year.
• Interest expense remains very high, generally running around $60 million to $77 million per quarter.
• Special charges have been volatile, including a very large charge in Q4 2026 that pushed the company to a sizable loss.
• Equity is still weak, with negative common equity in the latest balance sheet data.
• Debt levels are still elevated, leaving the company sensitive to rates, refinancing conditions, and operating hiccups.

Bottom line: NGL Energy Partners appears to be generating enough cash from operations to stay afloat and fund part of its business, but the capital structure is still heavy and reported profits are uneven. Investors should watch whether revenue stability and operating cash flow can continue improving while debt and special charges trend lower.