Company Overview
NGL Energy Partners LP functions within the energy sector, specifically operating as an entity in the Oil & Gas Midstream industry, where it manages the critical infrastructure required to move resources from extraction points to processing facilities and end-users. The company's core operations encompass the transportation, storage, blending, and marketing of crude oil, natural gas liquids, refined products, renewables, and water solutions across the United States. These activities are executed through three distinct business segments: Water Solutions, Crude Oil Logistics, and Liquids Logistics, allowing the firm to diversify its operational exposure across different fluid types and logistical needs. The enterprise holds a market capitalization of $1.69B and generates annual revenue of $3.53B, employing a workforce of 569 individuals to maintain its extensive network. These financial figures indicate that the company operates as a mid-sized player in the energy logistics landscape, possessing sufficient scale to service significant debt obligations while maintaining a substantial operational footprint, yet remaining smaller than the largest integrated oil majors or diversified midstream giants.
Financial Health
The company reported a Total Revenue of $3.53B over the trailing twelve months, accompanied by a Net Income of $-33,629,000 and an EBITDA of $670.60M, revealing a significant divergence between operational cash generation and reported accounting profitability. This gap between revenue and net income highlights a substantial cost structure where non-operating expenses, interest charges, or one-time charges likely outweighed net earnings, resulting in a negative bottom line despite robust operational earnings before interest and taxes. Despite the negative net income, the entity maintains a Free Cash Flow of $224.44M, which signifies a strong ability to generate liquidity from operations independent of financing decisions and provides the financial flexibility to service debt or fund capital projects. The margin profile shows a Gross Margin of 28.9% and an Operating Margin of 43.9%, suggesting efficient core business operations that retain nearly half of revenue after covering direct costs and operating expenses. However, the Profit Margin stands at 4.5%, which reflects the impact of non-operating items that reduce the final bottom line significantly compared to operational performance. Liquidity analysis reveals the company holds $6.48M in cash against total debt of $3.06B, resulting in a Debt to Equity ratio of 519.24, which characterizes a highly leveraged balance sheet typical of capital-intensive midstream infrastructure. The Current Ratio is 1.11, indicating that the company's current assets slightly exceed current liabilities, suggesting a marginally adequate short-term liquidity position to meet immediate obligations. Return on Equity is reported at 19.1% while Return on Assets is 5.6%, metrics that suggest management generates high returns on shareholder equity but faces the capital efficiency constraints typical of high-debt industries where asset bases are large relative to equity.
Valuation Assessment
Valuation metrics for NGL Energy Partners LP include a Trailing Twelve Month P/E Ratio that is not available due to negative earnings, while the Forward P/E is listed at 15.99, implying that the market expects earnings to turn positive or recover in the future to justify current stock pricing. The Price to Book ratio is recorded at -8.67, indicating that the market capitalizes the company at a level significantly below its book value, a situation often seen in leveraged firms where debt reduces net asset value. Alternative valuation multiples such as the Price to Sales ratio of 0.48 and an EV/EBITDA of 8.24 provide context, suggesting the company trades at a fraction of its sales revenue and at an enterprise value that is roughly eight times its operating earnings, which can be favorable for a capital-intensive sector if cash flows remain stable. Price action data shows a 52-Week High of $13.65 and a 52-Week Low of $2.64, placing the current trading environment within a wide range that reflects significant volatility over the past year. The stock exhibits a Beta of 0.40, which indicates that the share price is historically less volatile than the broader market, moving with less intensity than the general equity benchmark despite the cyclical nature of the oil and gas industry.
Growth & Income
Revenue growth over the last year stands at 6.8%, while earnings growth is not applicable due to the negative net income reported for the trailing twelve months, implying that top-line expansion has not yet translated into bottom-line profitability in the recent period. The company does not distribute dividends to shareholders, evidenced by a Dividend Yield of N/A and a Payout Ratio of 0.0%, which means the entity retains all earnings rather than paying them out. Because the firm does not pay dividends, the capital generated from operations is likely retained to reduce the high debt load or fund the expansion of its midstream infrastructure assets rather than providing immediate cash returns to investors. The overall growth and income profile is characterized by moderate revenue expansion without current income distribution, relying instead on potential future earnings recovery to support shareholder value or capital allocation strategies.