NGL Energy Partners LP (NGL)

Price$17.75Cached quoteAs of 2026-09-05 06:16 UTC

AI: Fair-priced

Price checkThe market now reflects much of the water-business improvement, leaving a balanced risk-reward setup.

NGL Energy Partners LP (NYSE: NGL) has rerated sharply over the past year, while fiscal 2027 guidance also moved higher. Using current market value and June debt, enterprise value—equity value plus net debt—sits at roughly a high-single-digit multiple of management’s guided Adjusted EBITDA midpoint. That is not an obvious bargain once preferred claims and financing costs are considered, but it is not extreme for a growing, contracted midstream business. The result looks closer to fair-priced than clearly cheap or expensive.

Big pictureCash generation is improving, but heavy growth spending still keeps balance-sheet flexibility important.

First-quarter continuing Adjusted EBITDA rose nearly 30% year over year, and distributable cash flow increased to about $94 million. Distributable cash flow is management’s cash-earnings measure after interest, maintenance spending and preferred distributions, but it excludes growth capital. Operating cash flow was about $77 million while cash capital spending exceeded $108 million, so the quarter still required incremental revolver borrowing. That mix can work while contracted projects ramp, yet durable common-equity returns depend on growth spending converting into cash faster than financing needs rebuild.

Business strengthWater Solutions is now the earnings engine, supported by contracted volume growth and scalable infrastructure.

Water Solutions produced about 91% of first-quarter partnership EBITDA and processed record volumes, giving NGL a much more focused earnings base than its former diversified model. Long-term, fee-based producer contracts reduce direct oil-price exposure because customers pay for water handling rather than simply sharing commodity prices. The LEX II extension is backed by committed volumes and should add capacity around year-end. Still, concentration in the Delaware Basin means drilling activity, customer execution, regulation and disposal capacity remain important operating risks.

What could change the storyDeleveraging and project execution could unlock upside; slower volumes, dilution, or costly funding could reverse it.

Bull case: fiscal 2027 EBITDA reaches or exceeds the raised range, LEX II enters service on schedule, and excess cash pays down debt or retires preferred securities before common distributions or buybacks resume. Bear case: water growth slows, project costs stay elevated, or commodity-driven logistics margins weaken, leaving leverage high. NGL had about $3.3 billion of gross debt and roughly $204 million of liquidity at June quarter-end. The unused buyback authorization helps optionality, but outstanding warrants, preferred conversion features and equity awards can dilute common holders.

AI: News

Guidance raised after Q1Strong water volumes lifted quarterly earnings and management increased its fiscal 2027 EBITDA outlook.

On August 4, NGL reported first-quarter fiscal 2027 continuing Adjusted EBITDA of about $186 million, nearly 30% above the prior-year period, with Water Solutions driving most of the increase. Produced-water volumes reached a record level, and management raised full-year Adjusted EBITDA guidance to $725 million-$735 million. The update strengthened the growth case, while the quarter also showed significant spending on water infrastructure and continued use of the revolver for liquidity.

LEX II expansionA contracted pipeline extension increases Delaware Basin water capacity and supports growth into fiscal 2028.

On May 7, NGL announced a 60-mile extension of the Lea County Express system, taking the long-haul system to 81 miles and planned capacity to roughly 560,000 barrels per day. The expansion is underwritten by a new long-term volume commitment with added acreage dedication, which lowers demand risk compared with speculative construction. Management expects the project in service by calendar year-end, making execution timing and capital cost central near-term catalysts.

Refinancing reshapes capitalA new seven-year term loan retired expensive preferred units but also increased secured debt financing.

On March 12, NGL closed a $950 million seven-year secured term loan and amended its asset-based revolver. Proceeds were used to refinance the prior term loan, support repurchase of roughly 195,000 Class D preferred units, and for other capital-structure needs. The transaction reduced a costly preferred overhang and extended financing visibility, but the larger secured borrowing also means common-equity upside still depends on sustained EBITDA growth and further deleveraging.

Buyback authorization renewedThe board authorized another common-unit repurchase program, though no units were bought in the first quarter.

On April 8, the board authorized up to $100 million of common-unit repurchases with no fixed expiration date. The annual results noted sizable repurchases under the prior program, showing management has used buybacks when valuation looked attractive. However, the June-quarter 10-Q says no units were repurchased under the new authorization during the quarter. That restraint matters because growth capital, debt reduction and preferred obligations still compete with buybacks for the same cash.

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Financial statements

	2026	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012
Revenue	$3.16B	$3.47B	$4.15B	$5.68B	$7.95B	$5.23B	$7.58B	$8.69B	$6.95B	$12.71B	$11.74B	$16.80B	$9.70B	$4.42B	$1.31B
Gross profit	$974.0M	$962.1M	$967.9M	$989.6M	$808.6M	$733.2M	$979.6M	$706.1M	$690.4M	$478.8M	$903.1M	$843.9M	$566.6M	$378.7M	$93.5M
Gross margin	30.86%	27.73%	23.30%	17.43%	10.17%	14.03%	12.92%	8.13%	9.93%	3.77%	7.69%	5.02%	5.84%	8.57%	7.13%
Operating expenses	$293.6M	$297.7M	$299.6M	$304.6M	$285.5M	$254.6M	$333.0M	$231.1M	$193.1M	$189.0M	$401.1M	$364.1M	$259.8M	$169.6M	$47.3M
Operating income	$94.7M	$329.4M	$161.9M	$244.0M	$83.0M	−$390.8M	−$3.3M	$126.7M	$187.3M	$205.9M	−$104.6M	$107.4M	$106.6M	$87.3M	$15.0M
Operating margin	3.00%	9.49%	3.90%	4.30%	1.04%	−7.48%	−0.04%	1.46%	2.69%	1.62%	−0.89%	0.64%	1.10%	1.98%	1.15%
EBITDA	$363.5M	$596.6M	$444.0M	$534.1M	$389.3M	−$59.6M	$273.5M	$348.4M	$407.3M	$400.8M	$144.6M	$317.9M	$239.2M	$164.8M	$32.2M
EBITDA margin	11.52%	17.20%	10.69%	9.40%	4.90%	−1.14%	3.61%	4.01%	5.86%	3.15%	1.23%	1.89%	2.47%	3.73%	2.46%
Net income	−$142.3M	$39.4M	−$143.8M	$51.4M	−$184.8M	−$639.8M	−$397.0M	$360.0M	−$70.9M	$137.0M	−$198.9M	$37.3M	$48.8M	—	$7.9M
Net profit margin	−4.51%	1.13%	−3.46%	0.90%	−2.32%	−12.24%	−5.23%	4.14%	−1.02%	1.08%	−1.69%	0.22%	0.50%	—	0.60%
Basic EPSper basic share	-$3.19	-$0.60	-$2.14	-$0.56	—	—	—	—	—	—	—	—	—	—	$0.32
Diluted EPSper diluted share	-$3.19	-$0.60	-$2.14	-$0.56	—	—	—	—	—	—	—	—	—	—	$0.32

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of NGL
Holder	Shares held
Invesco Ltd.	19.57M
MORGAN STANLEY	10.18M
GOLDMAN SACHS GROUP INC	8.54M
BANK OF AMERICA CORP /DE/	7.97M
TPG GP A, LLC	5.78M
ING GROEP NV	5.42M
CITIGROUP INC	4.3M
JPMORGAN CHASE & CO	2.83M
NOMURA HOLDINGS INC	2.5M
MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd.	1.4M
Prescott Group Capital Management, L.L.C.	1.03M
Fractal Investments LLC	832.48K
BNP PARIBAS FINANCIAL MARKETS	598.57K
BARCLAYS PLC	459.66K
HighTower Advisors, LLC	273.29K
Mariner, LLC	259.74K
Cetera Investment Advisers	250.27K
ALPS ADVISORS INC	247.8K
BROWN ADVISORY INC	225K
CITADEL ADVISORS LLC	193.55K

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys5$1.04M disclosed value

Sells (SEC code S)0$0.00 disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Sep 12, 2025Form 4	COLLINGSWORTH JAMES MDirector	BuyCommon Units	100.0K	$5.80	$580.0K	729.5K
Feb 14, 2025Form 4	KRIMBILL H MICHAELChief Executive Officer	BuyCommon Units · indirect	45.0K	$4.80	$216.0K	648.0K
Feb 14, 2025Form 4	KRIMBILL H MICHAELChief Executive Officer	BuyCommon Units	14.0K	$4.78	$67.0K	2.98M
Feb 13, 2025Form 4	KRIMBILL H MICHAELChief Executive Officer	BuyCommon Units · indirect	15.0K	$4.49	$67.3K	603.0K
Feb 13, 2025Form 4	KRIMBILL H MICHAELChief Executive Officer	BuyCommon Units	26.0K	$4.32	$112.2K	2.96M

Review ownership filings at SEC.gov ↗

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