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Relative valuation derived from Utilities sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 49.1GRADE C
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
135.8%
Sector: 9.9%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, NGL Energy Partners LP (NGL) receives a "Hold" rating with a composite score of 48.2/100, ranked #330 out of 4446 stocks. Key factor scores: Quality 49/100, Value 52/100, Momentum 74/100. This is quantitative analysis only — not investment advice.
NGL Energy Partners LP (NGL) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does NGL Energy Partners LP Do?
NGL Energy Partners LP engages in the crude oil and liquids logistics, and water solution businesses. The company's Crude Oil Logistics segment purchases crude oil from producers and marketers, and transports it to refineries for resale at pipeline injection stations, storage terminals, barge loading facilities, rail facilities, refineries, and other trade hubs; and provides storage, terminaling, and pipeline transportation services. Its Water Solutions segment transports, treats, recycles, and disposes produced and flowback water generated from oil and natural gas production; disposes solids, such as tank bottoms, and drilling fluid and muds, as well as performs truck and frac tank washouts; and sells produced water for reuse and brackish non-potable water. The company's Liquids Logistics segment supplies natural gas liquids, refined petroleum products, and biodiesel to commercial, retail, and industrial customers in the United States and Canada through its 28 terminals, third-party storage and terminal facilities, and common carrier pipelines, as well as through fleet of leased railcars. This segment is also involved in the marine export of butane through its facility located in Chesapeake, Virginia; and offers terminaling and storage services. NGL Energy Holdings LLC serves as the general partner of the company. The company was founded in 1940 and is headquartered in Tulsa, Oklahoma. NGL Energy Partners LP (NGL) is classified as a small-cap stock in the Utilities sector. The company is led by CEO H. Michael Krimbill and employs approximately 840 people, headquartered in TULSA, Oklahoma. With a market capitalization of $1.6B, NGL is one of the notable companies in the Utilities sector.
NGL Energy Partners LP (NGL) Stock Rating — Hold (April 2026)
As of April 2026, NGL Energy Partners LP receives a Hold rating with a composite score of 48.2/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.NGL ranks #330 out of 4,446 stocks in our coverage universe. Within the Utilities sector, NGL Energy Partners LP ranks #33 of 112 stocks, placing it in the upper half of its Utilities peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
NGL Stock Price and 52-Week Range
NGL Energy Partners LP (NGL) currently trades at $13.54. The stock gained $0.29 (2.2%) in the most recent trading session. The 52-week high for NGL is $13.00, which means the stock is currently trading 4.2% from its annual peak. The 52-week low is $2.64, putting the stock 412.9% above its annual trough. Recent trading volume was 155K shares, suggesting relatively thin trading activity.
Is NGL Overvalued or Undervalued? — Valuation Analysis
NGL Energy Partners LP (NGL) carries a value factor score of 52/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 10.12x, compared to the Utilities sector average of 23.47x — a discount of 57%. The price-to-book ratio stands at 13.74x, versus the sector average of 1.98x. The price-to-sales ratio is 0.51x, compared to 0.82x for the average Utilities stock. On an enterprise value basis, NGL trades at 7.19x EV/EBITDA, versus 4.75x for the sector.
Overall, NGL's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
NGL Energy Partners LP Profitability — ROE, Margins, and Quality Score
NGL Energy Partners LP (NGL) earns a quality factor score of 49/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 135.8%, compared to the Utilities sector average of 9.9%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 3.7% versus the sector average of 3.1%.
On a margin basis, NGL Energy Partners LP reports gross margins of 32.6%, compared to 53.1% for the sector. The operating margin is 12.3% (sector: 21.5%). Net profit margin stands at 5.6%, versus 12.8% for the average Utilities stock. Revenue growth is running at 20.3% on a trailing basis, compared to 20.1% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
NGL Debt, Balance Sheet, and Financial Health
NGL Energy Partners LP has a debt-to-equity ratio of 2455.0%, compared to the Utilities sector average of 164.5%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.12x, suggesting adequate working capital coverage. Total debt on the balance sheet is $2.93B.
NGL has a beta of 0.45, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for NGL Energy Partners LP is 43/100, reflecting average volatility within the normal range for its sector.
NGL Energy Partners LP Revenue and Earnings History — Quarterly Trend
In TTM 2026, NGL Energy Partners LP reported revenue of $3.19B. Net income for the quarter was $162M. Gross margin was 32.6%. Operating income came in at $377M.
In Q3 2026, NGL Energy Partners LP reported revenue of $910M. Net income for the quarter was $48M. Gross margin was 29.0%. Revenue grew -7.4% year-over-year compared to Q3 2025. Operating income came in at $110M.
In Q2 2026, NGL Energy Partners LP reported revenue of $675M. Net income for the quarter was $30M. Gross margin was 37.6%. Revenue grew -10.8% year-over-year compared to Q2 2025. Operating income came in at $94M.
In Q1 2026, NGL Energy Partners LP reported revenue of $622M. Net income for the quarter was $70M. Gross margin was 38.5%. Revenue grew -18.1% year-over-year compared to Q1 2025. Operating income came in at $97M.
Over the past 8 quarters, NGL Energy Partners LP has demonstrated a growth trajectory, with revenue expanding from $759M to $3.19B. Investors analyzing NGL stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
NGL Dividend Yield and Income Analysis
NGL Energy Partners LP (NGL) does not currently pay a dividend. This is common among smaller companies in the Utilities industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Utilities dividend stocks may want to explore other Utilities stocks or use the stock screener to filter by dividend yield.
NGL Momentum and Technical Analysis Profile
NGL Energy Partners LP (NGL) has a momentum factor score of 74/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 26/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 2/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
NGL vs Competitors — Utilities Sector Ranking and Peer Comparison
Comparing NGL against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full NGL vs S&P 500 (SPY) comparison to assess how NGL Energy Partners LP stacks up against the broader market across all factor dimensions.
NGL Next Earnings Date
No upcoming earnings date has been announced for NGL Energy Partners LP (NGL) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy NGL? — Investment Thesis Summary
NGL Energy Partners LP presents a balanced picture with arguments on both sides. Price momentum is positive at 74/100, suggesting the trend favors buyers.
In summary, NGL Energy Partners LP (NGL) earns a Hold rating with a composite score of 48.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on NGL stock.
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Institutional Research Dossier
NGL Energy Partners LP (NGL) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain our Hold rating on NGL Energy Partners LP (NGL). While the company exhibits attractive valuation metrics, particularly a low P/E ratio compared to the sector, its high debt levels and inconsistent profitability raise concerns about its long-term financial stability. The company's exposure to the cyclical energy sector and its reliance on commodity prices further contribute to our neutral stance.
NGL operates in a capital-intensive industry with significant operational risks. While the company has demonstrated revenue growth, its margins lag behind sector peers, and its high debt-to-equity ratio presents a substantial risk. The Hold rating reflects a balanced view of NGL's potential upside from its strategic assets and the downside risks associated with its financial leverage and operational challenges. Investors should closely monitor the company's debt reduction efforts and its ability to improve profitability in a volatile energy market.
Business Strategy & Overview
NGL Energy Partners operates across three primary segments: Crude Oil Logistics, Water Solutions, and Liquids Logistics. The Crude Oil Logistics segment focuses on purchasing crude oil from producers and transporting it to refineries, generating revenue through transportation fees and price differentials. The Water Solutions segment addresses the critical need for water management in oil and gas production, transporting, treating, and disposing of produced and flowback water. This segment is increasingly important due to stricter environmental regulations and the growing emphasis on water recycling in the energy industry. The Liquids Logistics segment supplies natural gas liquids, refined petroleum products, and biodiesel to various customers, utilizing a network of terminals, storage facilities, and transportation assets.
NGL's strategic positioning involves leveraging its asset base to provide integrated services across the energy value chain. The company aims to capitalize on the increasing demand for water management solutions in the oil and gas industry, driven by both regulatory pressures and cost efficiencies. Its liquids logistics business benefits from the growing demand for natural gas liquids and refined products, particularly in regions with limited pipeline infrastructure. The company's crude oil logistics segment is focused on optimizing its transportation network and storage capacity to capture arbitrage opportunities and provide reliable services to producers and refiners.
A key aspect of NGL's strategy is its focus on operational efficiency and cost management. The company has been working to streamline its operations, reduce expenses, and improve asset utilization. This includes optimizing its transportation routes, upgrading its facilities, and implementing technology solutions to enhance efficiency. NGL also seeks to expand its service offerings and geographic footprint through strategic acquisitions and organic growth initiatives. However, the company's high debt levels constrain its ability to invest in growth opportunities and increase its financial flexibility.
The energy industry is characterized by intense competition and cyclical demand patterns. NGL faces competition from other midstream companies, water management service providers, and transportation companies. The company's success depends on its ability to differentiate itself through superior service quality, competitive pricing, and strategic asset positioning. The regulatory environment also plays a significant role, with increasing scrutiny on environmental practices and safety standards. NGL must comply with various federal, state, and local regulations, which can impact its operating costs and capital expenditures.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
20.3%
Sector: 20.1%
IN LINE
Economic Moat Analysis
NGL Energy Partners' economic moat is best characterized as Narrow. The company possesses some elements of competitive advantage, but these are not strong enough to create a wide and sustainable moat. The Water Solutions segment, in particular, benefits from localized advantages due to the high cost of transporting water, creating a degree of regional dominance. However, this advantage is limited by the presence of other water disposal and treatment companies, as well as the potential for producers to develop their own in-house water management capabilities.
The Crude Oil Logistics and Liquids Logistics segments face intense competition from other midstream companies with extensive pipeline networks and storage facilities. While NGL has a network of terminals and transportation assets, it lacks the scale and geographic reach of larger competitors. This limits its ability to capture significant market share and exert pricing power. The company's reliance on third-party pipelines and storage facilities also exposes it to potential disruptions and increased costs.
Switching costs for NGL's customers are relatively low, as producers and refiners can easily switch to alternative service providers if they offer better pricing or service quality. This lack of customer stickiness weakens NGL's competitive position and makes it vulnerable to market fluctuations. The company's intangible assets, such as brand reputation and proprietary technology, are not significant enough to create a sustainable competitive advantage.
While NGL may benefit from some cost advantages in certain areas, such as its access to strategic locations or its operational efficiencies, these advantages are not substantial enough to create a wide moat. The company's high debt levels also increase its cost of capital, which can offset any potential cost advantages. Overall, NGL's competitive advantages are limited and subject to erosion over time, supporting our assessment of a narrow economic moat.
Financial Health & Profitability
NGL Energy Partners' financial health presents a mixed picture. While the company has demonstrated revenue growth, its profitability and balance sheet leverage raise concerns. The company's revenue for the most recent quarter (Q3 FY2026) was $909.82 million, with a net income of $48.19 million. This represents a significant improvement compared to the prior year, but the company's historical profitability has been inconsistent. The net income for FY2024 was negative (-$143.12 million), highlighting the volatility of the company's earnings.
NGL's gross margin and operating margin lag behind the sector averages. The company's gross margin for the most recent quarter was 29.0%, compared to a sector average of 53.3%. Similarly, its operating margin was 12.1%, compared to a sector average of 21.7%. This indicates that NGL is less efficient in converting revenue into profit compared to its peers. The company's high operating costs and expenses contribute to its lower margins.
The company's balance sheet is heavily leveraged, with a total debt of $2.93 billion and a debt-to-equity ratio of 2,455.00, significantly higher than the sector average of 165.00. This high level of debt increases the company's financial risk and limits its financial flexibility. The company's current ratio of 1.12 indicates that it has sufficient short-term liquidity to meet its current obligations, but its high debt levels remain a concern.
NGL's return on equity (ROE) is exceptionally high at 135.8%, significantly above the sector average of 10.0%. However, this high ROE is primarily driven by the company's high leverage, which magnifies both its profits and its risks. The company's free cash flow is not available, making it difficult to assess its ability to generate cash from its operations. Overall, NGL's financial health is characterized by high revenue growth, low margins, high leverage, and inconsistent profitability.
Valuation Assessment
NGL Energy Partners' valuation presents a compelling case for value investors, but requires careful consideration of its financial risks. The company's P/E ratio of 9.2x is significantly lower than the sector average of 22.7x, suggesting that the stock is undervalued relative to its earnings. However, this low P/E ratio may reflect the market's concerns about the company's high debt levels and inconsistent profitability.
The company's EV/EBITDA ratio of 6.4x is higher than the sector average of 4.8x, indicating that the company is relatively more expensive on an enterprise value basis. This suggests that the market is factoring in the company's high debt levels when assessing its valuation. The EV/EBITDA ratio provides a more comprehensive view of the company's valuation by considering its debt and cash positions.
Without free cash flow data, a full discounted cash flow (DCF) analysis is not possible. However, based on the available data, NGL appears to be undervalued based on its earnings, but its high debt levels and inconsistent profitability warrant caution. The company's valuation is likely to be highly sensitive to changes in commodity prices and interest rates.
Compared to its historical valuation, NGL's current P/E ratio is relatively low, suggesting that the stock may be trading at a discount. However, the company's historical performance has been volatile, and its future prospects are uncertain. Investors should carefully consider the company's financial risks and growth potential when assessing its valuation. Overall, NGL's valuation is attractive on the surface, but requires a thorough understanding of its financial challenges and industry dynamics.
Risk & Uncertainty
NGL Energy Partners faces several significant risks that could impact its financial performance and stock price. The most prominent risk is its high debt levels, which increase its vulnerability to interest rate fluctuations and economic downturns. The company's ability to service its debt obligations depends on its ability to generate sufficient cash flow, which is subject to commodity price volatility and operational challenges.
The company's exposure to the cyclical energy sector is another major risk. Fluctuations in crude oil and natural gas prices can significantly impact the demand for its services and its profitability. A decline in energy prices could reduce drilling activity, which would negatively affect the demand for its water management solutions and crude oil logistics services. The company's reliance on commodity prices makes it susceptible to market volatility and economic uncertainty.
Regulatory risks also pose a threat to NGL's business. The energy industry is subject to extensive environmental regulations, which can increase operating costs and capital expenditures. Changes in regulations related to water disposal, emissions, and safety standards could have a material impact on the company's financial performance. The company must comply with various federal, state, and local regulations, which can be complex and costly.
Competition from other midstream companies and water management service providers is another risk factor. The energy industry is highly competitive, and NGL faces competition from larger and more established companies with greater financial resources. The company's ability to maintain its market share and profitability depends on its ability to differentiate itself through superior service quality, competitive pricing, and strategic asset positioning.
Bulls Say / Bears Say
The Bull Case
BULL VIEWNGL's low P/E ratio relative to the sector suggests significant undervaluation, offering substantial upside potential as the market recognizes its earnings power.
BULL VIEWThe company's Water Solutions segment is poised for growth due to increasing environmental regulations and the rising demand for water recycling in the oil and gas industry.
BULL VIEWNGL's strategic asset base and integrated service offerings provide a competitive advantage, enabling it to capture market share and generate sustainable revenue growth.
The Bear Case
BEAR VIEWNGL's high debt levels pose a significant financial risk, potentially leading to liquidity issues and limiting its ability to invest in growth opportunities.
BEAR VIEWThe company's inconsistent profitability and low margins compared to sector peers raise concerns about its operational efficiency and long-term sustainability.
BEAR VIEWNGL's exposure to the volatile energy sector makes it vulnerable to commodity price fluctuations and economic downturns, potentially impacting its financial performance.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score NGL and 4,400+ other equities.
NGL Energy Partners LP exhibits a 138% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
3.7%
Sector: 3.1%
Gross Margin
Pricing power and cost efficiency
32.6%
Sector: 53.1%
Operating Margin
Core business profitability
12.3%
Sector: 21.5%
Net Margin
Bottom-line profitability
5.6%
Sector: 12.8%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
