| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 10.27 | -13 |
| Intrinsic value (DCF) | 1.52 | -87 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
NGL Energy Partners LP (NYSE: NGL) is a diversified midstream energy company specializing in the transportation, storage, blending, and marketing of crude oil, natural gas liquids (NGLs), refined products, renewables, and water solutions. Operating across three key segments—Water Solutions, Crude Oil Logistics, and Liquids Logistics—NGL serves the energy sector with critical infrastructure and services. The Water Solutions segment handles produced and flowback water from oil and gas production, offering recycling, disposal, and crude oil recovery. The Crude Oil Logistics segment focuses on purchasing, transporting, and storing crude oil for refineries, while the Liquids Logistics segment supplies NGLs, refined products, and biodiesel to commercial and industrial customers across North America. Headquartered in Tulsa, Oklahoma, NGL operates a network of terminals, pipelines, and storage facilities, positioning it as a key player in midstream energy logistics. With a market cap of approximately $434 million, NGL plays a vital role in supporting U.S. energy production and distribution.
NGL Energy Partners LP presents a mixed investment profile. The company operates in essential midstream energy segments, benefiting from stable demand for crude oil, NGLs, and water solutions. However, its financials reveal challenges, including negative net income (-$143.8M) and diluted EPS (-$2.14) in the latest fiscal year. While operating cash flow ($376.2M) remains positive, high total debt ($2.95B) raises leverage concerns. The lack of dividends may deter income-focused investors. NGL’s low beta (0.205) suggests relative stability compared to broader energy market volatility, but its small market cap and debt load warrant caution. Investors should weigh its infrastructure assets against financial risks.
NGL Energy Partners LP competes in the fragmented midstream energy sector, differentiating itself through diversified operations spanning water solutions, crude oil logistics, and NGL distribution. Its Water Solutions segment provides a competitive edge, as few midstream peers offer integrated water management services alongside hydrocarbon logistics. However, NGL’s smaller scale compared to giants like Enterprise Products Partners (EPD) limits its pricing power and economies of scale. The Crude Oil Logistics segment faces stiff competition from larger pipeline operators, while the Liquids Logistics segment competes with refined product distributors and NGL wholesalers. NGL’s asset footprint—24 terminals and nine pipelines—grants regional advantages but lacks the national reach of top-tier midstream players. Its ability to aggregate and recycle produced water is a niche strength, particularly in shale basins. However, high debt and inconsistent profitability weaken its competitive positioning against financially stronger peers. Strategic partnerships or asset optimization could enhance its market standing.