NGL Energy Partners LPNYSE: NGL

NGL's Q2 EBITDA was below expectations due to weak liquids business. Water solutions segment saw higher operating income, despite lower headline adjusted EBITDA. Liquids business is struggling, prompting NGL to lower full-year EBITDA guidance and consider asset sales; crude oil logistics also underperformed. Preferred units offer better risk/reward than common units; preferred B yields over 13% and is less exposed to business volatility outside water solutions.

NGL Energy Partners LP Common Units. (NYSE:NGL ) Q2 2025 Earnings Conference Call November 12, 2024 5:00 PM ET Company Participants Brad Cooper - Executive Vice President and Chief Financial Officer, NGL Energy Partners LP Michael Krimbill - Chief Executive Officer, NGL Energy Partners LP David Sullivan - Vice President Finance, NGL Energy Partners LP Doug White - Executive Vice President, Water Solutions Conference Call Participants Ned Baramov - Wells Fargo Operator Greetings.

TULSA, Okla.--(BUSINESS WIRE)--NGL Energy Partners LP Announces Second Quarter Fiscal 2025 Financial Results.

NGL Energy Partners has not declared common distributions since 2020 and sadly, they might not return until 2029 or later. Mostly due to their Class D series preferred units that could see a $600m obligation arise in early 2028 when unitholders can force them to be redeemed. When added to their accompanying preferred distributions and estimated capital expenditure, I estimate a circa $300m cash shortfall across the next three years.

TULSA, Okla.--(BUSINESS WIRE)--NGL Energy Partners Announces Earnings Call.

The series B preferred shares of NGL offer a compelling risk/reward ratio, especially for income-oriented investors, with a 16.28% return over eight months. The B series preferred shares are slightly better than the C series due to a higher distribution yield and better liquidity. Both series are designed to float above LIBOR, but the B series benefits from an additional fallback spread, enhancing its yield.

The company reaffirmed guidance for Fiscal 2025, with a focus on water solutions and capital usage to pay down debt. NGL Partners reported an okay first quarter with adjusted EBITDA of $144.3 million, driven by water services. Water services saw a slight increase in EBITDA, helped by higher skim oil profits and increased produced water processed.

TULSA, Okla.--(BUSINESS WIRE)--NGL Energy Partners LP Announces Quarterly Cash Distribution for the Class B, Class C, and Class D Preferred Units.

NGL Energy Partners LP Common Units (NYSE:NGL ) Q4 2024 Earnings Conference Call June 6, 2024 5:00 PM ET Company Participants Brad Cooper - Chief Financial Officer Mike Krimbill - Chief Executive Officer Conference Call Participants Tarek Hamid - J.P. Morgan Gregg Brody - Bank of America Jason Mendel - RBC Ned Baramov - Wells Fargo Operator Greetings.