NGL Energy’s Turnaround: From Deep Losses to Modest Profit

Forward-Looking Analysis

NGL Energy Partners (NGL) is projected to continue its path toward profitability, with earnings expected to grow from a trailing EPS of ($0.22) to $0.16 per share in the next year. Following Q2 2026, where the company reported an EPS of $0.02 and revenue of $674.68 million—beating estimates of $508.49 million—analysts anticipate continued recovery. Historical data shows significant volatility, with Q1 2026 seeing a miss with an EPS of -$0.27 against an estimate of -$0.11 and revenue of $622.16 million against $983.50M. The company's annual revenue is recorded at $3.33 billion with net income of $39.37 million. While specific consensus estimates for 2027Q1 are not explicitly detailed in the provided data, the forward trajectory indicates a shift from negative trailing EPS to positive expected earnings of $0.16. Analyst ratings and price targets require JavaScript to view, limiting specific bank predictions in the current data set.

Historical Performance Review

NGL Energy Pref B’s 2026Q4 results demonstrated significant financial strain, with revenue reported at $949.51 million. The company incurred a substantial net loss of $286.82 million during this period. Consequently, the earnings per share (EPS) dropped sharply to -$4.45. Gross profit also contracted, registering at only $217.25 million. These figures highlight the volatility in NGL's operational performance, contrasting with its broader annual revenue of $3.33 billion and net income of $39.37 million recorded in recent fiscal periods.

Additional News

NGL Energy Partners LP operates through three primary segments: Water Solutions, Crude Oil Logistics, and Liquids Logistics. The Water Solutions segment handles the transportation, treatment, recycling, and disposal of produced and flowback water, while also aggregating recovered crude oil and disposing of solids. The Crude Oil Logistics segment purchases crude oil from producers, transporting it to refineries for resale at various hubs, including pipeline injection stations and rail facilities. The Liquids Logistics segment distributes natural gas liquids to commercial, retail, and industrial customers across the U.S. and Canada via five terminals, third-party storage, nine pipelines, and leased railcars. This segment also provides marine butane export services from Chesapeake, Virginia, and owns a propane pipeline in Michigan. NGL Energy Holdings LLC serves as the general partner. The company was founded in 1940 and is headquartered in Tulsa, Oklahoma. The preferred stock (NGL.PRB) trades on the NYSE with a current yield of 13.19% and a market cap of $852.74 million.

Summary & Outlook

NGL Energy Partners shows mixed financial health, transitioning from significant quarterly losses to modest profitability. While annual net income is positive at $39.37 million, recent quarters reveal volatility, with Q4 2026 suffering a $286.82 million loss. Growth catalysts include the company's diversified logistics and water solutions infrastructure, which supports steady revenue generation of $3.33 billion annually. However, risks persist due to operational inefficiencies evidenced by recent negative EPS figures. The forecasted EPS growth to $0.16 suggests a cautious bullish outlook, pending consistent execution in logistics and water management. Investors should monitor the stability of revenue beats against estimates as a key indicator of sustained recovery.