Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
NGL Energy Partners (NGL) has demonstrated a strong operational turnaround, improving business momentum and aggressively reducing debt. The preferred stock (NGL.PR.B) offers an 11.7% floating yield, with dividends now well-covered by free cash flow and a 51% payout ratio. Long-term water handling contracts and recent volume commitments provide reliable cash flows and underpin management's confidence in further balance sheet strengthening.
NGL Energy Partners (NGL) is rated a Strong Buy due to its successful pivot to high-margin water solutions and undervalued stock price. NGL's water solutions segment now drives 85% of adjusted EBITDA, with long-term contracts and scalable capacity supporting reliable, growing revenues. The company is divesting lower-margin natural gas liquids assets, using proceeds to deleverage its $2.9 billion debt and strengthen its balance sheet.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
NGL Energy Partners LP Common Units ( NGL ) Q2 2026 Earnings Call November 4, 2025 5:00 PM EST Company Participants Brad Cooper - Executive VP, Compliance Officer & CFO of NGL Energy Holdings LLC Douglas White - Executive Vice President of NGL Water Solutions - NGL Energy Holdings LLC H. Krimbill - President, CEO, & Director of NGL Energy Holdings LLC Conference Call Participants Derrick Whitfield - Texas Capital Securities, Research Division Presentation Operator Greetings.
Plains All American Pipeline, L.P. offers stable, fee-based cash flows and a strong Permian presence, but is now heavily concentrated in crude after divesting NGL assets. The recent NGL sale improves financial flexibility and could lead to a special distribution, but reduces diversification and increases exposure to crude market risks. Valuation is reasonable with a high yield and improved leverage, but profitability and margins lag peers; future growth depends on redeploying capital from divestments.
I remain wary of NGL Energy Partners Preferred C due to persistent high risk and better alternatives available. The company's cash flow has shown a concerning downward trend over the past three years, with no recent signs of improvement. Despite recently repaying dividends in arrears, the company's high debt and low common stock price signal ongoing financial stress.
NGL Energy Partners LP Common Units (NYSE:NGL ) Q1 2026 Earnings Conference Call August 7, 2025 5:00 PM ET Company Participants Bradley P. Cooper - Executive VP, Compliance Officer & CFO of NGL Energy Holdings LLC Douglas W.
Energy Transfer expands NGL export hubs to meet global demand and boosts margins with fee-based contracts.
We rate NGL Energy Partners LP PFD UNIT CL B a Hold, given its attractive double-digit yield and improved balance sheet, but lingering risks remain. Dividends are variable, tied to SOFR plus a 7.213% spread, offering yields above 10% for several quarters as Fed rates stay elevated. The company's solid liquidity, asset sales, and compliance with debt covenants mitigate risk, but preferred units are still junior to debt in liquidation.
PAA to sell Canadian NGL unit for $3.75 billion, sharpening its crude oil focus and unlocking nearly $3 billion in net proceeds.