NGL Energy Partners Q1 revenue rises on Water Solutions growth, raises FY adjusted EBITDA outlook
NGL•What drove the quarter
- Water volume growth - Higher produced water volumes processed and a new pipeline contract drove increased disposal and pipeline revenue in the Water Solutions segment.
- Skim oil revenue - Revenue from recovered skim oil increased due to higher crude oil prices and more skim oil recovered from higher water volumes.
- Operating expenses - Water Solutions operating expenses rose due to higher royalty, utilities and severance taxes linked to increased volumes and revenue.
Key details
| Metric | Actual |
|---|---|
| Q1 Revenue | $989.99 mln |
| Q1 EPS | $0.48 |
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell".
The average consensus recommendation for the oil & gas refining and marketing peer group is "buy".
Wall Street's median 12-month price target for NGL Energy Partners LP is $28.00, about 75% above its August 3 closing price of $16.00.
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 20 three months ago.
Full-year adjusted EBITDA outlook raised
NGL raised full-year fiscal 2027 adjusted EBITDA guidance to $725-$735 million.
The company said it expects strong Water Solutions segment momentum to continue through fiscal 2027.
