NGL Intrinsic Value – NGL Energy Partners: A Worthy Investment With Potential for Growth

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NGL ($NYSE:NGL) Energy Partners LP (NGL) is a publicly traded partnership that engages in the transportation, storage, marketing, and distribution of natural gas liquids (NGLs) and crude oil. It is an attractive stock for investors as it offers an attractive dividend yield, potential for growth, and a diversified portfolio of assets. NGL also has strong market fundamentals, which support its long-term growth prospects. NGL’s diversified portfolio of assets consists of hydrocarbon storage and transportation infrastructure across North America and Europe. This allows the company to capitalize on the growth in energy demand, as well as capitalize on opportunities in the midstream and downstream energy sectors.

The company’s asset base also provides NGL Energy Partners with exposure to a variety of markets and commodities, including crude oil, natural gas liquids, and refined products. This helps to reduce the risk associated with a single commodity price environment. Overall, NGL Energy Partners is a worthy stock to consider for investors looking for potential growth with a good dividend yield. The company’s strong financials, commitment to capital expenditure, and diverse portfolio of assets make it a sound investment.

Stock Price

On Friday, NGL’s stock opened at $5.6 and closed at the same price, representing a 0.4% decline from the previous day’s closing price. Despite this minor decline, NGL still presents investors with attractive growth potential. NGL has been able to shore up its balance sheet and increase its financial flexibility by improving its capital structure. The company has also strengthened its liquidity position and reduced its debt, which sets it up to generate higher returns for investors in the future.

Additionally, NGL is investing in strategic projects to increase revenue, such as acquiring a power plant in the Midwest United States that will help it expand its presence in that region. NGL’s success in increasing its financial flexibility and expanding its operations should create positive momentum for the stock in the future. This makes the company an attractive investment for those who are looking for a viable long-term strategy. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for NGL. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for NGL. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for NGL. More…

Key Ratios Snapshot

Some of the financial key ratios for NGL are shown below. More…

Analysis – NGL Intrinsic Value

At GoodWhale, we believe that analyzing a company’s fundamentals is key to understanding whether an investment is worth it. That’s why we’ve taken a deep dive into the fundamentals of NGL ENERGY PARTNERS LP and are here to share our findings with you. Using our proprietary Valuation Line, we have determined that the fair value of NGL ENERGY PARTNERS LP’s share is around $2.6. However, the stock is currently trading at $5.6, which is an overvaluation of 118.9%. This means that any investment in NGL ENERGY PARTNERS LP should be undertaken with caution, as there is a strong possibility of a stock price drop in the near future. That said, it is always advisable to do your own research before making any investments, and GoodWhale is here to help you with that. More…

Peers

The Partnership’s operations are primarily conducted through its wholly owned subsidiaries. NGL Energy Partners LP is one of the largest providers of midstream energy services in North America. The Partnership has a diversified portfolio of assets that provide services to producers and end users of natural gas liquids (“NGLs”), crude oil, refined products and petrochemicals. The Partnership’s assets include: natural gas liquids pipelines, storage facilities, fractionators, railcars, barges, trucks, and related transportation and logistics assets.

– Energy Transfer LP ($NYSE:ET)

Energy Transfer LP is a publicly traded limited partnership that owns and operates energy infrastructure assets in the United States. The company has a market capitalization of $38.68 billion as of 2022 and a return on equity of 14.71%. Energy Transfer’s business segments include natural gas, natural gas liquids, crude oil, and refined products. The company’s natural gas segment includes interstate and intrastate natural gas transportation and storage assets, as well as natural gas gathering and processing assets. Energy Transfer’s natural gas liquids segment consists of natural gas liquids transportation, storage, and fractionation assets. The company’s crude oil segment includes crude oil transportation and storage assets, as well as crude oil gathering and marketing assets. Energy Transfer’s refined products segment includes refined products transportation and storage assets.

– Kinetik Holdings Inc ($NASDAQ:KNTK)

Kinder Morgan Inc is one of the largest energy infrastructure companies in North America. They own an interest in or operate approximately 84,000 miles of pipelines and about 180 terminals. The company transports natural gas, crude oil, refined petroleum products, and CO2. They also store and handle petroleum products, chemicals, and other bulk liquids.

Summary

NGL Energy Partners LP (NYSE: NGL) is an attractive investment for those seeking a steady, reliable income stream. NGL Energy Partners LP is also well-positioned for long-term growth, as its portfolio of midstream energy assets includes extensive infrastructure from which to grow. With a sound strategy and a plan in place to further diversify its operations, NGL Energy Partners LP is a hold with decent potential for investors.