Wells Fargo Upgrades NGL Energy Partners on Balance Sheet Repair

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NGL ($NYSE:NGL) Energy Partners LP, a diversified midstream energy company, has received a favorable rating upgrade from Wells Fargo due to its successful balance sheet repair. NGL Energy Partners is a publicly traded limited partnership that is headquartered in Tulsa, Oklahoma. The company is engaged in the business of gathering, compressing, treating, processing, transporting, storing, and marketing natural gas and natural gas liquids (NGLs). It also distributes and markets propane and other refined petroleum products. Wells Fargo has upgraded NGL Energy Partners from ‘Underperform’ to ‘Equal Weight’ citing their improved debt-to-equity ratio and increased liquidity.

NGL Energy Partners’ management team has worked hard to improve the company’s financial situation and it appears that these efforts have been successful. The upgrade from Wells Fargo is just one indicator that NGL Energy Partners is on the right track when it comes to improving its balance sheet. With continued efforts, the company should be able to continue to strengthen its financial position and provide more stability in the future.

Stock Price

On Monday, Wells Fargo upgraded its rating of NGL Energy Partners LP (NGL). This came after the energy company has recently been focusing on improving its balance sheet. Despite this, NGL’s stock opened at $3.7 and closed at $3.5, down by 1.7% from its previous closing price. In an effort to improve its balance sheet, NGL has recently taken steps to reduce its debt and strengthen its financials. The company has cut costs by reducing its workforce, and has also sold off non-core assets. Furthermore, NGL recently announced plans to expand into new markets and increase the scale of its operations.

The company is looking to build off its existing presence in the transportation fuel storage market and expand into other areas such as natural gas liquefaction and storage. This could help NGL to further diversify its revenue streams and potentially benefit from additional growth opportunities in the future. Overall, Wells Fargo’s upgrade of NGL reflects the company’s recent efforts to improve its balance sheet and position itself for further expansion in the future. While NGL’s stock may have closed lower on Monday, the long-term potential of the company remains strong. 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

GoodWhale is here to help you analyze the financials of NGL Energy Partners LP. According to our Risk Rating, this company is a medium risk investment, given its financial and business aspects. After analyzing their income sheet, GoodWhale has identified one risk warning. If you’d like to know more about this warning, please register on goodwhale.com and we’ll be glad to provide you with more detailed information. 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 (NGL) has been upgraded by Wells Fargo to an ‘Outperform’ rating, based on their assessment of the company’s balance sheet repair. NGL is currently focused on increasing liquidity through its balance sheet repair plan, which includes reducing capital expenditures, selling non-core assets, and refinancing debt.

In addition, they have improved their product portfolio, increased focus on cost cutting, and simplified their structure. As a result of these measures, the company is expected to generate improved cash flow and reduce leverage, leading to a stronger financial position. Investment in NGL is likely to offer potential returns for long-term investors.