GET DAILY SIGNALSNGL Energy Partners (NGL) Delivers Revenue Beat and Raises Guidance Again
Key Takeaways
- NGL Energy Partners reported total revenues of $986.6 million for its second quarter of fiscal 2027 (quarter ended September 30, 2026), up roughly 46% from $674.7 million a year earlier.
- Adjusted EBITDA from continuing operations rose 15% year over year to $192.4 million.
- The partnership recorded a net loss of $42.6 million, largely due to a $58.1 million impairment charge in its Crude Oil Logistics segment.
- Produced water volumes reached a record 3.45 million barrels per day, up 22.9% year over year, highlighting strength in the Water Solutions segment.
- Management raised full-year fiscal 2027 adjusted EBITDA guidance for the second time, to a range of $735 million to $745 million.
Earnings Context and Why It Matters
NGL Energy Partners operates as a master limited partnership with the largest integrated produced water pipeline, disposal, and handling network in the Delaware Basin, plus complementary crude oil and natural gas liquids logistics. This quarter stands out as the partnership continues shifting toward a lower-volatility water infrastructure focus. I think the results help show whether strong water volumes and fee-based contracts can balance out softness and one-time items in Crude Oil Logistics. The second guidance increase this fiscal year points to management confidence in contracted growth, which remains a key checkpoint for deleveraging and simplifying the capital structure.
Reported Results
NGL posted total revenues of $986.6 million for the quarter ended September 30, 2026, versus $674.7 million in the same period last year, a roughly 46% rise that exceeded analyst consensus. Yet the partnership moved to a net loss of $42.6 million from net income of $29.8 million a year earlier, mainly because of the $58.1 million impairment in Crude Oil Logistics. On a per-unit basis, the net loss came to $0.51 per common unit compared with income of $0.02 per common unit previously, missing consensus estimates.
Adjusted EBITDA from continuing operations, the key metric given the capital-intensive business, increased 15% to $192.4 million from $167.3 million a year earlier. Water Solutions again led the way with $178.3 million in segment adjusted EBITDA on record produced water volumes of about 3.45 million barrels per day, up 22.9%. Crude Oil Logistics added $11.9 million while Liquids Logistics contributed $14.2 million. I also checked this using Tickeron’s AI Screener to compare the results against peers in the energy infrastructure space.
Market Reaction and Investor Sentiment
Investor reaction reflected the mix of a solid revenue beat against the bottom-line loss tied to the non-cash impairment and commodity volatility. The second upward revision to full-year adjusted EBITDA guidance this year offered a positive signal that many see as confirmation of durable water growth. At the same time, the impairment and net loss may limit near-term optimism as the market weighs how much of the weakness is ongoing versus one-time. From what I see, the recent balance-sheet moves, including the Term Loan B repricing and expansion of the asset-based lending facility, also factored into assessments of financial flexibility.
Forward Outlook and Key Factors to Monitor
Looking ahead, attention will likely center on execution in Water Solutions. Management expects the LEX II Extension, which boosts the LEX Pipeline System’s takeaway capacity to roughly 560,000 barrels per day, to start service by year-end. The speed at which new capacity fills will be important for meeting the raised adjusted EBITDA target of $735 million to $745 million.
Balance-sheet progress stays another focus. NGL repriced its Term Loan B in September 2026, cutting the SOFR margin by 50 basis points, and later exercised a $50 million accordion on its ABL facility to raise commitments to $475 million. Efforts to reduce Class D preferred units and eventually restore common distributions remain priorities.
Commodity-price moves, especially in crude oil, can still create unrealized derivative losses and hedging effects that cloud headline numbers even as core water volumes expand. Tracking produced water volumes, contracted capacity, and capital discipline should give the clearest picture of whether momentum holds through the second half of fiscal 2027. One thing that stands out is how consistently the water segment has performed.
AI Tools in My Research Process
In my analysis of earnings reports like this one, I find Tickeron’s AI-powered tools helpful for quickly scanning sector trends and identifying comparable names. The AI Screener lets me apply filters for fundamentals, technical patterns, and performance metrics across energy infrastructure companies, which adds context without replacing core due diligence. It serves as a practical companion when reviewing volume growth or margin trends in segments like produced water.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
Momentum Indicator for NGL turns positive, indicating new upward trend
NGL saw its Momentum Indicator move above the 0 level on October 21, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 99 similar instances where the indicator turned positive. In 85 of the 99 cases, the stock moved higher in the following days. The odds of a move higher are at 86%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for NGL just turned positive on October 16, 2026. Looking at past instances where NGL's MACD turned positive, the stock continued to rise in 27 of 37 cases over the following month. The odds of a continued upward trend are 73%.
Following a +2.78% 3-day Advance, the price is estimated to grow further. Considering data from situations where NGL advanced for three days, in 220 of 284 cases, the price rose further within the following month. The odds of a continued upward trend are 77%.
Bearish Trend Analysis
The 10-day RSI Indicator for NGL moved out of overbought territory on October 30, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 43 similar instances where the indicator moved out of overbought territory. In 25 of the 43 cases, the stock moved lower in the following days. This puts the odds of a move lower at 58%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 44 of 62 cases where NGL's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 71%.
NGL moved below its 50-day moving average on November 04, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NGL declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 66%.
NGL broke above its upper Bollinger Band on October 27, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for NGL entered a downward trend on October 20, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 7 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 44, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 38 (best 1 - 100 worst), indicating steady price growth. NGL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 55 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 64 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (56.288) is normal, around the industry mean (142.313). P/E Ratio (-5.364) is within average values for comparable stocks, (7.430). Projected Growth (PEG Ratio) (0.030) is also within normal values, averaging (13.660). Dividend Yield (0.027) settles around the average of (139204411392.000) among similar stocks. P/S Ratio (0.581) is also within normal values, averaging (4.657).
The Tickeron SMR rating for this company is 99 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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an operator of propane and other natural gas businesses
Industry OilGasPipelines
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