(NGL) NGL Energy Partners - Ratings and Ratios

NGL Energy Partners LP is a multifaceted energy company that specializes in the transportation, storage, blending, and marketing of various energy products, including crude oil, natural gas liquids, refined products, and water solutions. With a presence across the United States and Canada, the company operates through three primary segments: Water Solutions, Crude Oil Logistics, and Liquids Logistics, providing a range of services that cater to the needs of the energy industry.

The companys Water Solutions segment is a critical component of its operations, providing essential services such as the transportation, treatment, and disposal of produced water generated from crude oil and natural gas production. Additionally, this segment aggregates and sells recovered crude oil, disposes of solids, and sells produced water for reuse and recycling. As the energy industry continues to evolve, the demand for water management services is likely to remain strong, driven by the ongoing production of crude oil and natural gas.

In the Crude Oil Logistics segment, NGL Energy Partners LP purchases crude oil from producers and marketers, transporting it to refineries for resale at various hubs, including pipeline injection stations, storage terminals, and refineries. The company also provides storage, terminaling, and transportation services through its pipeline and storage tank infrastructure. With the global demand for crude oil remaining significant, this segment is well-positioned to benefit from the ongoing needs of the energy industry.

The Liquids Logistics segment is another key component of the companys operations, providing natural gas liquids to customers across the United States and Canada through its terminals, third-party storage facilities, and common carrier pipelines. The company also offers services for marine exports of butane and owns a propane pipeline in Michigan. As the demand for natural gas liquids continues to grow, driven by the increasing use of these products in various industries, this segment is likely to remain a significant contributor to the companys revenue.

From a technical analysis perspective, NGL Energy Partners LPs stock price has been trending upward, with its 20-day simple moving average (SMA) at $4.06 and its 50-day SMA at $3.53, indicating a potential bullish trend. The stocks relative strength index (RSI) is not provided, but its average true range (ATR) is 0.25, representing a 5.93% volatility. Given the current price of $4.29 and the 52-week high and low of $5.62 and $2.80, respectively, it is likely that the stock will continue to experience fluctuations in the short term.

Using a combination of technical and fundamental data, a forecast for NGL Energy Partners LP can be developed. Based on the companys market capitalization of $568.98 million and its forward price-to-earnings ratio of 47.62, it appears that the stock may be slightly overvalued. However, with a return on equity (ROE) of 13.74%, the company is demonstrating a reasonable level of profitability. Taking into account the current technical trends and fundamental data, a potential price target for NGL Energy Partners LP could be in the range of $5.00 to $5.50, representing a 15% to 25% increase from the current price. This forecast is based on the assumption that the energy industry will continue to experience growth, driven by the ongoing demand for crude oil, natural gas liquids, and other energy products.