NGL Energy Partners Expands Water Solutions Pipeline System
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
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Should l Buy NGL?
Source: Newsfilter
- Pipeline System Expansion: NGL Water Solutions announces the expansion of its Lea County Express Pipeline System (LEX II Extension) with an additional 60 miles of large-diameter pipeline, significantly enhancing produced water handling capacity in the Delaware Basin, with an expected throughput increase to 560,000 barrels per day.
- New Facility Construction: The expansion includes new disposal wells and injection facilities, further strengthening NGL's existing super-system for water management, ensuring the company can meet the growing market demand and enhance its competitive edge in water management.
- Long-Term Contract Support: The LEX II expansion project is backed by a newly executed long-term volume commitment contract, which increases the committed area in Eddy County, NM, ensuring future water handling volumes and revenue stability, thereby boosting investor confidence.
- Strategic Focus on Water Management: NGL is concentrating on its Water Solutions business, which has become the core driver of the company, expected to contribute approximately 85% of adjusted EBITDA, indicating the company's leadership position and future growth potential in water infrastructure.
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Analyst Views on NGL
About NGL
NGL Energy Partners LP is a master limited partnership. It operates an integrated network of large-diameter wastewater pipelines, disposal wells and produced water handling systems in the Delaware Basin. It also operates wastewater disposal in the Eagle Ford and DJ Basins. In addition, it markets and provides other logistics services for crude oil, through its ownership of the Grand Mesa Pipeline System, Cushing terminal and other Gulf Coast terminals. Its Water Solutions segment transports, treats, recycles and disposes of produced and flowback water generated from crude oil and natural gas production. Its Crude Oil Logistics segment purchases crude oil from producers and marketers and transports it to refineries or for resale at pipeline injection stations, storage terminals, barge loading facilities, rail facilities and other trade hubs, and provides storage, terminaling and transportation services. Its Liquids Logistics segment conducts supply operations for natural gas liquids.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
NGL Energy Partners Expands Water Solutions Pipeline System
- Pipeline System Expansion: NGL Water Solutions announces the expansion of its Lea County Express Pipeline System (LEX II Extension) with an additional 60 miles of large-diameter pipeline, significantly enhancing produced water handling capacity in the Delaware Basin, with an expected throughput increase to 560,000 barrels per day.
- New Facility Construction: The expansion includes new disposal wells and injection facilities, further strengthening NGL's existing super-system for water management, ensuring the company can meet the growing market demand and enhance its competitive edge in water management.
- Long-Term Contract Support: The LEX II expansion project is backed by a newly executed long-term volume commitment contract, which increases the committed area in Eddy County, NM, ensuring future water handling volumes and revenue stability, thereby boosting investor confidence.
- Strategic Focus on Water Management: NGL is concentrating on its Water Solutions business, which has become the core driver of the company, expected to contribute approximately 85% of adjusted EBITDA, indicating the company's leadership position and future growth potential in water infrastructure.
See More
NGL Energy Partners Authorizes $100 Million Share Repurchase Program
- Share Repurchase Program: On April 9, NGL Energy Partners announced that its Board of Directors authorized a share repurchase program of up to $100 million, allowing the company to buy back outstanding units at its discretion, thereby enhancing shareholder value and boosting market confidence.
- Repurchase Execution: In its latest earnings call, NGL revealed that it had nearly exhausted its previous repurchase plan, having bought back 1.6 million shares in Q3, totaling approximately 8.7 million shares or nearly 7% of its total outstanding shares, demonstrating confidence in its stock value.
- Infrastructure Stock Performance: NGL Energy Partners has been recognized as one of the 14 best infrastructure stocks to buy now, reflecting market acknowledgment of its diversified midstream services, including transportation, storage, and marketing of crude oil and NGLs, which enhances its investment appeal.
- Market Competition Analysis: While NGL shows investment potential, analysts note that certain AI stocks may offer greater upside potential and lower downside risk, indicating that investors should be cautious and consider sectors with higher growth prospects in the current market environment.
See More
NGL Energy Partners Announces $100 Million Unit Repurchase Program
- Repurchase Program Initiated: NGL Energy Partners LP announced that its Board of Directors has authorized a repurchase program to buy back up to $100 million of its common units, reflecting the company's confidence in its value and aiming to enhance shareholder returns.
- Flexible Repurchase Strategy: The program does not have a fixed expiration date, allowing the company to choose the timing of repurchases based on market conditions, which enhances the flexibility of capital utilization through open market transactions or privately negotiated deals.
- Positive Market Reaction: In pre-market trading on the New York Stock Exchange, NGL's stock price rose by 0.68% to $13.35, indicating a positive market response to the repurchase program, which may further drive the stock price upward.
- Enhancing Shareholder Value: By implementing the repurchase program, NGL aims to increase earnings per share by reducing the number of outstanding shares, thereby enhancing long-term shareholder value and reflecting the company's confidence in future growth.
See More
NGL Energy Partners Launches $100M Unit Repurchase Program
- Repurchase Program Initiated: NGL Energy Partners' board has authorized a common unit repurchase program allowing the company to buy back up to $100 million of its outstanding units, reflecting confidence in its intrinsic value.
- High Flexibility: The program has no fixed expiration date, enabling NGL to adjust its repurchase strategy based on market conditions, thereby maintaining financial flexibility in uncertain environments.
- No Obligation to Repurchase: NGL is not obligated to acquire a specified number of units, allowing the company to suspend or modify the program as needed, which is crucial for responding to market fluctuations.
- Positive Market Reaction: This initiative may enhance investor confidence and increase demand for the units, potentially leading to a positive impact on NGL's stock price and further supporting the company's long-term growth strategy.
See More
NGL Energy Partners Launches $100 Million Unit Repurchase Program
- Repurchase Program Authorization: NGL Energy's Board has authorized a unit repurchase program allowing for the buyback of up to $100 million in common units, reflecting confidence in the company's future prospects.
- Flexible Repurchase Mechanism: The program enables NGL to determine the timing and number of units repurchased based on market conditions and other factors, ensuring transactions occur at appropriate prices to optimize capital allocation.
- Compliance Assurance: NGL can execute repurchases under a Rule 10b5-1 plan, allowing for compliance with insider trading laws, thereby enhancing the program's flexibility and reducing potential legal risks.
- Market Reaction Expectations: Although the repurchase program has no fixed expiration date, its implementation is expected to bolster market confidence in NGL, potentially leading to positive impacts on stock prices and enhancing long-term investor trust.
See More
NGL Energy Partners LP Preferred Dividend History
- Dividend Overview: NGL Energy Partners LP recently declared a dividend of $0.6903 per share, reflecting the stable yield of its 9.625% Class C Fixed-to-Floating Rate Cumulative Redeemable Preferred Units, which enhances investor confidence in its long-term investment value.
- Market Performance Analysis: In Tuesday trading, NGL.PRC preferred shares fell approximately 1.1%, while common shares NGL rose about 1.9%, indicating a relative weakness in demand for preferred shares that may influence investors' asset allocation decisions.
- ETF Composition Ratio: NGL Energy Partners LP constitutes 3.60% of the Junior MLP ETF (MLPJ), highlighting its significance among small to mid-cap master limited partnerships, potentially attracting more investors interested in its dividend policies.
- Investor Focus: As market interest in S.A.F.E. dividend stocks grows, NGL.PRC's preferred shares may become a focal point for investors, particularly those seeking stable income, further driving its market performance.
See More
NGL Energy Partners Expands Water Solutions Pipeline System
- Pipeline System Expansion: NGL Water Solutions announces the expansion of its Lea County Express Pipeline System (LEX II Extension) with an additional 60 miles of large-diameter pipeline, significantly enhancing produced water handling capacity in the Delaware Basin, with an expected throughput increase to 560,000 barrels per day.
- New Facility Construction: The expansion includes new disposal wells and injection facilities, further strengthening NGL's existing super-system for water management, ensuring the company can meet the growing market demand and enhance its competitive edge in water management.
- Long-Term Contract Support: The LEX II expansion project is backed by a newly executed long-term volume commitment contract, which increases the committed area in Eddy County, NM, ensuring future water handling volumes and revenue stability, thereby boosting investor confidence.
- Strategic Focus on Water Management: NGL is concentrating on its Water Solutions business, which has become the core driver of the company, expected to contribute approximately 85% of adjusted EBITDA, indicating the company's leadership position and future growth potential in water infrastructure.
See More
NGL Energy Partners Authorizes $100 Million Share Repurchase Program
- Share Repurchase Program: On April 9, NGL Energy Partners announced that its Board of Directors authorized a share repurchase program of up to $100 million, allowing the company to buy back outstanding units at its discretion, thereby enhancing shareholder value and boosting market confidence.
- Repurchase Execution: In its latest earnings call, NGL revealed that it had nearly exhausted its previous repurchase plan, having bought back 1.6 million shares in Q3, totaling approximately 8.7 million shares or nearly 7% of its total outstanding shares, demonstrating confidence in its stock value.
- Infrastructure Stock Performance: NGL Energy Partners has been recognized as one of the 14 best infrastructure stocks to buy now, reflecting market acknowledgment of its diversified midstream services, including transportation, storage, and marketing of crude oil and NGLs, which enhances its investment appeal.
- Market Competition Analysis: While NGL shows investment potential, analysts note that certain AI stocks may offer greater upside potential and lower downside risk, indicating that investors should be cautious and consider sectors with higher growth prospects in the current market environment.
See More
NGL Energy Partners Announces $100 Million Unit Repurchase Program
- Repurchase Program Initiated: NGL Energy Partners LP announced that its Board of Directors has authorized a repurchase program to buy back up to $100 million of its common units, reflecting the company's confidence in its value and aiming to enhance shareholder returns.
- Flexible Repurchase Strategy: The program does not have a fixed expiration date, allowing the company to choose the timing of repurchases based on market conditions, which enhances the flexibility of capital utilization through open market transactions or privately negotiated deals.
- Positive Market Reaction: In pre-market trading on the New York Stock Exchange, NGL's stock price rose by 0.68% to $13.35, indicating a positive market response to the repurchase program, which may further drive the stock price upward.
- Enhancing Shareholder Value: By implementing the repurchase program, NGL aims to increase earnings per share by reducing the number of outstanding shares, thereby enhancing long-term shareholder value and reflecting the company's confidence in future growth.
See More
NGL Energy Partners Launches $100M Unit Repurchase Program
- Repurchase Program Initiated: NGL Energy Partners' board has authorized a common unit repurchase program allowing the company to buy back up to $100 million of its outstanding units, reflecting confidence in its intrinsic value.
- High Flexibility: The program has no fixed expiration date, enabling NGL to adjust its repurchase strategy based on market conditions, thereby maintaining financial flexibility in uncertain environments.
- No Obligation to Repurchase: NGL is not obligated to acquire a specified number of units, allowing the company to suspend or modify the program as needed, which is crucial for responding to market fluctuations.
- Positive Market Reaction: This initiative may enhance investor confidence and increase demand for the units, potentially leading to a positive impact on NGL's stock price and further supporting the company's long-term growth strategy.
See More
NGL Energy Partners Launches $100 Million Unit Repurchase Program
- Repurchase Program Authorization: NGL Energy's Board has authorized a unit repurchase program allowing for the buyback of up to $100 million in common units, reflecting confidence in the company's future prospects.
- Flexible Repurchase Mechanism: The program enables NGL to determine the timing and number of units repurchased based on market conditions and other factors, ensuring transactions occur at appropriate prices to optimize capital allocation.
- Compliance Assurance: NGL can execute repurchases under a Rule 10b5-1 plan, allowing for compliance with insider trading laws, thereby enhancing the program's flexibility and reducing potential legal risks.
- Market Reaction Expectations: Although the repurchase program has no fixed expiration date, its implementation is expected to bolster market confidence in NGL, potentially leading to positive impacts on stock prices and enhancing long-term investor trust.
See More
NGL Energy Partners LP Preferred Dividend History
- Dividend Overview: NGL Energy Partners LP recently declared a dividend of $0.6903 per share, reflecting the stable yield of its 9.625% Class C Fixed-to-Floating Rate Cumulative Redeemable Preferred Units, which enhances investor confidence in its long-term investment value.
- Market Performance Analysis: In Tuesday trading, NGL.PRC preferred shares fell approximately 1.1%, while common shares NGL rose about 1.9%, indicating a relative weakness in demand for preferred shares that may influence investors' asset allocation decisions.
- ETF Composition Ratio: NGL Energy Partners LP constitutes 3.60% of the Junior MLP ETF (MLPJ), highlighting its significance among small to mid-cap master limited partnerships, potentially attracting more investors interested in its dividend policies.
- Investor Focus: As market interest in S.A.F.E. dividend stocks grows, NGL.PRC's preferred shares may become a focal point for investors, particularly those seeking stable income, further driving its market performance.
See More
