Notable Earnings: NGL Energy Partners LP (NYSE:NGL)

NGL Energy Partners LP (NYSE:NGL) reported earnings for the three months ended March 2016 on May 27, 2016. The company earned $0.77 per share on revenue of $2.33B. Analysts had been modeling earning per share of $0.54 with $2.64B in revenue.

NGL Energy Partners LP (NGL) reported a net loss for the quarter ended March 31, 2016 of $207.0 million including gains related to the sale of the TLP GP and the early extinguishment of debt totaling $158.9 million offset by a non-cash impairment charge of $380.2 million related to the Water Solutions segment. Adjusted EBITDA was $154.0 million for the quarter ended March 31, 2016, compared to Adjusted EBITDA of $185.0 million during the quarter ended March 31, 2015. This represents a decrease of 17% year over year driven by the decline in commodity prices and warmer weather. Distributable Cash Flow was $128.3 million for the quarter ended March 31, 2016, compared to $153.5 million for the quarter ended March 31, 2015. Net loss for the fiscal year ended March 31, 2016 was $187.1 million with Adjusted EBITDA for the year of $424.1 million, compared to net income and Adjusted EBITDA of $50.2 million and $443.3 million, respectively, for the year ended March 31, 2015. The current year was impacted by the significant decline in commodity prices and the goodwill impairment offset by a portion of the gain on the sale of the TLP GP and early extinguishment of debt compared to the prior year.

“We are very pleased with our fiscal year 2016 EBITDA performance and recent delevering events given the challenging energy environment. Our fourth quarter results were impacted by the continued decline in commodity prices compounded by a continuing unseasonably warm winter. We were able to offset those impacts by increasing volumes in our Refined Products business, optimizing our operations and taking advantage of a contango commodities market. This is a testament to our strategy of having an integrated and diversified portfolio of midstream businesses which serve as natural hedges against commodity price declines,” said Mike Krimbill, CEO of NGL. “Additionally, we have made tremendous progress over the past six months to improve our balance sheet, enhance our liquidity and continue to focus on the opportunities to grow our five business segments.”

NGL Energy Partners LP earnings per share showed an increasing trend of 153.7% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 151%.Analysts project EPS growth over the next 5 years at 1%. It has EPS annual decline over the past 5 fiscal years of -35.3% when sales grew 65.7. It reported -27.8% sales drop, and -246.3% EPS decline in the last quarter.

The stock is trading at $19.77, up 265.24% from 52-week low of $5.57. The stock trades down -30.98% from its peak of $32.79 and % below the consensus price target of $16.38. Its volume clocked up at 1.07 million shares which is lower than the average volume of 1.45 million shares. Its market capitalization currently stands at $2.02B.

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