NGL Energy Partners LP NGL is set to release second-quarter fiscal 2027 results on Nov. 5, after market close. The Zacks Consensus Estimate for earnings is 22 cents per share on revenues of $734.6 million.
Let’s delve into the factors that might have influenced the diversified energy master limited partnership’s results for the September quarter. But it’s worth taking a look at NGL’s previous-quarter performance first.
Highlights of Previous Quarter Earnings
In the last reported quarter, this Tulsa, OK-based midstream operator beat the consensus mark on strong produced water volumes. NGL Energy Partners reported adjusted earnings per unit of 17 cents, topping the Zacks Consensus Estimate of 11 cents. Revenues of $990 million beat the Zacks Consensus Estimate by 186%.
NGL Energy Partners LP Price and EPS Surprise
NGL Energy Partners LP price-eps-surprise | NGL Energy Partners LP Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the second-quarter fiscal 2027 bottom line has remained unchanged in the past 30 days. The estimated figure indicates a 1,000% surge year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests an 8.9% improvement from the year-ago period.
Factors to Consider
NGL Energy Partners’ growing water disposal volumes are likely to have supported its second-quarter fiscal 2027 earnings. In the preceding quarter, physical water disposal volumes increased 19.6% year over year to 3.32 million barrels per day, helping Water Solutions’ adjusted EBITDA rise 26% to $179.9 million. The company also secured more than 200,000 barrels per day of new volume commitments, bringing total commitments to approximately 1.77 million barrels per day. Higher contracted volumes, along with operating costs of 21 cents per barrel in the preceding quarter, could improve the September quarter’s earnings.
Higher butane sales and contracted activity could also support NGL’s second-quarter fiscal 2027 earnings. In the preceding quarter, Liquids Logistics’ adjusted EBITDA increased to $10.3 million from $2.9 million a year earlier, mainly due to additional contracted business at its remaining butane terminals. Butane sales also rose to approximately 119.8 million gallons from 96.9 million gallons. Continued demand for terminal services and higher butane volumes could have benefited the segment during the September quarter. However, management expects most of its annual Liquids Logistics earnings to come in the second half of fiscal 2027.
On a bearish note, NGL’s increased capital spending and borrowing costs could weigh on its second-quarter fiscal 2027 earnings. Management expects growth capital expenditures to exceed $200 million in fiscal 2027, with most of the spending scheduled for the first two quarters. Borrowings under its revolving credit facility stood at approximately $177 million as of June 30, 2026, following higher investments in Water Solutions. Interest expenses also increased to $67.1 million from $65.5 million a year earlier. Additional borrowing to fund expansion projects could have raised financing costs, while much of the expected earnings contribution will likely arrive in fiscal 2028.
What Does Our Model Say?
The proven Zacks model does not conclusively predict an earnings beat for NGL Energy Partners this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: NGL has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 22 cents per share each.
Zacks Rank: NGL Energy Partners currently carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult this earnings season.
Stocks to Consider
While an earnings beat looks uncertain for NGL Energy Partners, here are some energy firmsthat you may want to consider on the basis of our model:
Permian Resources PR has an Earnings ESP of +6.24% and a Zacks Rank #1. The firm is scheduled to release earnings on Nov. 4.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Permian Resources beat the Zacks Consensus Estimate for earnings in each of the last four quarters, with the average being 20.3%. Valued at nearly $22 billion, PR has surged 106.3% in a year.
Targa Resources TRGP has an Earnings ESP of +2.05% and a Zacks Rank #3. The firm is scheduled to release earnings on Nov. 5.
The Zacks Consensus Estimate for 2026 earnings of Targa Resources indicates 34.5% growth. Valued at around $67.5 billion, TRGP is up 101.8% in a year.
Gulfport Energy GPOR has an Earnings ESP of +1.49% and a Zacks Rank #3.Gulfport Energy is scheduled to release earnings on Nov. 4.
For 2026, GPOR has a projected earnings growth rate of 10.4%. Valued at nearly $3 billion, Gulfport Energy has lost 14.6% in a year.
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NGL Energy Partners LP (NGL) : Free Stock Analysis Report
Gulfport Energy Corporation (GPOR) : Free Stock Analysis Report
Targa Resources, Inc. (TRGP) : Free Stock Analysis Report
Permian Resources Corporation (PR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
