Abstract
NGL Energy Partners LP will release its quarterly results on February 03, 2026 Post Market, with investors watching revenue, margins, and earnings amid shifting commodity conditions and water services demand.
Market Forecast
For the current quarter, the company’s internal projection indicates total revenue of USD 809.88 million with an estimated year-over-year decline of 52.96%, EBIT of USD 117.08 million with a forecast year-over-year growth of 2.00%, and EPS of USD 0.16 with an estimated year-over-year decline of 17.95. The main business outlook points to stable contributions from liquids, crude oil logistics, and water solutions, with near-term mix driven by throughput and disposal volumes. The most promising segment is water solutions, expected to benefit from disposal and recycling demand tied to upstream activity, though specific forecast revenue and year-over-year data beyond the aggregate are not disclosed.
Last Quarter Review
In the previous quarter, NGL Energy Partners LP reported revenue of USD 674.68 million, a gross profit margin of 37.60%, net profit attributable to the parent company of USD 29.28 million, a net profit margin of 4.34%, and adjusted EPS of USD 0.02, with revenue declining 50.12% year-over-year and EPS rising 109.52% year-over-year. Key business performance included EBIT of USD 94.25 million, exceeding estimates by USD 3.12 million. The company’s main business mix comprised liquids at USD 244.65 million, crude oil logistics at USD 220.03 million, and water solutions at USD 209.74 million during the quarter.
Current Quarter Outlook
Main Business: Integrated Midstream, Liquids, Crude Oil Logistics, and Water Solutions
The company’s core operations span liquids, crude oil logistics, and water solutions, which collectively anchor revenue and drive margin stability. Liquids remains a foundational contributor, supported by contractual throughput and storage that temper volume variability. Crude oil logistics performance hinges on pipeline and trucking volumes, as well as marketing spreads; disciplined contract structures and operational efficiency have supported stable gross margins despite market fluctuations. Water solutions has become a central margin driver thanks to disposal well capacity, recycling services, and long-term contracts aligned with production activity in key basins, reinforcing predictable cash generation even when commodities are volatile.
Most Promising Business: Water Solutions
Water solutions is positioned as the most promising growth area due to growing produced water volumes from onshore oil plays and customer demand for cost-effective disposal and recycling. Enhanced recycling capabilities can shift mix toward higher-value services, supporting gross margin resilience even amid lower commodity prices. As upstream activity stabilizes, disposal volumes tend to track production rather than price, which helps maintain utilization and revenue consistency. The business benefits from operational leverage in existing infrastructure, and incremental volumes can flow through at favorable margins.
Key Stock Price Drivers This Quarter
Earnings sensitivity to commodity-linked volumes and spreads across liquids and crude oil logistics can influence short-term sentiment if realized spreads diverge from expectations. Execution in water solutions, especially sustaining disposal volumes and expanding recycling throughput, may offer a stabilizing counterbalance and underpin EBIT. Cost control, efficiency improvements, and working capital discipline are crucial to safeguard net margins as revenue contracts year over year; achieving the projected EBIT with lower revenue would signal operational resilience and could be well-received by the market.
Analyst Opinions
Recent institutional commentary leans cautiously positive, with a majority expecting stable to improving EBIT performance against lower revenue, supported by margin contributions from water solutions. Analysts point to the prior-quarter EBIT beat and the forecast for EPS of USD 0.16 as signs of disciplined operations, while emphasizing that year-over-year revenue declines reflect market normalization rather than structural weakness. The prevailing view highlights that if management delivers the guided EBIT of USD 117.08 million and sustains gross margins in the mid-to-high range while maintaining disposal volumes, the quarter could be interpreted favorably despite the top-line drop.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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