Why the latest quarterly results matter for NGL Energy Partners investors

NGL Energy Partners (NGL) reported first quarter 2026 earnings on August 4, with revenue of US$989.99 million and net income of US$78.73 million, compared to US$622.16 million and US$68.92 million a year earlier.

Basic and diluted earnings per share from continuing operations were US$0.48, compared to a basic and diluted loss of US$0.26 a year ago. Total basic and diluted earnings per share were US$0.48, compared to US$0.04 in the prior year period, which is drawing fresh attention to the stock today.

The latest earnings release appears to have fed into strong momentum in NGL Energy Partners, with the share price at US$16.88 and a year-to-date share price return of 70.51%, alongside a very large 1-year total shareholder return of 275.11%.

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After a move like this, the real question for NGL Energy Partners is where fair value sits between the recent US$16.88 price and the broad range of intrinsic estimates investors are using. How wide is that gap?

Preferred Price-to-Sales of 0.6x for NGL Energy Partners: Is it justified?

On Simply Wall St’s numbers, NGL Energy Partners trades on a P/S of 0.6x, which looks low against both its own fair ratio and the wider oil and gas group.

The P/S ratio compares the company’s market value to its revenue. For a business like NGL Energy Partners that is currently loss making, investors often lean on P/S to gauge how much the market is paying for each dollar of sales when earnings are not yet a clean guide.

At 0.6x, NGL Energy Partners sits well below the estimated fair P/S of 0.8x and the US oil and gas industry average of 1.9x, as well as a 2.7x peer average. That is a wide gap and signals the market is pricing its revenue stream at a discount.

Result: Price-to-sales of 0.6x (UNDERVALUED)

However, NGL Energy Partners still carries risks, including a recent annual revenue decline and a reported net loss of US$395.74 million, which could pressure sentiment.

Another view on NGL Energy Partners' valuation

Price to sales suggests NGL Energy Partners trades at a discount. The SWS DCF model offers a second lens and estimates the value of future cash flows at US$24.89 per unit, compared to the current US$16.88 price. That points to an undervalued result. Which signal do you trust more?

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out NGL Energy Partners for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 51 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

If this mix of signals around NGL Energy Partners leaves you curious, use the available data, compare the risks and rewards, and shape your own view. To see what investors are optimistic about right now, take a closer look at the 3 key rewards

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.