Why NGL Energy Partners’ latest earnings matter for investors

NGL Energy Partners (NGL) just posted first quarter 2026 results that showed higher revenue, stronger net income and a move from a loss per share to positive earnings. That shift is now central to the investment debate.

The latest earnings release seems to have reset expectations around NGL Energy Partners, with the share price now at $17.97 and a 30 day share price return of 18.54%. The year to date share price return of 81.52% and very large 5 year total shareholder return indicate momentum that has been building over a longer horizon.

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NGL Energy Partners now has rising earnings, a strong recent share price move and lingering pressure from preferred distributions. Is this surge mainly a catch up to improved fundamentals, or a sentiment swing that valuation can test next?

Preferred price-to-sales of 0.6x for NGL Energy Partners: Is it justified?

NGL Energy Partners is currently trading on a P/S of 0.6x, which screens as good value compared with both peers and the broader US Oil and Gas industry.

The P/S ratio compares the company’s market value with its revenue. For a business like NGL Energy Partners, which remains unprofitable at the net income line, this measure can help investors judge how much the market is paying for each dollar of sales across its Water Solutions, Crude Oil Logistics and Liquids Logistics segments.

At 0.6x, NGL Energy Partners is priced well below the peer average P/S of 2.8x and the US Oil and Gas industry average of 2x. It is also below the estimated fair P/S of 0.8x. Regression analysis suggests this could be a level the market may move toward if sentiment and fundamentals converge.

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

However, NGL Energy Partners still reports annual revenue that declined 8.31% and a net loss of US$351.004 million, which could temper the recent optimism.

Another view on NGL Energy Partners’ valuation

The earlier P/S comparison points to NGL Energy Partners as attractively priced. The SWS DCF model also indicates the units trade below an estimated value of $25.12, which suggests they could be undervalued. If both signals line up, the key question is what might close that gap.

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 52 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 cautious optimism around NGL Energy Partners resonates, use it as a prompt to move quickly and review the numbers yourself. To understand what the current optimism is based on, start with the 3 key rewards.

Looking for more investment ideas beyond NGL Energy Partners?

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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.