• NGL Energy Partners LP recently reported first-quarter 2026 results, with revenue rising to US$989.99 million from US$622.16 million and net income increasing to US$78.73 million from US$68.92 million a year earlier, alongside a swing from a basic loss per share from continuing operations of US$0.26 to earnings of US$0.48.
• This shift from a prior loss to positive earnings per share from continuing operations highlights a meaningful improvement in profitability and operating performance for the partnership.
• We’ll now consider how this move from a loss to positive earnings per share could influence NGL Energy Partners’ broader investment narrative.

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What Is NGL Energy Partners' Investment Narrative?

For someone considering NGL Energy Partners today, the big-picture belief is that this is a turnaround story that can translate improving operations into sustainable earnings while managing a complex capital structure. The latest quarter’s move from a loss to US$0.48 in basic earnings per share from continuing operations adds weight to that thesis and partly offsets the sting of the recent full-year loss and very weak return on equity. In the short term, the key catalysts are whether this profitability can be repeated across future quarters and how that interacts with the sizeable preferred distributions that continue to rank ahead of common holders. The sharp year-to-date price gain suggests some of this optimism is already reflected in the unit price, so the new results may not radically shift the risk-reward balance on their own, but they do make the “sustained recovery” narrative a bit more credible.

However, investors should be aware of how dependent that recovery story is on consistent profitability. NGL Energy Partners' shares have been on the rise but are still potentially undervalued by 31%. Find out what it's worth.

Exploring Other Perspectives

With only two fair value estimates from the Simply Wall St Community ranging from US$7.03 to about US$24.60, you can see how widely opinions differ. Some are clearly more cautious while others lean closer to the idea that recent earnings momentum could support a stronger business over time, especially if the current profitability holds and preferred obligations remain manageable.

Explore 2 other fair value estimates on NGL Energy Partners - why the stock might be worth less than half the current price!

Form Your Own Verdict

Disagree with this assessment? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

• A great starting point for your NGL Energy Partners research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free NGL Energy Partners research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate NGL Energy Partners' overall financial health at a glance.

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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.