NGL ENERGY PARTNERS LP Common Units representing Limited Partner Interests (NGL) Company Bio
NGL Energy Partners LP engages in the crude oil logistics, water solutions, liquids, retail propane, and refined products and renewables businesses in the United States. The company was founded in 1940 and is based in Tulsa, Oklahoma.
NGL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for NGL, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that NGL Energy Partners LP ranked in the 74th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 285% on a DCF basis. The most interesting components of our discounted cash flow analysis for NGL Energy Partners LP ended up being:
9% of the company's capital comes from equity, which is greater than merely 2.73% of stocks in our cash flow based forecasting set.
NGL Energy Partners LP's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.25. This coverage rate is greater than that of merely 24.6% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 18. This value is greater than 89.76% stocks in the Energy sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Energy that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as NGL, try BSM, CCLP, TNP, HRST, and ENLC.
NGL Energy Partners LP (NGL) offers a massive 22.1% yield and a distribution that is exceptionally well-covered. Source: NGL Presentation It is rare to find a 22.1% yield that is not in danger of being cut within months, let alone one that claims to have a 2.75X coverage. We decided...
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