Unveiling NGL Energy Partners LP’s (NGL) Winning Strategy

NGL Energy Partners LP is a diversified midstream energy company that operates primarily in the United States, engaging in several key areas of the energy sector.

Crude Oil Logistics: The company provides services related to the transportation, storage, and marketing of crude oil.

Water Solutions: NGL Energy Partners LP is involved in the treatment and disposal of produced water, a by-product of oil and gas production, and the supply and transportation of fresh water to drilling and completion operations in the energy sector.

Liquids Logistics: This segment includes the transportation and storage of natural gas liquids (NGLs) like ethane, propane, butanes, and natural gasoline. The company provides services for the movement of these liquids via pipelines, trucks, and railcars, and offers storage solutions.

Refined Products and Renewables: The company is involved in the distribution of refined petroleum products and renewables, including gasoline, diesel, ethanol, and biodiesel.

Retail Propane: NGL Energy Partners LP also markets propane to residential, agricultural, commercial, and industrial customers.

NGL Energy Partners LP’s business model is focused on providing a range of midstream services that facilitate the production, movement, and marketing of crude oil, natural gas liquids, and other energy-related products, playing a crucial role in the energy supply chain.

NGL Energy Partners LP, operating in the Oils-Energy sector, has demonstrated a notable performance in the stock market. The company’s long-term and short-term trends are both upward, indicating a consistent positive trajectory over significant periods. This trend is supported by a ‘BUY’ signal, suggesting that NGL is advancing in its trend without extreme price fluctuations. This outlook is bolstered by the company’s high strength rank of 99, indicating it outperforms 99% of its peers, a clear sign of its market dominance and potential for continued growth.

Three positive aspects from NGL’s data include:

Strong Financial Efficiency: NGL’s Return on Equity (ROE) stands at 26.1%, which is higher than the 20% benchmark that distinguishes winning stocks from average ones. This high ROE reflects the company’s ability to generate significant profit from its financial resources, a key indicator of solid earnings performance and financial health.

Impressive Earnings Growth: The company exhibits robust growth in earnings, with an Annual EPS Growth of 66.67% and a Quarterly EPS Growth of 54.55%. These figures not only surpass the benchmarks for strong market leaders (20% annual and 25-30% quarterly growth) but also indicate that NGL is growing rapidly, potentially outpacing many competitors even in challenging economic conditions.

Effective Trade Strategy and Performance: Historical trading data reveals an impressive trade expectancy of 22.1% and an annual trade expectancy of 88.42%. With an average gain of 29.22% on winning trades against an average loss of 6.37% on losing ones, NGL shows a strong reward-to-risk ratio. This efficiency in trading reflects well on the company’s market strategies and its ability to generate consistent returns over time.

In summary, NGL Energy Partners LP exhibits strong financial efficiency, outstanding earnings growth, and an effective trading strategy, all of which contribute to its positive outlook and potential for continued success in the stock market.


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