NGL Energy Partners Resets Debt Structure As Units Screen Undervalued

• NGL Energy Partners (NYSE:NGL) secured a new $950 million seven year senior term loan.
• The partnership also amended its senior secured revolving credit facility as part of the same financing move.
• These transactions adjust NGL’s capital structure and liquidity profile in a single financing package.

NGL Energy Partners comes into this financing step with units at $11.0 and a very large 5 year return, alongside a 275.4% return over 3 years and 142.8% over 1 year. Recent trading has been choppy, with a 6.4% decline over the past week and an 8.0% decline over the past month, while units are up 11.1% year to date. The new debt package lands against that mixed near term performance backdrop.

For you as an investor, the key questions now are how the $950 million term loan and revised credit facility affect interest costs, debt maturity timing, and room for future capital spending. The structure and terms of this financing will shape NGL’s financial flexibility and could influence how the partnership approaches growth projects, balance sheet priorities, and future capital allocation decisions.

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Investor Checklist

Quick Assessment

• ✅ Simply Wall St Valuation: Shares trade about 29.6% below the estimated fair value, which screens as undervalued on the Simply Wall St model.
• ❌ Recent Momentum: The 30 day return sits around an 8.0% decline, so price action has been weak heading into this financing.

There is only one way to know the right time to buy, sell or hold NGL Energy Partners. Head to Simply Wall St's company report for the latest analysis of NGL Energy Partners's Fair Value.

Key Considerations

• 📊 The US$950m seven year term loan and amended revolver reshape NGL's debt profile, which can influence interest expense, covenant headroom, and growth capacity.
• 📊 Given the current P/E, DCF based undervaluation signal, and recent 30 day pullback, you may want to watch how leverage, interest coverage, and free cash flow trend after this deal.
• ⚠️ The extra term debt raises the importance of future cash generation and access to capital markets if refinancing or further funding is needed later on.

Dig Deeper

For the full picture including more risks and rewards, check out the complete NGL Energy Partners analysis. Alternatively, you can check out the community page for NGL Energy Partners to see how other investors believe this latest news will impact the company's narrative.

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.

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