Does Raised EBITDA Outlook Change The Bull Case For NGL Energy Partners Stock (NGL)?

• NGL Energy Partners reported second quarter 2026 revenue of US$986.55 million and a net loss of US$44.25 million, while raising its fiscal 2027 adjusted EBITDA outlook on the back of record Water Solutions performance and heavier growth capital spending.
• Water Solutions generated 93% of adjusted EBITDA as produced water volumes reached new highs, which puts NGL Energy Partners’ long term focus on water handling capacity, leverage reduction, and potential future distribution restoration at the center of the narrative despite weaker net income.
• The focus now turns to how NGL Energy Partners’ investment narrative could evolve in light of the stronger water segment and higher long term EBITDA outlook.

See how NGL Energy Partners’ water-focused story compares with other income-generating infrastructure plays by reviewing our curated list of 7 dividend fortresses

What Is NGL Energy Partners' Investment Narrative?

NGL Energy Partners is increasingly a produced water story. To own the units, you have to be comfortable with a business where the Water Solutions segment drives 93% of adjusted EBITDA and where management leans into that with heavier growth capital spending. The latest quarter fits that picture. Revenue reached US$986.55 million but the partnership reported a net loss of US$44.25 million, while still lifting the fiscal 2027 adjusted EBITDA outlook on stronger water volumes.

The near term hinge points are execution on high volume water handling projects, the pace of leverage reduction and how quickly that feeds into any future distribution decisions. The recent earnings update reinforces those catalysts but also underlines the trade off. Higher infrastructure spend can support the long term water network, yet it also keeps capital needs elevated at a time when NGL Energy Partners still reports negative shareholders equity and uses higher risk funding sources.

That said, there is one structural pressure in this story that can easily be glossed over until you look closely at it.

There's 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.

Decide For Yourself

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 and 1 important warning sign that could impact your investment decision.
• See our latest analysis for NGL Energy Partners. The report includes 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.

Looking For More Investment Ideas Beyond NGL Energy Partners?

If NGL Energy Partners puts water infrastructure on your radar, it can be useful to compare that story with other opportunities that line up with your risk tolerance, income goals, and balance sheet preferences. The Simply Wall St Screener helps you filter for those kinds of traits quickly so you can focus on a shortlist that actually fits how you like to invest.

• If capital preservation and lower volatility matter most to you, start with a basket of relatively steadier businesses by reviewing 31 resilient stocks with low risk scores.
• If you are hunting for quality at a reasonable entry point, narrow the field to candidates that combine stronger fundamentals with potentially attractive pricing through 40 high quality undervalued stocks.
• If financial resilience is your first filter, focus on companies with healthier balance sheets and cleaner funding profiles by running a list of solid balance sheet and fundamentals (25 results).

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com