Should Higher Preferred Payouts and Upgraded Earnings Views Require Action From NGL Energy Partners (NGL) Investors?

• NGL Energy Partners LP recently declared quarterly distributions for its 11.460% Class B and 11.369% Class C Floating Rate Cumulative Redeemable Perpetual Preferred Units, along with a US$14,618,325.21 cash distribution for its Class D Preferred Units, all payable on January 15, 2026 to holders of record on January 1, 2026.
• This comes as NGL Energy Partners has been benefiting from a very large upward revision in full-year earnings estimates and a higher Zacks Rank, signaling a shift in analyst sentiment toward a more constructive view of the partnership’s fundamentals.
• We will now examine how this combination of richer preferred payouts and upgraded earnings expectations shapes NGL Energy Partners’ broader investment narrative.

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What Is NGL Energy Partners' Investment Narrative?

To own NGL Energy Partners today, you have to believe the market is still undervaluing a business that is slowly repairing its balance sheet and earnings power, even as revenue trends remain under pressure. The recent surge in the Zacks full‑year earnings estimate and improved rank underline that shift in sentiment, but the core near‑term catalysts are still about execution: sustaining profitability, managing leverage and eventually addressing the capital stack. The fresh preferred distributions fit into that story as a reminder that cash continues to be directed to high‑coupon preferred holders, which can support confidence in the capital structure but also keeps the common equity structurally junior. Given the already very large unit price move, this latest dividend news is more a confirmation of progress than a new, standalone catalyst.

However, investors should not ignore how those rich preferred payouts can constrain flexibility for common unitholders. NGL Energy Partners' shares have been on the rise but are still potentially undervalued by 35%. Find out what it's worth.

Exploring Other Perspectives

Two Simply Wall St Community fair value views, from US$7.03 to about US$15.14, show how far apart retail estimates sit. Set that against rising earnings expectations and the ongoing preferred burden, and you get a wide field of opinions that is worth comparing before taking a firm stance.

Explore 2 other fair value estimates on NGL Energy Partners - why the stock might be worth 29% less than the current price!

Build Your Own NGL Energy Partners Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your NGL Energy Partners research is our analysis highlighting 4 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.

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