NGL Shares Fall After Company Reports Loss

NGL Energy Partners (NGL) posted a $1.99 per share loss for its latest quarter on 26% lower sales of $2.35 billion, a worse performance than analysts anticipated.

Analyst consensus called for earnings of 54 cents per share on revenue of $2.64 billion.

The Tulsa, Okla., limited partnership posted earnings per share of 97 cents in the same period last year on $3.2 billion in sales.

NGL said the $207 million net loss for the quarter included $252.9 million in net non-cash charges, noting that adjusted Ebitda came in at a positive $154 million for the quarter versus $185 million in the same period last year. It blamed the 17% year-over-year Ebitda decrease on the decline in commodity prices and warmer weather.

The limited partnership booked distributable cash flow for the quarter of $128.3 million versus $153.5 million in the same period last year.

NGL shares were down 3.57% in pre-market trading to $12.96 per unit after falling 4.6% to $13.44 apiece at Thursday's close. As of yesterday shares were up nearly 22% year-to-date and 66% over the past three months.

NGL CEO Mike Krimbill said in the statement that management was very pleased with its Ebitda performance over the last year and recent delevering events given the challenging energy environment.

"Our fourth quarter results were impacted by the continued decline in commodity prices compounded by a continuing unseasonably warm winter," he said. "We were able to offset those impacts by increasing volumes in our refined products business, optimizing our operations and taking advantage of a contango commodities market. This is a testament to our strategy of having an integrated and diversified portfolio of midstream businesses which serve as natural hedges against commodity price declines."

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