NGL Energy Partners (NGL) Moves 8.8% Higher: Will This Strength Last?

Core Viewpoint - NGL Energy Partners LP has experienced a significant stock price increase of 8.8% to $11.1, driven by strong midstream operations and anticipated demand growth for crude products in the U.S. [1][2] Company Overview - NGL Energy Partners operates in diversified midstream energy sectors, focusing on three segments: water solutions, crude oil logistics, and liquids logistics, with water solutions being the primary earnings driver [2] - The water solutions segment operates in six counties in New Mexico and Texas, which are key crude oil production areas in the U.S., benefiting from low production costs [2] Market Dynamics - The current soft crude pricing environment is favorable for the refining sector, leading to increased demand for crude oil from refiners, which in turn boosts the demand for NGL's crude oil logistics segment [2] - The partnership's strong position in water solutions and crude oil logistics, along with consistent demand for midstream services, are critical growth factors [2] Earnings Expectations - NGL Energy Partners is projected to report quarterly earnings of $0.16 per share, reflecting a year-over-year increase of 233.3%, while revenues are expected to be $700.76 million, a decrease of 54.8% from the previous year [3] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in earnings expectations [4] Industry Context - NGL Energy Partners holds a Zacks Rank of 2 (Buy) within the Oil and Gas - Refining and Marketing - Master Limited Partnerships industry, suggesting positive market sentiment [5] - In comparison, CrossAmerica Partners, another company in the same industry, has a Zacks Rank of 3 (Hold) and has seen a lesser stock performance [5][6]