TULSA, Okla. - NGL Energy Partners LP (NYSE:NGL) has successfully completed the sale of two ranch properties in New Mexico, the company announced earlier this week. The transaction involved the North and South Ranches, totaling approximately 122,250 acres in the Delaware Basin, and yielded about $70 million in proceeds, including working capital.
The sale is part of NGL's broader strategy to optimize its portfolio, which has surpassed the $150 million asset sale guidance for the fiscal year 2024. Doug White, EVP of NGL Water Solutions, remarked on the company's ongoing commitment to providing reliable produced water management services while focusing on environmental sustainability.
NGL Energy Partners operates the largest integrated network of large-diameter wastewater pipelines, disposal wells, and produced water handling systems in the Delaware Basin. Its Water Solutions segment serves several leading crude oil and natural gas-producing basins, including the Delaware, Eagle Ford (NYSE:F), and DJ Basins.
The company's recent announcement also highlighted the LEX II Project, signaling continued efforts to enhance the portfolio with new opportunities. While the press release includes forward-looking statements, NGL Energy Partners cautions that these statements are subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from expectations.
NGL Energy Partners LP is a diversified midstream energy company engaged in the transportation, storage, marketing, and provision of logistics services for crude oil, natural gas liquids, and other products. It also deals with the treatment and disposal of produced water as part of the oil and natural gas production process.
This news comes as the company looks to strengthen its position in the energy sector and is based on a press release statement. Investors are advised that the forward-looking statements reflect management's views only as of the date of the original press release and that actual results may vary.
InvestingPro Insights
NGL Energy Partners LP (NYSE:NGL) has shown a robust operational strategy with the recent sale of assets, which aligns with the company's focus on portfolio optimization. Reflecting on the financial metrics from InvestingPro, NGL Energy Partners has a market capitalization of approximately $761.95 million. Despite a challenging market environment, the company has maintained a price to book ratio of 1.39 as of the last twelve months leading up to Q3 2024, suggesting that investors may find the company's assets reasonably valued relative to its market price.
According to InvestingPro data, NGL Energy Partners has experienced a significant revenue decline of 19.65% in the last twelve months as of Q3 2024. This downturn in revenue growth is echoed in the company's gross profit margin, which stands at 14.12%, highlighting the challenges the company faces in maintaining profitability. Moreover, the company's net income is expected to drop this year, as indicated by one of the InvestingPro Tips. This aligns with analysts' expectations that the company will not be profitable within the current fiscal year.
However, it's worth noting that the stock has seen a high return over the last year, with a one-year price total return of 86.08%. Investors may find this growth appealing, as the stock is trading near its 52-week high, at 92.82% of the peak value. The company has also experienced a large price uptick over the last six months, with a 48.58% return in that period. While NGL does not pay a dividend, the capital appreciation may compensate for the lack of income distribution to shareholders.
For investors seeking a deeper analysis, there are additional InvestingPro Tips available, which provide insights into the stock's low price volatility and its recent price performance trends. For a more comprehensive understanding of NGL Energy Partners LP's financial health and future prospects, interested parties can access these tips and more on InvestingPro. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of investment knowledge and data-driven insights.
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