TULSA, Okla. - NGL Energy Partners LP (NYSE: NYSE:NGL) has announced the initiation of a common unit repurchase program with no set expiration, authorizing the buyback of up to $50 million of its outstanding units. This decision, made by the Board of Directors of its general partner, allows for discretionary repurchases through open market or privately negotiated transactions.
The program's implementation will depend on various market factors, including unit prices, trading volumes, and overall market and business conditions. NGL Energy Partners has the flexibility to execute these repurchases under a Rule 10b5-1 trading plan, which enables the company to buy back units even during periods when it might typically be restricted from such actions due to insider trading laws or self-imposed trading blackout periods.
While the program does not commit NGL to purchase any specific number of units, it may adjust, pause, or terminate the buyback plan according to its discretion and without prior notice.
Investors are advised to exercise caution with forward-looking statements in this announcement, as they are based only on opinions as of today and are subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from current expectations. These forward-looking statements are not guaranteed to be accurate and may be affected by various risk factors that NGL Energy Partners regularly discusses in its SEC filings.
NGL Energy Partners LP, headquartered in Tulsa, Oklahoma, is a diversified midstream energy firm engaged in the transportation, storage, marketing, and logistics of crude oil, natural gas liquids, and other related products. Additionally, the company handles the treatment and disposal of produced water as a byproduct of oil and natural gas production. This announcement is based on a press release statement from NGL Energy Partners LP.
In other recent news, NGL Energy Partners LP has seen significant activities involving its stocks and assets. The company has made headlines with the sale of two ranch properties in New Mexico, yielding approximately $70 million. This strategic move aligns with NGL's broader strategy to optimize its portfolio, having surpassed its $150 million asset sale guidance for fiscal year 2024.
Additionally, there have been notable transactions by Mark Green, the congressional representative from Tennessee's 7th district. Green has sold a substantial amount of NGL Energy Partners LP stocks through his Equitable Retirement Account. The transactions, which took place in April and May 2024, ranged in value from $15,001 to $500,000.
While these sales represent a reshuffling of Green's retirement portfolio, they do not necessarily reflect his outlook on NGL Energy Partners LP or the energy sector. These transactions were disclosed as per the requirements of the STOCK Act, ensuring transparency in the financial investments of federal employees and members of Congress.
InvestingPro Insights
Amidst the recent announcement of NGL Energy Partners LP's (NYSE: NGL) unit repurchase program, investors might find the InvestingPro metrics and tips particularly insightful. NGL's market capitalization stands at $780.5 million, reflecting its size and significance in the midstream energy sector. Notably, the company's shares have been trading with low price volatility, indicating a degree of stability in its stock price movements. This could be a reassuring factor for investors considering participation in the buyback program.
However, the company's financial performance reveals some challenges. With a negative P/E ratio of -9.87 and an adjusted P/E ratio for the last twelve months as of Q3 2024 at -4.41, NGL has been grappling with profitability issues. This is further evidenced by the analysts' outlook, which does not anticipate the company to be profitable this year. Moreover, NGL's gross profit margins have been weak, standing at 14.12% for the same period, underscoring the financial pressures the company faces.
Despite these financial headwinds, NGL has experienced a high return over the last year, with a 65.63% price total return, and is currently trading near its 52-week high, indicating a large price uptick over the last six months. This robust market performance may influence investor sentiment and could be a factor to consider when evaluating the potential benefits of the repurchase program.
For those looking to delve deeper into NGL Energy Partners LP's financials and market performance, InvestingPro offers additional insights. There are several more InvestingPro Tips available, providing a comprehensive analysis of the company's financial health and stock performance. By utilizing the promo code PRONEWS24, investors can receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription to access these valuable insights.
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