NGL Energy Partners LP

Midstream natural-gas partnership posting a net loss with thin margins, weak coverage and declining revenue.

Strengths

• Positive operating cash margin (~12%) and current ratio above 1.0
• Quick ratio at the 75th pct suggests adequate near-term liquidity

Risks

• Net margin -4.5%, ROA -3.4% and operating margin 3% all near the 6th–7th pct of the sector
• Revenue (-9%) and net income (-4.6x) both contracting sharply with interest coverage of only 0.37x

Notable findings

• No interest coverageInterest coverage 0.37 (cannot cover interest)
• Exec changeRecent 8-K item 5.02 8-K ↗
• Net lossNet loss (net margin -4.5%)