🛢️ NGL Energy Partners (NGL): A $5.1M Insider Buy, a Permian Water Boom — and One Big Debt Question 💧⚡

NGL Energy Partners Stock Analysis: John Raymond Buys $5.1M as Water Solutions Hits Record Volumes

68.8% Institutional Float Ownership, Rising EBITDA and a 16-Day Short Ratio Meet a Still-Leveraged Balance Sheet

NGL Energy Partners 

NYSE: NGL 
$17.20 
-$0.31
(-1.77%)
As of Aug. 26, 2026, 4:10 PM ET

⚡ Quick Take / TL;DR

NGL Energy Partners is becoming a fascinating turnaround story hiding inside a historically messy capital structure.

Director and veteran energy investor John T. Raymond just spent $5.09 million buying 300,000 NGL units at $16.98, increasing his position by 392%. Fellow director James Collingsworth bought another $185,226.

Meanwhile, NGL's increasingly dominant Water Solutions business disposed of a record 3.32 million barrels of produced water per day, up 19.6% year over year, and generated $179.9 million of Adjusted EBITDA in fiscal Q1 2027. Total Adjusted EBITDA jumped nearly 30% to $186.2 million, prompting management to raise full-year guidance to $725–$735 million.

Institutions own 68.76% of the float. Short interest is only 3.32%, although the 16.07 days-to-cover ratio could provide some extra fuel if the bull case keeps strengthening.

So why only 7.95/10?

Because water may flow downhill, but debt doesn't disappear by gravity. If Permian drilling slows materially or oil prices collapse, produced-water volumes could weaken precisely when NGL still has a leveraged capital structure to manage.

FunStock Index: 7.95 / 10 — Attractive, but not risk-free.

🛢️ From Energy Logistics to a Giant Water Tollbooth

NGL Energy Partners LP operates across Water Solutions, Crude Oil Logistics and Liquids Logistics.

But increasingly, one business matters above everything else:

Water. Lots and lots and lots of water. 💧

Oil production in the Permian Basin generates enormous quantities of produced water that need to be transported, treated, recycled or disposed of. NGL has assembled the pipelines, disposal facilities and infrastructure required to handle it.

In fiscal Q1 2027, NGL physically disposed of a record 3.32 million barrels per day, up 19.6% YoY. Paid and physically disposed volumes reached 3.43 million barrels per day.

Water Solutions generated $179.9 million of Adjusted EBITDA against $186.2 million for NGL's continuing operations overall.

That's not a side business anymore.

That's the engine.

And the LEX II Extension could add another gear. The project expands the LEX Pipeline System to 81 miles with approximately 560,000 barrels per day of transportation capacity, supported by a new long-term volume commitment contract.

NGL has essentially discovered that one man's wastewater can be another man's cash flow. 🚰💰

🕵️ Trigger #1: John Raymond Puts $5.09 Million Where His Thesis Is

This is the signal that really got our attention.

On August 25, director John T. Raymond purchased 300,000 NGL units at $16.98, spending:

$5,094,000.

His reported holdings jumped to 376,626 units — a 392% increase.

Director James M. Collingsworth joined him, purchasing 11,008 units at $16.83 for another $185,226.

Combined capital committed:

$5.28 million.

Raymond isn't exactly an energy tourist. He co-founded The Energy & Minerals Group and has decades of experience across energy investing and operations, including Plains Resources, Plains All American Pipeline and numerous private energy businesses.

An insider purchase never guarantees anything.

But a sophisticated energy investor voluntarily putting more than $5 million into the common units deserves attention.

🗣️ FUNanc1al Atomic Statement #1

“An insider buying $50,000 can be interesting. An energy veteran buying $5.1 million can be a thesis. John Raymond didn't eliminate NGL's risks — he made them considerably more interesting to underwrite.” — FUNanc1al

Trigger #2: Institutions Already Own Most of the Float

NGL isn't an undiscovered microcap.

Institutions own 60.58% of total units and 68.76% of the float, while insiders account for another 11.90%.

Among the largest reported institutional holders:

• Invesco — 15.68%

• Morgan Stanley — 8.16%

• Goldman Sachs — 6.84%

• Bank of America — 6.39%

• TPG — 4.63%

• ING — 4.34%

• Citigroup — 3.45%

That's substantial sponsorship.

But FUNanc1al doesn't interpret institutional ownership as “Wall Street knows the stock will rise.” Large institutions can be spectacularly wrong too.

We prefer the simpler interpretation:

serious capital is already paying attention.

For NGL Energy Partners (NGL)'s Institutional Ownership breakdown, 🔍 see here.

🐻 Trigger #3: Few Shorts — But They're Not Very Liquid

Short interest represented only 3.32% of float as of August 14, with approximately 3.65 million units sold short.

That's hardly an army of bears.

The interesting number is 16.07 days to cover.

That does not mean a short squeeze is inevitable. In fact, with only 3.32% of the float short, we'd resist turning this into a squeeze thesis.

But if earnings, Water Solutions volumes and guidance continue improving, relatively low trading liquidity could make short covering an additional tailwind.

Think possible accelerant, not investment thesis.

📈 Trigger #4: Earnings Just Got Much Better

Fiscal Q1 2027 was impressive.

Income from continuing operations rose to $80.0 million, versus $30.3 million a year earlier.

Adjusted EBITDA from continuing operations reached $186.2 million, up nearly 30% from $144.0 million.

And management raised FY2027 Adjusted EBITDA guidance from $715–$725 million to:

$725–$735 million.

CEO Mike Krimbill specifically credited Water Solutions for the strong start and said continued momentum could create room for further guidance increases.

That is exactly what bulls want to hear.

👉 Want the full picture? Dive into NGL Energy Partners (NGL)'s pipeline progress and financials here.

⚖️ Trigger #5: Cheap Stock — or Optical Illusion?

Here's where NGL gets weird.

Its 0.62x Price/Sales ratio screams “cheap.”

Its roughly 66.8x Price/Book screams something rather less printable. 😱

The reconciliation is important.

NGL produces enormous revenue relative to its market capitalization, which makes P/S look inexpensive. But substantial liabilities and historically thin common equity make book value a tiny denominator — mathematically exploding the P/B multiple.

So neither ratio should be viewed in isolation.

The real NGL question isn't:

“Is 0.62x sales cheap?”

It's:

“Can the expanding Water Solutions cash-flow engine deleverage the capital structure fast enough to create substantially more value for common unitholders?”

That's the investment.

🗣️ FUNanc1al Atomic Statement #2

“NGL isn't a bet that 66x book value is secretly cheap. It's a bet that today's book value becomes increasingly irrelevant if Water Solutions keeps converting Permian wastewater into EBITDA and EBITDA into debt reduction.” — FUNanc1al

⚠️ Why We're Stopping at 7.95/10

This is precisely where we diverge from a more aggressive 8+/10 interpretation.

The bullish signals are unusually compelling:

✅ $5.09M Raymond insider purchase
✅ Second director buying alongside him
✅ Record Water Solutions volumes
✅ Nearly 30% Adjusted EBITDA growth
✅ Raised FY2027 guidance
✅ 68.76% institutional ownership of float
✅ Long-term commitments supporting infrastructure expansion

But there are serious counterweights:

⚠️ Significant financial leverage
⚠️ Preferred-security obligations
⚠️ Water Solutions now represents enormous concentration
⚠️ Produced-water demand ultimately depends on drilling and production activity
⚠️ A severe oil downturn could weaken volumes
⚠️ The stock has already appreciated dramatically from prior lows

The transformation is real.

So is the balance-sheet risk.

FunStock Index: 7.95 / 10.

We'd rather be slightly late to 8+ than prematurely enthusiastic at 7.95.

💡💡💡 Curious about another deep oil exploration play? (joke)
Check our takes on UnitedHealth Group or even Oscar Health.

💡 Food for Thought: The Cross-Hub Connection

There's a broader lesson here that reaches beyond Investing.

Waste is increasingly becoming infrastructure.

Water recycling, wastewater management, carbon capture, battery recycling and other formerly unglamorous activities are becoming enormous industrial ecosystems.

NGL offers an unusually literal example.

The oil industry doesn't merely need someone to find oil.

It needs someone to deal with what comes out of the ground with it.

Sometimes the least glamorous part of an industry becomes one of its most valuable tollbooths.

FUNalize that. 💧

📌 Signal Extract

“An insider buying $50,000 can be interesting. An energy veteran buying $5.1 million can be a thesis. John Raymond didn't eliminate NGL's risks — he made them considerably more interesting to underwrite.” — FUNanc1al

🎯 High-Conviction Takeaway

“NGL isn't a bet that 66x book value is secretly cheap. It's a bet that today's book value becomes increasingly irrelevant if Water Solutions keeps converting Permian wastewater into EBITDA and EBITDA into debt reduction.” — FUNanc1al

❓ FAQ

Is NGL Energy Partners stock cheap?

On sales, yes: its P/S ratio is approximately 0.62x. But NGL's leveraged capital structure makes simplistic valuation comparisons dangerous. Cash generation, debt reduction and Water Solutions performance matter more than any single multiple.

Why is John Raymond's purchase important?

Raymond bought 300,000 units for approximately $5.09 million in the open market and increased his reported position by 392%. Given his extensive energy-investing background and the size of the purchase, FUNanc1al considers it a meaningful conviction signal — not a guarantee.

Is NGL a short-squeeze stock?

Not primarily. Only about 3.32% of float was short, but 16.07 days to cover suggests limited liquidity could amplify buying pressure if fundamentals continue improving.

What's the biggest risk?

The combination of leverage and Permian dependence. A major slowdown in drilling or production could reduce produced-water volumes while NGL still has substantial financial obligations.

What's the FunStock Index rating?

7.95 / 10. Strong enough to warrant serious attention; risky enough that we're keeping one hand firmly on the calculator.

👤 About the Author

Frédéric Marsanne is the founder of FUNanc1al—part market analyst, part storyteller, part accidental comedian. A longtime investor, entrepreneur, and venture-builder across tech, biotech, and fintech, he now blends rigorous financial analysis with a twist of humor to help readers laugh, learn, live healthier lives, and invest a little wiser.

His research focuses on insider buying, hedge funds, valuation, behavioral finance, long-term wealth creation, and the fascinating intersections between business, science, technology, health, passions, and everyday life.

When not decoding SEC filings or poking fun at earnings calls, he's building Cl1Q, writing fiction, painting, creating videos, or discovering new passions to FUNalize.

📝 Editorial Note

Every FUNanc1al article is grounded in human research, analysis, and editorial judgment. Modern AI tools may assist with research organization, editing, and presentation, but every opinion, conclusion, rating, and recommendation remains subject to human oversight and responsibility.

To learn more about how we research, write, and review every article, please visit our Editorial Process page.

At FUNanc1al, we focus on high-conviction ideas supported by multiple independent signals—not just headlines.

No single indicator guarantees investment success.

But when insider buying, improving fundamentals, strong cash generation, institutional sponsorship, and attractive valuations begin aligning...

we believe those opportunities deserve a closer look.

At FUNanc1al, our objective is not to predict the future with certainty, but to encourage thoughtful analysis, healthy skepticism, long-term thinking, and a smile whenever possible.