No. 18: NGL Energy Partners: Firm's earnings poised to improve
By ROBERT EVATT World Business Writer on Sep 15, 2013, at 2:27 AM Updated on 9/15/13 at 8:00 AM
CEO H. Michael Krimbill of NGL Energy Partners rings the opening bell at the New York Stock Exchange on Jan. 31, 2012, in New York City. BEN HIDER / NYSE Euronext
Investment Guide
Strong management and a good track record are just a couple of reasons why some investment professionals ranked Laredo Petroleum Holdings Inc. among their top picks.
SemGroup Corp. has been navigating in unchartered territory since the company filed for bankruptcy in 2008, but the energy products transportation and storage firm will soon be without the leader who guided it through choppy waters.
Don't let NGL Energy Partners' recent quarterly loss dissuade you.
Local investors are still bullish on the young Tulsa company, as they said energy prices are favorable and the company is well positioned for the future.
The loss of $17.5 million for the quarter ending June 30 comes after the company earned $48 million the previous four quarters combined.
Brett Kramer, managing partner of Pinnacle Investment Advisors, said NGL's dividend yield of 6.7 percent makes the stock worth holding onto during the lean times.
Not that he expects the lean times to continue.
"They've made quite a few acquisitions that will help them grow their distribution at a double-digit rate," he said.
NGL spent $346 million on six acquisitions between April and August, which expands its water services and crude oil logistics businesses.
Bruce DeShazo, financial adviser and vice president of American Heritage Investments, said the company's earnings reports have been solid for the past three years and are poised to improve.
"The analysts I've been reading have been predicting even higher earnings as time goes on," he said. "Since they're a small and young company in growth mode, they've got a good chance to continue that growth next year."
As with most energy companies, NGL could be negatively affected if energy prices drop and there's less demand for exploration, both Kramer and DeShazo said.
NGL Energy Partners
Address: 6120 S. Yale Ave.,
Suite 805, Tulsa, OK, 74136
Phone: 918-481-1119
Web: www.nglenergypartners.com
CEO: H. Michael Krimbill
Symbol (Exchange): NGL
(NYSE)
Operation: Propane and
natural gas
Robert Evatt 918-581-8447
robert.evatt@tulsaworld.com
Original Print Headline: Firm's earnings poised to improve
Investment Guide
Strong management and a good track record are just a couple of reasons why some investment professionals ranked Laredo Petroleum Holdings Inc. among their top picks.
SemGroup Corp. has been navigating in unchartered territory since the company filed for bankruptcy in 2008, but the energy products transportation and storage firm will soon be without the leader who guided it through choppy waters.
