- NGL Energy Partners has been a serially disappointing investment during the last few years.
- If this is to change within the medium term, they need their cash flow performance to improve.
- Sadly, this has once again not happened with their operating cash flow remaining negative during the second quarter of fiscal year 2022.
- Even if removing working capital movements, their underlying results were down year-on-year.
- Given this continued weak cash flow performance, it calls into question their deleveraging timeline, and thus as a result, I am downgrading my rating to neutral from bullish.
For further details see:
NGL Energy Partners: Disappointing Once Again, Time To Downgrade