- Q3 results were good but lower than market expectations. The lower volumes were due to lower disposal from customers and warmer than a normal quarter.
- Lower volumes and unexpected repairs are a 20M headwind that management is planning to fully offset with asset sales.
- Management reiterated the plan to fully retire the 2023 notes. My cash flow projections validate this.
- The target price remains $4.80 per share as the result, and lower guidance does not change the investment thesis.
For further details see:
NGL Energy Partners: Lower Guidance Is Fully Offset By Asset Sales