Shares of master limited partnership NGL Energy Partners (NYSE: NGL) fell a painful 20% in early trading on June 4. The cause of the drop for this energy industry player was pretty easy to identify, given that the partnership released earnings after the close on June 3. It wasn't good reading.
NGL Energy Partners' top line grew roughly 4% year over year in its fiscal fourth quarter of 2021. However, that was largely due to strength in just one of its three main divisions, with commodity prices boosting sales in the liquids logistics segment. Water solutions and crude oil logistics both saw year-over-year revenue declines.
That said, all three of these businesses saw cost increases and posted notable year-over-year declines in adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA ). Total adjusted EBITDA for NGL Energy Partners fell roughly 42% year over year, largely driven by lower volumes.
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Why NGL Energy Partners Plunged 20% at the Open Today