Why NGL Energy Partners Units Plunged 12% Out of the Gate on Aug. 11
Units of midstream energy player NGL Energy Partners (NYSE: NGL) fell 12% in the first half hour of trading on Aug. 11. Although units of the master limited partnership gained back some of that sharp drop, by 10 a.m. EDT they were still down by around 7%. The early-day decline was precipitated by the after-market release of earnings on Aug. 10.
The headline numbers for NGL Energy's fiscal first-quarter 2021 results were pretty rough. Revenue was off by about 55%. Adjusted EBITDA was lower by 12%. And distributable cash flow declined by 26%. It's little wonder that the partnership chose to cut the April distribution by nearly 50%. Only, based on the quarter's results, it looks fair that investors might fear even that cut wasn't deep enough, noting that distribution coverage appeared to be pretty tight in the quarter.
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Source Fool.com
