Intrinsic value of NGL Energy Partners - NGL

Previous Close

$9.75

  Intrinsic Value

$9.87

stock screener

  Rating & Target

hold

+1%

Previous close

$9.75

 
Intrinsic value

$9.87

 
Up/down potential

+1%

 
Rating

hold

We calculate the intrinsic value of NGL stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 1.2

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  56.70
  51.53
  46.88
  42.69
  38.92
  35.53
  32.48
  29.73
  27.26
  25.03
  23.03
  21.22
  19.60
  18.14
  16.83
  15.64
  14.58
  13.62
  12.76
  11.98
  11.29
  10.66
  10.09
  9.58
  9.12
  8.71
  8.34
  8.01
  7.71
  7.44
Revenue, $m
  27,082
  41,037
  60,274
  86,005
  119,479
  161,928
  214,514
  278,285
  354,132
  442,770
  544,725
  660,338
  789,775
  933,051
  1,090,059
  1,260,594
  1,444,390
  1,641,146
  1,850,555
  2,072,323
  2,306,196
  2,551,966
  2,809,492
  3,078,701
  3,359,600
  3,652,272
  3,956,886
  4,273,687
  4,603,005
  4,945,245
Variable operating expenses, $m
  26,420
  39,926
  58,542
  83,443
  115,837
  156,917
  207,807
  269,521
  342,922
  428,701
  527,156
  639,040
  764,302
  902,957
  1,054,900
  1,219,935
  1,397,803
  1,588,213
  1,790,868
  2,005,483
  2,231,813
  2,469,656
  2,718,875
  2,979,402
  3,251,240
  3,534,473
  3,829,262
  4,135,845
  4,454,541
  4,785,743
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  26,420
  39,926
  58,542
  83,443
  115,837
  156,917
  207,807
  269,521
  342,922
  428,701
  527,156
  639,040
  764,302
  902,957
  1,054,900
  1,219,935
  1,397,803
  1,588,213
  1,790,868
  2,005,483
  2,231,813
  2,469,656
  2,718,875
  2,979,402
  3,251,240
  3,534,473
  3,829,262
  4,135,845
  4,454,541
  4,785,743
Operating income, $m
  662
  1,112
  1,732
  2,562
  3,642
  5,011
  6,707
  8,764
  11,210
  14,069
  17,569
  21,298
  25,473
  30,094
  35,158
  40,659
  46,587
  52,933
  59,687
  66,840
  74,383
  82,310
  90,616
  99,299
  108,359
  117,799
  127,624
  137,842
  148,464
  159,502
EBITDA, $m
  1,172
  1,775
  2,607
  3,721
  5,169
  7,005
  9,280
  12,039
  15,320
  19,154
  23,565
  28,566
  34,166
  40,364
  47,156
  54,534
  62,485
  70,997
  80,056
  89,649
  99,767
  110,399
  121,540
  133,186
  145,337
  157,999
  171,176
  184,881
  199,128
  213,933
Interest expense (income), $m
  118
  188
  352
  586
  909
  1,341
  1,903
  2,616
  3,499
  4,570
  5,843
  7,331
  9,043
  10,984
  13,158
  15,563
  18,199
  21,063
  24,149
  27,452
  30,968
  34,692
  38,618
  42,745
  47,069
  51,589
  56,305
  61,219
  66,333
  71,653
  77,182
Earnings before tax, $m
  474
  760
  1,146
  1,653
  2,301
  3,108
  4,091
  5,265
  6,641
  8,226
  10,238
  12,255
  14,489
  16,937
  19,595
  22,459
  25,524
  28,784
  32,235
  35,872
  39,692
  43,692
  47,871
  52,231
  56,771
  61,494
  66,405
  71,508
  76,811
  82,320
Tax expense, $m
  128
  205
  309
  446
  621
  839
  1,105
  1,422
  1,793
  2,221
  2,764
  3,309
  3,912
  4,573
  5,291
  6,064
  6,892
  7,772
  8,703
  9,685
  10,717
  11,797
  12,925
  14,102
  15,328
  16,603
  17,929
  19,307
  20,739
  22,226
Net income, $m
  346
  555
  837
  1,207
  1,679
  2,269
  2,986
  3,843
  4,848
  6,005
  7,474
  8,946
  10,577
  12,364
  14,304
  16,395
  18,633
  21,013
  23,532
  26,186
  28,975
  31,895
  34,946
  38,128
  41,443
  44,891
  48,476
  52,201
  56,072
  60,094

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  9,638
  14,604
  21,450
  30,607
  42,519
  57,625
  76,340
  99,034
  126,026
  157,569
  193,852
  234,996
  281,059
  332,047
  387,921
  448,610
  514,018
  584,038
  658,560
  737,482
  820,710
  908,173
  999,819
  1,095,623
  1,195,587
  1,299,741
  1,408,144
  1,520,885
  1,638,080
  1,759,874
Adjusted assets (=assets-cash), $m
  9,638
  14,604
  21,450
  30,607
  42,519
  57,625
  76,340
  99,034
  126,026
  157,569
  193,852
  234,996
  281,059
  332,047
  387,921
  448,610
  514,018
  584,038
  658,560
  737,482
  820,710
  908,173
  999,819
  1,095,623
  1,195,587
  1,299,741
  1,408,144
  1,520,885
  1,638,080
  1,759,874
Revenue / Adjusted assets
  2.810
  2.810
  2.810
  2.810
  2.810
  2.810
  2.810
  2.810
  2.810
  2.810
  2.810
  2.810
  2.810
  2.810
  2.810
  2.810
  2.810
  2.810
  2.810
  2.810
  2.810
  2.810
  2.810
  2.810
  2.810
  2.810
  2.810
  2.810
  2.810
  2.810
Average production assets, $m
  4,441
  6,730
  9,885
  14,105
  19,595
  26,556
  35,180
  45,639
  58,078
  72,614
  89,335
  108,295
  129,523
  153,020
  178,770
  206,737
  236,880
  269,148
  303,491
  339,861
  378,216
  418,522
  460,757
  504,907
  550,974
  598,973
  648,929
  700,885
  754,893
  811,020
Working capital, $m
  1,733
  2,626
  3,858
  5,504
  7,647
  10,363
  13,729
  17,810
  22,664
  28,337
  34,862
  42,262
  50,546
  59,715
  69,764
  80,678
  92,441
  105,033
  118,436
  132,629
  147,597
  163,326
  179,807
  197,037
  215,014
  233,745
  253,241
  273,516
  294,592
  316,496
Total debt, $m
  5,028
  8,375
  12,989
  19,161
  27,190
  37,371
  49,985
  65,281
  83,473
  104,734
  129,188
  156,919
  187,965
  222,331
  259,991
  300,895
  344,980
  392,173
  442,402
  495,594
  551,691
  610,640
  672,410
  736,982
  804,358
  874,557
  947,621
  1,023,608
  1,102,598
  1,184,687
Total liabilities, $m
  6,496
  9,843
  14,457
  20,629
  28,658
  38,840
  51,453
  66,749
  84,941
  106,202
  130,657
  158,387
  189,434
  223,800
  261,459
  302,363
  346,448
  393,641
  443,870
  497,063
  553,159
  612,109
  673,878
  738,450
  805,826
  876,025
  949,089
  1,025,077
  1,104,066
  1,186,155
Total equity, $m
  3,142
  4,761
  6,993
  9,978
  13,861
  18,786
  24,887
  32,285
  41,084
  51,368
  63,196
  76,609
  91,625
  108,247
  126,462
  146,247
  167,570
  190,396
  214,691
  240,419
  267,552
  296,064
  325,941
  357,173
  389,761
  423,716
  459,055
  495,809
  534,014
  573,719
Total liabilities and equity, $m
  9,638
  14,604
  21,450
  30,607
  42,519
  57,626
  76,340
  99,034
  126,025
  157,570
  193,853
  234,996
  281,059
  332,047
  387,921
  448,610
  514,018
  584,037
  658,561
  737,482
  820,711
  908,173
  999,819
  1,095,623
  1,195,587
  1,299,741
  1,408,144
  1,520,886
  1,638,080
  1,759,874
Debt-to-equity ratio
  1.600
  1.760
  1.860
  1.920
  1.960
  1.990
  2.010
  2.020
  2.030
  2.040
  2.040
  2.050
  2.050
  2.050
  2.060
  2.060
  2.060
  2.060
  2.060
  2.060
  2.060
  2.060
  2.060
  2.060
  2.060
  2.060
  2.060
  2.060
  2.060
  2.060
Adjusted equity ratio
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326
  0.326

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  346
  555
  837
  1,207
  1,679
  2,269
  2,986
  3,843
  4,848
  6,005
  7,474
  8,946
  10,577
  12,364
  14,304
  16,395
  18,633
  21,013
  23,532
  26,186
  28,975
  31,895
  34,946
  38,128
  41,443
  44,891
  48,476
  52,201
  56,072
  60,094
Depreciation, amort., depletion, $m
  510
  663
  875
  1,158
  1,527
  1,994
  2,573
  3,275
  4,110
  5,085
  5,996
  7,268
  8,693
  10,270
  11,998
  13,875
  15,898
  18,064
  20,369
  22,809
  25,384
  28,089
  30,923
  33,886
  36,978
  40,200
  43,552
  47,039
  50,664
  54,431
Funds from operations, $m
  856
  1,218
  1,712
  2,365
  3,206
  4,263
  5,559
  7,118
  8,957
  11,090
  13,469
  16,214
  19,270
  22,634
  26,302
  30,270
  34,531
  39,076
  43,900
  48,996
  54,358
  59,984
  65,869
  72,015
  78,421
  85,090
  92,028
  99,240
  106,736
  114,525
Change in working capital, $m
  627
  893
  1,231
  1,647
  2,142
  2,717
  3,366
  4,081
  4,854
  5,673
  6,525
  7,399
  8,284
  9,170
  10,048
  10,914
  11,763
  12,592
  13,402
  14,193
  14,968
  15,729
  16,482
  17,229
  17,977
  18,731
  19,495
  20,275
  21,076
  21,903
Cash from operations, $m
  229
  325
  481
  718
  1,064
  1,546
  2,194
  3,037
  4,103
  5,417
  6,944
  8,815
  10,986
  13,464
  16,254
  19,356
  22,768
  26,484
  30,498
  34,803
  39,391
  44,254
  49,388
  54,785
  60,443
  66,359
  72,533
  78,965
  85,660
  92,621
Maintenance CAPEX, $m
  -190
  -298
  -452
  -663
  -947
  -1,315
  -1,782
  -2,361
  -3,063
  -3,898
  -4,873
  -5,996
  -7,268
  -8,693
  -10,270
  -11,998
  -13,875
  -15,898
  -18,064
  -20,369
  -22,809
  -25,384
  -28,089
  -30,923
  -33,886
  -36,978
  -40,200
  -43,552
  -47,039
  -50,664
New CAPEX, $m
  -1,604
  -2,289
  -3,155
  -4,220
  -5,490
  -6,962
  -8,624
  -10,458
  -12,439
  -14,537
  -16,721
  -18,960
  -21,228
  -23,497
  -25,749
  -27,968
  -30,143
  -32,268
  -34,343
  -36,370
  -38,355
  -40,306
  -42,234
  -44,150
  -46,067
  -47,998
  -49,957
  -51,955
  -54,008
  -56,127
Cash from investing activities, $m
  -1,794
  -2,587
  -3,607
  -4,883
  -6,437
  -8,277
  -10,406
  -12,819
  -15,502
  -18,435
  -21,594
  -24,956
  -28,496
  -32,190
  -36,019
  -39,966
  -44,018
  -48,166
  -52,407
  -56,739
  -61,164
  -65,690
  -70,323
  -75,073
  -79,953
  -84,976
  -90,157
  -95,507
  -101,047
  -106,791
Free cash flow, $m
  -1,565
  -2,262
  -3,126
  -4,165
  -5,372
  -6,731
  -8,213
  -9,783
  -11,399
  -13,017
  -14,650
  -16,141
  -17,510
  -18,726
  -19,765
  -20,610
  -21,250
  -21,682
  -21,909
  -21,936
  -21,774
  -21,435
  -20,935
  -20,288
  -19,511
  -18,617
  -17,623
  -16,543
  -15,388
  -14,170
Issuance/(repayment) of debt, $m
  2,347
  3,347
  4,614
  6,172
  8,029
  10,182
  12,613
  15,296
  18,192
  21,261
  24,455
  27,731
  31,046
  34,366
  37,659
  40,904
  44,085
  47,193
  50,228
  53,193
  56,096
  58,950
  61,770
  64,572
  67,376
  70,200
  73,064
  75,987
  78,989
  82,089
Issuance/(repurchase) of shares, $m
  793
  1,064
  1,395
  1,778
  2,204
  2,656
  3,114
  3,555
  3,952
  4,278
  4,355
  4,466
  4,440
  4,258
  3,911
  3,389
  2,690
  1,814
  763
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  3,140
  4,411
  6,009
  7,950
  10,233
  12,838
  15,727
  18,851
  22,144
  25,539
  28,810
  32,197
  35,486
  38,624
  41,570
  44,293
  46,775
  49,007
  50,991
  53,193
  56,096
  58,950
  61,770
  64,572
  67,376
  70,200
  73,064
  75,987
  78,989
  82,089
Total cash flow (excl. dividends), $m
  1,575
  2,150
  2,883
  3,785
  4,861
  6,107
  7,515
  9,068
  10,745
  12,522
  14,159
  16,056
  17,976
  19,898
  21,805
  23,684
  25,525
  27,325
  29,082
  31,257
  34,322
  37,514
  40,834
  44,284
  47,865
  51,582
  55,440
  59,445
  63,602
  67,919
Retained Cash Flow (-), $m
  -1,139
  -1,619
  -2,232
  -2,985
  -3,883
  -4,925
  -6,101
  -7,398
  -8,799
  -10,283
  -11,828
  -13,413
  -15,017
  -16,622
  -18,215
  -19,784
  -21,323
  -22,827
  -24,294
  -25,728
  -27,133
  -28,513
  -29,877
  -31,232
  -32,588
  -33,954
  -35,339
  -36,754
  -38,206
  -39,705
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  436
  531
  652
  800
  977
  1,182
  1,414
  1,670
  1,946
  2,238
  2,331
  2,643
  2,959
  3,276
  3,590
  3,899
  4,202
  4,499
  4,788
  5,529
  7,190
  9,002
  10,958
  13,052
  15,277
  17,628
  20,101
  22,691
  25,396
  28,214
Discount rate, %
  9.70
  10.19
  10.69
  11.23
  11.79
  12.38
  13.00
  13.65
  14.33
  15.05
  15.80
  16.59
  17.42
  18.29
  19.21
  20.17
  21.17
  22.23
  23.34
  24.51
  25.74
  27.02
  28.38
  29.79
  31.28
  32.85
  34.49
  36.21
  38.03
  39.93
PV of cash for distribution, $m
  397
  437
  480
  523
  560
  587
  601
  600
  583
  551
  464
  419
  367
  312
  257
  206
  161
  121
  89
  69
  59
  47
  35
  25
  17
  11
  7
  4
  2
  1
Current shareholders' claim on cash, %
  63.9
  43.0
  30.3
  22.3
  16.9
  13.3
  10.7
  8.9
  7.6
  6.6
  5.9
  5.4
  4.9
  4.6
  4.4
  4.2
  4.1
  4.1
  4.1
  4.1
  4.1
  4.1
  4.1
  4.1
  4.1
  4.1
  4.1
  4.1
  4.1
  4.1

NGL Energy Partners LP owns and operates a vertically integrated energy business. The Company's segments are crude oil logistics, water solutions, liquids, retail propane, refined products and renewables, and corporate and other. Its crude oil logistics segment includes owned and leased crude oil storage terminals, and owned and leased pipeline injection stations. Its water solutions segment provides services for the treatment and disposal of wastewater generated from crude oil and natural gas production, and for the disposal of solids, such as tank bottoms and drilling fluids. Its liquids segment supplies natural gas liquids to retailers, wholesalers, refiners and petrochemical plants throughout the United States and in Canada. Its retail propane segment consists of the retail marketing, and sale and distribution of propane and distillates, among others. The Company's refined products and renewables segment is engaged in gasoline, diesel, ethanol and biodiesel marketing operations.

FINANCIAL RATIOS  of  NGL Energy Partners (NGL)

Valuation Ratios
P/E Ratio 8.6
Price to Sales 0.1
Price to Book 0.5
Price to Tangible Book
Price to Cash Flow -43.4
Price to Free Cash Flow -3
Growth Rates
Sales Growth Rate 10.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -45%
Cap. Spend. - 3 Yr. Gr. Rate 17.1%
Financial Strength
Quick Ratio 0
Current Ratio 0
LT Debt to Equity 134.4%
Total Debt to Equity 135.8%
Interest Coverage 2
Management Effectiveness
Return On Assets 4.3%
Ret/ On Assets - 3 Yr. Avg. 1.8%
Return On Total Capital 2.8%
Ret/ On T. Cap. - 3 Yr. Avg. -0.2%
Return On Equity 7.1%
Return On Equity - 3 Yr. Avg. -0.5%
Asset Turnover 2.2
Profitability Ratios
Gross Margin 3.6%
Gross Margin - 3 Yr. Avg. 4.4%
EBITDA Margin 3.9%
EBITDA Margin - 3 Yr. Avg. 2.5%
Operating Margin 2%
Oper. Margin - 3 Yr. Avg. 0.6%
Pre-Tax Margin 1.1%
Pre-Tax Margin - 3 Yr. Avg. -0.1%
Net Profit Margin 1.1%
Net Profit Margin - 3 Yr. Avg. -0.1%
Effective Tax Rate 1.4%
Eff/ Tax Rate - 3 Yr. Avg. -1.7%
Payout Ratio 132.8%

NGL stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the NGL stock intrinsic value calculation we used $17282.718 million for the last fiscal year's total revenue generated by NGL Energy Partners. The default revenue input number comes from 0001 income statement of NGL Energy Partners. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our NGL stock valuation model: a) initial revenue growth rate of 56.7% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 9.7%, whose default value for NGL is calculated based on our internal credit rating of NGL Energy Partners, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of NGL Energy Partners.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of NGL stock the variable cost ratio is equal to 98%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for NGL stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 7% for NGL Energy Partners.

Corporate tax rate of 27% is the nominal tax rate for NGL Energy Partners. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the NGL stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for NGL are equal to 16.4%.

Life of production assets of 14.9 years is the average useful life of capital assets used in NGL Energy Partners operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for NGL is equal to 6.4%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $2002.592 million for NGL Energy Partners - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 122.051 million for NGL Energy Partners is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of NGL Energy Partners at the current share price and the inputted number of shares is $1.2 billion.

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COMPANY NEWS

▶ NGL Energy Partners Announces Quarterly Cash Distribution   [Oct-23-18 05:30PM  Business Wire]
▶ New Strong Sell Stocks for October 16th   [Oct-16-18 05:02AM  Zacks]
▶ NGL Resolves Matter with U.S. EPA   [Sep-27-18 12:56PM  Business Wire]
▶ Weekly CEO Buys Highlight   [11:12AM  GuruFocus.com]
▶ NGL Energy Partners LP to Host Earnings Call   [Aug-07-18 09:00AM  ACCESSWIRE]
▶ NGL Energy Partners Announces Quarterly Cash Distribution   [Jul-24-18 05:30PM  Business Wire]
▶ NGL Energy Partners Announces Filing of Its Annual Report   [May-31-18 05:28PM  Business Wire]
▶ NGL Energy Partners Announces Quarterly Cash Distribution   [Apr-24-18 06:11PM  Business Wire]
▶ NGL Energy Partners LP to Attend Mizuho Energy Summit   [Apr-09-18 06:20AM  Business Wire]
▶ Stay Away! 3 Dividend Stocks That Are Yield Traps   [Apr-03-18 08:04AM  Motley Fool]
▶ [$$] Haddington's Magnum Liquids, NGL Energy Partners Form Joint Venture   [Mar-01-18 04:33PM  The Wall Street Journal]
▶ NGL Energy Partners Announces Quarterly Cash Distribution   [Jan-23-18 08:49PM  Business Wire]
▶ Energy Stocks Outperformed Oil and the Broader Market   [Dec-12-17 10:32AM  Market Realist]
▶ The Top MLP Gainers as of December 8   [07:33AM  Market Realist]
▶ Alerian Index Series December 2017 Index Review   [Dec-08-17 08:30AM  PR Newswire]
▶ Top MLP Gainers for Week Ended November 10   [05:05PM  Market Realist]
▶ These Five Midstream MLPs Offer Highest Yield   [Sep-21-17 04:06PM  Market Realist]
▶ Can NGL Energy Partners Gain Upward Momentum?   [Sep-18-17 02:36PM  Market Realist]
▶ These MLPs Rose More than 6% Last Week   [01:00PM  Market Realist]
▶ Alerian Index Series September 2017 Index Review   [Sep-08-17 08:30AM  PR Newswire]
▶ Top MLPs Losers Last Week, Ended September 1   [Sep-05-17 12:01PM  Market Realist]

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