Business Analysis of NGL Energy Partners

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of NGL Energy Partners

NGL ENERGY PARTNERS

Business Overview

NGL Energy Partners LP, through its subsidiaries, engages in the crude oil logistics, water solutions, liquids, retail propane, and refined products and renewables businesses in the United States. The Crude Oil Logistics segment purchases crude oil from producers and transports it to refineries for resale at pipeline injection stations, storage terminals, barge loading facilities, rail facilities, refineries, and other trade hubs. The Water Solutions segment is involved in the treatment and disposal of wastewater generated from crude oil and natural gas production operations; disposal of solids, such as tank bottoms, drilling fluids, and performs truck and frac tank washouts; and sale of recovered hydrocarbons. The Liquids segment supplies natural gas liquids to retailers, wholesalers, refiners, and petrochemical plants in the United States and Canada, as well as offers terminaling and storage services through its 21 terminals in the United States. The Retail Propane segment sells propane, distillates, and equipment and supplies to end users consisting of residential, agricultural, commercial, and industrial customers, as well as re-sellers. The Refined Products and Renewables segment markets gasoline, diesel, ethanol, and biodiesel products; and purchase and delivers refined petroleum and renewable products. NGL Energy Holdings LLC serves as the general partner of the company. The company was founded in 1940 and is headquartered in Tulsa, Oklahoma.

NGL Energy Partners

NGL Energy Partners


R&P Rank: 240
Sector: Oil & Gas
Industry:Oil & Gas Distribution
H.Q Location:Oklahoma
Website: www.nglenergypartners.com
Company Address:
6120 S. YALE, SUITE 805, TULSA OK 74136
Ph:918-481-1119

Business Analysis of NGL Energy Partners

The Oil & Gas Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how NGL Energy Partners compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by NGL Energy Partners to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of NGL Energy Partners with an interactive chart.

  1. Revenue Growth: NGL Energy Partners reported a revenue growth of -30.1% year-on-year during 2016. Oil & Gas Distribution Industry grew at -12.3% in the same period
  2. COGS share of Revenues: As a percentage of revenue, NGL Energy Partners spent 92.3% of its total revenues on COGS. Oil & Gas Distribution industry average (COGS share of revenue) in the same period was 75.2%
  3. R&D share of Revenues: NGL Energy Partners R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, NGL Energy Partners spent 4.6% of its total revenues on Sales, Marketing, and General Administration (SG&A). Oil & Gas Distribution industry average SG&A spending in the same period was 3.7%
  5. Inventory share of Revenues: As a percentage of revenue, NGL Energy Partners spent 3.1% of its total revenues on Inventories. Oil & Gas Distribution industry average Inventory spending in the same period was 4.8%
  6. Accounts Payable share of Revenues: As a percentage of revenue, NGL Energy Partners invested 3.6% of its total revenues on Accounts Payable (A/P) Oil & Gas Distribution industry average Accounts Payable investment in the same period was 10.1%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, NGL Energy Partners invested 4.6% of its total revenues on Accounts Receivable (A/R). Oil & Gas Distribution industry average Accounts Receivable investment in the same period was 10.6%
  8. PP&E share of Revenues: As a percentage of revenue, NGL Energy Partners invested 14.0% of its total revenues on Property, Plants, and Equipments (PP&E). Oil & Gas Distribution industry average PPE investment in the same period was 155.8%
  9. Intangibles share of Revenues: As a percentage of revenue, NGL Energy Partners invested 21.0% of its total revenues on Intangibles. Oil & Gas Distribution industry average Intangibles investment in the same period was 39.0%
  10. Net Margins: NGL Energy Partners Net Margins in the year 2016 were -1.7%. Oil & Gas Distribution industry average Net Margins in the same period were 3.9%

Sector and Industry Association of NGL Energy Partners

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

NGL Energy Partners is associated with Oil & Gas Sector and Oil & Gas Distribution Industry.

Oil & Gas sector is comprised of the following industries: Oil & Gas Production; Oil & Gas Distribution; Oil & Gas Equipment and Services; Alternative Energy. The definitions for each of the industries is as follows:

  • Oil & Gas Production industry includes companies primarily engaged in operating oil & gas properties. Key activities may include exploration for crude petroleum and natural gas; drilling, completing, and equipping wells; and all other activities in the preparation of oil and gas up to the point of shipment from the producing property. It also includes companies engaged in crude petroleum refining and producing gasoline, kerosene, distillate fuel oils, residual fuel oils, and lubricants, through fractionation or straight distillation of crude oil.
  • Oil & Gas Distribution industry includes companies primarily engaged in the pipeline transportation of petroleum, natural gas, and other commodities. It also includes companies primarily engaged in the wholesale and retail distribution of petroleum and petroleum products.
  • Oil & Gas Equipment and Services industry includes companies primarily engaged in drilling wells for oil or gas field operations for others on a contract or fee basis. It also includes companies providing exploration services and machinery & equipment for oil and gas field operations.
  • Alternative Energy industry includes companies that develop or manufacture renewable energy equipment utilizing sources such as solar, wind, geothermal, hydro, and waves. It also includes companies that produce alternative fuels such as methanol, ethanol, hydrogen and biofuels that are mainly used to power vehicles.

Industry Ranking of NGL Energy Partners

With $11.7 billion revenues, NGL Energy Partners ranked number 9 of all the companies in the US Oil & Gas Distribution industry. There were a total of 69 public companies in the US Oil & Gas Distribution industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Oil & Gas Distribution industry by revenues during 2016 were:

  1. Energy Transfer Equity ($37.5 billion)
  2. World Fuel ($27 billion)
  3. Enterprise Products Partners ($23 billion)
  4. Energy Transfer Partners ($21.8 billion)
  5. Plains All American Pipeline ($20.2 billion)
  6. Plains GP Holdings ($20.2 billion)
  7. Sunoco ($15.7 billion)
  8. Kinder Morgan ($13.1 billion)
  9. NGL Energy Partners ($11.7 billion)
  10. Sunoco Logistics ($9.2 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of NGL Energy Partnersand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of ngl-energy-partners

Plains GP Holdings (PAGP) Business Analysis – Analyze Historical Performance, Strategic...

Plains GP Holdings LP with $20 billion revenues in the year 2016 was the number 6 Oil & Gas Distribution company. Read this report to know the top competitors of Plains GP Holdings and identify growth and cost optimization opportunities of Plains GP Holdings

Sunoco (SUN) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Sunoco Lp with $16 billion revenues in the year 2016 was the number 7 Oil & Gas Distribution company. Read this report to know the top competitors of Sunoco and identify growth and cost optimization opportunities of Sunoco

Kinder Morgan (KMI) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Kinder Morgan, Inc. with $13 billion revenues in the year 2016 was the number 8 Oil & Gas Distribution company. Read this report to know the top competitors of Kinder Morgan and identify growth and cost optimization opportunities of Kinder Morgan

Sunoco Logistics (SXL) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Sunoco Logistics Partners L.P. with $9 billion revenues in the year 2016 was the number 10 Oil & Gas Distribution company. Read this report to know the top competitors of Sunoco Logistics and identify growth and cost optimization opportunities of Sunoco Logistics

ONEOK (OKE) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Oneok Inc with $9 billion revenues in the year 2016 was the number 11 Oil & Gas Distribution company. Read this report to know the top competitors of ONEOK and identify growth and cost optimization opportunities of ONEOK

ONEOK Partners (OKS) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Oneok Partners Lp with $9 billion revenues in the year 2016 was the number 12 Oil & Gas Distribution company. Read this report to know the top competitors of ONEOK Partners and identify growth and cost optimization opportunities of ONEOK Partners

Revenues Analysis

NGL Energy Partners (NGL) Revenues And Revenue Growth From 2012 To...

This report provides the last five years revenues and revenue growth of NGL Energy Partners LP (NGL) from 2012 to 2016. NGL Energy Partners generated a total of $11.7 billion revenues during 2016. NGL Energy Partners reported a revenue growth of -30.1% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in March.

NGL Energy Partners (NGL) Revenues And Revenue Growth From 2008 To...

This report provides the last nine years revenues and revenue growth of NGL Energy Partners LP (NGL) from 2008 to 2016. NGL Energy Partners generated a total of $11.7 billion revenues during 2016. NGL Energy Partners reported a revenue growth of -30.1% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in March.

NGL Energy Partners (NGL) Revenue Growth Comparison With Industry Growth From...

This report provides a comparison of NGL Energy Partners LP (NGL) revenue growth with Oil & Gas Distribution industry growth during the last five years from 2012 to 2016. NGL Energy Partners reported a revenue growth of -30.1% year-over-year during 2016. The Oil & Gas Distribution industry growth was -12.3% year-over-year during 2016. NGL Energy Partners growth was slower than the industry during 2016.

Profit Analysis