5 Top Performing Energy Stocks in January 2023

3. NGL Energy Partners LP (NYSE:NGLS)

Performance in January: +42%

This midstream MLP company ranks 3rd in our list of the top-performing energy stocks in January 2023. NGL Energy Partners LP (NYSE:NGLS) gained about 42% in January. In early January, NGL Energy Partners upped its FY 2023 adjusted EBITDA guidance to over $630 million from over $600 million. NGL Energy Partners LP (NYSE:NGLS) cited increases in water volumes processed in the Delaware Basin and other cash flow positive developments for the upgrade. NGL Energy Partners LP (NYSE:NGLS) said $430 million out of this $630 million will be generated from its Water Solutions segment.

A total of 3 hedge funds had stakes in NGL Energy Partners LP (NYSE:NGLS) as of the end of the third quarter.

Here is what Miller Value Partners has to say about NGL Energy Partners LP (NYSE:NGLS) in their Q4 2020 investor letter:

“NGL Energy Partners (NGL) dropped 37.0% over the period, though its small weight in the fund meant only 12 basis points (bps) of value detraction. NGL reported EBITDA of $138M, missing consensus of $142 by 3% driven by lower than expected crude and water volumes. Distributable cash flow of $73M beat analyst estimates of $69M and provided 5.5x coverage on the reduced quarterly dividend of $0.10/share (13.6% annualized yield). Since July 1st, NGL has retired $75M of unsecured notes, bringing Year-to-Date (YTD) repurchases to $125M. Management remains fully committed to deleveraging and noted a Joint Venture (JV) for the Water business is likely by year-end. NGL exited the quarter with $3.3Bn in total debt, $122M of liquidity, leverage of 5.3x, and remains in full compliance with all debt covenants.”