NGL Energy Partners LP (NGL)

[bar1080]

SA: "NGL Investors Await Years Of Slow Deleveraging At Best"

"Summary

* The first half of 2020 has been painful for the unitholders of NGL Energy Partners who have seen their unit price and distributions both roughly halved.

* Whilst their massive yield of over 16% may still sound attractive, under the surface they face significant financial risks from a possible covenant breach.

* Even if they avoid this toxic outcome, their unitholders still face years of slow deleveraging that keeps further risks to their distribution elevated.

* They entered this downturn with high leverage and barely adequate liquidity, which will take years to rectify even after reducing capital expenditure to the bone.

* Given this situation, I believe that a bearish rating is appropriate for the time being."

https://seekingalpha.com/article/4355557-ngl-energy-partners-investors-await-years-of-slow-deleveraging-best