NGL Energy Partners LP (NGL)

[tdeck]

Well of course thus the $2 price tag, but for me now, it is a growth stock as the debt gets taken out revs rise back up and most importantly water usage goes up thus their #1 cash cow division's revs/EBITDA goes up.

Dividends double digits are way down the road, but, gradually price increase (legging it up steady) is the "new normal" for this going forward. It is going to be like any other stock in its position, "show me the money (EBITDA rising)" and "show me the debt decreasing" kind of deal and with not having to lay out that $240 mil a year in distribution and throwing that at the debt while having cut capex to the bone to throw more at the debt by way of buying it back at a discount, it's more than enough for me.

Not really a dividend guy, I can get 10-15% on my money 30 times a quarter on 30 different trades, i don't mind the extra cap gains. This is like any other undervalued play where all it is going to take is time, I got that, no problem. Each leg up I can sell a little bit getting my money out making what's left cheaper until 1-3 years down the road when I am selling the second half they do get those nice cap gains tax rates.

As mentioned before I am looking forward to the increase in revenues and thus EBITDA in the water division from Poker Lake I think this could be the thing that covers some of the Oil Logistics divisions reductions in revs/EBITDA from XOG cut back.

I have never been a fan of the oil log. end not enough money in it, revs yes but profits from it did nothing to curl my toes, thus why I never invested in NGL long term as you and everyone who followed this before knows I was 50-60K block in and out during ER/Distr. period was an easy trade.

For me with a $300M market cap with debt sorted nothing due until 2023 they have the time to whack away at that and as that happens the price shall rise and as revs etc return to pre covid levels or anywhere in that neighborhood even a few streets down initially it will still raise the price as the market cap is ridiculous.

Peace out

Hope that was a convaluted as my normal posts are, not really the writing type.

And byt the way I like that the big kids are doubling down, many of them in the recent reporting March 31 institutional holdings report, I like when they are in the sandbox they keep the ruffians at bay.