Two Blokes

NGL Energy Partners Preferred B: High Income Prospects And Risk Mitigated

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    Posted by Two Blokes Jun 18 - Filed in Stock - 4 views
    We rate NGL Energy Partners LP PFD UNIT CL B a Hold, given its attractive double-digit yield and improved balance sheet, but lingering risks remain. Dividends are variable, tied to SOFR plus a 7.213% spread, offering yields above 10% for several quarters as Fed rates stay elevated. The company's solid liquidity, asset sales, and compliance with debt covenants mitigate risk, but preferred units are still junior to debt in liquidation.