Quality Momentum

QM · rank #3 · 2026-06-02

NGL

NYSE · $2.24B

verdict · PROCEED

The exact numbers the algorithm saw.

Factor scores and the inputs behind this pick.
Momentum 12-1
Return from 12 months ago to 1 month ago.
+407.72%
ROE TTM
Return on equity, trailing 12 months.
+19.1%
Profit margin
Net profit margin, trailing 12 months.
+4.5%
Market cap
Size filter: > $500M required.
$2.24B
Anchor (recent)
Close on 2026-05-01
$15.13
Anchor (far)
Close on 2025-05-02
$2.98

The AI research card

Independent qualitative review of each pick before the order is placed.

Summary

NGL Energy Partners LP (NGL@NYSE) is a diversified midstream Master Limited Partnership (MLP) providing crude oil logistics, natural gas liquids (NGLs) and refined products logistics, and water solutions services, with a growing focus on fee-based water infrastructure.

Rationale

The strong momentum_12_1 signal of 4.0772, coupled with a solid ROE and profit margin, suggests NGL is benefiting from its strategic shift towards stable, fee-based water solutions, driving recent earnings growth and positive investor sentiment.

Material risks

  • 1Exposure to energy sector regulation and environmental policy, particularly concerning produced-water injection and disposal, could impact NGL's core Water Solutions segment.
  • 2The partnership carries significant absolute debt from prior investment cycles, which could constrain future growth or distributions despite ongoing deleveraging efforts.

Verdict reasoning

two_stage score=+2/3 verdicts={'openai': 'PROCEED', 'gemini': 'PROCEED', 'claude': 'CAUTION'} brief=caller-supplied