Perhaps the only universal truth in investing is that you will make mistakes. Sometimes you will lose money.

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I linked a trade above where I bought NGL Energy partners at $3.34 on April 4th. The position is down -13%.

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Discussing losses is important because it opens you up to understanding what went wrong. And for those reading, it reveals trustworthiness.

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So far NGL Energy partners has been a losing position for me, but here is why I'm still holding:

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Since 2018, $NGL's free cash flow has gone from negative to positive:

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Most of NGL's assets are in property, plant, and equipment...

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...which makes sense because they own a large network of oil pipelines and crude oil terminals:

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The vast majority of their debt is long term.

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A lot of investors who are bullish NGL right now are excited about and are betting on management making progress on paying down long term debt: (which is 63% of their liabilities)

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Their debt is their largest risk factor. Currently they have only $4.5 million in cash and investments but $2.9 billion in debt:

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Paying interest on NGL's debt is a bit questionable. NGL's operating income is only 1.54 times the interest payments on it's outstanding debt:

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Macro reasons to be bullish:

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So why has NGL dropped over the past month?

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It's sliding along with the rest of the oil market.

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Oil prices saw their third consecutive weekly decline last week, marking the longest losing run this year. West Texas Intermediate has seen a 11% year-to-date fall.

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NGL's stock has fallen along with the price of oil. The blue line on the chart below is the price of oil, the black line is NGL's stock price:

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NGL is currently sitting at $2.77. Their earnings call is scheduled for May 31st. Hoping to hear about more debt being paid down.