NGL ENERGY PARTNERS (NGL) concentration risks

NGL Energy Partners discloses high customer concentration across both of its named operating segments. In Crude Oil Logistics, the ten largest customers generated 79% of that segment's revenue for the year ended March 31, 2026, and in Water Solutions, the ten largest customers accounted for a nearly identical 78% of segment revenue over the same period. Both are high-size dependency exposures, and the fact that they appear in parallel across two distinct segments — rather than being isolated to one part of the business — makes customer concentration a pervasive, not a one-off, feature of NGL's operating model. This is an idiosyncratic, counterparty-driven risk in each segment: the loss of even a few of these top-ten accounts could materially affect segment revenue, independent of broader commodity-price or macro trends. Because both segments show a similarly high degree of reliance on a small number of customers, NGL's overall results are more sensitive to counterparty-specific developments — contract renewals, customer financial health, or shifts in production/water volumes from key accounts — than a more diversified midstream peer would be, and this dual concentration should be weighted as a structural feature of how revenue is organized across its two core segments.

For the engine’s reasoning on NGL’s current verdict — including which dimensions drove the score — see the per-dimension breakdown.

Concentration counts reflect items disclosed in each peer’s most recent 10-K; disclosed-size classification uses TrendMatrix’s internal 10-K extraction taxonomy.