NGL Energy Partners LP Announces First Quarter Fiscal 2026 Financial Results

By: NGL Energy Partners LP via Business Wire

August 07, 2025 at 16:31 PM EDT

NGL Energy Partners LP (NYSE: NGL) (“NGL,” “we,” “us,” “our,” or the “Partnership”) today reported its first quarter Fiscal 2026 financial results. Highlights include:

Income from continuing operations for the first quarter of Fiscal 2026 of $30.3 million, compared to income from continuing operations of $17.6 million for the first quarter of Fiscal 2025
Adjusted EBITDA from continuing operations⁽¹⁾ for the first quarter of Fiscal 2026 of $144.0 million, compared to $138.6 million for the first quarter of Fiscal 2025
Produced water volumes processed of approximately 2.77 million barrels per day during the first quarter of Fiscal 2026, growing 12.4% from the first quarter of Fiscal 2025
Asset sales for the first quarter of Fiscal 2026 included the sale of:
- 17 of our natural gas liquids terminals, the majority of our wholesale propane business (“Wholesale Propane Disposition”)
- Our refined products Rack Marketing business
- Our ownership in Limestone Ranch in the Water Solutions segment
- Additional railcars in our Crude Oil Logistics segment
We repurchased $19.0 million of our outstanding 2032 Senior Notes at a discount
We repurchased 70,000 of our Class D preferred units during the quarter
Under the board authorized repurchase plan, we have repurchased a total of 4,665,343 common units at an average price of $4.30

“We have had a strong start to Fiscal 2026 with $144.0 million in Adjusted EBITDA⁽¹⁾ in the first quarter, driven by the performance in our Water Solutions segment exceeding our expectations. If this strength in our results continues, we will reevaluate our full year guidance at the end of the second quarter.” stated Mike Krimbill NGL’s CEO. “Our focus remains on exceeding our Adjusted EBITDA guidance and the continued improvement of our capital structure,” Krimbill concluded.

Quarterly Results of Operations

The following table summarizes the unaudited operating income (loss) and Adjusted EBITDA from continuing operations⁽¹⁾ by reportable segment for the periods indicated:

	Quarter Ended
	June 30, 2025						June 30, 2024
	Operating Income (Loss)			Adjusted EBITDA⁽¹⁾			Operating Income (Loss)			Adjusted EBITDA⁽¹⁾
	(in thousands)
Water Solutions	$	84,947		$	142,869		$	84,358		$	125,603
Crude Oil Logistics		672			9,583			14,089			18,635
Liquids Logistics		23,732			2,871			(4,422	)		5,736
Corporate and Other		(11,901	)		(11,351	)		(11,946	)		(11,354	)
Total	$	97,450		$	143,972		$	82,079		$	138,620


⁽¹⁾See the “Non-GAAP Financial Measures” section of this release for the definition of Adjusted EBITDA (as used herein) and a discussion of this non-GAAP financial measure.

Water Solutions

Operating income for the Water Solutions segment increased by $0.6 million for the quarter ended June 30, 2025, compared to the quarter ended June 30, 2024. The increase was due primarily to higher disposal revenues due to an increase in produced water volumes processed from contracted customers. There was also higher water pipeline revenue due to the LEX II pipeline commencing operations during the quarter ended December 31, 2024. The Partnership processed approximately 2.77 million barrels of produced water per day during the quarter ended June 30, 2025, a 12.4% increase when compared to approximately 2.47 million barrels of water per day processed during the quarter ended June 30, 2024.

Revenues from recovered skim oil, including the impact from realized skim oil hedges, totaled $24.8 million for the quarter ended June 30, 2025, a decrease of $5.9 million from the prior year period. The decrease was due primarily to lower realized crude oil prices received from the sale of skim oil barrels, partially offset by an increase in skim oil barrels sold due to more skim oil recovered from receiving more produced water.

Operating expenses in the Water Solutions segment increased $2.5 million for the quarter ended June 30, 2025, compared to the quarter ended June 30, 2024 due primarily to higher royalty expense due to volumes related to the LEX II pipeline commencing operations and increased volumes at certain other saltwater disposal wells and higher utilities expense due to increased produced water volumes processed, partially offset by lower bad debt expense. Operating expense per produced barrel processed was $0.22 for the quarter ended June 30, 2025, compared to $0.24 in the comparative quarter last year.

There was also a loss on the disposal or impairment of assets of $3.5 million for the quarter ended June 30, 2025, compared to a gain on the disposal or impairment of assets of $10.7 million in the prior year period.

Crude Oil Logistics

Operating income for the Crude Oil Logistics segment decreased by $13.4 million for the quarter ended June 30, 2025, compared to the quarter ended June 30, 2024. The decrease was due primarily to reduced sales volumes as a result of lower production on acreage dedicated to us in the DJ Basin and lower crude oil prices. During the quarter ended June 30, 2025, physical volumes on the Grand Mesa Pipeline averaged approximately 55,000 barrels per day, compared to approximately 63,000 barrels per day for the quarter ended June 30, 2024.

Liquids Logistics

Operating income for the Liquids Logistics segment increased by $28.2 million for the quarter ended June 30, 2025, compared to the quarter ended June 30, 2024. This increase was due primarily to lower expenses due to the Wholesale Propane Disposition, including a gain on the sale, which closed on April 30, 2025. In addition, we generated increased margins, excluding the impact of derivatives on butane product sales. Gains on derivatives that hedge physical product were $4.6 million during the current quarter, compared to a loss of $1.8 million for the prior year quarter.

Capitalization and Liquidity

Total liquidity (cash plus available capacity on our asset-based revolving credit facility (“ABL Facility”)) was approximately $391.6 million as of June 30, 2025. Borrowings on the Partnership’s ABL Facility totaled approximately $37.0 million as of June 30, 2025, as we built butane inventory for the blending season.

The Partnership is in compliance with all of its debt covenants and has no upcoming debt maturities.

First Quarter Conference Call Information

A conference call to discuss NGL’s results of operations is scheduled for 4:00 pm Central Time on Thursday, August 7, 2025. Analysts, investors, and other interested parties may join the webcast via the event link: https://www.webcaster4.com/Webcast/Page/2808/52742 or by dialing (877) 545-0523 and providing conference code: 368120. An archived audio replay of the call will be available for 14 days, which can be accessed by dialing (877) 481-4010 and providing replay passcode 52742.

Non-GAAP Financial Measures

We define EBITDA as net income (loss) attributable to NGL Energy Partners LP, plus interest expense, income tax expense (benefit), and depreciation and amortization expense. We define Adjusted EBITDA as EBITDA excluding net unrealized gains and losses on derivatives, lower of cost or net realizable value adjustments, gains and losses on disposal or impairment of assets, gains and losses on early extinguishment of liabilities, revaluation of liabilities and other. EBITDA and Adjusted EBITDA should not be considered as alternatives to net income, income from continuing operations before income taxes, cash flows from operating activities, or any other measure of financial performance calculated in accordance with GAAP, as those items are used to measure operating performance, liquidity or the ability to service debt obligations. We believe that EBITDA provides additional information to investors for evaluating our ability to make quarterly distributions to our unitholders and is presented solely as a supplemental measure. We believe that Adjusted EBITDA provides additional information to investors for evaluating our financial performance without regard to our financing methods, capital structure and historical cost basis. Further, EBITDA and Adjusted EBITDA, as we define them, may not be comparable to EBITDA, Adjusted EBITDA, or similarly titled measures used by other entities.

For purposes of our Adjusted EBITDA calculation, we make a distinction between realized and unrealized gains and losses on derivatives. During the period when a derivative contract is open, we record changes in the fair value of the derivative as an unrealized gain or loss. When a derivative contract matures or is settled, we reverse the previously recorded unrealized gain or loss and record a realized gain or loss.

Distributable Cash Flow is defined as Adjusted EBITDA minus maintenance capital expenditures, income tax expense, cash interest expense, preferred unit distributions paid and other. Maintenance capital expenditures represent capital expenditures necessary to maintain the Partnership’s operating capacity. Distributable Cash Flow is a performance metric used by senior management to compare cash flows generated by the Partnership (excluding growth capital expenditures and prior to the establishment of any retained cash reserves by the board of directors of our general partner) to the cash distributions expected to be paid to unitholders. Using this metric, management can quickly compute the coverage ratio of estimated cash flows to planned cash distributions. This financial measure also is important to investors as an indicator of whether the Partnership is generating cash flow at a level that can sustain, or support an increase in, quarterly distribution rates. Actual distribution amounts are set by the board of directors of our general partner.

We do not provide a reconciliation for non-GAAP estimates on a forward-looking basis where we are unable to provide a meaningful calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or amount of various items that would impact the most directly comparable forward-looking U.S. GAAP financial measure that have not yet occurred, are out of the Partnership’s control and/or cannot be reasonably predicted. Forward-looking non-GAAP financial measures provided without the most directly comparable U.S. GAAP financial measures may vary materially from the corresponding U.S. GAAP financial measures.

Forward-Looking Statements

This press release includes “forward-looking statements.” All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Actual results could vary significantly from those expressed or implied in such statements and are subject to a number of risks and uncertainties. While NGL believes such forward-looking statements are reasonable, NGL cannot assure they will prove to be correct. The forward-looking statements involve risks and uncertainties that affect operations, financial performance, and other factors as discussed in filings with the Securities and Exchange Commission. Other factors that could impact any forward-looking statements are those risks described in NGL’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other public filings. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, specifically those under the heading “Risk Factors.” NGL undertakes no obligation to publicly update or revise any forward-looking statements except as required by law.

NGL provides Adjusted EBITDA guidance that does not include certain charges and costs, which in future periods are generally expected to be similar to the kinds of charges and costs excluded from Adjusted EBITDA in prior periods, such as income taxes, interest and other non-operating items, depreciation and amortization, net unrealized gains and losses on derivatives, lower of cost or net realizable value adjustments, gains and losses on disposal or impairment of assets, gains and losses on early extinguishment of liabilities, acquisition expense, revaluation of liabilities and items that are unusual in nature or infrequently occurring. The exclusion of these charges and costs in future periods will have a significant impact on the Partnership’s Adjusted EBITDA, and the Partnership is not able to provide a reconciliation of its Adjusted EBITDA guidance to net income (loss) without unreasonable efforts due to the uncertainty and variability of the nature and amount of these future charges and costs and the Partnership believes that such reconciliation, if possible, would imply a degree of precision that would be potentially confusing or misleading to investors.

About NGL Energy Partners LP

NGL Energy Partners LP, a Delaware master limited partnership, operates the largest integrated network of large diameter wastewater pipelines, disposal wells and produced water handling systems in the Delaware Basin. NGL also operates wastewater disposal in the Eagle Ford and DJ Basins. In addition, NGL markets and provides other logistics services for crude oil, through its ownership of the Grand Mesa Pipeline System, Cushing terminal and other Gulf Coast terminals. For further information, visit the Partnership’s website at www.nglenergypartners.com.

NGL ENERGY PARTNERS LP AND SUBSIDIARIES Unaudited Condensed Consolidated Balance Sheets (in Thousands, except unit amounts)

	June 30, 2025			March 31, 2025
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	5,441		$	5,649
Accounts receivable, net of allowance for expected credit losses of $1,270 and $3,689, respectively		469,991			579,468
Accounts receivable-affiliates		154			730
Inventories		81,479			69,916
Prepaid expenses and other current assets		27,916			63,651
Assets held for sale		310			175,207
Assets of discontinued operations		288			67,432
Total current assets		585,579			962,053
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of $1,144,479 and $1,104,582, respectively		2,036,192			2,066,847
GOODWILL		599,348			599,348
INTANGIBLE ASSETS, net of accumulated amortization of $354,699 and $340,334, respectively		838,502			851,347
OPERATING LEASE RIGHT-OF-USE ASSETS		113,036			109,870
OTHER NONCURRENT ASSETS		15,599			19,975
Total assets	$	4,188,256		$	4,609,440
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable	$	312,804		$	461,980
Accounts payable-affiliates		1			102
Accrued expenses and other payables		105,740			135,233
Advance payments received from customers		11,521			10,347
Current maturities of long-term debt		8,842			8,805
Operating lease obligations		29,193			27,911
Liabilities held for sale		—			42,103
Liabilities of discontinued operations		644			52,749
Total current liabilities		468,745			739,230
LONG-TERM DEBT, net of debt issuance costs of $41,010 and $43,144, respectively, and current maturities		2,870,613			2,961,703
OPERATING LEASE OBLIGATIONS		88,445			85,240
OTHER NONCURRENT LIABILITIES		130,715			125,897

CLASS D 9.00% PREFERRED UNITS, 530,000 and 600,000 preferred units issued and outstanding, respectively		486,843			551,097
REDEEMABLE NONCONTROLLING INTERESTS		441			424

EQUITY:
General partner, representing a 0.1% interest, 130,269 and 132,145 notional units, respectively		(52,907	)		(52,913	)
Limited partners, representing a 99.9% interest, 130,138,928 and 132,012,766 common units issued and outstanding, respectively		(173,027	)		(170,275	)
Class B preferred limited partners, 12,585,642 and 12,585,642 preferred units issued and outstanding, respectively		305,468			305,468
Class C preferred limited partners, 1,800,000 and 1,800,000 preferred units issued and outstanding, respectively		42,891			42,891
Accumulated other comprehensive income		—			9
Noncontrolling interests		20,029			20,669
Total equity		142,454			145,849
Total liabilities and equity	$	4,188,256		$	4,609,440

NGL ENERGY PARTNERS LP AND SUBSIDIARIES Unaudited Condensed Consolidated Statements of Operations (in Thousands, except unit and per unit amounts)

	Three Months Ended June 30,
	2025			2024
REVENUES:
Product	$	436,418		$	589,874
Service and other		185,738			169,360
Total Revenues		622,156			759,234
COST OF SALES:
Product		370,210			520,156
Service and other		12,602			19,149
Total Cost of Sales		382,812			539,305
OPERATING COSTS AND EXPENSES:
Operating		70,768			71,388
General and administrative		13,740			14,964
Depreciation and amortization		66,585			62,164
Gain on disposal or impairment of assets, net		(9,199	)		(10,666	)
Operating Income		97,450			82,079
OTHER INCOME (EXPENSE):
Equity in earnings of unconsolidated entities		201			300
Interest expense		(65,545	)		(69,739	)
Gain on early extinguishment of liabilities, net		1,492			—
Other (expense) income, net		(3,515	)		164
Income From Continuing Operations Before Income Taxes		30,083			12,804
INCOME TAX BENEFIT		182			4,799
Income From Continuing Operations		30,265			17,603
Income (Loss) From Discontinued Operations, net of Tax		39,379			(7,128	)
Net Income		69,644			10,475
LESS: NET INCOME FROM CONTINUING OPERATIONS ATTRIBUTABLE TO NONREDEEMABLE NONCONTROLLING INTERESTS		(705	)		(792	)
LESS: NET INCOME FROM CONTINUING OPERATIONS ATTRIBUTABLE TO REDEEMABLE NONCONTROLLING INTERESTS		(17	)		—
NET INCOME ATTRIBUTABLE TO NGL ENERGY PARTNERS LP	$	68,922		$	9,683

NET LOSS FROM CONTINUING OPERATIONS ALLOCATED TO COMMON UNITHOLDERS	$	(34,024	)	$	(11,991	)
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS ALLOCATED TO COMMON UNITHOLDERS		39,340			(7,121	)
NET INCOME (LOSS) ALLOCATED TO COMMON UNITHOLDERS	$	5,316		$	(19,112	)
BASIC AND DILUTED INCOME (LOSS) PER COMMON UNIT
Loss From Continuing Operations	$	(0.26	)	$	(0.09	)
Income (Loss) From Discontinued Operations, net of Tax	$	0.30		$	(0.05	)
Net Income (Loss)	$	0.04		$	(0.14	)
BASIC AND DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING		131,747,544			132,512,766

EBITDA, ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW RECONCILIATION (Unaudited)

The following table reconciles NGL’s net income to NGL’s EBITDA, Adjusted EBITDA and Distributable Cash Flow for the periods indicated:

	Three Months Ended June 30,
	2025			2024
	(in thousands)
Net income	$	69,644		$	10,475
Less: Net income from continuing operations attributable to nonredeemable noncontrolling interests		(705	)		(792	)
Less: Net income from continuing operations attributable to redeemable noncontrolling interests		(17	)		—
Net income attributable to NGL Energy Partners LP		68,922			9,683
Interest expense		65,525			69,738
Income tax benefit		(182	)		(4,796	)
Depreciation and amortization		65,826			61,849
EBITDA		200,091			136,474
Net unrealized (gains) losses on derivatives		(7,540	)		17,956
Lower of cost or net realizable value adjustments (1)		(2,944	)		(330	)
Gain on disposal or impairment of assets, net (2)		(47,579	)		(10,666	)
Gain on early extinguishment of liabilities, net		(1,492	)		—
Other (3)		4,431			908
Adjusted EBITDA	$	144,967		$	144,342
Adjusted EBITDA - Discontinued Operations (4)	$	995		$	5,722
Adjusted EBITDA - Continuing Operations	$	143,972		$	138,620
Less: Cash interest expense (5)		61,791			67,218
Less: Income tax benefit		(182	)		(4,799	)
Less: Maintenance capital expenditures		11,099			22,804
Less: Preferred unit distributions paid		31,536			218,091
Less: Other (6)		1,292			65
Distributable Cash Flow	$	38,436		$	(164,759	)


(1)		Lower of cost or net realizable value adjustments in the table above differ from lower of cost or net realizable value adjustments reported in our unaudited condensed consolidated statements of cash flows in the Partnership’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, as the amounts reported in the table above represent the change in lower of cost or net realizable value adjustments recorded in the unaudited condensed consolidated statements of operations, which includes reversals, whereas the amounts reported in our unaudited condensed consolidated statements of cash flows represent the lower of cost or net realizable value adjustments recorded at the balance sheet date.
(2)		Excludes amounts related to unconsolidated entities and noncontrolling interests.
(3)		Amounts represent accretion expense for asset retirement obligations, expenses incurred related to legal and advisory costs associated with acquisitions and dispositions, unrealized gains and losses on investments and marketable securities and a loss from a legal dispute.
(4)		Amounts include our refined products and biodiesel businesses.
(5)		Amounts represent interest expense payable in cash, excluding changes in the accrued interest balance.
(6)		Amounts represent cash paid to settle asset retirement obligations.

ADJUSTED EBITDA RECONCILIATION BY SEGMENT (unaudited)

	Three Months Ended June 30, 2025
	Water Solutions			Crude Oil Logistics			Liquids Logistics			Corporate and Other			Continuing Operations			Discontinued Operations		Consolidated
	(in thousands)
Operating income (loss)	$	84,947		$	672		$	23,732		$	(11,901	)	$	97,450		$	—	$	97,450
Depreciation and amortization		58,076			6,065			1,567			877			66,585			—		66,585
Net unrealized gains on derivatives		(3,514	)		(1,132	)		(2,879	)		—			(7,525	)		—		(7,525	)
Lower of cost or net realizable value adjustments		—			—			(2,944	)		—			(2,944	)		—		(2,944	)
Loss (gain) on disposal or impairment of assets, net		3,536			3,921			(16,655	)		(1	)		(9,199	)		—		(9,199	)
Other (expense) income, net		(133	)		1			(328	)		(3,055	)		(3,515	)		—		(3,515	)
Adjusted EBITDA attributable to unconsolidated entities		221			—			4			—			225			—		225
Adjusted EBITDA attributable to noncontrolling interests		(1,485	)		—			—			(68	)		(1,553	)		—		(1,553	)
Other		1,221			56			374			2,797			4,448			—		4,448
Discontinued operations		—			—			—			—			—			995		995
Adjusted EBITDA	$	142,869		$	9,583		$	2,871		$	(11,351	)	$	143,972		$	995	$	144,967

	Three Months Ended June 30, 2024
	Water Solutions			Crude Oil Logistics			Liquids Logistics			Corporate and Other			Continuing Operations			Discontinued Operations		Consolidated
	(in thousands)
Operating income (loss)	$	84,358		$	14,089		$	(4,422	)	$	(11,946	)	$	82,079		$	—	$	82,079
Depreciation and amortization		52,712			6,441			2,356			655			62,164			—		62,164
Net unrealized (gains) losses on derivatives		(861	)		(1,980	)		7,753			—			4,912			—		4,912
Lower of cost or net realizable value adjustments		—			—			(13	)		—			(13	)		—		(13	)
(Gain) loss on disposal or impairment of assets, net		(10,696	)		30			—			—			(10,666	)		—		(10,666	)
Other income, net		106			2			19			37			164			—		164
Adjusted EBITDA attributable to unconsolidated entities		387			—			(16	)		—			371			—		371
Adjusted EBITDA attributable to noncontrolling interests		(1,314	)		—			—			—			(1,314	)		—		(1,314	)
Other		911			53			59			(100	)		923			—		923
Discontinued operations		—			—			—			—			—			5,722		5,722
Adjusted EBITDA	$	125,603		$	18,635		$	5,736		$	(11,354	)	$	138,620		$	5,722	$	144,342

OPERATIONAL DATA (Unaudited)

	Three Months Ended
	June 30,
	2025	2024
	(in thousands, except per day amounts)
Water Solutions:
Produced water processed (barrels per day)
Delaware Basin	2,411,622	2,161,362
Eagle Ford Basin	200,773	176,306
DJ Basin	159,219	127,698
Total	2,771,614	2,465,366
Recycled water (barrels per day)	239,437	104,432
Total (barrels per day)	3,011,051	2,569,798
Skim oil sold (barrels per day)	4,603	4,425

Crude Oil Logistics:
Crude oil sold (barrels)	2,424	3,174
Crude oil transported on owned pipelines (barrels)	4,990	5,713
Crude oil storage capacity - owned and leased (barrels) (1)	5,232	5,232
Crude oil inventory (barrels) (1)	391	524

Liquids Logistics:
Butane sold (gallons)	96,938	95,189
Propane sold (gallons)	66,775	112,504
Other products sold (gallons)	71,616	62,171
Natural gas liquids storage capacity - owned and leased (gallons) (1)	52,721	122,831
Butane inventory (gallons) (1)	40,177	52,667
Propane inventory (gallons) (1)	13,283	55,676
Other products inventory (gallons) (1)	6,017	4,576