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NGL Energy Partners LP Announces Fourth Quarter and Full Year Fiscal 2026 Financial Results; Guidance for Fiscal 2027May 28, 2026 4:33 PM
Business Wire NGL Energy Partners LP (NYSE:NGL) (“NGL,” “we,” “us,” “our,” or the “Partnership”) today reported its fourth quarter and full year fiscal 2026 results. Highlights for the fiscal year and quarter ended March 31, 2026 include: Loss from continuing operations for full year Fiscal 2026 of $178.5 million, compared to income from continuing operations of $65.0 million for full year Fiscal 2025; loss from continuing operations for the fourth quarter of Fiscal 2026 of $286.8 million including a loss from the impairment of goodwill, compared to income from continuing operations of $16.2 million for the fourth quarter of Fiscal 2025 Adjusted EBITDA from continuing operations(1) for full year Fiscal 2026 of $660.2 million, compared to $622.9 million for full year Fiscal 2025; Adjusted EBITDA from continuing operations(1) for the fourth quarter of Fiscal 2026 of $176.4 million, compared to $176.8 million for the fourth quarter of Fiscal 2025 Water Solutions: Record produced water volumes physically disposed of approximately 3.01 million barrels per day during the fourth quarter of Fiscal 2026, growing 10.0% from the fourth quarter of Fiscal 2025 and 2.91 million barrels per day for the entire year of Fiscal 2026, an 11.0% increase over the prior year Paid and physically disposed water volumes of 3.09 million barrels per day during the fourth quarter of Fiscal 2026, growing 3.4% from the paid and physically disposed water volumes during the fourth quarter of Fiscal 2025 Record Water Solutions’ Adjusted EBITDA(1) of $602.7 million for full year Fiscal 2026, an 11.2% increase over the prior year Debt Transactions: On March 12, 2026, we closed a debt refinancing transaction of $950.0 million consisting of a new seven-year Term Loan B. The net proceeds from this transaction were used to fund the redemption of the existing Term Loan B, the redemption of a portion of the Class D Preferred Units and the repayment of borrowings under the asset-based revolving credit facility (“ABL Facility”). On March 12, 2026, we amended the ABL Facility to (i) reduce our total commitments to $425.0 million, (ii) reduce our sub-limit for letters of credit to $100.0 million, (iii) reduce the applicable margin for alternate base rate loans to a range of 1.00% to 1.50% and (iv) reduce the applicable margin for secured overnight financing rate to a range of 2.00% to 2.50%. Equity Transactions: We repurchased an additional 196,005 Class D preferred units in the quarter for a total of 284,511 Class D preferred units repurchased, or approximately 47%, of the originally outstanding Class D preferred units. Under the Board authorized common unit repurchase program, we have repurchased an additional 297,126 common units in the quarter for a total of 8,698,477 common units under the repurchase program at an average price of $5.72. On April 8, 2026, the board of directors of our general partner authorized another common unit repurchase program, under which we may repurchase up to $100.0 million of our outstanding common units from time to time in the open market or in other privately negotiated transactions. This program does not have a fixed expiration date. “The Partnership ended Fiscal 2026, with Adjusted EBITDA(1) of $660.2 million, at the high end of our previous guidance of $650 - $660 million. Fiscal 2027 is off to a solid start and we have more opportunities to continue growing our water business as well as addressing our capital structure and strengthening our balance sheet,” stated Mike Krimbill, NGL’s CEO. “We are guiding Fiscal 2027 full year consolidated Adjusted EBITDA(2) to a range of $715 - $725 million, the high end of which is a 10% increase above our Fiscal 2026 predominantly driven by the strong momentum we have in our Water Solutions segment. Also we are guiding to $45 million in maintenance and $200 million of growth capital expenditures for Fiscal 2027,” Krimbill concluded. _____________ (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. (2) Certain of the forward-looking financial measures are provided on a non-GAAP basis. A reconciliation of forward-looking financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP is potentially misleading and not practical given the difficulty of projecting event driven transactional and other non-core operating items in any future period. The magnitude of these items, however, may be significant. Quarterly Results of Operations The following table summarizes operating income (loss) and Adjusted EBITDA from continuing operations(1) by reportable segment for the periods indicated: Quarter Ended March 31, 2026 March 31, 2025 Operating
Income (Loss) Adjusted
EBITDA(1) Operating
Income (Loss) Adjusted
EBITDA(1) (in thousands) Water Solutions $ 59,876 $ 153,459 $ 88,891 $ 154,870 Crude Oil Logistics (247,427 ) 17,447 7,148 13,121 Liquids Logistics 4,901 16,895 (4,991 ) 17,690 Corporate and Other (23,968 ) (11,431 ) (9,926 ) (8,851 ) Total $ (206,618 ) $ 176,370 $ 81,122 $ 176,830 Water Solutions Operating income for the Water Solutions segment decreased by $29.0 million for the quarter ended March 31, 2026, compared to the quarter ended March 31, 2025. The decrease was due primarily to higher net unrealized losses on skim oil hedges of $26.3 million, compared to the prior year period, due to a significant increase in crude oil prices in March 2026 resulting from the supply disruption caused by the U.S./Iran conflict. There were higher disposal revenues due to an increase in produced water volumes processed from contracted customers and increased water pipeline revenue due to the LEX II pipeline commencing operations. The Partnership processed approximately 3.01 million barrels of water per day during the quarter ended March 31, 2026, a 10.0% increase when compared to approximately 2.73 million barrels of water per day processed during the quarter ended March 31, 2025. Revenues from recovered skim oil, including the impact from realized skim oil hedges, totaled $35.8 million for the quarter ended March 31, 2026, a decrease of $0.9 million from the prior year period. The decrease was due primarily to higher net realized losses on skim oil hedges due to a significant increase in crude oil prices, as discussed above, partially offset by an increase in skim oil barrels sold due to more skim oil recovered from receiving more produced water and higher realized crude oil prices received from the sale of skim oil barrels. Operating expenses in the Water Solutions segment increased $3.0 million for the quarter ended March 31, 2026, compared to the quarter ended March 31, 2025 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 chemical expense due to purchasing fewer chemicals and using chemicals more efficiently. Operating expense per produced barrel processed was $0.22 for the quarter ended March 31, 2026, compared to $0.23 in the comparative quarter last year. There was also a loss on the disposal or impairment of assets of $5.1 million for the quarter ended March 31, 2026, compared to a loss on the disposal or impairment of assets of $8.0 million in the prior year period. Crude Oil Logistics Operating income for the Crude Oil Logistics segment decreased by $254.6 million for the quarter ended March 31, 2026, compared to the quarter ended March 31, 2025. Operating loss for the fourth quarter of Fiscal 2026 includes a goodwill impairment charge of $247.8 million, compared to a gain of $0.6 million in the same period of the prior year. We also recognized a net loss on derivatives of $17.0 million compared to a net loss on derivatives of $0.4 million in the prior year period. The derivative losses were due to increasing crude oil prices, as discussed in the Water Solutions section above. Crude oil transportation revenue also decreased primarily due to the expiration of certain transportation services contracts on third-party pipelines. These decreases were partially offset by an increase in sales volumes and an increase in the margin per barrel due to selling lower-priced inventory into a rising market. During the quarter ended March 31, 2026, physical volumes on the Grand Mesa Pipeline averaged approximately 78,000 barrels per day, compared to approximately 56,000 barrels per day for the quarter ended March 31, 2025 due to higher production on acreage dedicated to us in the DJ Basin. Liquids Logistics Operating income for the Liquids Logistics segment increased by $9.9 million for the quarter ended March 31, 2026, compared to the quarter ended March 31, 2025. Impairment losses were lower by approximately $23.2 million during the quarter ended March 31, 2026, compared to the same period in the prior year. Other expenses were lower by $2.7 million due to the sale of the majority of our wholesale propane business. These amounts were partially offset by an increase in unrealized losses on butane derivatives for the quarter ended March 31, 2026 of $17.0 million, which was driven by the increase in commodity prices resulting from the crude oil supply disruption, as discussed in the sections above. Capitalization and Liquidity Total liquidity (cash plus available capacity on our ABL Facility) was approximately $237.9 million as of March 31, 2026. Borrowings under the Partnership’s ABL Facility totaled approximately $135.0 million as of March 31, 2026, due to an increase in capital spending within our Water Solutions segment and higher commodity prices due to the U.S./Iran conflict. The Partnership is in compliance with all of its debt covenants and has no upcoming debt maturities. Fourth Quarter Conference Call Information A conference call to discuss NGL’s results of operations is scheduled for 4:00 pm Central Time on Thursday, May 28, 2026. Analysts, investors, and other interested parties may join the webcast via the event link: https://www.webcaster5.com/Webcast/Page/2808/54031 or by dialing (888) 506-0062 and providing conference code: 941890. 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 54031. NGL filed its Annual Report on Form 10-K for the year ended March 31, 2026 with the Securities and Exchange Commission after market on May 28, 2026. A copy of the Form 10-K can be found on the Partnership’s website at www.nglenergypartners.com. Unitholders may also request, free of charge, a hard copy of our Form 10-K and our complete audited financial statements. 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, equity-based compensation expense, revaluation of liabilities and other. EBITDA and Adjusted EBITDA should not be considered as alternatives to net (loss) income, (loss) 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 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, equity-based compensation expense, 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 produced water pipeline, disposal, and water handling network in the Delaware Basin, supported by long-term, fee-based producer contracts and continues to enhance its ability to transport produced water from the wellhead to treatment for disposal, recycle, or discharge through our expanding pipeline infrastructure and ongoing disposal capacity investments. While maintaining complementary crude oil and natural gas liquids logistics operations, capital allocation and strategic focus are centered on providing water solutions services, which will reduce earnings volatility and enhance cash flow stability. For further information, visit the Partnership’s website at www.nglenergypartners.com. NGL ENERGY PARTNERS LP AND SUBSIDIARIES Unaudited Consolidated Balance Sheets (in Thousands, except unit amounts) March 31, 2026 2025 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 8,505 $ 5,649 Accounts receivable, net of allowance for expected credit losses of $1,738 and $3,689, respectively 661,157 579,468 Accounts receivable-affiliates 313 730 Inventories 67,351 69,916 Prepaid expenses and other current assets 36,624 63,651 Assets held for sale — 175,207 Assets of discontinued operations — 67,432 Total current assets 773,950 962,053 PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of $1,272,286 and $1,104,582, respectively 2,091,747 2,066,847 GOODWILL 351,506 599,348 INTANGIBLE ASSETS, net of accumulated amortization of $389,992 and $340,334, respectively 805,110 851,347 OPERATING LEASE RIGHT-OF-USE ASSETS 113,326 109,870 OTHER NONCURRENT ASSETS 39,900 19,975 Total assets $ 4,175,539 $ 4,609,440 LIABILITIES AND (DEFICIT) EQUITY CURRENT LIABILITIES: Accounts payable $ 495,180 $ 461,980 Accounts payable-affiliates 1 102 Accrued expenses and other payables 184,184 135,233 Advance payments received from customers 15,201 10,347 Current maturities of long-term debt 11,457 8,805 Operating lease obligations 33,459 27,911 Liabilities held for sale — 42,103 Liabilities of discontinued operations — 52,749 Total current liabilities 739,482 739,230 LONG-TERM DEBT, net of debt issuance costs of $41,264 and $43,144, respectively, and current maturities 3,223,126 2,961,703 OPERATING LEASE OBLIGATIONS 82,160 85,240 OTHER NONCURRENT LIABILITIES 136,953 125,897 CLASS D PREFERRED UNITS, 315,489 and 600,000 preferred units issued and outstanding, respectively 289,824 551,097 REDEEMABLE NONCONTROLLING INTERESTS 559 424 (DEFICIT) EQUITY: General partner, representing a 0.1% interest, 123,938 and 132,145 notional units, respectively (53,319 ) (52,913 ) Limited partners, representing a 99.9% interest, 123,814,289 and 132,012,766 common units issued and outstanding, respectively (612,276 ) (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 20,671 20,669 Total (deficit) equity (296,565 ) 145,849 Total liabilities and (deficit) equity $ 4,175,539 $ 4,609,440 NGL ENERGY PARTNERS LP AND SUBSIDIARIES Unaudited Consolidated Statements of Operations (in Thousands, except unit and per unit amounts) Three Months Ended March 31, Year Ended March 31, 2026 2025 2026 2025 REVENUES: Product $ 759,042 $ 778,604 $ 2,396,188 $ 2,742,953 Service and other 190,468 192,462 759,971 726,233 Total Revenues 949,510 971,066 3,156,159 3,469,186 COST OF SALES: Product 726,825 695,171 2,160,353 2,437,331 Service and other 5,432 14,265 21,810 69,746 Total Cost of Sales 732,257 709,436 2,182,163 2,507,077 OPERATING COSTS AND EXPENSES: Operating 78,672 75,651 293,587 297,686 General and administrative 26,031 13,483 70,108 55,593 Depreciation and amortization 61,973 64,455 254,831 254,732 Loss on disposal or impairment of assets, net 252,780 30,664 256,322 31,448 Revaluation of liabilities 4,415 (3,745 ) 4,415 (6,705 ) Operating (Loss) Income (206,618 ) 81,122 94,733 329,355 OTHER INCOME (EXPENSE): Equity in earnings of unconsolidated entities — 3,367 201 6,565 Interest expense (63,403 ) (70,101 ) (257,490 ) (280,078 ) Loss on early extinguishment of liabilities, net (17,241 ) — (16,749 ) — Other income, net 574 1,778 526 4,262 (Loss) Income From Continuing Operations Before Income Taxes (286,688 ) 16,166 (178,779 ) 60,104 INCOME TAX (EXPENSE) BENEFIT (86 ) (13 ) 276 4,885 (Loss) Income From Continuing Operations (286,774 ) 16,153 (178,503 ) 64,989 (Loss) Income From Discontinued Operations, net of Tax (43 ) (1,431 ) 39,340 (21,826 ) Net (Loss) Income (286,817 ) 14,722 (139,163 ) 43,163 LESS: NET INCOME FROM CONTINUING OPERATIONS ATTRIBUTABLE TO NONREDEEMABLE NONCONTROLLING INTERESTS (1,189 ) (972 ) (3,376 ) (3,749 ) LESS: NET LOSS (INCOME) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO REDEEMABLE NONCONTROLLING INTERESTS 326 (26 ) 244 (46 ) NET (LOSS) INCOME ATTRIBUTABLE TO NGL ENERGY PARTNERS LP $ (287,680 ) $ 13,724 $ (142,295 ) $ 39,368 NET LOSS FROM CONTINUING OPERATIONS ALLOCATED TO COMMON UNITHOLDERS $ (425,944 ) $ (14,677 ) $ (444,859 ) $ (57,096 ) NET (LOSS) INCOME FROM DISCONTINUED OPERATIONS ALLOCATED TO COMMON UNITHOLDERS (43 ) (1,429 ) 39,301 (21,804 ) NET LOSS ALLOCATED TO COMMON UNITHOLDERS $ (425,987 ) $ (16,106 ) $ (405,558 ) $ (78,900 ) BASIC AND DILUTED (LOSS) INCOME PER COMMON UNIT Loss From Continuing Operations $ (3.44 ) $ (0.11 ) $ (3.50 ) $ (0.43 ) (Loss) Income From Discontinued Operations, net of Tax $ — $ (0.01 ) $ 0.31 $ (0.16 ) Net Loss $ (3.44 ) $ (0.12 ) $ (3.19 ) $ (0.60 ) BASIC AND DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING 123,849,123 132,012,766 127,020,619 132,204,283 EBITDA, ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW RECONCILIATION (Unaudited) The following table reconciles NGL’s net (loss) income to NGL’s EBITDA, Adjusted EBITDA and Distributable Cash Flow for the periods indicated: Three Months Ended March 31, Year Ended March 31, 2026 2025 2026 2025 (in thousands) Net (loss) income $ (286,817 ) $ 14,722 $ (139,163 ) $ 43,163 Less: Net income from continuing operations attributable to nonredeemable noncontrolling interests (1,189 ) (972 ) (3,376 ) (3,749 ) Less: Net loss (income) from continuing operations attributable to redeemable noncontrolling interests 326 (26 ) 244 (46 ) Net (loss) income attributable to NGL Energy Partners LP (287,680 ) 13,724 (142,295 ) 39,368 Interest expense 63,382 70,080 257,406 280,241 Income tax expense (benefit) 86 16 (260 ) (4,775 ) Depreciation and amortization 62,468 64,009 253,263 253,190 EBITDA (161,744 ) 147,829 368,114 568,024 Net unrealized losses (gains) on derivatives (1) 47,335 (707 ) 36,462 21,782 Lower of cost or net realizable value adjustments (2) 26 2,590 (2,890 ) (1,619 ) Loss on disposal or impairment of assets, net (3) 252,841 32,644 218,010 33,705 Revaluation of liabilities 4,415 (3,745 ) 4,415 (6,705 ) Loss on early extinguishment of liabilities, net 17,241 — 16,749 — Equity-based compensation expense 11,206 — 11,206 — Other (4) 5,075 (116 ) 9,238 2,572 Adjusted EBITDA $ 176,395 $ 178,495 $ 661,304 $ 617,759 Adjusted EBITDA - Discontinued Operations (5) $ 25 $ 1,665 $ 1,101 $ (5,133 ) Adjusted EBITDA - Continuing Operations $ 176,370 $ 176,830 $ 660,203 $ 622,892 Less: Cash interest expense (6) 61,634 64,442 246,171 267,612 Less: Income tax expense (benefit) 86 13 (276 ) (4,885 ) Less: Maintenance capital expenditures 13,730 11,553 46,084 69,500 Less: Preferred unit distributions paid 29,562 28,935 113,486 305,291 Less: Other (7) 5,718 562 12,264 1,940 Distributable Cash Flow - Continuing Operations $ 65,640 $ 71,325 $ 242,474 $ (16,566 ) _____________ (1) Due to the conflict between the United States and Iran, crude oil prices increased significantly during the month of March 2026. To better match the movement of inventory and derivative losses with the physical gains recognized by our Crude Oil Logistics segment in March 2026 and April 2026 and to align with how management evaluated these transactions, approximately $4.0 million of losses from settled contracts are included within these amounts. (2) 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 consolidated statements of cash flows in the Partnership’s Annual Report on Form 10-K for the year ended March 31, 2026, as the amounts reported in the table above represent the change in lower of cost or net realizable value adjustments recorded in the consolidated statements of operations, which includes reversals, whereas the amounts reported in our consolidated statements of cash flows represent the lower of cost or net realizable value adjustments recorded at the balance sheet date. (3) Excludes amounts related to unconsolidated entities and noncontrolling interests. (4) Amounts represent accretion expense for asset retirement obligations, unrealized gains and losses on investments and marketable securities, a loss from a legal dispute and expenses incurred related to legal and advisory costs associated with acquisitions and dispositions. For the quarter and year ended March 31, 2026, the amounts include the difference in value recorded to cost of sales-product related to the misclassification of line fill within inventories as reported in the footnotes to our consolidated financial statements included in the Partnership’s Annual Report on Form 10-K for the year ended March 31, 2026. (5) Amounts include our refined products and biodiesel businesses. (6) Amounts represent interest expense payable in cash, excluding changes in the accrued interest balance. (7) Amounts represent cash paid to settle asset retirement obligations as well as approximately $4.0 million of losses from settled contracts in the current fiscal year as discussed above. ADJUSTED EBITDA RECONCILIATION BY SEGMENT (Unaudited) Three Months Ended March 31, 2026 Water
Solutions Crude Oil
Logistics Liquids
Logistics Corporate
and Other Continuing
Operations Discontinued
Operations Consolidated (in thousands) Operating income (loss) $ 59,876 $ (247,427 ) $ 4,901 $ (23,968 ) $ (206,618 ) $ — $ (206,618 ) Depreciation and amortization 53,566 6,127 1,553 727 61,973 — 61,973 Amortization in cost of sales-service 1,068 — — — 1,068 — 1,068 Net unrealized losses on derivatives 29,864 7,158 10,313 — 47,335 — 47,335 Lower of cost or net realizable value adjustments — (28 ) 54 — 26 — 26 Loss on disposal or impairment of assets, net 5,101 247,653 26 — 252,780 — 252,780 Equity-based compensation expense — — — 11,206 11,206 — 11,206 Other income (expense), net 344 (33 ) 72 191 574 — 574 Adjusted EBITDA attributable to noncontrolling interest (1,758 ) — — 278 (1,480 ) — (1,480 ) Revaluation of liabilities 4,415 — — — 4,415 — 4,415 Other 983 3,997 (24 ) 135 5,091 — 5,091 Discontinued operations — — — — — 25 25 Adjusted EBITDA $ 153,459 $ 17,447 $ 16,895 $ (11,431 ) $ 176,370 $ 25 $ 176,395 Three Months Ended March 31, 2025 Water
Solutions Crude Oil
Logistics Liquids
Logistics Corporate
and Other Continuing
Operations Discontinued
Operations Consolidated (in thousands) Operating income (loss) $ 88,891 $ 7,148 $ (4,991 ) $ (9,926 ) $ 81,122 $ — $ 81,122 Depreciation and amortization 55,161 5,984 2,466 844 64,455 — 64,455 Amortization in cost of sales-product — — 110 — 110 — 110 Net unrealized losses (gains) on derivatives 3,562 527 (6,116 ) — (2,027 ) — (2,027 ) Lower of cost or net realizable value adjustments — — 2,932 — 2,932 — 2,932 Loss (gain) on disposal or impairment of assets, net 8,033 (592 ) 23,223 — 30,664 — 30,664 Other (expense) income, net (331 ) (1 ) (1 ) 2,111 1,778 — 1,778 Adjusted EBITDA attributable to unconsolidated entities 3,503 — 5 — 3,508 — 3,508 Adjusted EBITDA attributable to noncontrolling interest (1,796 ) — — (78 ) (1,874 ) — (1,874 ) Revaluation of liabilities (3,745 ) — — — (3,745 ) — (3,745 ) Other 1,592 55 62 (1,802 ) (93 ) — (93 ) Discontinued operations — — — — — 1,665 1,665 Adjusted EBITDA $ 154,870 $ 13,121 $ 17,690 $ (8,851 ) $ 176,830 $ 1,665 $ 178,495 Year Ended March 31, 2026 Water
Solutions Crude Oil
Logistics Liquids
Logistics Corporate
and Other Continuing
Operations Discontinued
Operations Consolidated (in thousands) Operating income (loss) $ 335,366 $ (226,892 ) $ 48,231 $ (61,972 ) $ 94,733 $ — $ 94,733 Depreciation and amortization 221,048 24,331 6,201 3,251 254,831 — 254,831 Amortization in cost of sales-service 1,068 — — — 1,068 — 1,068 Net unrealized losses on derivatives 21,573 5,604 9,301 — 36,478 — 36,478 Lower of cost or net realizable value adjustments — — (2,890 ) — (2,890 ) — (2,890 ) Loss (gain) on disposal or impairment of assets, net 20,114 251,761 (15,551 ) (2 ) 256,322 — 256,322 Equity-based compensation expense — — — 11,206 11,206 — 11,206 Other income (expense), net 4,352 (873 ) (284 ) (2,669 ) 526 — 526 Adjusted EBITDA attributable to unconsolidated entities 221 — 4 — 225 — 225 Adjusted EBITDA attributable to noncontrolling interest (6,012 ) — — 40 (5,972 ) — (5,972 ) Revaluation of liabilities 4,415 — — — 4,415 — 4,415 Other 581 5,010 471 3,199 9,261 — 9,261 Discontinued operations — — — — — 1,101 1,101 Adjusted EBITDA $ 602,726 $ 58,941 $ 45,483 $ (46,947 ) $ 660,203 $ 1,101 $ 661,304 Year Ended March 31, 2025 Water
Solutions Crude Oil
Logistics Liquids
Logistics Corporate
and Other Continuing
Operations Discontinued
Operations Consolidated (in thousands) Operating income (loss) $ 311,457 $ 46,101 $ 14,058 $ (42,261 ) $ 329,355 $ — $ 329,355 Depreciation and amortization 217,227 25,070 9,408 3,027 254,732 — 254,732 Amortization in cost of sales-product — — 257 — 257 — 257 Net unrealized losses (gains) on derivatives 4,953 (4,011 ) 2,424 — 3,366 — 3,366 Lower of cost or net realizable value adjustments — — 2,916 — 2,916 — 2,916 Loss (gain) on disposal or impairment of assets, net 9,813 (1,004 ) 22,596 43 31,448 — 31,448 Other income, net 485 1 1,518 2,258 4,262 — 4,262 Adjusted EBITDA attributable to unconsolidated entities 7,044 — (51 ) — 6,993 — 6,993 Adjusted EBITDA attributable to noncontrolling interest (6,196 ) — — (178 ) (6,374 ) — (6,374 ) Revaluation of liabilities (6,705 ) — — — (6,705 ) — (6,705 ) Other 3,918 216 243 (1,735 ) 2,642 — 2,642 Discontinued operations — — — — — (5,133 ) (5,133 ) Adjusted EBITDA $ 541,996 $ 66,373 $ 53,369 $ (38,846 ) $ 622,892 $ (5,133 ) $ 617,759 OPERATIONAL DATA (Unaudited) Three Months Ended Year Ended March 31, March 31, 2026 2025 2026 2025 (in thousands, except per day amounts) Water Solutions: Produced water processed (barrels per day) Delaware Basin 2,651,062 2,424,683 2,555,166 2,303,142 Eagle Ford Basin 164,504 159,093 179,789 175,251 DJ Basin 190,646 148,001 177,963 146,956 Total 3,006,212 2,731,777 2,912,918 2,625,349 Recycled water (barrels per day) 225,454 206,552 198,709 116,058 Total (barrels per day) 3,231,666 2,938,329 3,111,627 2,741,407 Skim oil sold (barrels per day) 6,246 4,902 5,119 4,268 Crude Oil Logistics: Crude oil sold (barrels) 4,640 1,978 15,419 10,412 Crude oil transported on owned pipelines (barrels) 7,044 5,066 26,451 22,238 Crude oil storage capacity - owned and leased (barrels) (1) 5,232 5,232 Crude oil inventory (barrels) (1) 298 339 Liquids Logistics: Butane sold (gallons) 134,250 123,007 510,367 516,202 Propane sold (gallons) 156,522 314,709 365,736 760,287 Other products sold (gallons) 61,255 63,537 281,494 277,495 Natural gas liquids storage capacity - owned and leased (gallons) (1) 42,641 52,721 Butane inventory (gallons) (1) 23,774 21,871 Propane inventory (gallons) (1) 7,297 11,833 Other products inventory (gallons) (1) 5,166 8,556 _____________ (1) Information is presented as of March 31, 2026 and March 31, 2025, respectively. View source version on businesswire.com: https://www.businesswire.com/news/home/20260528081776/en/ David Sullivan, 918-495-4631
Vice President - Finance
David.Sullivan@nglep.com Original: NGL Energy Partners LP Announces Fourth Quarter and Full Year Fiscal 2026 Financial Results; Guidance for Fiscal 2027
US Market News
4月前
NGL Energy Partners LP Announces Third Quarter Fiscal 2026 Financial ResultsFebruary 3, 2026 4:31 PM
Business Wire
NGL Energy Partners LP (NYSE:NGL) (“NGL,” “we,” “us,” “our,” or the “Partnership”) today reported its third quarter Fiscal 2026 financial results. Highlights include:
Financial Results:
Income from continuing operations for the third quarter of Fiscal 2026 of $48.2 million, compared to income from continuing operations of $23.7 million for the third quarter of Fiscal 2025
Adjusted EBITDA from continuing operations(1) for the third quarter of Fiscal 2026 of $172.5 million, compared to $158.0 million for the third quarter of Fiscal 2025
Water Solutions Volumes:
Record produced water volumes physically disposed of approximately 3.07 million barrels per day during the third quarter of Fiscal 2026, growing 17.1% from the water volumes physically disposed of during the third quarter of Fiscal 2025
Paid and physically disposed water volumes of 3.13 million barrels per day during the third quarter of Fiscal 2026, growing 7% from the paid and physically disposed water volumes during the third quarter of Fiscal 2025
Equity Transactions:
In October, NGL purchased an additional 18,506 of the Class D preferred units resulting in a combined total of 88,506 of our Class D preferred units redeemed, or approximately 15% of the originally outstanding Class D preferred units
Under the board authorized common unit repurchase plan, we have repurchased an additional 1,611,088 common units in the quarter for a total of 8,698,477 common units under the repurchase program at an average price of $5.6963
“NGL posted another strong quarter driven by the Water Solutions segment. We are reaffirming our full year guide for Adjusted EBITDA(2) of between $650 million to $660 million. We continue to see opportunities in the Water Solutions segment that continues to indicate Fiscal 2027 will be another strong year for the Partnership with Adjusted EBITDA(2) eclipsing $700 million,” stated Mike Krimbill NGL’s CEO.
___________________
(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.
(2)
Certain of the forward-looking financial measures are provided on a non-GAAP basis. A reconciliation of forward-looking financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP is potentially misleading and not practical given the difficulty of projecting event driven transactional and other non-core operating items in any future period. The magnitude of these items, however, may be significant.
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
December 31, 2025
December 31, 2024
Operating Income (Loss)
Adjusted EBITDA(1)
Operating Income (Loss)
Adjusted EBITDA(1)
(in thousands)
Water Solutions
$
98,189
$
154,496
$
65,379
$
132,661
Crude Oil Logistics
11,639
15,358
10,024
17,354
Liquids Logistics
13,252
15,196
20,841
18,565
Corporate and Other
(13,430
)
(12,522
)
(11,582
)
(10,551
)
Total
$
109,650
$
172,528
$
84,662
$
158,029
Water Solutions
Operating income for the Water Solutions segment increased by $32.8 million for the quarter ended December 31, 2025, compared to the quarter ended December 31, 2024. The increase was due primarily to higher disposal revenues due to an increase in produced water volumes processed from contracted customers and increased water pipeline revenue due to the LEX II pipeline commencing operations during the quarter ended December 31, 2024. The Partnership processed approximately 3.07 million barrels of produced water per day during the quarter ended December 31, 2025, a 17.1% increase when compared to approximately 2.62 million barrels of water per day processed during the quarter ended December 31, 2024.
Revenues from recovered skim oil, including the impact from realized skim oil hedges, totaled $23.3 million for the quarter ended December 31, 2025, a decrease of $0.8 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 decreased $0.4 million for the quarter ended December 31, 2025, compared to the quarter ended December 31, 2024 due primarily to lower incentive compensation expense and lower chemical expense due to purchasing fewer chemicals and using chemicals more efficiently, partially offset by higher utilities expense due to increased produced water volumes processed and higher royalty expense due to volumes related to the LEX II pipeline commencing operations and increased volumes at certain other saltwater disposal wells. Operating expense per produced barrel processed was $0.18 for the quarter ended December 31, 2025, compared to $0.21 in the comparative quarter last year.
There was also a loss on the disposal or impairment of assets of $5.7 million for the quarter ended December 31, 2025, compared to a loss on the disposal or impairment of assets of $10.5 million in the prior year period.
Crude Oil Logistics
Operating income for the Crude Oil Logistics segment increased by $1.6 million for the quarter ended December 31, 2025, compared to the quarter ended December 31, 2024. The increase was due primarily to increased margins, due to increased volumes, and gains recognized on derivatives that hedge our physical product for the current period, compared to losses in the prior year period. This increase was offset by lower transportation revenue. During the quarter ended December 31, 2025, physical volumes on the Grand Mesa Pipeline averaged approximately 85,000 barrels per day, compared to approximately 61,000 barrels per day for the quarter ended December 31, 2024.
Liquids Logistics
Operating income for the Liquids Logistics segment decreased by $7.6 million for the quarter ended December 31, 2025, compared to the quarter ended December 31, 2024. This decrease was due primarily to lower product margins due to the sale of our Wholesale Propane business and 17 natural gas liquid terminals (“Wholesale Propane Disposition”), a weak gasoline blending season in certain markets and lower asphalt volumes and margins due to tighter supply. This decrease was partially offset by lower operating expenses due to the Wholesale Propane Disposition and lower losses on derivatives that hedge our physical product.
Capitalization and Liquidity
Total liquidity (cash plus available capacity on our asset-based revolving credit facility (“ABL Facility”)) was approximately $331.1 million as of December 31, 2025. Borrowings on the Partnership’s ABL Facility totaled approximately $92.0 million as of December 31, 2025, due to an increase in capital spending within our Water Solutions segment.
The Partnership is in compliance with all of its debt covenants and has no upcoming debt maturities.
Third Quarter Conference Call Information
A conference call to discuss NGL’s results of operations is scheduled for 4:00 pm Central Time on Tuesday, February 3, 2026. Analysts, investors, and other interested parties may join the webcast via the event link: https://www.webcaster5.com/Webcast/Page/2808/53486 or by dialing (888) 506-0062 and providing conference code: 607307. 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 53486.
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)
December 31, 2025
March 31, 2025
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
6,476
$
5,649
Accounts receivable, net of allowance for expected credit losses of $1,255 and $3,689, respectively
597,578
579,468
Accounts receivable-affiliates
419
730
Inventories
78,809
69,916
Prepaid expenses and other current assets
37,963
63,651
Assets held for sale
—
175,207
Assets of discontinued operations
150
67,432
Total current assets
721,395
962,053
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of $1,229,618 and $1,104,582, respectively
2,102,797
2,066,847
GOODWILL
599,348
599,348
INTANGIBLE ASSETS, net of accumulated amortization of $383,152 and $340,334, respectively
819,996
851,347
OPERATING LEASE RIGHT-OF-USE ASSETS
119,462
109,870
OTHER NONCURRENT ASSETS
19,587
19,975
Total assets
$
4,382,585
$
4,609,440
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable
$
451,663
$
461,980
Accounts payable-affiliates
1
102
Accrued expenses and other payables
139,168
135,233
Advance payments received from customers
13,685
10,347
Current maturities of long-term debt
8,918
8,805
Operating lease obligations
33,337
27,911
Liabilities held for sale
—
42,103
Liabilities of discontinued operations
4
52,749
Total current liabilities
646,776
739,230
LONG-TERM DEBT, net of debt issuance costs of $37,691 and $43,144, respectively, and current maturities
2,924,455
2,961,703
OPERATING LEASE OBLIGATIONS
88,604
85,240
OTHER NONCURRENT LIABILITIES
132,904
125,897
CLASS D 9.00% PREFERRED UNITS, 511,494 and 600,000 preferred units issued and outstanding, respectively
469,845
551,097
REDEEMABLE NONCONTROLLING INTERESTS
506
424
EQUITY:
General partner, representing a 0.1% interest, 124,236 and 132,145 notional units, respectively
(52,893
)
(52,913
)
Limited partners, representing a 99.9% interest, 124,111,415 and 132,012,766 common units issued and outstanding, respectively
(194,660
)
(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
18,689
20,669
Total equity
119,495
145,849
Total liabilities and equity
$
4,382,585
$
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 December 31,
Nine Months Ended December 31,
2025
2024
2025
2024
REVENUES:
Product
$
716,473
$
799,464
$
1,637,146
$
1,964,352
Service and other
193,343
182,950
569,503
533,768
Total Revenues
909,816
982,414
2,206,649
2,498,120
COST OF SALES:
Product
640,510
718,150
1,433,528
1,742,160
Service and other
5,564
17,271
16,378
55,481
Total Cost of Sales
646,074
735,421
1,449,906
1,797,641
OPERATING COSTS AND EXPENSES:
Operating
70,058
74,082
214,915
222,035
General and administrative
15,608
15,029
44,077
42,110
Depreciation and amortization
62,279
66,239
192,858
190,278
Loss on disposal or impairment of assets, net
6,147
9,941
3,542
784
Revaluation of liabilities
—
(2,960
)
—
(2,960
)
Operating Income
109,650
84,662
301,351
248,232
OTHER INCOME (EXPENSE):
Equity in earnings of unconsolidated entities
—
1,376
201
3,198
Interest expense
(63,834
)
(63,058
)
(194,087
)
(209,977
)
(Loss) gain on early extinguishment of liabilities, net
(1,000
)
—
492
—
Other income (expense), net
3,259
486
(48
)
2,484
Income From Continuing Operations Before Income Taxes
48,075
23,466
107,909
43,937
INCOME TAX BENEFIT
119
274
362
4,899
Income From Continuing Operations
48,194
23,740
108,271
48,836
(Loss) Income From Discontinued Operations, net of Tax
(5
)
(9,165
)
39,383
(20,395
)
Net Income
48,189
14,575
147,654
28,441
LESS: NET INCOME FROM CONTINUING OPERATIONS ATTRIBUTABLE TO NONREDEEMABLE NONCONTROLLING INTERESTS
(992
)
(1,053
)
(2,187
)
(2,777
)
LESS: NET INCOME FROM CONTINUING OPERATIONS ATTRIBUTABLE TO REDEEMABLE NONCONTROLLING INTERESTS
(18
)
(15
)
(82
)
(20
)
NET INCOME ATTRIBUTABLE TO NGL ENERGY PARTNERS LP
$
47,179
$
13,507
$
145,385
$
25,644
NET INCOME (LOSS) FROM CONTINUING OPERATIONS ALLOCATED TO COMMON UNITHOLDERS
$
11,972
$
(6,256
)
$
(18,915
)
$
(42,419
)
NET (LOSS) INCOME FROM DISCONTINUED OPERATIONS ALLOCATED TO COMMON UNITHOLDERS
(5
)
(9,156
)
39,344
(20,375
)
NET INCOME (LOSS) ALLOCATED TO COMMON UNITHOLDERS
$
11,967
$
(15,412
)
$
20,429
$
(62,794
)
BASIC AND DILUTED INCOME (LOSS) PER COMMON UNIT
Income (Loss) From Continuing Operations
$
0.10
$
(0.05
)
$
(0.15
)
$
(0.32
)
(Loss) Income From Discontinued Operations, net of Tax
$
—
$
(0.07
)
$
0.31
$
(0.15
)
Net Income (Loss)
$
0.10
$
(0.12
)
$
0.16
$
(0.47
)
BASIC AND DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING
125,158,912
132,012,766
128,058,564
132,265,839
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 December 31,
Nine Months Ended December 31,
2025
2024
2025
2024
(in thousands)
Net income
$
48,189
$
14,575
$
147,654
$
28,441
Less: Net income from continuing operations attributable to nonredeemable noncontrolling interests
(992
)
(1,053
)
(2,187
)
(2,777
)
Less: Net income from continuing operations attributable to redeemable noncontrolling interests
(18
)
(15
)
(82
)
(20
)
Net income attributable to NGL Energy Partners LP
47,179
13,507
145,385
25,644
Interest expense
63,812
63,032
194,024
210,161
Income tax benefit
(119
)
(273
)
(346
)
(4,791
)
Depreciation and amortization
61,747
65,786
190,795
189,181
EBITDA
172,619
142,052
529,858
420,195
Net unrealized (gains) losses on derivatives
(3,016
)
(1,099
)
(10,873
)
22,489
Lower of cost or net realizable value adjustments (1)
(2,491
)
(2,978
)
(2,916
)
(4,209
)
Loss (gain) on disposal or impairment of assets, net (2)
6,153
10,212
(34,831
)
1,061
Loss (gain) on early extinguishment of liabilities, net
1,000
—
(492
)
—
Revaluation of liabilities
—
(2,960
)
—
(2,960
)
Other (3)
(1,704
)
2,425
4,163
2,688
Adjusted EBITDA
$
172,561
$
147,652
$
484,909
$
439,264
Adjusted EBITDA - Discontinued Operations (4)
$
33
$
(10,377
)
$
1,076
$
(6,799
)
Adjusted EBITDA - Continuing Operations
$
172,528
$
158,029
$
483,833
$
446,063
Less: Cash interest expense (5)
60,870
67,685
184,537
203,170
Less: Income tax benefit
(119
)
(274
)
(362
)
(4,899
)
Less: Maintenance capital expenditures
9,732
18,571
32,354
57,947
Less: Preferred unit distributions paid
26,235
30,752
83,924
276,356
Less: Other (6)
1,918
1,313
6,546
1,378
Distributable Cash Flow
$
73,892
$
39,982
$
176,834
$
(87,889
)
___________________
(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 December 31, 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 December 31, 2025
Water
Solutions
Crude Oil
Logistics
Liquids
Logistics
Corporate
and Other
Continuing Operations
Discontinued Operations
Consolidated
(in thousands)
Operating income (loss)
$
98,189
$
11,639
$
13,252
$
(13,430
)
$
109,650
$
—
$
109,650
Depreciation and amortization
53,856
6,076
1,541
806
62,279
—
62,279
Net unrealized (gains) losses on derivatives
(3,017
)
(110
)
112
—
(3,015
)
—
(3,015
)
Lower of cost or net realizable value adjustments
—
(2,491
)
—
—
(2,491
)
—
(2,491
)
Loss on disposal or impairment of assets, net
5,717
184
246
—
6,147
—
6,147
Other income (expense), net
4,108
(841
)
(10
)
2
3,259
—
3,259
Adjusted EBITDA attributable to noncontrolling interests
(1,510
)
—
—
(72
)
(1,582
)
—
(1,582
)
Other
(2,847
)
901
55
172
(1,719
)
—
(1,719
)
Discontinued operations
—
—
—
—
—
33
33
Adjusted EBITDA
$
154,496
$
15,358
$
15,196
$
(12,522
)
$
172,528
$
33
$
172,561
Three Months Ended December 31, 2024
Water
Solutions
Crude Oil
Logistics
Liquids
Logistics
Corporate
and Other
Continuing Operations
Discontinued Operations
Consolidated
(in thousands)
Operating income (loss)
$
65,379
$
10,024
$
20,841
$
(11,582
)
$
84,662
$
—
$
84,662
Depreciation and amortization
56,831
6,360
2,222
826
66,239
—
66,239
Amortization in cost of sales-product
—
—
110
—
110
—
110
Net unrealized losses (gains) on derivatives
1,864
1,454
(5,447
)
—
(2,129
)
—
(2,129
)
Lower of cost or net realizable value adjustments
—
(540
)
(75
)
—
(615
)
—
(615
)
Loss (gain) on disposal or impairment of assets, net
10,525
—
(627
)
43
9,941
—
9,941
Other (expense) income, net
(1,095
)
1
1,500
80
486
—
486
Adjusted EBITDA attributable to unconsolidated entities
1,505
—
(21
)
—
1,484
—
1,484
Adjusted EBITDA attributable to noncontrolling interests
(1,564
)
—
—
(66
)
(1,630
)
—
(1,630
)
Revaluation of liabilities
(2,960
)
—
—
—
(2,960
)
(2,960
)
Other
2,176
55
62
148
2,441
—
2,441
Discontinued operations
—
—
—
—
—
(10,377
)
(10,377
)
Adjusted EBITDA
$
132,661
$
17,354
$
18,565
$
(10,551
)
$
158,029
$
(10,377
)
$
147,652
Nine Months Ended December 31, 2025
Water
Solutions
Crude Oil
Logistics
Liquids
Logistics
Corporate
and Other
Continuing Operations
Discontinued Operations
Consolidated
(in thousands)
Operating income (loss)
$
275,490
$
20,535
$
43,330
$
(38,004
)
$
301,351
$
—
$
301,351
Depreciation and amortization
167,482
18,204
4,648
2,524
192,858
—
192,858
Net unrealized gains on derivatives
(8,291
)
(1,554
)
(1,012
)
—
(10,857
)
—
(10,857
)
Lower of cost or net realizable value adjustments
—
28
(2,944
)
—
(2,916
)
—
(2,916
)
Loss (gain) on disposal or impairment of assets, net
15,013
4,108
(15,577
)
(2
)
3,542
—
3,542
Other income (expense), net
4,008
(840
)
(356
)
(2,860
)
(48
)
—
(48
)
Adjusted EBITDA attributable to unconsolidated entities
221
—
4
—
225
—
225
Adjusted EBITDA attributable to noncontrolling interests
(4,254
)
—
—
(238
)
(4,492
)
—
(4,492
)
Other
(402
)
1,013
495
3,064
4,170
—
4,170
Discontinued operations
—
—
—
—
—
1,076
1,076
Adjusted EBITDA
$
449,267
$
41,494
$
28,588
$
(35,516
)
$
483,833
$
1,076
$
484,909
Nine Months Ended December 31, 2024
Water
Solutions
Crude Oil
Logistics
Liquids
Logistics
Corporate
and Other
Continuing Operations
Discontinued Operations
Consolidated
(in thousands)
Operating income (loss)
$
222,566
$
38,953
$
19,048
$
(32,335
)
$
248,232
$
—
$
248,232
Depreciation and amortization
162,066
19,086
6,943
2,183
190,278
—
190,278
Amortization in cost of sales-product
—
—
147
—
147
—
147
Net unrealized losses (gains) on derivatives
1,391
(4,538
)
8,540
—
5,393
—
5,393
Lower of cost or net realizable value adjustments
—
—
(16
)
—
(16
)
—
(16
)
Loss (gain) on disposal or impairment of assets, net
1,780
(412
)
(627
)
43
784
—
784
Other income, net
816
2
1,519
147
2,484
—
2,484
Adjusted EBITDA attributable to unconsolidated entities
3,541
—
(56
)
—
3,485
—
3,485
Adjusted EBITDA attributable to noncontrolling interests
(4,400
)
—
—
(100
)
(4,500
)
—
(4,500
)
Revaluation of liabilities
(2,960
)
—
—
—
(2,960
)
—
(2,960
)
Other
2,326
161
182
67
2,736
—
2,736
Discontinued operations
—
—
—
—
—
(6,799
)
(6,799
)
Adjusted EBITDA
$
387,126
$
53,252
$
35,680
$
(29,995
)
$
446,063
$
(6,799
)
$
439,264
OPERATIONAL DATA
(Unaudited)
Three Months Ended
Nine Months Ended
December 31,
December 31,
2025
2024
2025
2024
(in thousands, except per day amounts)
Water Solutions:
Produced water processed (barrels per day)
Delaware Basin
2,715,532
2,278,291
2,523,782
2,263,365
Eagle Ford Basin
168,166
177,017
184,791
180,540
DJ Basin
187,235
167,989
173,812
146,613
Total
3,070,933
2,623,297
2,882,385
2,590,518
Recycled water (barrels per day)
190,032
62,787
189,956
86,442
Total (barrels per day)
3,260,965
2,686,084
3,072,341
2,676,960
Skim oil sold (barrels per day)
4,643
3,985
4,750
4,060
Crude Oil Logistics:
Crude oil sold (barrels)
5,182
2,392
10,779
8,434
Crude oil transported on owned pipelines (barrels)
7,784
5,652
19,407
17,172
Crude oil storage capacity - owned and leased (barrels) (1)
5,232
5,232
Crude oil inventory (barrels) (1)
493
339
Liquids Logistics:
Butane sold (gallons)
167,737
188,223
376,117
393,195
Propane sold (gallons)
105,134
224,485
209,214
445,578
Other products sold (gallons)
74,465
77,295
220,239
213,958
Natural gas liquids storage capacity - owned and leased (gallons) (1)
49,571
104,029
Butane inventory (gallons) (1)
21,341
30,775
Propane inventory (gallons) (1)
22,563
66,335
Other products inventory (gallons) (1)
8,962
5,223
___________________
(1)
Information is presented as of December 31, 2025 and December 31, 2024, respectively.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260203862644/en/
David Sullivan, 918-495-4631
Senior Vice President - Finance
David.Sullivan@nglep.com
Original: NGL Energy Partners LP Announces Third Quarter Fiscal 2026 Financial Results