NGL Energy Partners LP Announces First Quarter Fiscal 2023 Financial Results

Rhea-AI Summary

NGL Energy Partners LP (NYSE:NGL) reported a net income of $23.1 million for Q1 Fiscal 2023, a significant recovery from a $134.5 million net loss in Q1 Fiscal 2022. Adjusted EBITDA surged to $123.9 million, up from $91.1 million a year earlier. Record water solutions EBITDA reached $105.0 million, marking a 28.9% year-over-year increase. Processed produced water volumes also hit a record 2.15 million barrels per day, a 29.2% increase year-over-year. Based on strong Q1 results, the company raised its Water Solutions segment guidance to over $410 million for Fiscal 2023.

Positive

• Net income of $23.1 million for Q1 FY2023, a turnaround from a $134.5 million net loss in Q1 FY2022.
• Adjusted EBITDA increased to $123.9 million from $91.1 million year-over-year.
• Record Water Solutions quarterly Adjusted EBITDA of $105.0 million, a 28.9% increase year-over-year.
• Produced water volumes processed reached approximately 2.15 million barrels per day, a 29.2% increase compared to Q1 FY2022.
• Increased guidance for Water Solutions segment to over $410 million of Adjusted EBITDA for FY2023.

Negative

• None.

TULSA, Okla.--(BUSINESS WIRE)-- NGL Energy Partners LP (NYSE:NGL) (“NGL,” “our,” “we,” or the “Partnership”) today reported its first quarter Fiscal 2023 financial results. Highlights include:

• Net income for the first quarter of Fiscal 2023 of $23.1 million, compared to a net loss of $134.5 million for the first quarter of Fiscal 2022
• Adjusted EBITDA⁽¹⁾ for the first quarter of Fiscal 2023 of $123.9 million, compared to $91.1 million for the first quarter of Fiscal 2022
• Record Water Solutions quarterly Adjusted EBITDA⁽¹⁾ of $105.0 million, a 28.9% increase compared to the first quarter of Fiscal 2022 and a 16.4% increase from the immediately preceding fiscal quarter
• Record produced water volumes processed of approximately 2.15 million barrels per day during the first quarter of Fiscal 2023, growing 29.2% from the same period in the prior year and 11.8% over the immediately preceding fiscal quarter
• Subsequent to the first quarter of Fiscal 2023, the Partnership placed the entire Ambassador Pipeline into propane service by connecting the southern leg from the Wheeler terminal into Marysville storage

“Our Water Solutions segment outperformed during this past quarter, achieving record numbers for both produced water volumes processed and Adjusted EBITDA⁽¹⁾, while managing costs in a challenging supply chain and inflationary macro environment. Due to the positive results of the first fiscal quarter, we are increasing our guidance for the Water Solutions segment to more than $410 million of Adjusted EBITDA⁽²⁾ for Fiscal 2023. Full year guidance for Adjusted EBITDA⁽²⁾ is in excess of $600 million,” stated Mike Krimbill, NGL’s CEO. “The Ambassador Pipeline is now fully operational and in service and we expect the additional supply from the pipeline will benefit many of Michigan’s propane customers in one of the largest retail propane markets in the U.S. Fiscal 2023 is starting out well and we look forward to the next three quarters,” Krimbill concluded.

Quarterly Results of Operations

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

		Quarter Ended
		June 30, 2022								June 30, 2021
		Operating Income (Loss)				Adjusted EBITDA(1)				Operating Income (Loss)				Adjusted EBITDA(1)
		(in thousands)
Water Solutions		$	53,605			$	105,047			$	7,583			$	81,511
Crude Oil Logistics			18,989				15,078				(11,581	)			13,148
Liquids Logistics			26,640				12,901				(53,409	)			5,574
Corporate and Other			(11,971	)			(9,150	)			(11,927	)			(9,132	)
Total		$	87,263			$	123,876			$	(69,334	)		$	91,101

(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.

Water Solutions

Operating income for the Water Solutions segment increased $46.0 million for the quarter ended June 30, 2022, compared to the quarter ended June 30, 2021. The Partnership processed approximately 2.15 million barrels of produced water per day during the quarter ended June 30, 2022, a 29.2% increase when compared to approximately 1.67 million barrels of water per day processed during the quarter ended June 30, 2021. This increase was due to higher production volumes (and associated produced water) primarily in the Delaware Basin driven by the recovery in crude oil prices from the prior year. The Partnership also sold approximately 137,000 barrels per day of produced and recycled water for use in our customers’ completion activities.

Revenues from recovered crude oil, including the impact from realized skim oil hedges, totaled $32.9 million for the quarter ended June 30, 2022, an increase of $16.9 million from the prior year period. This increase was due to increased skim oil barrels sold as a result of higher produced water volumes processed, higher skim oil volumes captured per barrel of produced water processed and higher realized crude oil prices received from the sale of skim oil barrels.

Operating expenses in the Water Solutions segment decreased to $0.25 per produced barrel processed compared to $0.26 per produced barrel processed in the comparative quarter last year primarily due to continued efforts to control operating costs per barrel along with higher produced water volumes processed. Three of the Water Solutions segment’s largest variable expenses, utility, royalty and chemical expenses, were not (and are not expected to be) impacted by the rise in inflation due to negotiating long-term utility contracts with fixed rates, royalty contracts with no escalation clauses and a fixed chemical expense per barrel with our chemical provider.

Crude Oil Logistics

Operating income for the quarter ended June 30, 2022 increased $30.6 million compared to the quarter ended June 30, 2021 primarily due to an increase in average commodity prices period over period and a decrease in net derivative losses. Our product margins also continue to benefit due to high crude oil prices, which have a favorable impact on contracted rates with certain producers, as well as increased differentials on certain other sales contracts. During the three months ended June 30, 2022, physical volumes on the Grand Mesa Pipeline averaged approximately 79,000 barrels per day, compared to approximately 77,000 barrels per day for the three months ended June 30, 2021.

Liquids Logistics

Operating income for the Liquids Logistics segment increased $80.0 million for the quarter ended June 30, 2022, compared to the quarter ended June 30, 2021. The prior year included a loss of $60.1 million related to the sale of the Partnership’s membership interest in Sawtooth Caverns, LLC (“Sawtooth”). Butane margins increased compared to the quarter ended June 30, 2021 due primarily to net unrealized gains on derivatives of approximately $6.1 million recognized in the quarter ended June 30, 2022, compared to net unrealized losses on derivatives of $6.5 million recognized in the quarter ended June 30, 2021. Excluding the impact of derivatives, butane product margin was negatively impacted by lower location differentials. The remaining increase in operating income was primarily related to higher product margins on refined products and biodiesel sold due to tighter supply in certain markets as well as favorable supply contracts and inventory positions in a volatile market. These increases were partially offset by lower propane product margin related to the impact of derivatives and decreased service revenue due to the sale of Sawtooth.

Corporate and Other

Corporate and Other expenses remained consistent to the comparable prior year period.

Capitalization and Liquidity

Total liquidity (cash plus available capacity on our asset-based revolving credit facility) was approximately $286.2 million as of June 30, 2022. Borrowings on the Partnership’s revolving credit facility totaled approximately $171.0 million. The increase from March 31, 2022 was primarily due to increases in working capital balances driven by increased inventory volumes and higher net account receivable balances.

The Partnership is in compliance with all of its debt covenants and has no significant debt maturities before November 2023. The Partnership expects to generate operational free cash flow in Fiscal Year 2023, which will be utilized to repay outstanding indebtedness and improve leverage.

First Quarter Conference Call Information

A conference call to discuss NGL’s results of operations is scheduled for 4:00 pm Central Time on Tuesday, August 9, 2022. Analysts, investors, and other interested parties may join the webcast via the event link: https://www.webcaster4.com/Webcast/Page/2808/46286 or by dialing (877) 545-0523 and providing access code: 252394. An archived audio replay of the call will be available for 14 days, which can be accessed by dialing (877) 481-4010 and providing access passcode 46286.

Non-GAAP Financial Measures

NGL defines EBITDA as net income (loss) attributable to NGL Energy Partners LP, plus interest expense, income tax expense (benefit), and depreciation and amortization expense. NGL defines 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, acquisition expense, revaluation of liabilities, certain legal settlements and other. NGL also includes in Adjusted EBITDA certain inventory valuation adjustments related to certain refined products businesses within NGL’s Liquids Logistics segment as discussed below. EBITDA and Adjusted EBITDA should not be considered as alternatives to net income (loss), income (loss) 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. NGL believes that EBITDA provides additional information to investors for evaluating NGL’s ability to make quarterly distributions to NGL’s unitholders and is presented solely as a supplemental measure. NGL believes that Adjusted EBITDA provides additional information to investors for evaluating NGL’s financial performance without regard to NGL’s financing methods, capital structure and historical cost basis. Further, EBITDA and Adjusted EBITDA, as NGL defines them, may not be comparable to EBITDA, Adjusted EBITDA, or similarly titled measures used by other entities.

Other than for certain businesses within NGL’s Liquids Logistics segment, for purposes of the Adjusted EBITDA calculation, NGL makes a distinction between realized and unrealized gains and losses on derivatives. During the period when a derivative contract is open, NGL records changes in the fair value of the derivative as an unrealized gain or loss. When a derivative contract matures or is settled, NGL reverses the previously recorded unrealized gain or loss and records a realized gain or loss. NGL does not draw such a distinction between realized and unrealized gains and losses on derivatives of certain businesses within NGL’s Liquids Logistics segment. The primary hedging strategy of these businesses is to hedge against the risk of declines in the value of inventory over the course of the contract cycle, and many of the hedges cover extended periods of time. The “inventory valuation adjustment” row in the reconciliation table reflects the difference between the market value of the inventory of these businesses at the balance sheet date and its cost. NGL includes this in Adjusted EBITDA because the unrealized gains and losses associated with derivative contracts associated with the inventory of this segment, which are intended primarily to hedge inventory holding risk and are included in net income, also affect Adjusted EBITDA. In NGL’s Crude Oil Logistics segment, they purchase certain crude oil barrels using the West Texas Intermediate (“WTI”) calendar month average (“CMA”) price and sell the crude oil barrels using the WTI CMA price plus the Argus CMA Differential Roll Component (“CMA Differential Roll”) per NGL’s contracts. To eliminate the volatility of the CMA Differential Roll, NGL entered into derivative instrument positions in January 2021 to secure a margin of approximately $0.20 per barrel on 1.5 million barrels per month from May 2021 through December 2023. Due to the nature of these positions, the cash flow and earnings recognized on a GAAP basis will differ from period to period depending on the current crude oil price and future estimated crude oil price which are valued utilizing third-party market quoted prices. NGL is recognizing in Adjusted EBITDA the gains and losses from the derivative instrument positions entered into in January 2021 to properly align with the physical margin NGL is hedging each month through the term of this transaction. This representation aligns with management’s evaluation of the transaction.

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. For the CMA Differential Roll transaction, as discussed above, we have included an adjustment to Distributable Cash Flow to reflect, in the period for which they relate, the actual cash flows for the positions that settled that are not being recognized in Adjusted EBITDA. 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) 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.

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 limited partnership, is a diversified midstream energy company that transports, stores, markets and provides other logistics services for crude oil, natural gas liquids and other products and transports, treats and disposes of produced water generated as part of the oil and natural gas production process.

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, 2022				March 31, 2022
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	816			$	3,822
Accounts receivable-trade, net of allowance for expected credit losses of $2,625 and $2,626, respectively			1,304,831				1,123,163
Accounts receivable-affiliates			9,238				8,591
Inventories			301,298				251,277
Prepaid expenses and other current assets			133,135				159,486
Total current assets			1,749,318				1,546,339
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of $918,150 and $887,006, respectively			2,455,580				2,462,390
GOODWILL			744,439				744,439
INTANGIBLE ASSETS, net of accumulated amortization of $527,994 and $507,285, respectively			1,116,122				1,135,354
INVESTMENTS IN UNCONSOLIDATED ENTITIES			22,571				21,897
OPERATING LEASE RIGHT-OF-USE ASSETS			107,176				114,124
OTHER NONCURRENT ASSETS			42,352				45,802
Total assets		$	6,237,558			$	6,070,345
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable-trade		$	1,150,270			$	1,084,837
Accounts payable-affiliates			91				73
Accrued expenses and other payables			179,101				140,719
Advance payments received from customers			21,819				7,934
Current maturities of long-term debt			2,430				2,378
Operating lease obligations			38,667				41,261
Total current liabilities			1,392,378				1,277,202
LONG-TERM DEBT, net of debt issuance costs of $39,938 and $42,988, respectively, and current maturities			3,384,571				3,350,463
OPERATING LEASE OBLIGATIONS			68,963				72,784
OTHER NONCURRENT LIABILITIES			103,518				104,346
CLASS D 9.00% PREFERRED UNITS, 600,000 and 600,000 preferred units issued and outstanding, respectively			551,097				551,097
EQUITY:
General partner, representing a 0.1% interest, 130,827 and 130,827 notional units, respectively			(52,483	)			(52,478	)
Limited partners, representing a 99.9% interest, 130,695,970 and 130,695,970 common units issued and outstanding, respectively			424,849				401,486
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 loss			(358	)			(308	)
Noncontrolling interests			16,664				17,394
Total equity			737,031				714,453
Total liabilities and equity		$	6,237,558			$	6,070,345

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,
		2022				2021
REVENUES:
Water Solutions		$	166,079			$	130,226
Crude Oil Logistics			865,371				553,624
Liquids Logistics			1,465,933				804,805
Total Revenues			2,497,383				1,488,655
COST OF SALES:
Water Solutions			10,225				10,338
Crude Oil Logistics			822,370				537,257
Liquids Logistics			1,422,416				777,198
Total Cost of Sales			2,255,011				1,324,793
OPERATING COSTS AND EXPENSES:
Operating			71,860				65,784
General and administrative			16,757				15,774
Depreciation and amortization			66,660				84,102
(Gain) loss on disposal or impairment of assets, net			(168	)			67,536
Operating Income (Loss)			87,263				(69,334	)
OTHER INCOME (EXPENSE):
Equity in earnings of unconsolidated entities			674				212
Interest expense			(67,311	)			(67,130	)
Gain on early extinguishment of liabilities, net			1,662				51
Other income, net			646				1,249
Income (Loss) Before Income Taxes			22,934				(134,952	)
INCOME TAX BENEFIT			172				450
Net Income (Loss)			23,106				(134,502	)
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS			(245	)			(438	)
NET INCOME (LOSS) ATTRIBUTABLE TO NGL ENERGY PARTNERS LP		$	22,861			$	(134,940	)
NET LOSS ALLOCATED TO COMMON UNITHOLDERS		$	(4,679	)		$	(159,332	)
BASIC LOSS PER COMMON UNIT		$	(0.04	)		$	(1.23	)
DILUTED LOSS PER COMMON UNIT		$	(0.04	)		$	(1.23	)
BASIC WEIGHTED AVERAGE COMMON UNITS OUTSTANDING			130,695,970				129,593,939
DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING			130,695,970				129,593,939

EBITDA, ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW RECONCILIATION
(Unaudited)
The following table reconciles NGL’s net income (loss) to NGL’s EBITDA, Adjusted EBITDA and Distributable Cash Flow:
		Three Months Ended June 30,
		2022				2021
		(in thousands)
Net income (loss)		$	23,106			$	(134,502	)
Less: Net income attributable to noncontrolling interests			(245	)			(438	)
Net income (loss) attributable to NGL Energy Partners LP			22,861				(134,940	)
Interest expense			67,326				67,130
Income tax benefit			(172	)			(450	)
Depreciation and amortization			66,614				83,357
EBITDA			156,629				15,097
Net unrealized gains on derivatives			(56,902	)			(16,264	)
CMA Differential Roll net losses (gains) (1)			34,620				24,310
Inventory valuation adjustment (2)			(555	)			1,218
Lower of cost or net realizable value adjustments			(9,286	)			(3,806	)
(Gain) loss on disposal or impairment of assets, net			(168	)			67,538
Gain on early extinguishment of liabilities, net			(1,662	)			(87	)
Equity-based compensation expense			497				960
Acquisition expense (3)			—				67
Other (4)			703				2,068
Adjusted EBITDA		$	123,876			$	91,101
Less: Cash interest expense (5)			63,125				63,359
Less: Income tax benefit			(172	)			(450	)
Less: Maintenance capital expenditures			15,367				7,745
Less: CMA Differential Roll (6)			18,208				23,932
Less: Other (7)			93				—
Distributable Cash Flow		$	27,255			$	(3,485	)

(1)		Adjustment to align, within Adjusted EBITDA, the net gains and losses of the Partnership’s CMA Differential Roll derivative instruments positions with the physical margin being hedged. See “Non-GAAP Financial Measures” section above for a further discussion.
(2)		Amount reflects the difference between the market value of the inventory at the balance sheet date and its cost. See “Non-GAAP Financial Measures” section above for a further discussion.
(3)		Amounts represent expenses we incurred related to legal and advisory costs associated with acquisitions.
(4)		Amounts represent non-cash operating expenses related to our Grand Mesa Pipeline, unrealized gains/losses on marketable securities and accretion expense for asset retirement obligations.
(5)		Amounts represent interest expense payable in cash, excluding changes in the accrued interest balance.
(6)		Amount represents the cash portion of the adjustments of the Partnership’s CMA Differential Roll derivative instrument positions, as discussed above, that settled during the period.
(7)		Amounts represents cash paid to settle asset retirement obligations.

ADJUSTED EBITDA RECONCILIATION BY SEGMENT
		Three Months Ended June 30, 2022
		Water Solutions				Crude Oil Logistics				Liquids Logistics				Corporate and Other				Consolidated
		(in thousands)
Operating income (loss)		$	53,605			$	18,989			$	26,640			$	(11,971	)		$	87,263
Depreciation and amortization			49,848				11,754				3,381				1,677				66,660
Amortization recorded to cost of sales			—				—				68				—				68
Net unrealized gains on derivatives			(124	)			(51,005	)			(5,773	)			—				(56,902	)
CMA Differential Roll net losses (gains)			—				34,620				—				—				34,620
Inventory valuation adjustment			—				—				(555	)			—				(555	)
Lower of cost or net realizable value adjustments			—				1,567				(10,853	)			—				(9,286	)
Loss (gain) on disposal or impairment of assets, net			941				(1,260	)			—				151				(168	)
Equity-based compensation expense			—				—				—				497				497
Other income (expense), net			259				28				(93	)			452				646
Adjusted EBITDA attributable to unconsolidated entities			825				—				(7	)			44				862
Adjusted EBITDA attributable to noncontrolling interest			(532	)			—				—				—				(532	)
Other			225				385				93				—				703
Adjusted EBITDA		$	105,047			$	15,078			$	12,901			$	(9,150	)		$	123,876

		Three Months Ended June 30, 2021
		Water Solutions				Crude Oil Logistics				Liquids Logistics				Corporate and Other				Consolidated
		(in thousands)
Operating income (loss)		$	7,583			$	(11,581	)		$	(53,409	)		$	(11,927	)		$	(69,334	)
Depreciation and amortization			62,981				12,409				6,967				1,745				84,102
Amortization recorded to cost of sales			—				—				73				—				73
Net unrealized losses (gains) on derivatives			3,566				(14,454	)			(5,376	)			—				(16,264	)
CMA Differential Roll net losses (gains)			—				24,310				—				—				24,310
Inventory valuation adjustment			—				—				1,218				—				1,218
Lower of cost or net realizable value adjustments			—				(11	)			(3,795	)			—				(3,806	)
Loss (gain) on disposal or impairment of assets, net			7,491				(42	)			60,087				—				67,536
Equity-based compensation expense			—				—				—				960				960
Acquisition expense			—				—				—				67				67
Other income, net			612				196				363				78				1,249
Adjusted EBITDA attributable to unconsolidated entities			459				—				(10	)			(55	)			394
Adjusted EBITDA attributable to noncontrolling interest			(954	)			—				(529	)			—				(1,483	)
Other			(227	)			2,321				(15	)			—				2,079
Adjusted EBITDA		$	81,511			$	13,148			$	5,574			$	(9,132	)		$	91,101

OPERATIONAL DATA
(Unaudited)
		Three Months Ended
		June 30,
		2022		2021
		(in thousands, except per day amounts)
Water Solutions:
Produced water processed (barrels per day)
Delaware Basin		1,887,230		1,428,222
Eagle Ford Basin		98,513		91,843
DJ Basin		150,329		118,801
Other Basins		17,886		28,082
Total		2,153,958		1,666,948
Recycled water (barrels per day)		136,925		109,437
Total (barrels per day)		2,290,883		1,776,385
Skim oil sold (barrels per day)		3,957		2,500
Crude Oil Logistics:
Crude oil sold (barrels)		7,634		7,994
Crude oil transported on owned pipelines (barrels)		7,170		7,034
Crude oil storage capacity - owned and leased (barrels) (1)		5,232		5,239
Crude oil inventory (barrels) (1)		855		1,147
Liquids Logistics:
Refined products sold (gallons)		188,626		185,306
Propane sold (gallons)		164,844		170,279
Butane sold (gallons)		120,525		122,574
Other products sold (gallons)		93,637		92,853
Natural gas liquids and refined products storage capacity - owned and leased (gallons) (1)		167,559		168,677
Refined products inventory (gallons) (1)		1,110		2,776
Propane inventory (gallons) (1)		63,862		60,673
Butane inventory (gallons) (1)		49,547		45,911
Other products inventory (gallons) (1)		28,187		40,691

(1)

Information is presented as of June 30, 2022 and June 30, 2021, respectively.

 

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NGL Energy Partners LP

Linda J. Bridges, 918-481-1119

Executive Vice President, Chief Financial Officer and Treasurer

Linda.Bridges@nglep.com

or

David Sullivan, 918-481-1119

Vice President - Finance

David.Sullivan@nglep.com

Source: NGL Energy Partners LP

FAQ

What were the financial results for NGL Energy Partners in Q1 Fiscal 2023?

NGL Energy Partners reported a net income of $23.1 million and Adjusted EBITDA of $123.9 million for Q1 Fiscal 2023.

How did NGL's water solutions segment perform in Q1 Fiscal 2023?

The Water Solutions segment achieved a record Adjusted EBITDA of $105.0 million, reflecting a 28.9% increase year-over-year.

What is the adjusted EBITDA guidance for NGL Energy Partners for Fiscal 2023?

The company raised its guidance for the Water Solutions segment to more than $410 million for Fiscal 2023.

What record did NGL achieve regarding produced water volumes in Q1 Fiscal 2023?

NGL processed a record of approximately 2.15 million barrels per day of produced water, a 29.2% increase from the previous year.