NGL Energy Partners LP Announces Third Quarter Fiscal 2025 Financial Results
NGL Energy Partners LP (NYSE:NGL) reported its Q3 Fiscal 2025 financial results, showing a net income of $14.6 million, down from $45.8 million in Q3 Fiscal 2024. Adjusted EBITDA was $147.7 million, slightly lower than $151.7 million in the previous year.
Key operational highlights include a 10.4% growth in produced water volumes to 2.62 million barrels per day, the commencement of LEX II pipeline operations, and new customer contracts in the DJ Basin. The company signed agreements to sell 18 natural gas liquids terminals for approximately $95.0 million, with closings expected by March 31, 2025.
Segment performance showed mixed results: Water Solutions saw higher disposal revenues but increased losses on asset disposals, Crude Oil Logistics experienced reduced volumes on the Grand Mesa Pipeline, and Liquids Logistics faced lower margins due to warmer weather and reduced demand. The company maintained strong liquidity of $292.1 million as of December 31, 2024.
NGL Energy Partners LP (NYSE:NGL) ha riportato i risultati finanziari del terzo trimestre dell'esercizio fiscale 2025, evidenziando un utile netto di 14,6 milioni di dollari, in calo rispetto ai 45,8 milioni di dollari del terzo trimestre dell'esercizio fiscale 2024. L'EBITDA rettificato è stato di 147,7 milioni di dollari, leggermente inferiore ai 151,7 milioni dell'anno precedente.
Tra i principali risultati operativi si segnala una crescita del 10,4% nei volumi di acqua prodotta, raggiungendo i 2,62 milioni di barili al giorno, l'avvio delle operazioni del gasdotto LEX II e nuovi contratti con clienti nel Bacino DJ. L'azienda ha firmato accordi per la vendita di 18 terminal per liquidi naturali per circa 95,0 milioni di dollari, con chiusura prevista entro il 31 marzo 2025.
Le performance dei segmenti hanno mostrato risultati misti: Water Solutions ha registrato ricavi da smaltimento più elevati ma ha subito perdite maggiori da dismissioni di asset, Crude Oil Logistics ha visto riduzioni nei volumi del gasdotto Grand Mesa, e Liquids Logistics ha affrontato margini inferiori a causa di temperature più elevate e ridotto fabbisogno. L'azienda ha mantenuto una solida liquidità di 292,1 milioni di dollari al 31 dicembre 2024.
NGL Energy Partners LP (NYSE:NGL) publicó sus resultados financieros del tercer trimestre del ejercicio fiscal 2025, mostrando un ingreso neto de 14.6 millones de dólares, una disminución respecto a los 45.8 millones de dólares en el tercer trimestre del ejercicio fiscal 2024. El EBITDA ajustado fue de 147.7 millones de dólares, ligeramente inferior a los 151.7 millones del año anterior.
Los aspectos operativos destacados incluyen un crecimiento del 10.4% en los volúmenes de agua producida hasta alcanzar los 2.62 millones de barriles por día, el inicio de las operaciones del oleoducto LEX II, y nuevos contratos con clientes en la Cuenca DJ. La empresa firmó acuerdos para vender 18 terminales de líquidos de gas natural por aproximadamente 95.0 millones de dólares, con cierres esperados para el 31 de marzo de 2025.
El rendimiento de los segmentos mostró resultados mixtos: Water Solutions vio mayores ingresos por eliminación, pero pérdidas aumentadas en la disposición de activos, Crude Oil Logistics experimentó una reducción en los volúmenes del oleoducto Grand Mesa, y Liquids Logistics enfrentó márgenes más bajos debido a un clima más cálido y disminución de la demanda. La empresa mantuvo una sólida liquidez de 292.1 millones de dólares al 31 de diciembre de 2024.
NGL 에너지 파트너스 LP (NYSE:NGL)는 2025 회계연도 3분기 재무 결과를 발표하였으며, 1460만 달러의 순이익을 기록했습니다. 이는 2024 회계연도 3분기의 4580만 달러에서 감소한 수치입니다. 조정된 EBITDA는 1억4770만 달러로, 전년도 1억5170만 달러에 비해 소폭 감소했습니다.
주요 운영 성과로는 생산된 물 용량이 10.4% 증가하여 하루 262만 배럴에 달했으며, LEX II 파이프라인 운영의 시작과 DJ 분지의 새로운 고객 계약이 포함됩니다. 이 회사는 약 9500만 달러에 18개의 천연가스 액체 터미널을 판매하기로 계약했으며, 2025년 3월 31일까지 계약이 종료될 예정입니다.
세그먼트 성과는 엇갈린 결과를 보였습니다: Water Solutions는 폐기물 처분 수익 증가를 보였지만 자산 처분에서의 손실이 증가했으며, Crude Oil Logistics는 Grand Mesa 파이프라인의 용량 감소를 겪었고, Liquids Logistics는 따뜻한 날씨와 수요 감소로 인해 마진이 줄었습니다. 2024년 12월 31일 기준으로 이 회사는 2억9210만 달러의 강력한 유동성을 유지하고 있습니다.
NGL Energy Partners LP (NYSE:NGL) a publié ses résultats financiers pour le troisième trimestre de l'exercice 2025, montrant un revenu net de 14,6 millions de dollars, en baisse par rapport à 45,8 millions de dollars au troisième trimestre de l'exercice 2024. L'EBITDA ajusté s'élevait à 147,7 millions de dollars, légèrement inférieur aux 151,7 millions de dollars de l'année précédente.
Les faits saillants opérationnels incluent une augmentation de 10,4 % des volumes d'eau produite, atteignant 2,62 millions de barils par jour, le lancement des opérations du pipeline LEX II, et de nouveaux contrats avec des clients dans le bassin DJ. L'entreprise a signé des accords pour vendre 18 terminaux de liquides de gaz naturel pour environ 95,0 millions de dollars, avec des clôtures prévues d'ici le 31 mars 2025.
Les performances des segments ont montré des résultats variés : Water Solutions a enregistré des revenus d'élimination plus élevés mais a vu ses pertes sur la cession d'actifs augmenter, Crude Oil Logistics a connu une réduction des volumes sur le pipeline Grand Mesa, et Liquids Logistics a souffert de marges plus faibles à cause d'une météo plus chaude et d'une demande réduite. L'entreprise a maintenu une solide liquidité de 292,1 millions de dollars au 31 décembre 2024.
NGL Energy Partners LP (NYSE:NGL) hat die finanziellen Ergebnisse für das dritte Quartal des Geschäftsjahres 2025 veröffentlicht und dabei einen Nettogewinn von 14,6 Millionen Dollar ausgewiesen, im Vergleich zu 45,8 Millionen Dollar im dritten Quartal des Geschäftsjahres 2024. Das bereinigte EBITDA betrug 147,7 Millionen Dollar, leicht niedriger als die 151,7 Millionen Dollar im Vorjahr.
Wichtige betriebliche Highlights umfassen ein Wachstum der produzierte Wasser volumen um 10,4% auf 2,62 Millionen Barrel pro Tag, den Beginn der Betriebnahme der LEX II-Pipeline und neue Kundenverträge im DJ-Becken. Das Unternehmen hat Vereinbarungen zum Verkauf von 18 Naturgasflüssigkeits-Terminals für etwa 95,0 Millionen Dollar unterzeichnet, mit Abschluss bis zum 31. März 2025.
Die Segmentleistung zeigte gemischte Ergebnisse: Water Solutions verzeichnete höhere Einnahmen aus der Entsorgung, wies jedoch höhere Verluste aus der Veräußerrung von Vermögenswerten auf. Crude Oil Logistics erlebte geringere Volumina in der Grand Mesa Pipeline, und Liquids Logistics hatte aufgrund wärmerem Wetter und geringerer Nachfrage niedrigere Margen. Das Unternehmen hielt am 31. Dezember 2024 eine starke Liquidität von 292,1 Millionen Dollar.
- 10.4% increase in produced water volumes to 2.62 million barrels per day
- Expected proceeds of $95.0 million from sale of natural gas liquids terminals
- New long-term acreage dedication contract with Prairie Operating
- Strong liquidity position of $292.1 million
- Net income decreased 68% to $14.6 million from $45.8 million year-over-year
- Adjusted EBITDA declined to $147.7 million from $151.7 million
- Grand Mesa Pipeline volumes decreased to 61,000 barrels per day from 70,000
- Lower propane and refined products margins due to reduced demand
Insights
The Q3 FY2025 results reveal a complex operational picture for NGL Energy Partners. While headline numbers show year-over-year declines, the underlying operational metrics paint a more nuanced story. The Water Solutions segment's
Two strategic developments merit particular attention: First, the
The balance sheet shows prudent management with
The challenging areas - namely the
-
Net income for the third quarter of Fiscal 2025 of
, compared to net income of$14.6 million for the third quarter of Fiscal 2024$45.8 million -
Adjusted EBITDA(1) for the third quarter of Fiscal 2025 of
, compared to$147.7 million for the third quarter of Fiscal 2024$151.7 million -
Produced water volumes processed of approximately 2.62 million barrels per day during the third quarter of Fiscal 2025, growing
10.4% from the third quarter of Fiscal 2024 - We commenced operations on our expanded Lea County Express Pipeline system (LEX II) during the current quarter
Crude Oil Logistics highlights:
- Prairie Operating signed a long-term acreage dedication contract for current and future production growth capacity on the Grand Mesa pipeline.
- Signed a term crude oil purchase and sale agreement with another DJ Basin producer with volumes beginning April 2025.
-
Entered into an agreement with a third-party to connect their crude oil gathering system to our Riverside,
Colorado terminal facility.
Liquid Logistics highlights:
- On February 5, 2025, we signed a purchase and sale agreement to sell 17 of our natural gas liquids terminals.
-
We also signed a purchase and sale agreement for our natural gas liquids terminal in
Green Bay, Wisconsin . -
Total consideration for both transactions is estimated to be
, inclusive of working capital. Both transactions are expected to close by March 31, 2025.$95.0 million
Other highlights:
-
On November 22, 2024, we purchased 23,375,000 of our outstanding warrants for
.$6.9 million -
In January and February, 2025, we sold 143 railcars for proceeds of
. We anticipate selling additional railcars for approximately$12.5 million .$10 million
“We are very excited about our new customers on Grand Mesa and believe we have a much brighter future in the DJ Basin. We have also been looking to reduce the volatility in our results by divesting certain assets in the Liquids Logistics segment and are meeting with some success. We continue to grow the Water Solutions business, focusing on minimum volume commitments and acreage dedications,” stated Mike Krimbill.
Quarterly Results of Operations
The following table summarizes the unaudited operating income (loss) and Adjusted EBITDA(1) by reportable segment for the periods indicated:
|
|
Quarter Ended |
||||||||||||||
|
|
December 31, 2024 |
|
December 31, 2023 |
||||||||||||
|
|
Operating
|
|
Adjusted
|
|
Operating
|
|
Adjusted
|
||||||||
|
|
(in thousands) |
||||||||||||||
Water Solutions |
|
$ |
65,379 |
|
|
$ |
132,661 |
|
|
$ |
74,270 |
|
|
$ |
121,285 |
|
Crude Oil Logistics |
|
|
10,024 |
|
|
|
17,354 |
|
|
|
17,010 |
|
|
|
17,044 |
|
Liquids Logistics |
|
|
11,676 |
|
|
|
8,188 |
|
|
|
22,449 |
|
|
|
26,302 |
|
Corporate and Other |
|
|
(11,582 |
) |
|
|
(10,551 |
) |
|
|
(11,940 |
) |
|
|
(12,961 |
) |
Total |
|
$ |
75,497 |
|
|
$ |
147,652 |
|
|
$ |
101,789 |
|
|
$ |
151,670 |
|
_______________ |
|
(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 decreased by
Revenues from recovered skim oil, including the impact from realized skim oil hedges, totaled
Operating expenses in the Water Solutions segment decreased
Crude Oil Logistics
Operating income for the Crude Oil Logistics segment decreased by
Liquids Logistics
Operating income for the Liquids Logistics segment decreased by
During the quarter, we completed the majority of the wind-down of our biodiesel business. We allowed our storage lease and certain railcar leases to expire and started to close out our open purchase and sale contracts. We expect to have all of our inventory liquidated by the end of February 2025 and to sublease the remaining railcars by March 31, 2025.
Corporate and Other
The operating loss for Corporate and Other was lower by
Capitalization and Liquidity
Total liquidity (cash plus available capacity on our asset-based revolving credit facility (“ABL Facility”)) was approximately
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 Monday, February 10, 2025. Analysts, investors, and other interested parties may join the webcast via the event link: https://www.webcaster4.com/Webcast/Page/2808/51875 or by dialing (888) 506-0062 and providing conference code: 239040. 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 51875.
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 income, income 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. In our Crude Oil Logistics segment, we 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 our contracts. To eliminate the volatility of the CMA Differential Roll, we entered into derivative instrument positions in January 2021 to secure a margin of approximately
As previously reported, for purposes of our Adjusted EBITDA calculation, we did not draw a distinction between realized and unrealized gains and losses on derivatives of certain businesses within our 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. We include this in Adjusted EBITDA because the unrealized gains and losses for 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. Beginning April 1, 2024, and going forward, we will now be drawing a distinction between realized and unrealized gains and losses on derivatives and will no longer include the activity on the “inventory valuation adjustment” row in the reconciliation table for these certain businesses within our Liquids Logistics segment. This change aligns with how management now views and evaluates the transactions within these businesses and is also consistent with the calculation of Adjusted EBITDA used in our other businesses. If this change was made as of April 1, 2023, Adjusted EBITDA for the three months and nine months ended December 31, 2023 would have been
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. 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 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
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
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,
|
|
March 31,
|
||||
ASSETS |
|
|
|
||||
CURRENT ASSETS: |
|
|
|
||||
Cash and cash equivalents |
$ |
5,683 |
|
|
$ |
38,909 |
|
Accounts receivable-trade, net of allowance for expected credit losses of |
|
784,315 |
|
|
|
814,087 |
|
Accounts receivable-affiliates |
|
1,679 |
|
|
|
1,501 |
|
Inventories |
|
134,075 |
|
|
|
130,907 |
|
Prepaid expenses and other current assets |
|
85,559 |
|
|
|
126,933 |
|
Assets held for sale |
|
4,557 |
|
|
|
66,597 |
|
Total current assets |
|
1,015,868 |
|
|
|
1,178,934 |
|
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of |
|
2,136,699 |
|
|
|
2,096,702 |
|
GOODWILL |
|
634,282 |
|
|
|
634,282 |
|
INTANGIBLE ASSETS, net of accumulated amortization of |
|
905,035 |
|
|
|
939,978 |
|
INVESTMENTS IN UNCONSOLIDATED ENTITIES |
|
19,312 |
|
|
|
20,305 |
|
OPERATING LEASE RIGHT-OF-USE ASSETS |
|
112,860 |
|
|
|
97,155 |
|
OTHER NONCURRENT ASSETS |
|
24,416 |
|
|
|
52,738 |
|
Total assets |
$ |
4,848,472 |
|
|
$ |
5,020,094 |
|
LIABILITIES AND EQUITY |
|
|
|
||||
CURRENT LIABILITIES: |
|
|
|
||||
Accounts payable-trade |
$ |
645,309 |
|
|
$ |
707,536 |
|
Accounts payable-affiliates |
|
52 |
|
|
|
37 |
|
Accrued expenses and other payables |
|
138,236 |
|
|
|
213,757 |
|
Advance payments received from customers |
|
24,896 |
|
|
|
17,313 |
|
Current maturities of long-term debt |
|
8,769 |
|
|
|
7,000 |
|
Operating lease obligations |
|
29,191 |
|
|
|
31,090 |
|
Liabilities held for sale |
|
— |
|
|
|
614 |
|
Total current liabilities |
|
846,453 |
|
|
|
977,347 |
|
LONG-TERM DEBT, net of debt issuance costs of |
|
3,078,988 |
|
|
|
2,843,822 |
|
OPERATING LEASE OBLIGATIONS |
|
87,032 |
|
|
|
70,573 |
|
OTHER NONCURRENT LIABILITIES |
|
121,943 |
|
|
|
129,185 |
|
|
|
|
|
||||
CLASS D |
|
551,097 |
|
|
|
551,097 |
|
REDEEMABLE NONCONTROLLING INTERESTS |
|
367 |
|
|
|
— |
|
|
|
|
|
||||
EQUITY: |
|
|
|
||||
General partner, representing a |
|
(52,897 |
) |
|
|
(52,834 |
) |
Limited partners, representing a |
|
(154,146 |
) |
|
|
134,807 |
|
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 (loss) |
|
10 |
|
|
|
(499 |
) |
Noncontrolling interests |
|
21,266 |
|
|
|
18,237 |
|
Total equity |
|
162,592 |
|
|
|
448,070 |
|
Total liabilities and equity |
$ |
4,848,472 |
|
|
$ |
5,020,094 |
|
NGL ENERGY PARTNERS LP AND SUBSIDIARIES |
||||||||||||||||
Unaudited Condensed Consolidated Statements of Operations |
||||||||||||||||
(in Thousands, except unit and per unit amounts) |
||||||||||||||||
|
||||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
REVENUES: |
|
|
|
|
|
|
|
|
||||||||
Water Solutions |
|
$ |
187,268 |
|
|
$ |
179,301 |
|
|
$ |
550,545 |
|
|
$ |
557,847 |
|
Crude Oil Logistics |
|
|
195,646 |
|
|
|
425,294 |
|
|
|
719,506 |
|
|
|
1,379,397 |
|
Liquids Logistics |
|
|
1,165,981 |
|
|
|
1,265,182 |
|
|
|
3,018,704 |
|
|
|
3,389,733 |
|
Corporate and Other |
|
|
178 |
|
|
|
— |
|
|
|
252 |
|
|
|
— |
|
Total Revenues |
|
|
1,549,073 |
|
|
|
1,869,777 |
|
|
|
4,289,007 |
|
|
|
5,326,977 |
|
COST OF SALES: |
|
|
|
|
|
|
|
|
||||||||
Water Solutions |
|
|
4,256 |
|
|
|
(2,573 |
) |
|
|
4,689 |
|
|
|
7,420 |
|
Crude Oil Logistics |
|
|
168,679 |
|
|
|
386,418 |
|
|
|
630,324 |
|
|
|
1,266,644 |
|
Liquids Logistics |
|
|
1,137,017 |
|
|
|
1,224,059 |
|
|
|
2,969,342 |
|
|
|
3,290,784 |
|
Corporate and Other |
|
|
— |
|
|
|
(1,772 |
) |
|
|
— |
|
|
|
(939 |
) |
Total Cost of Sales |
|
|
1,309,952 |
|
|
|
1,606,132 |
|
|
|
3,604,355 |
|
|
|
4,563,909 |
|
OPERATING COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
||||||||
Operating |
|
|
75,288 |
|
|
|
79,115 |
|
|
|
225,953 |
|
|
|
233,185 |
|
General and administrative |
|
|
15,061 |
|
|
|
17,934 |
|
|
|
42,254 |
|
|
|
55,721 |
|
Depreciation and amortization |
|
|
66,294 |
|
|
|
65,597 |
|
|
|
190,444 |
|
|
|
200,102 |
|
Loss (gain) on disposal or impairment of assets, net |
|
|
9,941 |
|
|
|
(790 |
) |
|
|
784 |
|
|
|
14,221 |
|
Revaluation of liabilities |
|
|
(2,960 |
) |
|
|
— |
|
|
|
(2,960 |
) |
|
|
— |
|
Operating Income |
|
|
75,497 |
|
|
|
101,789 |
|
|
|
228,177 |
|
|
|
259,839 |
|
OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
|
||||||||
Equity in earnings of unconsolidated entities |
|
|
1,376 |
|
|
|
838 |
|
|
|
3,198 |
|
|
|
1,780 |
|
Interest expense |
|
|
(63,058 |
) |
|
|
(57,221 |
) |
|
|
(210,201 |
) |
|
|
(175,370 |
) |
Gain on early extinguishment of liabilities, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,871 |
|
Other income, net |
|
|
487 |
|
|
|
515 |
|
|
|
2,476 |
|
|
|
1,131 |
|
Income Before Income Taxes |
|
|
14,302 |
|
|
|
45,921 |
|
|
|
23,650 |
|
|
|
94,251 |
|
INCOME TAX BENEFIT (EXPENSE) |
|
|
273 |
|
|
|
(154 |
) |
|
|
4,791 |
|
|
|
(636 |
) |
Net Income |
|
|
14,575 |
|
|
|
45,767 |
|
|
|
28,441 |
|
|
|
93,615 |
|
LESS: NET INCOME ATTRIBUTABLE TO NONREDEEMABLE NONCONTROLLING INTERESTS |
|
|
(1,053 |
) |
|
|
(85 |
) |
|
|
(2,777 |
) |
|
|
(604 |
) |
LESS: NET INCOME ATTRIBUTABLE TO REDEEMABLE NONCONTROLLING INTERESTS |
|
|
(15 |
) |
|
|
— |
|
|
|
(20 |
) |
|
|
— |
|
NET INCOME ATTRIBUTABLE TO NGL ENERGY PARTNERS LP |
|
$ |
13,507 |
|
|
$ |
45,682 |
|
|
$ |
25,644 |
|
|
$ |
93,011 |
|
NET (LOSS) INCOME ALLOCATED TO COMMON UNITHOLDERS |
|
$ |
(15,412 |
) |
|
$ |
10,244 |
|
|
$ |
(62,794 |
) |
|
$ |
(10,947 |
) |
BASIC (LOSS) INCOME PER COMMON UNIT |
|
$ |
(0.12 |
) |
|
$ |
0.08 |
|
|
$ |
(0.47 |
) |
|
$ |
(0.08 |
) |
DILUTED (LOSS) INCOME PER COMMON UNIT |
|
$ |
(0.12 |
) |
|
$ |
0.08 |
|
|
$ |
(0.47 |
) |
|
$ |
(0.08 |
) |
BASIC WEIGHTED AVERAGE COMMON UNITS OUTSTANDING |
|
|
132,012,766 |
|
|
|
132,220,055 |
|
|
|
132,265,839 |
|
|
|
132,025,268 |
|
DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING |
|
|
132,012,766 |
|
|
|
132,498,734 |
|
|
|
132,265,839 |
|
|
|
132,025,268 |
|
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
|
|
Nine Months Ended
|
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(in thousands) |
||||||||||||||
Net income |
|
$ |
14,575 |
|
|
$ |
45,767 |
|
|
$ |
28,441 |
|
|
$ |
93,615 |
|
Less: Net income attributable to nonredeemable noncontrolling interests |
|
|
(1,053 |
) |
|
|
(85 |
) |
|
|
(2,777 |
) |
|
|
(604 |
) |
Less: Net income attributable to redeemable noncontrolling interests |
|
|
(15 |
) |
|
|
— |
|
|
|
(20 |
) |
|
|
— |
|
Net income attributable to NGL Energy Partners LP |
|
|
13,507 |
|
|
|
45,682 |
|
|
|
25,644 |
|
|
|
93,011 |
|
Interest expense |
|
|
63,032 |
|
|
|
57,274 |
|
|
|
210,161 |
|
|
|
175,452 |
|
Income tax (benefit) expense |
|
|
(273 |
) |
|
|
154 |
|
|
|
(4,791 |
) |
|
|
636 |
|
Depreciation and amortization |
|
|
65,786 |
|
|
|
65,582 |
|
|
|
189,181 |
|
|
|
200,005 |
|
EBITDA |
|
|
142,052 |
|
|
|
168,692 |
|
|
|
420,195 |
|
|
|
469,104 |
|
Net unrealized (gains) losses on derivatives |
|
|
(1,099 |
) |
|
|
47,558 |
|
|
|
22,489 |
|
|
|
56,617 |
|
Lower of cost or net realizable value adjustments |
|
|
(2,978 |
) |
|
|
(575 |
) |
|
|
(4,209 |
) |
|
|
3,269 |
|
Loss (gain) on disposal or impairment of assets, net (1) |
|
|
10,212 |
|
|
|
(1,107 |
) |
|
|
1,061 |
|
|
|
13,904 |
|
CMA Differential Roll net losses (gains) (2) |
|
|
— |
|
|
|
(64,381 |
) |
|
|
— |
|
|
|
(71,285 |
) |
Inventory valuation adjustment (3) |
|
|
— |
|
|
|
709 |
|
|
|
— |
|
|
|
(5,391 |
) |
Gain on early extinguishment of liabilities, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,871 |
) |
Equity-based compensation expense |
|
|
— |
|
|
|
214 |
|
|
|
— |
|
|
|
1,098 |
|
Revaluation of liabilities (4) |
|
|
(2,960 |
) |
|
|
— |
|
|
|
(2,960 |
) |
|
|
— |
|
Other (5) |
|
|
2,425 |
|
|
|
560 |
|
|
|
2,688 |
|
|
|
2,094 |
|
Adjusted EBITDA |
|
$ |
147,652 |
|
|
$ |
151,670 |
|
|
$ |
439,264 |
|
|
$ |
462,539 |
|
Less: Cash interest expense (6) |
|
|
67,685 |
|
|
|
53,042 |
|
|
|
203,394 |
|
|
|
162,936 |
|
Less: Income tax (benefit) expense |
|
|
(273 |
) |
|
|
154 |
|
|
|
(4,791 |
) |
|
|
636 |
|
Less: Maintenance capital expenditures |
|
|
18,571 |
|
|
|
8,780 |
|
|
|
57,947 |
|
|
|
41,665 |
|
Less: CMA Differential Roll (7) |
|
|
— |
|
|
|
(9,118 |
) |
|
|
— |
|
|
|
(27,165 |
) |
Less: Preferred unit distributions paid |
|
|
30,752 |
|
|
|
— |
|
|
|
276,356 |
|
|
|
— |
|
Less: Other (8) |
|
|
1,313 |
|
|
|
— |
|
|
|
1,378 |
|
|
|
222 |
|
Distributable Cash Flow |
|
$ |
29,604 |
|
|
$ |
98,812 |
|
|
$ |
(95,020 |
) |
|
$ |
284,245 |
|
_______________ |
|
(1) |
Excludes amounts related to unconsolidated entities and noncontrolling interests. |
(2) |
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. |
(3) |
Amounts represent 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. |
(4) |
Amounts represent the write-off of a portion of our contingent consideration liability related to royalty agreements acquired as part of certain business combinations in our Water Solutions segment as we no longer expect to make royalty payments for a certain saltwater disposal well that was plugged and abandoned. |
(5) |
Amounts represent accretion expense for asset retirement obligations, expenses incurred related to legal and advisory costs associated with acquisitions and dispositions and unrealized gains/losses on investments and marketable securities. |
(6) |
Amounts represent interest expense payable in cash, excluding changes in the accrued interest balance. |
(7) |
Amounts represent the cash portion of the adjustments of the Partnership’s CMA Differential Roll derivative instrument positions, as discussed above, that settled during the period. |
(8) |
Amounts represent cash paid to settle asset retirement obligations. |
ADJUSTED EBITDA RECONCILIATION BY SEGMENT |
|||||||||||||||||||
(unaudited) |
|||||||||||||||||||
|
|||||||||||||||||||
|
Three Months Ended December 31, 2024 |
||||||||||||||||||
|
Water
|
|
Crude Oil
|
|
Liquids
|
|
Corporate
|
|
Consolidated |
||||||||||
|
(in thousands) |
||||||||||||||||||
Operating income (loss) |
$ |
65,379 |
|
|
$ |
10,024 |
|
|
$ |
11,676 |
|
|
$ |
(11,582 |
) |
|
$ |
75,497 |
|
Depreciation and amortization |
|
56,831 |
|
|
|
6,360 |
|
|
|
2,277 |
|
|
|
826 |
|
|
|
66,294 |
|
Amortization recorded to cost of sales |
|
— |
|
|
|
— |
|
|
|
175 |
|
|
|
— |
|
|
|
175 |
|
Net unrealized losses (gains) on derivatives |
|
1,864 |
|
|
|
1,454 |
|
|
|
(4,417 |
) |
|
|
— |
|
|
|
(1,099 |
) |
Lower of cost or net realizable value adjustments |
|
— |
|
|
|
(540 |
) |
|
|
(2,438 |
) |
|
|
— |
|
|
|
(2,978 |
) |
Loss (gain) on disposal or impairment of assets, net |
|
10,525 |
|
|
|
— |
|
|
|
(627 |
) |
|
|
43 |
|
|
|
9,941 |
|
Other (expense) income, net |
|
(1,095 |
) |
|
|
1 |
|
|
|
1,501 |
|
|
|
80 |
|
|
|
487 |
|
Adjusted EBITDA attributable to unconsolidated entities |
|
1,505 |
|
|
|
— |
|
|
|
(21 |
) |
|
|
— |
|
|
|
1,484 |
|
Adjusted EBITDA attributable to noncontrolling interests |
|
(1,564 |
) |
|
|
— |
|
|
|
— |
|
|
|
(66 |
) |
|
|
(1,630 |
) |
Revaluation of liabilities |
|
(2,960 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,960 |
) |
Other |
|
2,176 |
|
|
|
55 |
|
|
|
62 |
|
|
|
148 |
|
|
|
2,441 |
|
Adjusted EBITDA |
$ |
132,661 |
|
|
$ |
17,354 |
|
|
$ |
8,188 |
|
|
$ |
(10,551 |
) |
|
$ |
147,652 |
|
|
Three Months Ended December 31, 2023 |
||||||||||||||||||
|
Water
|
|
Crude Oil
|
|
Liquids
|
|
Corporate
|
|
Consolidated |
||||||||||
|
(in thousands) |
||||||||||||||||||
Operating income (loss) |
$ |
74,270 |
|
|
$ |
17,010 |
|
|
$ |
22,449 |
|
|
$ |
(11,940 |
) |
|
$ |
101,789 |
|
Depreciation and amortization |
|
52,643 |
|
|
|
9,545 |
|
|
|
2,438 |
|
|
|
971 |
|
|
|
65,597 |
|
Amortization recorded to cost of sales |
|
— |
|
|
|
— |
|
|
|
65 |
|
|
|
— |
|
|
|
65 |
|
Net unrealized (gains) losses on derivatives |
|
(6,440 |
) |
|
|
51,984 |
|
|
|
3,581 |
|
|
|
(1,567 |
) |
|
|
47,558 |
|
CMA Differential Roll net losses (gains) |
|
— |
|
|
|
(64,381 |
) |
|
|
— |
|
|
|
— |
|
|
|
(64,381 |
) |
Inventory valuation adjustment |
|
— |
|
|
|
— |
|
|
|
709 |
|
|
|
— |
|
|
|
709 |
|
Lower of cost or net realizable value adjustments |
|
— |
|
|
|
785 |
|
|
|
(1,360 |
) |
|
|
— |
|
|
|
(575 |
) |
(Gain) loss on disposal or impairment of assets, net |
|
(478 |
) |
|
|
2,042 |
|
|
|
(1,639 |
) |
|
|
(715 |
) |
|
|
(790 |
) |
Equity-based compensation expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
214 |
|
|
|
214 |
|
Other income (expense), net |
|
488 |
|
|
|
1 |
|
|
|
(8 |
) |
|
|
34 |
|
|
|
515 |
|
Adjusted EBITDA attributable to unconsolidated entities |
|
715 |
|
|
|
— |
|
|
|
7 |
|
|
|
42 |
|
|
|
764 |
|
Adjusted EBITDA attributable to noncontrolling interests |
|
(362 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(362 |
) |
Other |
|
449 |
|
|
|
58 |
|
|
|
60 |
|
|
|
— |
|
|
|
567 |
|
Adjusted EBITDA |
$ |
121,285 |
|
|
$ |
17,044 |
|
|
$ |
26,302 |
|
|
$ |
(12,961 |
) |
|
$ |
151,670 |
|
|
Nine Months Ended December 31, 2024 |
||||||||||||||||||
|
Water
|
|
Crude Oil
|
|
Liquids
|
|
Corporate
|
|
Consolidated |
||||||||||
|
(in thousands) |
||||||||||||||||||
Operating income (loss) |
$ |
222,566 |
|
|
$ |
38,953 |
|
|
$ |
(1,007 |
) |
|
$ |
(32,335 |
) |
|
$ |
228,177 |
|
Depreciation and amortization |
|
162,066 |
|
|
|
19,086 |
|
|
|
7,109 |
|
|
|
2,183 |
|
|
|
190,444 |
|
Amortization recorded to cost of sales |
|
— |
|
|
|
— |
|
|
|
342 |
|
|
|
— |
|
|
|
342 |
|
Net unrealized losses (gains) on derivatives |
|
1,391 |
|
|
|
(4,538 |
) |
|
|
25,636 |
|
|
|
— |
|
|
|
22,489 |
|
Lower of cost or net realizable value adjustments |
|
— |
|
|
|
— |
|
|
|
(4,209 |
) |
|
|
— |
|
|
|
(4,209 |
) |
Loss (gain) on disposal or impairment of assets, net |
|
1,780 |
|
|
|
(412 |
) |
|
|
(627 |
) |
|
|
43 |
|
|
|
784 |
|
Other income, net |
|
816 |
|
|
|
2 |
|
|
|
1,511 |
|
|
|
147 |
|
|
|
2,476 |
|
Adjusted EBITDA attributable to unconsolidated entities |
|
3,541 |
|
|
|
— |
|
|
|
(56 |
) |
|
|
— |
|
|
|
3,485 |
|
Adjusted EBITDA attributable to noncontrolling interests |
|
(4,400 |
) |
|
|
— |
|
|
|
— |
|
|
|
(100 |
) |
|
|
(4,500 |
) |
Revaluation of liabilities |
|
(2,960 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,960 |
) |
Other |
|
2,326 |
|
|
|
161 |
|
|
|
182 |
|
|
|
67 |
|
|
|
2,736 |
|
Adjusted EBITDA |
$ |
387,126 |
|
|
$ |
53,252 |
|
|
$ |
28,881 |
|
|
$ |
(29,995 |
) |
|
$ |
439,264 |
|
|
Nine Months Ended December 31, 2023 |
||||||||||||||||||
|
Water
|
|
Crude Oil
|
|
Liquids
|
|
Corporate
|
|
Consolidated |
||||||||||
|
(in thousands) |
||||||||||||||||||
Operating income (loss) |
$ |
202,719 |
|
|
$ |
48,795 |
|
|
$ |
53,857 |
|
|
$ |
(45,532 |
) |
|
$ |
259,839 |
|
Depreciation and amortization |
|
159,119 |
|
|
|
28,864 |
|
|
|
8,035 |
|
|
|
4,084 |
|
|
|
200,102 |
|
Amortization recorded to cost of sales |
|
— |
|
|
|
— |
|
|
|
195 |
|
|
|
— |
|
|
|
195 |
|
Net unrealized (gains) losses on derivatives |
|
(1,969 |
) |
|
|
61,673 |
|
|
|
(1,908 |
) |
|
|
(1,179 |
) |
|
|
56,617 |
|
CMA Differential Roll net losses (gains) |
|
— |
|
|
|
(71,285 |
) |
|
|
— |
|
|
|
— |
|
|
|
(71,285 |
) |
Inventory valuation adjustment |
|
— |
|
|
|
— |
|
|
|
(5,391 |
) |
|
|
— |
|
|
|
(5,391 |
) |
Lower of cost or net realizable value adjustments |
|
— |
|
|
|
785 |
|
|
|
2,484 |
|
|
|
— |
|
|
|
3,269 |
|
Loss (gain) on disposal or impairment of assets, net |
|
21,840 |
|
|
|
2,471 |
|
|
|
(9,375 |
) |
|
|
(715 |
) |
|
|
14,221 |
|
Equity-based compensation expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,098 |
|
|
|
1,098 |
|
Other income, net |
|
916 |
|
|
|
106 |
|
|
|
7 |
|
|
|
102 |
|
|
|
1,131 |
|
Adjusted EBITDA attributable to unconsolidated entities |
|
1,974 |
|
|
|
— |
|
|
|
(19 |
) |
|
|
137 |
|
|
|
2,092 |
|
Adjusted EBITDA attributable to noncontrolling interests |
|
(1,450 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,450 |
) |
Other |
|
1,719 |
|
|
|
139 |
|
|
|
252 |
|
|
|
(9 |
) |
|
|
2,101 |
|
Adjusted EBITDA |
$ |
384,868 |
|
|
$ |
71,548 |
|
|
$ |
48,137 |
|
|
$ |
(42,014 |
) |
|
$ |
462,539 |
|
OPERATIONAL DATA |
|||||||
(Unaudited) |
|||||||
|
|||||||
|
Three Months Ended |
|
Nine Months Ended |
||||
|
December 31, |
|
December 31, |
||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
(in thousands, except per day amounts) |
||||||
Water Solutions: |
|
|
|
|
|
|
|
Produced water processed (barrels per day) |
|
|
|
|
|
|
|
|
2,278,291 |
|
2,097,428 |
|
2,263,365 |
|
2,135,677 |
Eagle Ford Basin |
177,017 |
|
136,185 |
|
180,540 |
|
135,887 |
DJ Basin |
167,989 |
|
142,978 |
|
146,613 |
|
152,805 |
Other Basins |
— |
|
— |
|
— |
|
985 |
Total |
2,623,297 |
|
2,376,591 |
|
2,590,518 |
|
2,425,354 |
Recycled water (barrels per day) |
62,787 |
|
115,141 |
|
86,442 |
|
83,247 |
Total (barrels per day) |
2,686,084 |
|
2,491,732 |
|
2,676,960 |
|
2,508,601 |
Skim oil sold (barrels per day) |
3,985 |
|
3,663 |
|
4,060 |
|
3,918 |
|
|
|
|
|
|
|
|
Crude Oil Logistics: |
|
|
|
|
|
|
|
Crude oil sold (barrels) |
2,392 |
|
5,087 |
|
8,434 |
|
16,730 |
Crude oil transported on owned pipelines (barrels) |
5,652 |
|
6,473 |
|
17,172 |
|
19,520 |
Crude oil storage capacity - owned and leased (barrels) (1) |
|
|
|
|
5,232 |
|
5,232 |
Crude oil inventory (barrels) (1) |
|
|
|
|
339 |
|
790 |
|
|
|
|
|
|
|
|
Liquids Logistics: |
|
|
|
|
|
|
|
Refined products sold (gallons) |
193,733 |
|
201,796 |
|
600,597 |
|
631,802 |
Propane sold (gallons) |
224,485 |
|
254,266 |
|
445,578 |
|
524,007 |
Butane sold (gallons) |
188,223 |
|
207,544 |
|
393,195 |
|
394,118 |
Other products sold (gallons) |
121,738 |
|
85,410 |
|
329,862 |
|
276,898 |
Natural gas liquids and refined products storage capacity - owned and leased (gallons) (1) |
|
|
|
|
119,185 |
|
157,409 |
Refined products inventory (gallons) (1) |
|
|
|
|
1,547 |
|
2,020 |
Propane inventory (gallons) (1) |
|
|
|
|
66,335 |
|
92,861 |
Butane inventory (gallons) (1) |
|
|
|
|
30,775 |
|
35,951 |
Other products inventory (gallons) (1) |
|
|
|
|
9,078 |
|
19,526 |
_______________ |
|
(1) |
Information is presented as of December 31, 2024 and December 31, 2023, respectively. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250210809722/en/
David Sullivan, 918-495-4631
Vice President - Finance
David.Sullivan@nglep.com
Source: NGL Energy Partners LP