NGL Energy Partners LP Announces Third Quarter Fiscal 2025 Financial Results
-
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