NGL Energy Partners LP Announces Second Quarter Fiscal 2026 Financial Results

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

Financial Results:

Water Solutions Volumes:

Guidance Update:

Equity Transactions:

Other:

“This has been an outstanding quarter for NGL with success on multiple initiatives that we believe will ultimately increase value to our Unitholders. Our current Water Solutions business continues to outperform and is experiencing accelerated growth. In addition, we are redeeming additional Class D Preferred equity and buying common units at attractive prices. On the heels of the momentum, we are projecting Fiscal 2027 Adjusted EBITDA (2) in excess of $700 million,” stated Mike Krimbill NGL’s CEO.

Quarterly Results of Operations

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

Quarter Ended

September 30, 2025

September 30, 2024

Operating Income (Loss)

Adjusted EBITDA (1)

Operating Income (Loss)

Adjusted EBITDA (1)

(in thousands)

Water Solutions

92,354

151,902

72,829

128,862

Crude Oil Logistics

8,224

16,553

14,840

17,263

Liquids Logistics

6,346

10,521

2,629

11,379

Corporate and Other

(12,673

)

(11,643

)

(8,807

)

(8,090

)

Total

94,251

167,333

81,491

149,414

Water Solutions

Operating income for the Water Solutions segment increased by $19.5 million for the quarter ended September 30, 2025, compared to the quarter ended September 30, 2024. The increase was due primarily to higher disposal revenues due to an increase in produced water volumes processed from contracted customers and increased water pipeline revenue due to the LEX II pipeline commencing operations during the quarter ended December 31, 2024. The Partnership processed approximately 2.80 million barrels of produced water per day during the quarter ended September 30, 2025, a 4.5% increase when compared to approximately 2.68 million barrels of water per day processed during the quarter ended September 30, 2024.

Revenues from recovered skim oil, including the impact from realized skim oil hedges, totaled $28.1 million for the quarter ended September 30, 2025, an increase of $0.7 million from the prior year period. The increase was due primarily to an increase in skim oil barrels sold due to more skim oil recovered from receiving more produced water, partially offset by lower realized crude oil prices received from the sale of skim oil barrels.

Operating expenses in the Water Solutions segment increased $2.1 million for the quarter ended September 30, 2025, compared to the quarter ended September 30, 2024 due primarily to higher royalty expense due to volumes related to the LEX II pipeline commencing operations and increased volumes at certain other saltwater disposal wells, higher repairs and maintenance expense due to timing of repairs and higher utilities expense due to increased produced water volumes processed, partially offset by lower chemical expense due to purchasing fewer chemicals and using chemicals more efficiently and lower bad debt expense. Operating expense per produced barrel processed was $0.22 for the quarter ended September 30, 2025, compared to $0.22 in the comparative quarter last year.

There was also a loss on the disposal or impairment of assets of $5.8 million for the quarter ended September 30, 2025, compared to a loss on the disposal or impairment of assets of $2.0 million in the prior year period.

Crude Oil Logistics

Operating income for the Crude Oil Logistics segment decreased by $6.6 million for the quarter ended September 30, 2025, compared to the quarter ended September 30, 2024. The decrease is due primarily to reduced gains on derivatives that hedge our physical product. During the quarter ended September 30, 2025, physical volumes on the Grand Mesa Pipeline averaged approximately 72,000 barrels per day, compared to approximately 63,000 barrels per day for the quarter ended September 30, 2024.

Liquids Logistics

Operating income for the Liquids Logistics segment increased by $3.7 million for the quarter ended September 30, 2025, compared to the quarter ended September 30, 2024. This increase was due primarily to lower expenses related to the sale of our Wholesale Propane business and 17 natural gas liquid terminals and increased margins due primarily to lower losses on derivatives that hedge our physical product. The increase was offset by lower service revenue due to the expiration of a throughput contract in the prior fiscal year.

Capitalization and Liquidity

Total liquidity (cash plus available capacity on our asset-based revolving credit facility (“ABL Facility”)) was approximately $359.1 million as of September 30, 2025. Borrowings on the Partnership’s ABL Facility totaled approximately $71.0 million as of September 30, 2025, as we built butane inventory for the blending season.

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

Second Quarter Conference Call Information

A conference call to discuss NGL’s results of operations is scheduled for 4:00 pm Central Time on Tuesday, November 4, 2025. Analysts, investors, and other interested parties may join the webcast via the event link: https://www.webcaster4.com/Webcast/Page/2808/53103 or by dialing (877) 545-0523 and providing conference code: 237914. 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 53103.

Non-GAAP Financial Measures

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

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

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

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

Forward-Looking Statements

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

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

About NGL Energy Partners LP

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

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Unaudited Condensed Consolidated Balance Sheets

(in Thousands, except unit amounts)

September 30, 2025

March 31, 2025

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

8,659

5,649

Accounts receivable, net of allowance for expected credit losses of $1,255 and $3,689, respectively

558,368

579,468

Accounts receivable-affiliates

237

730

Inventories

118,003

69,916

Prepaid expenses and other current assets

32,483

63,651

Assets held for sale

—

175,207

Assets of discontinued operations

146

67,432

Total current assets

717,896

962,053

PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of $1,185,359 and $1,104,582, respectively

2,034,103

2,066,847

GOODWILL

599,348

INTANGIBLE ASSETS, net of accumulated amortization of $367,383 and $340,334, respectively

824,515

851,347

OPERATING LEASE RIGHT-OF-USE ASSETS

110,229

109,870

OTHER NONCURRENT ASSETS

15,494

19,975

Total assets

4,301,585

4,609,440

LIABILITIES AND EQUITY

CURRENT LIABILITIES:

Accounts payable

391,290

461,980

Accounts payable-affiliates

102

Accrued expenses and other payables

126,614

135,233

Advance payments received from customers

14,178

10,347

Current maturities of long-term debt

8,880

8,805

Operating lease obligations

29,251

27,911

Liabilities held for sale

—

42,103

Liabilities of discontinued operations

52,749

Total current liabilities

570,254

739,230

LONG-TERM DEBT, net of debt issuance costs of $39,645 and $43,144, respectively, and current maturities

2,903,746

2,961,703

OPERATING LEASE OBLIGATIONS

84,942

85,240

OTHER NONCURRENT LIABILITIES

131,487

125,897

CLASS D 9.00% PREFERRED UNITS, 530,000 and 600,000 preferred units issued and outstanding, respectively

486,843

551,097

REDEEMABLE NONCONTROLLING INTERESTS

488

424

EQUITY:

General partner, representing a 0.1% interest, 125,848 and 132,145 notional units, respectively

(52,905

)

(52,913

)

Limited partners, representing a 99.9% interest, 125,722,503 and 132,012,766 common units issued and outstanding, respectively

(190,881

)

(170,275

)

Class B preferred limited partners, 12,585,642 and 12,585,642 preferred units issued and outstanding, respectively

305,468

Class C preferred limited partners, 1,800,000 and 1,800,000 preferred units issued and outstanding, respectively

42,891

Accumulated other comprehensive income

—

Noncontrolling interests

19,252

20,669

Total equity

123,825

145,849

Total liabilities and equity

4,301,585

4,609,440

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Operations

(in Thousands, except unit and per unit amounts)

Three Months Ended September 30,

Six Months Ended September 30,

2025

2024

2025

2024

REVENUES:

Product

484,255

575,014

920,673

1,164,888

Service and other

190,422

181,458

376,160

350,818

Total Revenues

674,677

756,472

1,296,833

1,515,706

COST OF SALES:

Product

415,554

503,854

793,018

1,024,010

Service and other

5,466

19,061

10,814

38,210

Total Cost of Sales

421,020

522,915

803,832

1,062,220

OPERATING COSTS AND EXPENSES:

Operating

74,089

76,565

144,857

147,953

General and administrative

14,729

12,117

28,469

27,081

Depreciation and amortization

63,994

61,875

130,579

124,039

Loss (gain) on disposal or impairment of assets, net

6,594

1,509

(2,605

)

(9,157

)

Operating Income

94,251

81,491

191,701

163,570

OTHER INCOME (EXPENSE):

Equity in earnings of unconsolidated entities

—

1,522

201

1,822

Interest expense

(64,708

)

(77,180

)

(130,253

)

(146,919

)

Gain on early extinguishment of liabilities, net

—

1,492

—

Other income (expense), net

208

1,834

(3,307

)

1,998

Income From Continuing Operations Before Income Taxes

29,751

7,667

59,834

20,471

INCOME TAX BENEFIT (EXPENSE)

(174

)

243

4,625

Income From Continuing Operations

29,812

7,493

60,077

25,096

Income (Loss) From Discontinued Operations, net of Tax

(4,102

)

39,388

(11,230

)

Net Income

29,821

3,391

99,465

13,866

LESS: NET INCOME FROM CONTINUING OPERATIONS ATTRIBUTABLE TO NONREDEEMABLE NONCONTROLLING INTERESTS

(490

)

(932

)

(1,195

)

(1,724

)

LESS: NET INCOME FROM CONTINUING OPERATIONS ATTRIBUTABLE TO REDEEMABLE NONCONTROLLING INTERESTS

(47

)

(64

)

NET INCOME ATTRIBUTABLE TO NGL ENERGY PARTNERS LP

29,284

2,454

98,206

12,137

NET INCOME (LOSS) FROM CONTINUING OPERATIONS ALLOCATED TO COMMON UNITHOLDERS

3,137

(24,172

)

(30,887

)

(36,163

)

NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS ALLOCATED TO COMMON UNITHOLDERS

(4,098

)

39,349

(11,219

)

NET INCOME (LOSS) ALLOCATED TO COMMON UNITHOLDERS

3,146

(28,270

)

8,462

(47,382

)

BASIC AND DILUTED INCOME (LOSS) PER COMMON UNIT

Income (Loss) From Continuing Operations

0.02

(0.18

)

(0.24

)

(0.27

)

(Loss) Income From Discontinued Operations, net of Tax

—

(0.03

)

0.30

(0.08

)

Net Income (Loss)

0.02

(0.21

)

0.07

(0.36

)

BASIC AND DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING

127,309,332

132,274,669

129,516,312

132,393,067

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 September 30,

Six Months Ended September 30,

2025

2024

2025

2024

(in thousands)

Net income

29,821

3,391

99,465

13,866

Less: Net income from continuing operations attributable to nonredeemable noncontrolling interests

(490

)

(932

)

(1,195

)

(1,724

)

Less: Net income from continuing operations attributable to redeemable noncontrolling interests

(47

)

(64

)

Net income attributable to NGL Energy Partners LP

29,284

2,454

98,206

12,137

Interest expense

64,687

77,391

130,212

147,129

Income tax (benefit) expense

(45

)

278

(227

)

(4,518

)

Depreciation and amortization

63,222

61,546

129,048

123,395

EBITDA

157,148

141,669

357,239

278,143

Net unrealized (gains) losses on derivatives

(317

)

5,632

(7,857

)

23,588

Lower of cost or net realizable value adjustments (1)

2,519

(901

)

(425

)

(1,231

)

Loss (gain) on disposal or impairment of assets, net (2)

6,595

1,515

(40,984

)

(9,151

)

Gain on early extinguishment of liabilities, net

—

(1,492

)

—

Other (3)

1,436

(645

)

5,867

263

Adjusted EBITDA

167,381

147,270

312,348

291,612

Adjusted EBITDA - Discontinued Operations (4)

(2,144

)

1,043

3,578

Adjusted EBITDA - Continuing Operations

167,333

149,414

311,305

288,034

Less: Cash interest expense (5)

61,876

68,267

123,667

135,485

Less: Income tax benefit

(61

)

174

(243

)

(4,625

)

Less: Maintenance capital expenditures

11,523

16,572

22,622

39,376

Less: Preferred unit distributions paid

26,153

27,513

57,689

245,604

Less: Other (6)

3,336

—

4,628

Distributable Cash Flow

64,506

36,888

102,942

(127,871

)

(1)

(2)

(3)

(4)

(5)

(6)

ADJUSTED EBITDA RECONCILIATION BY SEGMENT

(unaudited)

Three Months Ended September 30, 2025

Water

Solutions

Crude Oil

Logistics

Liquids

Logistics

Corporate

and Other

Continuing Operations

Discontinued Operations

Consolidated

(in thousands)

Operating income (loss)

92,354

8,224

6,346

(12,673

)

94,251

—

94,251

Depreciation and amortization

55,550

6,063

1,540

841

63,994

—

63,994

Net unrealized (gains) losses on derivatives

(1,760

)

(312

)

1,755

—

(317

)

—

(317

)

Lower of cost or net realizable value adjustments

—

2,519

—

2,519

—

2,519

Loss (gain) on disposal or impairment of assets, net

5,760

832

)

6,594

—

6,594

Other income (expense), net

—

(18

)

193

208

—

208

Adjusted EBITDA attributable to noncontrolling interests

(1,259

)

—

(98

)

(1,357

)

—

(1,357

)

Other

1,224

1,441

—

1,441

Discontinued operations

—

Adjusted EBITDA

151,902

16,553

10,521

(11,643

)

167,333

167,381

Three Months Ended September 30, 2024

Water

Solutions

Crude Oil

Logistics

Liquids

Logistics

Corporate

and Other

Continuing Operations

Discontinued Operations

Consolidated

(in thousands)

Operating income (loss)

72,829

14,840

2,629

(8,807

)

81,491

—

81,491

Depreciation and amortization

52,523

6,285

2,365

702

61,875

—

61,875

Amortization in cost of sales-product

—

Net unrealized losses (gains) on derivatives

388

(4,012

)

6,234

—

2,610

—

2,610

Lower of cost or net realizable value adjustments

—

540

—

612

—

612

Loss (gain) on disposal or impairment of assets, net

1,951

(442

)

—

1,509

—

1,509

Other income (expense), net

1,805

)

—

1,834

—

1,834

Adjusted EBITDA attributable to unconsolidated entities

1,649

—

(19

)

—

1,630

—

1,630

Adjusted EBITDA attributable to noncontrolling interests

(1,522

)

—

(34

)

(1,556

)

—

(1,556

)

Other

(761

)

(628

)

—

(628

)

Discontinued operations

—

(2,144

)

(2,144

)

Adjusted EBITDA

128,862

17,263

11,379

(8,090

)

149,414

(2,144

)

147,270

Six Months Ended September 30, 2025

Water

Solutions

Crude Oil

Logistics

Liquids

Logistics

Corporate

and Other

Continuing Operations

Discontinued Operations

Consolidated

(in thousands)

Operating income (loss)

177,301

8,896

30,078

(24,574

)

191,701

—

191,701

Depreciation and amortization

113,626

12,128

3,107

1,718

130,579

—

130,579

Net unrealized gains on derivatives

(5,274

)

(1,444

)

(1,124

)

—

(7,842

)

—

(7,842

)

Lower of cost or net realizable value adjustments

—

2,519

(2,944

)

—

(425

)

—

(425

)

Loss (gain) on disposal or impairment of assets, net

9,296

3,924

(15,823

)

(2,605

)

—

(2,605

)

Other (expense) income, net

(100

)

(346

)

(2,862

)

(3,307

)

—

(3,307

)

Adjusted EBITDA attributable to unconsolidated entities

221

—

225

—

225

Adjusted EBITDA attributable to noncontrolling interests

(2,744

)

—

(166

)

(2,910

)

—

(2,910

)

Other

2,445

112

440

2,892

5,889

—

5,889

Discontinued operations

—

1,043

Adjusted EBITDA

294,771

26,136

13,392

(22,994

)

311,305

1,043

312,348

Six Months Ended September 30, 2024

Water

Solutions

Crude Oil

Logistics

Liquids

Logistics

Corporate

and Other

Continuing Operations

Discontinued Operations

Consolidated

(in thousands)

Operating income (loss)

157,187

28,929

(1,793

)

(20,753

)

163,570

—

163,570

Depreciation and amortization

105,235

12,726

4,721

1,357

124,039

—

124,039

Amortization in cost of sales-product

—

Net unrealized (gains) losses on derivatives

(473

)

(5,992

)

13,987

—

7,522

—

7,522

Lower of cost or net realizable value adjustments

—

540

—

599

—

599

Gain on disposal or impairment of assets, net

(8,745

)

(412

)

—

(9,157

)

—

(9,157

)

Other income, net

1,911

1,998

—

1,998

Adjusted EBITDA attributable to unconsolidated entities

2,036

—

(35

)

—

2,001

—

2,001

Adjusted EBITDA attributable to noncontrolling interests

(2,836

)

—

(34

)

(2,870

)

—

(2,870

)

Other

150

106

120

(81

)

295

—

295

Discontinued operations

—

3,578

Adjusted EBITDA

254,465

35,898

17,115

(19,444

)

288,034

3,578

291,612

OPERATIONAL DATA

(Unaudited)

Three Months Ended

Six Months Ended

September 30,

2025

2024

2025

2024

(in thousands, except per day amounts)

Water Solutions:

Produced water processed (barrels per day)

Delaware Basin

2,442,972

2,349,333

2,427,382

2,255,861

Eagle Ford Basin

185,608

188,250

193,149

182,311

DJ Basin

174,824

143,947

167,064

135,867

Total

2,803,404

2,681,530

2,787,595

2,574,039

Recycled water (barrels per day)

140,936

92,301

189,917

98,334

Total (barrels per day)

2,944,340

2,773,831

2,977,512

2,672,373

Skim oil sold (barrels per day)

5,002

3,776

4,803

4,099

Crude Oil Logistics:

Crude oil sold (barrels)

3,173

2,868

5,597

6,042

Crude oil transported on owned pipelines (barrels)

6,633

5,807

11,623

11,520

Crude oil storage capacity - owned and leased (barrels) (1)

5,232

Crude oil inventory (barrels) (1)

712

450

Liquids Logistics:

Butane sold (gallons)

111,442

109,783

208,380

204,972

Propane sold (gallons)

37,305

108,589

104,080

221,093

Other products sold (gallons)

74,158

74,491

145,774

136,663

Natural gas liquids storage capacity - owned and leased (gallons) (1)

49,571

116,531

Butane inventory (gallons) (1)

54,976

81,441

Propane inventory (gallons) (1)

18,071

80,323

Other products inventory (gallons) (1)

4,849

5,254