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Business Wire
a day ago
- Business
- Business Wire
NGL Energy Partners LP Announces First 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 first quarter Fiscal 2026 financial results. Highlights include: Income from continuing operations for the first quarter of Fiscal 2026 of $30.3 million, compared to income from continuing operations of $17.6 million for the first quarter of Fiscal 2025 Adjusted EBITDA from continuing operations (1) for the first quarter of Fiscal 2026 of $144.0 million, compared to $138.6 million for the first quarter of Fiscal 2025 for the first quarter of Fiscal 2026 of $144.0 million, compared to $138.6 million for the first quarter of Fiscal 2025 Produced water volumes processed of approximately 2.77 million barrels per day during the first quarter of Fiscal 2026, growing 12.4% from the first quarter of Fiscal 2025 Asset sales for the first quarter of Fiscal 2026 included the sale of: 17 of our natural gas liquids terminals, the majority of our wholesale propane business ('Wholesale Propane Disposition') Our refined products Rack Marketing business Our ownership in Limestone Ranch in the Water Solutions segment Additional railcars in our Crude Oil Logistics segment We repurchased $19.0 million of our outstanding 2032 Senior Notes at a discount We repurchased 70,000 of our Class D preferred units during the quarter Under the board authorized repurchase plan, we have repurchased a total of 4,665,343 common units at an average price of $4.30 'We have had a strong start to Fiscal 2026 with $144.0 million in Adjusted EBITDA(1) in the first quarter, driven by the performance in our Water Solutions segment exceeding our expectations. If this strength in our results continues, we will reevaluate our full year guidance at the end of the second quarter.' stated Mike Krimbill NGL's CEO. 'Our focus remains on exceeding our Adjusted EBITDA guidance and the continued improvement of our capital structure,' Krimbill concluded. 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 June 30, 2025 June 30, 2024 Operating Income (Loss) Adjusted EBITDA(1) Operating Income (Loss) Adjusted EBITDA(1) (in thousands) Water Solutions $ 84,947 $ 142,869 $ 84,358 $ 125,603 Crude Oil Logistics 672 9,583 14,089 18,635 Liquids Logistics 23,732 2,871 (4,422 ) 5,736 Corporate and Other (11,901 ) (11,351 ) (11,946 ) (11,354 ) Total $ 97,450 $ 143,972 $ 82,079 $ 138,620 Expand (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. Expand Water Solutions Operating income for the Water Solutions segment increased by $0.6 million for the quarter ended June 30, 2025, compared to the quarter ended June 30, 2024. The increase was due primarily to higher disposal revenues due to an increase in produced water volumes processed from contracted customers. There was also higher water pipeline revenue due to the LEX II pipeline commencing operations during the quarter ended December 31, 2024. The Partnership processed approximately 2.77 million barrels of produced water per day during the quarter ended June 30, 2025, a 12.4% increase when compared to approximately 2.47 million barrels of water per day processed during the quarter ended June 30, 2024. Revenues from recovered skim oil, including the impact from realized skim oil hedges, totaled $24.8 million for the quarter ended June 30, 2025, a decrease of $5.9 million from the prior year period. The decrease was due primarily to lower realized crude oil prices received from the sale of skim oil barrels, partially offset by an increase in skim oil barrels sold due to more skim oil recovered from receiving more produced water. Operating expenses in the Water Solutions segment increased $2.5 million for the quarter ended June 30, 2025, compared to the quarter ended June 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 and higher utilities expense due to increased produced water volumes processed, partially offset by lower bad debt expense. Operating expense per produced barrel processed was $0.22 for the quarter ended June 30, 2025, compared to $0.24 in the comparative quarter last year. There was also a loss on the disposal or impairment of assets of $3.5 million for the quarter ended June 30, 2025, compared to a gain on the disposal or impairment of assets of $10.7 million in the prior year period. Crude Oil Logistics Operating income for the Crude Oil Logistics segment decreased by $13.4 million for the quarter ended June 30, 2025, compared to the quarter ended June 30, 2024. The decrease was due primarily to reduced sales volumes as a result of lower production on acreage dedicated to us in the DJ Basin and lower crude oil prices. During the quarter ended June 30, 2025, physical volumes on the Grand Mesa Pipeline averaged approximately 55,000 barrels per day, compared to approximately 63,000 barrels per day for the quarter ended June 30, 2024. Liquids Logistics Operating income for the Liquids Logistics segment increased by $28.2 million for the quarter ended June 30, 2025, compared to the quarter ended June 30, 2024. This increase was due primarily to lower expenses due to the Wholesale Propane Disposition, including a gain on the sale, which closed on April 30, 2025. In addition, we generated increased margins, excluding the impact of derivatives on butane product sales. Gains on derivatives that hedge physical product were $4.6 million during the current quarter, compared to a loss of $1.8 million for the prior year quarter. Capitalization and Liquidity Total liquidity (cash plus available capacity on our asset-based revolving credit facility ('ABL Facility')) was approximately $391.6 million as of June 30, 2025. Borrowings on the Partnership's ABL Facility totaled approximately $37.0 million as of June 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. First Quarter Conference Call Information A conference call to discuss NGL's results of operations is scheduled for 4:00 pm Central Time on Thursday, August 7, 2025. Analysts, investors, and other interested parties may join the webcast via the event link: or by dialing (877) 545-0523 and providing conference code: 368120. 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 52742. 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 NGL ENERGY PARTNERS LP AND SUBSIDIARIES Unaudited Condensed Consolidated Balance Sheets (in Thousands, except unit amounts) June 30, 2025 March 31, 2025 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 5,441 $ 5,649 Accounts receivable, net of allowance for expected credit losses of $1,270 and $3,689, respectively 469,991 579,468 Accounts receivable-affiliates 154 730 Inventories 81,479 69,916 Prepaid expenses and other current assets 27,916 63,651 Assets held for sale 310 175,207 Assets of discontinued operations 288 67,432 Total current assets 585,579 962,053 PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of $1,144,479 and $1,104,582, respectively 2,036,192 2,066,847 GOODWILL 599,348 599,348 INTANGIBLE ASSETS, net of accumulated amortization of $354,699 and $340,334, respectively 838,502 851,347 OPERATING LEASE RIGHT-OF-USE ASSETS 113,036 109,870 OTHER NONCURRENT ASSETS 15,599 19,975 Total assets $ 4,188,256 $ 4,609,440 LIABILITIES AND EQUITY CURRENT LIABILITIES: Accounts payable $ 312,804 $ 461,980 Accounts payable-affiliates 1 102 Accrued expenses and other payables 105,740 135,233 Advance payments received from customers 11,521 10,347 Current maturities of long-term debt 8,842 8,805 Operating lease obligations 29,193 27,911 Liabilities held for sale — 42,103 Liabilities of discontinued operations 644 52,749 Total current liabilities 468,745 739,230 LONG-TERM DEBT, net of debt issuance costs of $41,010 and $43,144, respectively, and current maturities 2,870,613 2,961,703 OPERATING LEASE OBLIGATIONS 88,445 85,240 OTHER NONCURRENT LIABILITIES 130,715 125,897 CLASS D 9.00% PREFERRED UNITS, 530,000 and 600,000 preferred units issued and outstanding, respectively 486,843 551,097 REDEEMABLE NONCONTROLLING INTERESTS 441 424 EQUITY: General partner, representing a 0.1% interest, 130,269 and 132,145 notional units, respectively (52,907 ) (52,913 ) Limited partners, representing a 99.9% interest, 130,138,928 and 132,012,766 common units issued and outstanding, respectively (173,027 ) (170,275 ) Class B preferred limited partners, 12,585,642 and 12,585,642 preferred units issued and outstanding, respectively 305,468 305,468 Class C preferred limited partners, 1,800,000 and 1,800,000 preferred units issued and outstanding, respectively 42,891 42,891 Accumulated other comprehensive income — 9 Noncontrolling interests 20,029 20,669 Total equity 142,454 145,849 Total liabilities and equity $ 4,188,256 $ 4,609,440 Expand NGL ENERGY PARTNERS LP AND SUBSIDIARIES Unaudited Condensed Consolidated Statements of Operations (in Thousands, except unit and per unit amounts) Three Months Ended June 30, 2025 2024 REVENUES: Product $ 436,418 $ 589,874 Service and other 185,738 169,360 Total Revenues 622,156 759,234 COST OF SALES: Product 370,210 520,156 Service and other 12,602 19,149 Total Cost of Sales 382,812 539,305 OPERATING COSTS AND EXPENSES: Operating 70,768 71,388 General and administrative 13,740 14,964 Depreciation and amortization 66,585 62,164 Gain on disposal or impairment of assets, net (9,199 ) (10,666 ) Operating Income 97,450 82,079 OTHER INCOME (EXPENSE): Equity in earnings of unconsolidated entities 201 300 Interest expense (65,545 ) (69,739 ) Gain on early extinguishment of liabilities, net 1,492 — Other (expense) income, net (3,515 ) 164 Income From Continuing Operations Before Income Taxes 30,083 12,804 INCOME TAX BENEFIT 182 4,799 Income From Continuing Operations 30,265 17,603 Income (Loss) From Discontinued Operations, net of Tax 39,379 (7,128 ) Net Income 69,644 10,475 LESS: NET INCOME FROM CONTINUING OPERATIONS ATTRIBUTABLE TO NONREDEEMABLE NONCONTROLLING INTERESTS (705 ) (792 ) LESS: NET INCOME FROM CONTINUING OPERATIONS ATTRIBUTABLE TO REDEEMABLE NONCONTROLLING INTERESTS (17 ) — NET INCOME ATTRIBUTABLE TO NGL ENERGY PARTNERS LP $ 68,922 $ 9,683 NET LOSS FROM CONTINUING OPERATIONS ALLOCATED TO COMMON UNITHOLDERS $ (34,024 ) $ (11,991 ) NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS ALLOCATED TO COMMON UNITHOLDERS 39,340 (7,121 ) NET INCOME (LOSS) ALLOCATED TO COMMON UNITHOLDERS $ 5,316 $ (19,112 ) BASIC AND DILUTED INCOME (LOSS) PER COMMON UNIT Loss From Continuing Operations $ (0.26 ) $ (0.09 ) Income (Loss) From Discontinued Operations, net of Tax $ 0.30 $ (0.05 ) Net Income (Loss) $ 0.04 $ (0.14 ) BASIC AND DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING 131,747,544 132,512,766 Expand 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 June 30, 2025 2024 (in thousands) Net income $ 69,644 $ 10,475 Less: Net income from continuing operations attributable to nonredeemable noncontrolling interests (705 ) (792 ) Less: Net income from continuing operations attributable to redeemable noncontrolling interests (17 ) — Net income attributable to NGL Energy Partners LP 68,922 9,683 Interest expense 65,525 69,738 Income tax benefit (182 ) (4,796 ) Depreciation and amortization 65,826 61,849 EBITDA 200,091 136,474 Net unrealized (gains) losses on derivatives (7,540 ) 17,956 Lower of cost or net realizable value adjustments (1) (2,944 ) (330 ) Gain on disposal or impairment of assets, net (2) (47,579 ) (10,666 ) Gain on early extinguishment of liabilities, net (1,492 ) — Other (3) 4,431 908 Adjusted EBITDA $ 144,967 $ 144,342 Adjusted EBITDA - Discontinued Operations (4) $ 995 $ 5,722 Adjusted EBITDA - Continuing Operations $ 143,972 $ 138,620 Less: Cash interest expense (5) 61,791 67,218 Less: Income tax benefit (182 ) (4,799 ) Less: Maintenance capital expenditures 11,099 22,804 Less: Preferred unit distributions paid 31,536 218,091 Less: Other (6) 1,292 65 Distributable Cash Flow $ 38,436 $ (164,759 ) Expand (1) Lower of cost or net realizable value adjustments in the table above differ from lower of cost or net realizable value adjustments reported in our unaudited condensed consolidated statements of cash flows in the Partnership's Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, as the amounts reported in the table above represent the change in lower of cost or net realizable value adjustments recorded in the unaudited condensed consolidated statements of operations, which includes reversals, whereas the amounts reported in our unaudited condensed consolidated statements of cash flows represent the lower of cost or net realizable value adjustments recorded at the balance sheet date. (2) Excludes amounts related to unconsolidated entities and noncontrolling interests. (3) Amounts represent accretion expense for asset retirement obligations, expenses incurred related to legal and advisory costs associated with acquisitions and dispositions, unrealized gains and losses on investments and marketable securities and a loss from a legal dispute. (4) Amounts include our refined products and biodiesel businesses. (5) Amounts represent interest expense payable in cash, excluding changes in the accrued interest balance. (6) Amounts represent cash paid to settle asset retirement obligations. Expand ADJUSTED EBITDA RECONCILIATION BY SEGMENT (unaudited) Three Months Ended June 30, 2025 Water Solutions Crude Oil Logistics Liquids Logistics Corporate and Other Continuing Operations Discontinued Operations Consolidated (in thousands) Operating income (loss) $ 84,947 $ 672 $ 23,732 $ (11,901 ) $ 97,450 $ — $ 97,450 Depreciation and amortization 58,076 6,065 1,567 877 66,585 — 66,585 Net unrealized gains on derivatives (3,514 ) (1,132 ) (2,879 ) — (7,525 ) — (7,525 ) Lower of cost or net realizable value adjustments — — (2,944 ) — (2,944 ) — (2,944 ) Loss (gain) on disposal or impairment of assets, net 3,536 3,921 (16,655 ) (1 ) (9,199 ) — (9,199 ) Other (expense) income, net (133 ) 1 (328 ) (3,055 ) (3,515 ) — (3,515 ) Adjusted EBITDA attributable to unconsolidated entities 221 — 4 — 225 — 225 Adjusted EBITDA attributable to noncontrolling interests (1,485 ) — — (68 ) (1,553 ) — (1,553 ) Other 1,221 56 374 2,797 4,448 — 4,448 Discontinued operations — — — — — 995 995 Adjusted EBITDA $ 142,869 $ 9,583 $ 2,871 $ (11,351 ) $ 143,972 $ 995 $ 144,967 Expand Three Months Ended June 30, 2024 Water Solutions Crude Oil Logistics Liquids Logistics Corporate and Other Continuing Operations Discontinued Operations Consolidated (in thousands) Operating income (loss) $ 84,358 $ 14,089 $ (4,422 ) $ (11,946 ) $ 82,079 $ — $ 82,079 Depreciation and amortization 52,712 6,441 2,356 655 62,164 — 62,164 Net unrealized (gains) losses on derivatives (861 ) (1,980 ) 7,753 — 4,912 — 4,912 Lower of cost or net realizable value adjustments — — (13 ) — (13 ) — (13 ) (Gain) loss on disposal or impairment of assets, net (10,696 ) 30 — — (10,666 ) — (10,666 ) Other income, net 106 2 19 37 164 — 164 Adjusted EBITDA attributable to unconsolidated entities 387 — (16 ) — 371 — 371 Adjusted EBITDA attributable to noncontrolling interests (1,314 ) — — — (1,314 ) — (1,314 ) Other 911 53 59 (100 ) 923 — 923 Discontinued operations — — — — — 5,722 5,722 Adjusted EBITDA $ 125,603 $ 18,635 $ 5,736 $ (11,354 ) $ 138,620 $ 5,722 $ 144,342 Expand OPERATIONAL DATA (Unaudited) Three Months Ended June 30, 2025 2024 (in thousands, except per day amounts) Water Solutions: Produced water processed (barrels per day) Delaware Basin 2,411,622 2,161,362 Eagle Ford Basin 200,773 176,306 DJ Basin 159,219 127,698 Total 2,771,614 2,465,366 Recycled water (barrels per day) 239,437 104,432 Total (barrels per day) 3,011,051 2,569,798 Skim oil sold (barrels per day) 4,603 4,425 Crude Oil Logistics: Crude oil sold (barrels) 2,424 3,174 Crude oil transported on owned pipelines (barrels) 4,990 5,713 Crude oil storage capacity - owned and leased (barrels) (1) 5,232 5,232 Crude oil inventory (barrels) (1) 391 524 Liquids Logistics: Butane sold (gallons) 96,938 95,189 Propane sold (gallons) 66,775 112,504 Other products sold (gallons) 71,616 62,171 Natural gas liquids storage capacity - owned and leased (gallons) (1) 52,721 122,831 Butane inventory (gallons) (1) 40,177 52,667 Propane inventory (gallons) (1) 13,283 55,676 Other products inventory (gallons) (1) 6,017 4,576 Expand (1) Information is presented as of June 30, 2025 and June 30, 2024, respectively. Expand
Business Wire
31-07-2025
- Business
- Business Wire
NGL Energy Partners LP Announces Availability of its 2024 Schedule K-3s
TULSA, Okla.--(BUSINESS WIRE)--NGL Energy Partners LP (NYSE:NGL) ('NGL,' or the 'Partnership') announced today that its 2024 Schedule K-3s reflecting items of international tax relevance are available online. Unitholders requiring this information may access their Schedule K-3 at A limited number of unitholders (primarily foreign unitholders, unitholders computing a foreign tax credit on their tax return and certain corporate and/or partnership unitholders) may need the detailed information disclosed on Schedule K-3 for their specific reporting requirements. To the extent Schedule K-3 is applicable to your federal income tax return filing needs, we encourage you to review the information contained on this form and refer to the appropriate federal laws and guidance or consult with your tax advisor. NGL Energy Partners, LP does not plan to mail Schedule K-3s to investors. To receive an electronic copy of your Schedule K-3 via email, unitholders may call Tax Package Support toll free at (877) 222-3208.
Yahoo
06-06-2025
- Business
- Yahoo
NGL Energy Partners (NGL): Among the Energy Stocks that Gained This Week
The share price of NGL Energy Partners LP (NYSE:NGL) surged by 12.73% between May 29 and June 5, 2025, putting it among the Energy Stocks that Gained the Most This Week. Let's shed some light on the development. A pipeline stretching through a desert valley, a symbol of the companies transportation infrastructure. NGL Energy Partners LP (NYSE:NGL) is a diversified midstream MLP that provides multiple services to producers and end-users, including transportation, storage, blending, and marketing of crude oil, NGLs, refined products/renewables, and water solutions. NGL Energy Partners LP (NYSE:NGL) received a boost after posting strong results for its Q4 2025 last week, highlighting strong performance in its Water Solutions segment and successful asset sales that have led to significant debt reduction. The company reported an income from continuing operations of $65 million for FY 2025, compared to a loss from continuing operations of $157.7 million the previous year. NGL's adjusted EBITDA for FY 2025 came in at $622.9 million, surpassing its previous guidance of $620 million. NGL Energy Partners LP (NYSE:NGL) recently executed the sale of 18 natural gas liquids terminals and monetized several other non-core assets, helping the company optimize its asset portfolio and strengthen its balance sheet. While we acknowledge the potential of NGL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 10 Cheap Energy Stocks to Buy Now and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-06-2025
- Business
- Yahoo
NGL Energy Partners (NGL): Among the Energy Stocks that Gained This Week
The share price of NGL Energy Partners LP (NYSE:NGL) surged by 12.73% between May 29 and June 5, 2025, putting it among the Energy Stocks that Gained the Most This Week. Let's shed some light on the development. A pipeline stretching through a desert valley, a symbol of the companies transportation infrastructure. NGL Energy Partners LP (NYSE:NGL) is a diversified midstream MLP that provides multiple services to producers and end-users, including transportation, storage, blending, and marketing of crude oil, NGLs, refined products/renewables, and water solutions. NGL Energy Partners LP (NYSE:NGL) received a boost after posting strong results for its Q4 2025 last week, highlighting strong performance in its Water Solutions segment and successful asset sales that have led to significant debt reduction. The company reported an income from continuing operations of $65 million for FY 2025, compared to a loss from continuing operations of $157.7 million the previous year. NGL's adjusted EBITDA for FY 2025 came in at $622.9 million, surpassing its previous guidance of $620 million. NGL Energy Partners LP (NYSE:NGL) recently executed the sale of 18 natural gas liquids terminals and monetized several other non-core assets, helping the company optimize its asset portfolio and strengthen its balance sheet. While we acknowledge the potential of NGL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 10 Cheap Energy Stocks to Buy Now and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-05-2025
- Business
- Yahoo
NGL Energy Partners LP (NGL) Q4 2025 Earnings Call Highlights: Strong Water Solutions Drive 20% ...
Consolidated Adjusted EBITDA (Q4): $176.8 million, up 20% from $147.9 million in the prior year fourth quarter. Full Year Adjusted EBITDA: $622.9 million, exceeding previous guidance of $620 million. Water Solutions Adjusted EBITDA (Q4): $154.9 million, up from $123.4 million in the prior year fourth quarter. Water Disposal Volumes (Q4): 2.73 million barrels per day, up from 2.39 million barrels per day in the prior year fourth quarter. Operating Cost per Barrel (Fiscal 2025): $0.22, down from $0.24 per barrel in fiscal 2024. Crude Oil Logistics Adjusted EBITDA (Q4): $13.1 million, down from $15.3 million in the prior year fourth quarter. Grand Mesa Pipeline Volumes (Q4): 56,000 barrels per day, down from 67,000 barrels per day in the prior year fourth quarter. Liquid's Logistics Adjusted EBITDA (Q4): $17.7 million, down from $22.2 million in the prior year fourth quarter. Fiscal 2026 EBITDA Guidance: $615 to $625 million. Total Capital Expenditures (Fiscal 2026): $105 million, with $60 million allocated to growth projects in the water solution segment. Warning! GuruFocus has detected 3 Warning Signs with NGL. Release Date: May 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. NGL Energy Partners LP (NYSE:NGL) successfully executed non-core asset sales, including natural gas liquids terminals and other businesses, generating proceeds at a double-digit multiple. The company reduced its working capital needs by eliminating $75 million on average, and over $100 million at peak, through asset sales and business wind-downs. NGL Energy Partners LP (NYSE:NGL) achieved a 20% increase in consolidated adjusted EBITDA for the fourth quarter, driven by strong performance in the water solutions segment. The water solutions business segment reported record water disposal volumes and adjusted EBITDA, with disposal volumes up 11% year-over-year. The company has made significant progress in reducing leverage by paying off outstanding indebtedness and purchasing Class D preferred units at a discount. Crude oil logistics adjusted EBITDA decreased due to lower volumes on the Grand Mesa pipeline, impacting overall financial performance. Liquid's logistics segment experienced a decline in adjusted EBITDA, with butane margins affected by a weak gasoline blending season. The company faces potential challenges from oil price uncertainty and its impact on water solutions segment activity levels. NGL Energy Partners LP (NYSE:NGL) anticipates a $20 million decline in skim oil revenues due to lower crude prices in fiscal 2026. The company is not planning to reinstate common unit distributions in the near term, focusing instead on reducing leverage and addressing Class D preferred units. Q: Could you offer more color on your expectations for the 2026 guidance, particularly regarding the water and logistics segments? A: The water guidance implies about $560 million within the $620 million midpoint. We accounted for a $20 million EBITDA pullback due to lower oil prices and less than $10 million from asset sales that won't contribute to future earnings. - Bradley Cooper, CFO Q: With new pipeline projects announced, do you see opportunities for growth beyond current projects in the water segment? A: We are focused on extending existing contracts and preparing for future growth opportunities with core customers. While new projects are announced, we are well-positioned with our current contracts and infrastructure. - Doug White, EVP Water Solutions Q: What impact will the new guidelines for Permian water disposal have on your business? A: The new guidelines focus on new permits. We have secured legacy permits that allow us to continue growth without being affected by the new regulations. - Doug White, EVP Water Solutions Q: How flexible is your capital spending if oil prices fluctuate? A: Our growth capital is already low at $60 million, and maintenance capital is predominantly for water. There is limited room to reduce it further. - H. Michael Krimbill, CEO Q: How do you view the potential reinstatement of common unit distributions? A: Near-term, we are focused on reducing Class D preferred units and leverage. We do not anticipate reinstating distributions in the next few quarters. - H. Michael Krimbill, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
