NGL Energy Partners (NGL) Q1 2025 earnings summary

Executive summary

• Strong Q1 and FY2024 performance across Water Solutions, Crude Oil Logistics, and Liquids Logistics, with Water Solutions leading growth and supported by long-term contracts and investment grade customers.

• Adjusted EBITDA for Q1 was $144.3 million, up 7% year-over-year, and FY2024 Adjusted EBITDA reached $610.1 million, a 10% increase in Water Solutions.

• All preferred unit distribution arrearages were paid by April 2024, making all classes current; common unit distributions remain suspended pending review.

• Major asset sales, including two ranches and saltwater disposal assets, generated over $69 million, supporting deleveraging and liquidity.

• Predictable, fee-based cash flows and significant infrastructure in the Delaware Basin underpin stable operations and future growth.

Financial highlights

• Q1 Adjusted EBITDA was $144.3 million, with Water Solutions contributing $125.6 million, and FY2024 Adjusted EBITDA was $610.1 million, with Water Solutions at $508.3 million.

• Crude Oil Logistics Adjusted EBITDA was $18.6 million in Q1 and $86.9 million in FY2024; Liquids Logistics was $11.5 million in Q1 and $69.9 million in FY2024.

• Net income for Q1 was $10.5 million, down 46% year-over-year; operating income rose to $75 million, driven by Water Solutions.

• Operating expenses in Water Solutions dropped to $0.14 per barrel from $0.25 per barrel year-over-year.

• Market capitalization as of August 2, 2024, was $1.54 billion; enterprise value was $4.67 billion.

Outlook and guidance

• Full-year EBITDA guidance reaffirmed at $665 million, with Water Solutions expected to contribute $550–$560 million.

• LEX II water pipeline project remains on schedule for October in-service, expected to boost MVC-related volumes to 40–45%.

• FY2025 capital expenditures expected to be $210 million, focused on expansion and maintenance.

• Board will evaluate reinstating common unit distributions based on leverage, liquidity, and business performance.

• Strategic asset positioning and backlog of growth opportunities in the Delaware Basin support future volume and cash flow growth.