NGL Energy Partners (NGL) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 Adjusted EBITDA was $147.3 million, mainly driven by Water Solutions, with all preferred unit arrearages paid and a $50 million unit repurchase program authorized.

• Revenue for Q2 FY2025 was $1.35 billion, down from $1.84 billion in Q2 FY2024, with net income of $3.4 million compared to $28.3 million last year.

• Strategic focus remains on asset sales, expanding water system capacity, and reducing leverage.

• Operates three main segments: Water Solutions, Crude Oil Logistics, and Liquids Logistics, with a focus on the Delaware Basin and a national footprint.

• Preferred unit distribution arrearages were fully paid in April 2024; common unit distributions remain suspended.

Financial highlights

• Water Solutions Adjusted EBITDA reached $182.9 million in Q2, with disposal volumes up 9% quarter-over-quarter.

• Crude Oil Logistics Adjusted EBITDA was $17.3 million, down from $30.7 million in FY'24 Q2.

• Liquids Logistics Adjusted EBITDA was $9.2 million in Q2 FY2025, compared to $17.1 million in FY'24 Q2.

• Q2 FY2025 revenue decreased 26% year-over-year; six-month revenue was $2.74 billion, down from $3.46 billion.

• Market capitalization as of November 7, 2024, was $1.49 billion, with an enterprise value of $4.68 billion.

Outlook and guidance

• Full-year EBITDA guidance revised to $640–$650 million due to warm weather and lower crude prices.

• Water Solutions segment expected to deliver $550–$560 million EBITDA for fiscal 2025.

• Total capital expenditure guidance remains at $210 million for the year.

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

• Actively contracting new water volumes across Delaware, DJ, and Eagle Ford basins for 2025 and beyond.