NGL Energy Partners (NGL) Q3 2025 earnings summary

Executive summary

• Strategic shift underway to focus on water solutions and crude oil logistics, exiting biodiesel and selling most wholesale propane assets.

• Operates three segments: Water Solutions, Crude Oil Logistics, and Liquids Logistics, with Water Solutions as the largest contributor.

• Stable, fee-based cash flows are underpinned by long-term, fixed-fee contracts and minimum volume commitments, primarily with investment grade customers.

• Revenue for the quarter ended December 31, 2024 was $1.55 billion, down from $1.87 billion in the prior year quarter; net income attributable to NGL Energy Partners LP was $13.5 million, compared to $45.7 million a year ago.

• Recent asset sales and business exits aim to simplify operations, reduce working capital, and improve cash flow predictability.

Financial highlights

• Q3 Adjusted EBITDA was $147.7 million, down from $151.7 million in the prior year quarter.

• Water Solutions Adjusted EBITDA rose to $132.7 million from $121.3 million year-over-year.

• Crude Oil Logistics Adjusted EBITDA was $17.4 million, slightly up from $17.0 million year-over-year.

• Liquids Logistics Adjusted EBITDA dropped to $8.2 million from $26.3 million, mainly due to biodiesel wind-down.

• Net income for the quarter was $13.5 million, down from $45.7 million in the prior year quarter.

Outlook and guidance

• Full-year EBITDA guidance updated to $620 million, reflecting weakness in the Liquids segment.

• Long-term contracts and acreage dedications provide high predictability of cash flows and support future growth.

• Delaware Basin assets are positioned for continued volume and cash flow growth, with significant upside from new permits and customer activity.

• Capital expenditures for the fiscal year ending March 31, 2025 are expected to be approximately $210 million.

• The board will evaluate reinstatement of common unit distributions, considering leverage, liquidity, cash flows, debt maturities, and business performance.