NGL Energy Partners (NGL) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 was transformational, marked by major refinancing, asset sales, and a focus on capital structure, including full payment of preferred unit distribution arrearages and authorization of a $50 million common unit repurchase program.

• NGL Energy Partners LP operates across water solutions, crude oil logistics, and liquids logistics, with Water Solutions becoming the largest, highest-quality water midstream asset, underpinned by long-term contracts and investment-grade customers.

• Reported a net loss of $143.1 million for fiscal 2024, compared to net income of $52.5 million in fiscal 2023, impacted by goodwill impairment, litigation, and refinancing costs.

Financial highlights

• Fiscal 2024 Adjusted EBITDA was $610.1 million, down from $632.7 million in fiscal 2023, with Water Solutions contributing $508.3 million, up 10% year-over-year.

• Crude Oil Logistics Adjusted EBITDA was $86.9 million, and Liquids Logistics Adjusted EBITDA was $70 million, both down year-over-year.

• Total revenues for fiscal 2024 were $6.96 billion, down from $8.69 billion in fiscal 2023.

• Closed over $280 million in asset sales, including $69.3 million from two ranches in New Mexico.

• Distributable cash flow for fiscal 2024 was $146.8 million, down from $339.3 million in fiscal 2023.

Outlook and guidance

• Fiscal 2025 consolidated Adjusted EBITDA guidance is $665 million, with Water Solutions expected to deliver $550–$560 million and drive 8%-10% growth.

• CapEx guidance for fiscal 2025 is $210 million, with 60% allocated to the LEX II project; excluding LEX II, capital spend is expected to decrease by about 40% versus last year.

• Pipeline expansion in Lea County is expected to complete in the second half of fiscal 2025, fully underwritten by a major contract.