NGL Energy Partners (NGL) Q4 2025 earnings summary

Executive summary

• Completed $270 million in non-core asset sales, including NGL terminals, rack marketing, Limestone Ranch, and most of the crude oil railcar fleet, streamlining operations and supporting capital structure improvements.

• Water Solutions segment contributed 82–85% of FY2025 Adjusted EBITDA, driven by record disposal volumes and supported by long-term contracts and investment-grade counterparties.

• Fiscal 2025 income from continuing operations was $65.0 million, reversing a $157.7 million loss in fiscal 2024; Q4 income was $16.2 million, up from a $234.3 million loss in Q4 2024.

• Fully wound down the biodiesel business and focused on core Water Solutions segment.

• Paid off all outstanding ABL indebtedness, began repurchasing Class D preferred units, and authorized a $50 million unit repurchase program.

Financial highlights

• FY2025 Adjusted EBITDA from continuing operations was $622.9 million, up from $593.4 million in 2024; Q4 Adjusted EBITDA was $176.8 million, up 20% year-over-year.

• Water Solutions segment generated $542.0 million in FY2025 EBITDA, a 6.6% increase year-over-year.

• Market capitalization as of May 27, 2025, was $1.33 billion, with an enterprise value of $4.28 billion.

• Total revenues for fiscal 2025 were $2.97 billion, down from $4.51 billion in 2024, reflecting asset sales and business mix changes.

• Net income attributable to the partnership was $39.4 million for fiscal 2025, compared to a $143.8 million loss in 2024.

Outlook and guidance

• Fiscal 2026 Adjusted EBITDA guidance is $615–$625 million; capital expenditures expected at $105 million, with $60 million allocated to Water Solutions growth projects.

• Water disposal volumes are ahead of internal expectations for the start of fiscal 2026.

• Guidance reflects a $20 million decline in skim oil revenues due to lower crude prices and a $10 million EBITDA reduction from asset sales.

• Management expects continued volume growth and capital efficiencies in Water Solutions, underpinned by long-term contracts.