NGL Energy Partners (NGL) Q4 2026 earnings summary

Executive summary

• Water Solutions achieved record growth, becoming the largest integrated water disposal system in the Delaware Basin, supported by long-term contracts and investment grade counterparties.

• Adjusted EBITDA from continuing operations reached $661.3 million for fiscal 2026, at the high end of guidance, with $176.4 million in Q4.

• The business is transitioning to a pure-play water company, monetizing non-core assets and reducing volatility.

• Crude Oil Logistics and Liquids Logistics segments provide stable cash flows through long-term contracts and transportation assets.

• Reported a full-year net loss from continuing operations of $178.5 million, mainly due to a $247.8 million goodwill impairment.

Financial highlights

• FY'26 Adjusted EBITDA was $661.3 million, up from $617.8 million in FY'25; Water Solutions contributed $602.7 million.

• Q4 Adjusted EBITDA was $176.4 million; Water Solutions Q4 produced water volumes reached 3.01 million barrels/day, up 10% year-over-year.

• Full-year revenue was $3.16 billion, with distributable cash flow from continuing operations at $242.5 million.

• Operating expenses per barrel in Water Solutions declined to $0.18 for the year and $0.22 in Q4.

• Net loss attributable to the partnership was $142.3 million for the year.

Outlook and guidance

• Fiscal 2027 consolidated Adjusted EBITDA guidance is $715–$725 million, up to 10% above fiscal 2026, driven by Water Solutions expansion.

• Growth capital guidance is $200 million (mainly for LEX2 expansion), with $45 million in maintenance capital.

• Guidance excludes new contracts and crude price benefits; LEX2 capital to be spent mostly in the first two to three quarters.

• Long-term, fixed-fee contracts and minimum volume commitments provide high predictability and reliability of cash flows.