NGL Energy Partners (NGL) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 ended with record Water Solutions performance, now 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 the year, 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.

• Water Solutions remains the primary growth engine, delivering strong volume and margin growth, underpinned by robust free cash flow and high reliability.

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

Financial highlights

• FY'26 Adjusted EBITDA was $661.3 million, up from $617.8 million in FY'25; Q4 Adjusted EBITDA was $176.4 million.

• Water Solutions contributed $602.7 million to FY'26 Adjusted EBITDA, with Q4 at $153 million.

• Disposal volumes averaged over 3 million barrels per day for the year, up 11% year-over-year.

• Operating expenses per barrel for Water Solutions declined to $0.18 in FY'26 and $0.22 in Q4.

• Full-year revenue was $2.40 billion, with distributable cash flow from continuing operations at $242.5 million.

Outlook and guidance

• Fiscal 2027 consolidated Adjusted EBITDA guidance is $715–$725 million, representing up to 10% year-over-year growth, driven by Water Solutions expansion.

• Guidance includes $200 million growth capital (mainly LEX2 expansion) and $45 million maintenance capital.

• LEX2 expansion capital will be spent within fiscal 2027, 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.

• Continued focus on expanding water infrastructure and optimizing capital allocation to support future volume growth.