NGL Energy Partners LP (NYSE:NGL) (“NGL,” “we,” “us,” “our,” or
the “Partnership”) today reported its second quarter Fiscal 2025
financial results. Highlights include:
- Net income for the second quarter of Fiscal 2025 of $3.4
million, compared to net income of $28.3 million for the second
quarter of Fiscal 2024
- Adjusted EBITDA(1) for the second quarter of Fiscal 2025 of
$147.3 million, compared to $176.2 million for the second quarter
of Fiscal 2024
- On August 5, 2024, we amended the Term Loan B agreement to
reduce the SOFR margin from 4.50% to 3.75%.
Highlights for the period subsequent to September 30, 2024:
- On November 1, 2024, we commenced operations on our expanded
Lea County Express Pipeline system (LEX II).
- On November 11, 2024, we entered into an agreement to purchase
23,375,000 of our outstanding warrants for approximately $6.9
million. This transaction is expected to close on November 22,
2024.
“We continue to grow our disposed water volumes with the current
quarter volumes increasing by approximately 9% over the preceding
quarter. As indicated previously, our capital expenditures for the
year were front loaded with LEX II so the back half of the fiscal
year will generate a majority of our free cash flow. We are on
track for the first six months of the fiscal year but are lowering
our full year consolidated Adjusted EBITDA(2) guidance to a range
of $640 to $650 million, as a result of projected warmer weather,
lower crude oil prices and other Liquids Logistics results,” stated
Mike Krimbill. “We are seeing continued demand for new water
disposal capacity, and our conversations with producers to contract
additional volumes on Grand Mesa are going well. We continue to
work on additional non-core asset sales,” he added.
Quarterly Results of Operations
The following table summarizes the unaudited operating income
(loss) and Adjusted EBITDA(1) by reportable segment for the periods
indicated:
Quarter Ended
September 30, 2024
September 30, 2023
Operating Income
(Loss)
Adjusted EBITDA(1)
Operating Income
(Loss)
Adjusted EBITDA(1)
(in thousands)
Water Solutions
$
72,829
$
128,862
$
59,118
$
140,389
Crude Oil Logistics
14,840
17,263
14,778
30,713
Liquids Logistics
(1,133
)
9,235
23,577
17,086
Corporate and Other
(8,807
)
(8,090
)
(11,443
)
(11,974
)
Total
$
77,729
$
147,270
$
86,030
$
176,214
________________
(1) See the “Non-GAAP Financial Measures”
section of this release for the definition of Adjusted EBITDA (as
used herein) and a discussion of this non-GAAP financial
measure.
(2) Certain of the forward-looking
financial measures are provided on a non-GAAP basis. A
reconciliation of forward-looking financial measures to the most
directly comparable financial measures calculated and presented in
accordance with GAAP is potentially misleading and not practical
given the difficulty of projecting event driven transactional and
other non-core operating items in any future period. The magnitude
of these items, however, may be significant.
Water Solutions
Operating income for the Water Solutions segment increased by
$13.7 million for the quarter ended September 30, 2024, compared to
the quarter ended September 30, 2023. The increase was due
primarily to lower losses on the disposal or impairment of assets
of $2.0 million in the current period compared to $23.6 million in
the prior year period. Also contributing to the increase was an
increase in net gains from derivatives. These increases were
partially offset by lower disposal revenues due to the timing and
recognition of payments made by certain producers for committed
volumes not delivered and the prior year period including the
acceleration of revenue from the termination of a water disposal
contract with a minimum volume commitment. Excluding these items,
disposal revenues increased due to an increase in produced water
volumes processed on our system. The Partnership processed
approximately 2.68 million barrels of produced water per day during
the quarter ended September 30, 2024, a 9.8% increase when compared
to approximately 2.44 million barrels of water per day processed
during the quarter ended September 30, 2023.
Revenues from recovered skim oil, including the impact from
realized skim oil hedges, totaled $27.4 million for the quarter
ended September 30, 2024, a decrease of $3.7 million from the prior
year period. The decrease was due primarily to a decrease in skim
oil barrels sold as a result of lower skim oil recovered as certain
producers recycled their water for use in their operations, lower
realized crude oil prices received from the sale of skim oil
barrels and the sale during the prior year quarter of approximately
53,000 barrels of skim oil that were stored at June 30, 2023 due to
tighter pipeline specifications.
Operating expenses in the Water Solutions segment decreased $0.3
million for the quarter ended September 30, 2024, compared to the
quarter ended September 30, 2023 due primarily to lower chemical
expense due to purchasing fewer chemicals and using chemicals more
efficiently, as well as lower repairs and maintenance expense due
to the timing of repairs and tank cleaning. These decreases were
partially offset by higher business insurance expense for
remediation costs incurred, higher utilities expense due to
increased produced water volumes processed and lower severance
taxes in the prior year quarter as a result of a severance tax
refund received in September 2023 that related to prior periods.
Operating expense per produced barrel processed was $0.22 for the
quarter ended September 30, 2024, compared to $0.24 in the
comparative quarter last year.
Crude Oil Logistics
Operating income for the Crude Oil Logistics segment increased
by $0.1 million for the quarter ended September 30, 2024, compared
to the quarter ended September 30, 2023. The increase was due to
net gains on derivative contracts of $4.4 million in the current
period compared to net losses of $15.4 million in the prior year
period. This was offset by lower margins due to reduced sales
volumes as a result of lower production on acreage dedicated to us
in the DJ Basin. In addition, margin per barrel decreased due to
the selling higher priced inventory into a market in which prices
were declining. During the quarter ended September 30, 2024,
physical volumes on the Grand Mesa Pipeline averaged approximately
63,000 barrels per day, compared to approximately 70,000 barrels
per day for the quarter ended September 30, 2023.
Liquids Logistics
Operating income for the Liquids Logistics segment decreased by
$24.7 million for the quarter ended September 30, 2024, compared to
the quarter ended September 30, 2023, primarily due to lower
margins. Butane margins declined primarily due to an increase in
derivative losses and the prior year period benefiting from a lower
of cost or realizable value adjustment. Margins for propane
declined due to lower contracted volumes due to reduced retail
customer demand as a result of warmer weather, which was offset by
an increase in derivative gains. Margins for refined products
declined due to lower customer demand and aggressive pricing by
some competitors in certain markets. Margins for other products
declined primarily due to selling higher priced biodiesel inventory
into a market in which prices were declining and lower derivative
gains. In addition, a net gain of $6.9 million related to the sale
of two propane terminals was realized in the prior year period.
Corporate and Other
The operating loss for Corporate and Other was lower by $2.6
million for the quarter ended September 30, 2024, compared to the
quarter ended September 30, 2023. General and administrative
expenses decreased due to lower legal expenses as several large
cases ended and the reimbursement of legal expenses relating to a
dispute associated with commercial activities in prior periods and
a decrease in business insurance. The results for the prior period
included gains from derivatives of $3.4 million as we had entered
into economic hedges to protect our liquidity positions and
leverage from a significant increase in commodity prices.
Capitalization and Liquidity
Total liquidity (cash plus available capacity on our asset-based
revolving credit facility (“ABL Facility”)) was approximately
$251.1 million as of September 30, 2024. Borrowings on the
Partnership’s ABL Facility totaled approximately $274.0 million as
of September 30, 2024, as we funded certain capital projects and
began to build inventory for the blending and heating seasons.
The Partnership is in compliance with all of its debt covenants
and has no upcoming debt maturities.
Second Quarter Conference Call Information
A conference call to discuss NGL’s results of operations is
scheduled for 4:00 pm Central Time on Tuesday, November 12, 2024.
Analysts, investors, and other interested parties may join the
webcast via the event link:
https://www.webcaster4.com/Webcast/Page/2808/51470 or by dialing
(877) 545-0523 and providing conference code: 395492. An archived
audio replay of the call will be available for 14 days, which can
be accessed by dialing (877) 481-4010 and providing replay passcode
51470.
Non-GAAP Financial Measures
We define EBITDA as net income (loss) attributable to NGL Energy
Partners LP, plus interest expense, income tax expense (benefit),
and depreciation and amortization expense. We define Adjusted
EBITDA as EBITDA excluding net unrealized gains and losses on
derivatives, lower of cost or net realizable value adjustments,
gains and losses on disposal or impairment of assets, gains and
losses on early extinguishment of liabilities, equity-based
compensation expense, revaluation of liabilities and other. EBITDA
and Adjusted EBITDA should not be considered as alternatives to net
income, income before income taxes, cash flows from operating
activities, or any other measure of financial performance
calculated in accordance with GAAP, as those items are used to
measure operating performance, liquidity or the ability to service
debt obligations. We believe that EBITDA provides additional
information to investors for evaluating our ability to make
quarterly distributions to our unitholders and is presented solely
as a supplemental measure. We believe that Adjusted EBITDA provides
additional information to investors for evaluating our financial
performance without regard to our financing methods, capital
structure and historical cost basis. Further, EBITDA and Adjusted
EBITDA, as we define them, may not be comparable to EBITDA,
Adjusted EBITDA, or similarly titled measures used by other
entities.
For purposes of our Adjusted EBITDA calculation, we make a
distinction between realized and unrealized gains and losses on
derivatives. During the period when a derivative contract is open,
we record changes in the fair value of the derivative as an
unrealized gain or loss. When a derivative contract matures or is
settled, we reverse the previously recorded unrealized gain or loss
and record a realized gain or loss. In our Crude Oil Logistics
segment, we purchase certain crude oil barrels using the West Texas
Intermediate (“WTI”) calendar month average (“CMA”) price and sell
the crude oil barrels using the WTI CMA price plus the Argus CMA
Differential Roll Component (“CMA Differential Roll”) per our
contracts. To eliminate the volatility of the CMA Differential
Roll, we entered into derivative instrument positions in January
2021 to secure a margin of approximately $0.20 per barrel on 1.5
million barrels per month from May 2021 through December 2023. Due
to the nature of these positions, the cash flow and earnings
recognized on a GAAP basis differed from period to period depending
on the current crude oil price and future estimated crude oil price
which were valued utilizing third-party market quoted prices. We
recognized in Adjusted EBITDA the gains and losses from the
derivative instrument positions entered into in January 2021 to
properly align with the physical margin we hedged each month
through the term of this transaction. This representation aligns
with management’s evaluation of the transaction. The derivative
instrument positions we entered into related to the CMA
Differential Roll expired as of December 31, 2023, and we have not
entered into any new derivative instrument positions related to the
CMA Differential Roll.
As previously reported, for purposes of our Adjusted EBITDA
calculation, we did not draw a distinction between realized and
unrealized gains and losses on derivatives of certain businesses
within our Liquids Logistics segment. The primary hedging strategy
of these businesses is to hedge against the risk of declines in the
value of inventory over the course of the contract cycle, and many
of the hedges cover extended periods of time. The “inventory
valuation adjustment” row in the reconciliation table reflects the
difference between the market value of the inventory of these
businesses at the balance sheet date and its cost. We include this
in Adjusted EBITDA because the unrealized gains and losses for
derivative contracts associated with the inventory of this segment,
which are intended primarily to hedge inventory holding risk and
are included in net income, also affect Adjusted EBITDA. Beginning
April 1, 2024, and going forward, we will now be drawing a
distinction between realized and unrealized gains and losses on
derivatives and will no longer include the activity on the
“inventory valuation adjustment” row in the reconciliation table
for these certain businesses within our Liquids Logistics segment.
This change aligns with how management now views and evaluates the
transactions within these businesses and is also consistent with
the calculation of Adjusted EBITDA used in our other businesses. If
this change was made as of April 1, 2023, Adjusted EBITDA for the
three months and six months ended September 30, 2023 would have
been $175.8 million and $311.8 million, respectively.
Distributable Cash Flow is defined as Adjusted EBITDA minus
maintenance capital expenditures, income tax expense, cash interest
expense, preferred unit distributions paid and other. Maintenance
capital expenditures represent capital expenditures necessary to
maintain the Partnership’s operating capacity. For the CMA
Differential Roll transaction, as discussed above, we have included
an adjustment to Distributable Cash Flow to reflect, in the period
for which they relate, the actual cash flows for the positions that
settled that are not being recognized in Adjusted EBITDA.
Distributable Cash Flow is a performance metric used by senior
management to compare cash flows generated by the Partnership
(excluding growth capital expenditures and prior to the
establishment of any retained cash reserves by the board of
directors of our general partner) to the cash distributions
expected to be paid to unitholders. Using this metric, management
can quickly compute the coverage ratio of estimated cash flows to
planned cash distributions. This financial measure also is
important to investors as an indicator of whether the Partnership
is generating cash flow at a level that can sustain, or support an
increase in, quarterly distribution rates. Actual distribution
amounts are set by the board of directors of our general
partner.
We do not provide a reconciliation for non-GAAP estimates on a
forward-looking basis where we are unable to provide a meaningful
calculation or estimation of reconciling items and the information
is not available without unreasonable effort. This is due to the
inherent difficulty of forecasting the timing or amount of various
items that would impact the most directly comparable
forward-looking U.S. GAAP financial measure that have not yet
occurred, are out of the Partnership’s control and/or cannot be
reasonably predicted. Forward-looking non-GAAP financial measures
provided without the most directly comparable U.S. GAAP financial
measures may vary materially from the corresponding U.S. GAAP
financial measures.
Forward-Looking Statements
This press release includes “forward-looking statements.” All
statements other than statements of historical facts included or
incorporated herein may constitute forward-looking statements.
Actual results could vary significantly from those expressed or
implied in such statements and are subject to a number of risks and
uncertainties. While NGL believes such forward-looking statements
are reasonable, NGL cannot assure they will prove to be correct.
The forward-looking statements involve risks and uncertainties that
affect operations, financial performance, and other factors as
discussed in filings with the Securities and Exchange Commission.
Other factors that could impact any forward-looking statements are
those risks described in NGL’s Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q, and other public filings. You are
urged to carefully review and consider the cautionary statements
and other disclosures made in those filings, specifically those
under the heading “Risk Factors.” NGL undertakes no obligation to
publicly update or revise any forward-looking statements except as
required by law.
NGL provides Adjusted EBITDA guidance that does not include
certain charges and costs, which in future periods are generally
expected to be similar to the kinds of charges and costs excluded
from Adjusted EBITDA in prior periods, such as income taxes,
interest and other non-operating items, depreciation and
amortization, net unrealized gains and losses on derivatives, lower
of cost or net realizable value adjustments, gains and losses on
disposal or impairment of assets, gains and losses on early
extinguishment of liabilities, equity-based compensation expense,
acquisition expense, revaluation of liabilities and items that are
unusual in nature or infrequently occurring. The exclusion of these
charges and costs in future periods will have a significant impact
on the Partnership’s Adjusted EBITDA, and the Partnership is not
able to provide a reconciliation of its Adjusted EBITDA guidance to
net income (loss) without unreasonable efforts due to the
uncertainty and variability of the nature and amount of these
future charges and costs and the Partnership believes that such
reconciliation, if possible, would imply a degree of precision that
would be potentially confusing or misleading to investors.
About NGL Energy Partners LP
NGL Energy Partners LP, a Delaware master limited partnership,
is a diversified midstream energy partnership that transports,
treats, recycles and disposes of produced and flowback water
generated as part of the energy production process as well as
transports, stores, markets and provides other logistics services
for crude oil and liquid hydrocarbons.
For further information, visit the Partnership’s website at
www.nglenergypartners.com.
NGL ENERGY PARTNERS LP AND
SUBSIDIARIES
Unaudited Condensed
Consolidated Balance Sheets
(in Thousands, except unit
amounts)
September 30, 2024
March 31, 2024
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
4,495
$
38,909
Accounts receivable-trade, net of
allowance for expected credit losses of $2,932 and $1,671,
respectively
727,520
814,087
Accounts receivable-affiliates
1,569
1,501
Inventories
193,886
130,907
Prepaid expenses and other current
assets
75,990
126,933
Assets held for sale
—
66,597
Total current assets
1,003,460
1,178,934
PROPERTY, PLANT AND EQUIPMENT, net of
accumulated depreciation of $1,098,141 and $1,011,274,
respectively
2,165,779
2,096,702
GOODWILL
634,282
634,282
INTANGIBLE ASSETS, net of accumulated
amortization of $343,925 and $332,560, respectively
915,869
939,978
INVESTMENTS IN UNCONSOLIDATED ENTITIES
20,137
20,305
OPERATING LEASE RIGHT-OF-USE ASSETS
97,756
97,155
OTHER NONCURRENT ASSETS
52,896
52,738
Total assets
$
4,890,179
$
5,020,094
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable-trade
$
594,547
$
707,536
Accounts payable-affiliates
72
37
Accrued expenses and other payables
173,683
213,757
Advance payments received from
customers
25,158
17,313
Current maturities of long-term debt
7,865
7,000
Operating lease obligations
27,660
31,090
Liabilities held for sale
—
614
Total current liabilities
828,985
977,347
LONG-TERM DEBT, net of debt issuance costs
of $46,997 and $49,178, respectively, and current maturities
3,121,794
2,843,822
OPERATING LEASE OBLIGATIONS
74,118
70,573
OTHER NONCURRENT LIABILITIES
128,671
129,185
CLASS D 9.00% PREFERRED UNITS, 600,000 and
600,000 preferred units issued and outstanding, respectively
551,097
551,097
REDEEMABLE NONCONTROLLING INTEREST
179
—
EQUITY:
General partner, representing a 0.1%
interest, 132,145 and 132,645 notional units, respectively
(52,881
)
(52,834
)
Limited partners, representing a 99.9%
interest, 132,012,766 and 132,512,766 common units issued and
outstanding, respectively
(131,712
)
134,807
Class B preferred limited partners,
12,585,642 and 12,585,642 preferred units issued and outstanding,
respectively
305,468
305,468
Class C preferred limited partners,
1,800,000 and 1,800,000 preferred units issued and outstanding,
respectively
42,891
42,891
Accumulated other comprehensive loss
(99
)
(499
)
Noncontrolling interests
21,668
18,237
Total equity
185,335
448,070
Total liabilities and equity
$
4,890,179
$
5,020,094
NGL ENERGY PARTNERS LP AND
SUBSIDIARIES
Unaudited Condensed
Consolidated Statements of Operations
(in Thousands, except unit and
per unit amounts)
Three Months Ended September
30,
Six Months Ended September
30,
2024
2023
2024
2023
REVENUES:
Water Solutions
$
181,867
$
197,244
$
363,277
$
378,546
Crude Oil Logistics
243,757
489,713
523,860
954,103
Liquids Logistics
926,977
1,154,139
1,852,723
2,124,551
Corporate and Other
74
—
74
—
Total Revenues
1,352,675
1,841,096
2,739,934
3,457,200
COST OF SALES:
Water Solutions
(567
)
7,424
433
9,993
Crude Oil Logistics
212,148
454,927
461,645
880,226
Liquids Logistics
909,614
1,119,478
1,832,325
2,066,725
Corporate and Other
—
(3,381
)
—
833
Total Cost of Sales
1,121,195
1,578,448
2,294,403
2,957,777
OPERATING COSTS AND EXPENSES:
Operating
78,132
77,389
150,665
154,070
General and administrative
12,179
17,496
27,193
37,787
Depreciation and amortization
61,931
65,526
124,150
134,505
Loss (gain) on disposal or impairment of
assets, net
1,509
16,207
(9,157
)
15,011
Operating Income
77,729
86,030
152,680
158,050
OTHER INCOME (EXPENSE):
Equity in earnings of unconsolidated
entities
1,522
851
1,822
942
Interest expense
(77,404
)
(58,627
)
(147,143
)
(118,149
)
Gain on early extinguishment of
liabilities, net
—
63
—
6,871
Other income, net
1,822
310
1,989
616
Income Before Income Taxes
3,669
28,627
9,348
48,330
INCOME TAX (EXPENSE) BENEFIT
(278
)
(342
)
4,518
(482
)
Net Income
3,391
28,285
13,866
47,848
LESS: NET INCOME ATTRIBUTABLE TO
NONREDEEMABLE NONCONTROLLING INTERESTS
(932
)
(257
)
(1,724
)
(519
)
LESS: NET INCOME ATTRIBUTABLE TO
REDEEMABLE NONCONTROLLING INTERESTS
(5
)
—
(5
)
—
NET INCOME ATTRIBUTABLE TO NGL ENERGY
PARTNERS LP
$
2,454
$
28,028
$
12,137
$
47,329
NET LOSS ALLOCATED TO COMMON
UNITHOLDERS
$
(28,270
)
$
(6,709
)
$
(47,382
)
$
(21,191
)
BASIC AND DILUTED LOSS PER COMMON UNIT
$
(0.21
)
$
(0.05
)
$
(0.36
)
$
(0.16
)
BASIC AND DILUTED WEIGHTED AVERAGE COMMON
UNITS OUTSTANDING
132,274,669
131,927,343
132,393,067
131,927,343
EBITDA, ADJUSTED EBITDA AND
DISTRIBUTABLE CASH FLOW RECONCILIATION
(Unaudited)
The following table reconciles NGL’s net
income to NGL’s EBITDA, Adjusted EBITDA and Distributable Cash Flow
for the periods indicated:
Three Months Ended September
30,
Six Months Ended September
30,
2024
2023
2024
2023
(in thousands)
Net income
$
3,391
$
28,285
$
13,866
$
47,848
Less: Net income attributable to
nonredeemable noncontrolling interests
(932
)
(257
)
(1,724
)
(519
)
Less: Net income attributable to
redeemable noncontrolling interests
(5
)
—
(5
)
—
Net income attributable to NGL Energy
Partners LP
2,454
28,028
12,137
47,329
Interest expense
77,391
58,642
147,129
118,178
Income tax expense (benefit)
278
342
(4,518
)
482
Depreciation and amortization
61,546
65,502
123,395
134,423
EBITDA
141,669
152,514
278,143
300,412
Net unrealized losses on derivatives
5,632
9,691
23,588
9,059
Lower of cost or net realizable value
adjustments
(901
)
1,080
(1,231
)
3,844
Loss (gain) on disposal or impairment of
assets, net
1,515
16,207
(9,151
)
15,011
CMA Differential Roll net losses (gains)
(1)
—
2,233
—
(6,904
)
Inventory valuation adjustment (2)
—
(6,436
)
—
(6,100
)
Gain on early extinguishment of
liabilities, net
—
(63
)
—
(6,871
)
Equity-based compensation expense
—
410
—
884
Other (3)
(645
)
578
263
1,534
Adjusted EBITDA
$
147,270
$
176,214
$
291,612
$
310,869
Less: Cash interest expense (4)
68,491
54,483
135,709
109,894
Less: Income tax expense (benefit)
278
342
(4,518
)
482
Less: Maintenance capital expenditures
16,572
16,358
39,376
32,885
Less: CMA Differential Roll (5)
—
(7,352
)
—
(18,047
)
Less: Preferred unit distributions
paid
27,513
—
245,604
—
Less: Other (6)
—
4
65
222
Distributable Cash Flow
$
34,416
$
112,379
$
(124,624
)
$
185,433
_______________
(1)
Adjustment to align, within Adjusted
EBITDA, the net gains and losses of the Partnership’s CMA
Differential Roll derivative instruments positions with the
physical margin being hedged. See “Non-GAAP Financial Measures”
section above for a further discussion.
(2)
Amount represents the difference between
the market value of the inventory at the balance sheet date and its
cost. See “Non-GAAP Financial Measures” section above for a further
discussion.
(3)
Amounts represent accretion expense for
asset retirement obligations and expenses incurred related to legal
and advisory costs associated with acquisitions and dispositions.
Also, amounts for the three months and six months ended September
30, 2023 included unrealized gains/losses on marketable
securities.
(4)
Amounts represent interest expense payable
in cash, excluding changes in the accrued interest balance.
(5)
Amounts represent the cash portion of the
adjustments of the Partnership’s CMA Differential Roll derivative
instrument positions, as discussed above, that settled during the
period.
(6)
Amounts represent cash paid to settle
asset retirement obligations.
ADJUSTED EBITDA RECONCILIATION BY
SEGMENT
(unaudited)
Three Months Ended September
30, 2024
Water Solutions
Crude Oil
Logistics
Liquids
Logistics
Corporate and
Other
Consolidated
(in thousands)
Operating income (loss)
$
72,829
$
14,840
$
(1,133
)
$
(8,807
)
$
77,729
Depreciation and amortization
52,523
6,285
2,421
702
61,931
Amortization recorded to cost of sales
—
—
102
—
102
Net unrealized losses (gains) on
derivatives
388
(4,012
)
9,256
—
5,632
Lower of cost or net realizable value
adjustments
—
540
(1,441
)
—
(901
)
Loss (gain) on disposal or impairment of
assets, net
1,951
(442
)
—
—
1,509
Other income (expense), net
1,805
(1
)
(12
)
30
1,822
Adjusted EBITDA attributable to
unconsolidated entities
1,649
—
(19
)
—
1,630
Adjusted EBITDA attributable to
noncontrolling interest
(1,522
)
—
—
(34
)
(1,556
)
Other
(761
)
53
61
19
(628
)
Adjusted EBITDA
$
128,862
$
17,263
$
9,235
$
(8,090
)
$
147,270
Three Months Ended September
30, 2023
Water Solutions
Crude Oil
Logistics
Liquids
Logistics
Corporate and
Other
Consolidated
(in thousands)
Operating income (loss)
$
59,118
$
14,778
$
23,577
$
(11,443
)
$
86,030
Depreciation and amortization
52,053
9,573
2,383
1,517
65,526
Amortization recorded to cost of sales
—
—
65
—
65
Net unrealized losses (gains) on
derivatives
4,471
4,554
3,230
(2,564
)
9,691
CMA Differential Roll net losses
(gains)
—
2,233
—
—
2,233
Inventory valuation adjustment
—
—
(6,436
)
—
(6,436
)
Lower of cost or net realizable value
adjustments
—
—
1,080
—
1,080
Loss (gain) on disposal or impairment of
assets, net
23,599
(467
)
(6,925
)
—
16,207
Equity-based compensation expense
—
—
—
410
410
Other income (expense), net
248
(1
)
14
49
310
Adjusted EBITDA attributable to
unconsolidated entities
1,032
—
(21
)
51
1,062
Adjusted EBITDA attributable to
noncontrolling interest
(542
)
—
—
—
(542
)
Other
410
43
119
6
578
Adjusted EBITDA
$
140,389
$
30,713
$
17,086
$
(11,974
)
$
176,214
Six Months Ended September 30,
2024
Water Solutions
Crude Oil
Logistics
Liquids
Logistics
Corporate and
Other
Consolidated
(in thousands)
Operating income (loss)
$
157,187
$
28,929
$
(12,683
)
$
(20,753
)
$
152,680
Depreciation and amortization
105,235
12,726
4,832
1,357
124,150
Amortization recorded to cost of sales
—
—
167
—
167
Net unrealized (gains) losses on
derivatives
(473
)
(5,992
)
30,053
—
23,588
Lower of cost or net realizable value
adjustments
—
540
(1,771
)
—
(1,231
)
Gain on disposal or impairment of assets,
net
(8,745
)
(412
)
—
—
(9,157
)
Other income, net
1,911
1
10
67
1,989
Adjusted EBITDA attributable to
unconsolidated entities
2,036
—
(35
)
—
2,001
Adjusted EBITDA attributable to
noncontrolling interest
(2,836
)
—
—
(34
)
(2,870
)
Other
150
106
120
(81
)
295
Adjusted EBITDA
$
254,465
$
35,898
$
20,693
$
(19,444
)
$
291,612
Six Months Ended September 30,
2023
Water Solutions
Crude Oil
Logistics
Liquids
Logistics
Corporate and
Other
Consolidated
(in thousands)
Operating income (loss)
$
128,449
$
31,785
$
31,408
$
(33,592
)
$
158,050
Depreciation and amortization
106,476
19,319
5,597
3,113
134,505
Amortization recorded to cost of sales
—
—
130
—
130
Net unrealized losses (gains) on
derivatives
4,471
9,689
(5,489
)
388
9,059
CMA Differential Roll net losses
(gains)
—
(6,904
)
—
—
(6,904
)
Inventory valuation adjustment
—
—
(6,100
)
—
(6,100
)
Lower of cost or net realizable value
adjustments
—
—
3,844
—
3,844
Loss (gain) on disposal or impairment of
assets, net
22,318
429
(7,736
)
—
15,011
Equity-based compensation expense
—
—
—
884
884
Other income, net
428
105
15
68
616
Adjusted EBITDA attributable to
unconsolidated entities
1,259
—
(26
)
95
1,328
Adjusted EBITDA attributable to
noncontrolling interest
(1,088
)
—
—
—
(1,088
)
Other
1,270
81
192
(9
)
1,534
Adjusted EBITDA
$
263,583
$
54,504
$
21,835
$
(29,053
)
$
310,869
OPERATIONAL DATA
(Unaudited)
Three Months Ended
Six Months Ended
September 30,
September 30,
2024
2023
2024
2023
(in thousands, except per day
amounts)
Water Solutions:
Produced water processed (barrels per
day)
Delaware Basin
2,349,333
2,156,733
2,255,861
2,154,906
Eagle Ford Basin
188,250
138,509
182,311
135,737
DJ Basin
143,947
146,124
135,867
157,745
Other Basins
—
—
—
1,481
Total
2,681,530
2,441,366
2,574,039
2,449,869
Recycled water (barrels per day)
92,301
35,341
98,334
67,213
Total (barrels per day)
2,773,831
2,476,707
2,672,373
2,517,082
Skim oil sold (barrels per day)
3,776
4,378
4,099
4,046
Crude Oil Logistics:
Crude oil sold (barrels)
2,868
5,636
6,042
11,643
Crude oil transported on owned pipelines
(barrels)
5,807
6,484
11,520
13,047
Crude oil storage capacity - owned and
leased (barrels) (1)
5,232
5,232
Crude oil inventory (barrels) (1)
450
660
Liquids Logistics:
Refined products sold (gallons)
206,915
209,919
406,864
430,006
Propane sold (gallons)
108,589
129,988
221,093
269,741
Butane sold (gallons)
109,783
108,085
204,972
186,574
Other products sold (gallons)
121,317
100,389
208,124
191,488
Natural gas liquids and refined products
storage capacity - owned and leased (gallons) (1)
124,141
157,589
Refined products inventory (gallons)
(1)
1,404
707
Propane inventory (gallons) (1)
80,323
115,491
Butane inventory (gallons) (1)
81,441
92,651
Other products inventory (gallons) (1)
12,813
18,012
_______________
(1)
Information is presented as of September
30, 2024 and September 30, 2023, respectively.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241112929360/en/
David Sullivan, 918-495-4631 Vice President - Finance
David.Sullivan@nglep.com
NGL Energy Partners (NYSE:NGL)
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De Oct 2024 à Nov 2024
NGL Energy Partners (NYSE:NGL)
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