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NGL Energy Partners LP Announces Second Quarter Fiscal 2026 Financial Results

NGL
  • NGL Energy Partners LP reported second quarter Fiscal 2026 income from continuing operations of $29.8 million, up from $7.5 million in the prior year period.
  • Adjusted EBITDA from continuing operations reached $167.3 million for the quarter, compared to $149.4 million in the second quarter of Fiscal 2025.
  • Water Solutions achieved record produced water disposal volumes of approximately 2.80 million barrels per day, a 4.5% increase year-over-year, with October volumes exceeding 3.0 million barrels per day.
  • Paid & physically disposed water volumes totaled 3.15 million barrels per day for the quarter, representing a 14% growth from the prior year period.
  • The company executed contracts for over 500,000 barrels per day of produced water disposal in the prior 60 days, resulting in additional growth capital.
  • NGL increased its consolidated Adjusted EBITDA guidance range for Fiscal 2026 to $650 million-$660 million from the previous $615 million-$625 million range.
  • Growth capital guidance was raised to $160 million from $60 million due to new contracts supported by 500,000 barrels per day of producer volume commitments.
  • Management expects Fiscal 2027 Adjusted EBITDA to exceed $700 million as new contract revenues realize primarily in that fiscal year.
  • Equity transactions included the redemption of 88,506 Class D preferred units (approximately 15% of original outstanding) and the repurchase of 4,416,425 common units at an average price of $4.57.
  • The partnership amended its Term Loan B agreement on September 18, 2025, to reduce the SOFR applicable margin range to 3.50%-3.25% from 3.75%-3.50%.
  • Total liquidity stood at approximately $359.1 million as of September 30, 2025, with $71.0 million in borrowings on the ABL Facility used to build butane inventory.
  • Water Solutions operating income increased by $19.5 million year-over-year, driven by higher disposal revenues & LEX II pipeline operations.
  • Crude Oil Logistics operating income decreased by $6.6 million due primarily to reduced gains on derivatives hedging physical products.
  • Liquids Logistics operating income increased by $3.7 million, aided by lower expenses from the sale of the Wholesale Propane business & lower derivative losses.
  • The company maintains compliance with all debt covenants & has no upcoming debt maturities.
  • A conference call to discuss results is scheduled for November 4, 2025, at 4:00 pm Central Time.