NGL Energy Partners LP Announces Fourth Quarter and Full Year Fiscal 2026 Financial Results; Guidance for Fiscal 2027

May 28, 2026 04:33:00 pm

Source: Business Wire

NGL Energy Partners LP (NYSE:NGL) (“NGL,” “we,” “us,” “our,” or the “Partnership”) today reported its fourth quarter and full year fiscal 2026 results.

Highlights for the fiscal year and quarter ended March 31, 2026 include:

Loss from continuing operations for full year Fiscal 2026 of $178.5 million, compared to income from continuing operations of $65.0 million for full year Fiscal 2025; loss from continuing operations for the fourth quarter of Fiscal 2026 of $286.8 million including a loss from the impairment of goodwill, compared to income from continuing operations of $16.2 million for the fourth quarter of Fiscal 2025
Adjusted EBITDA from continuing operations ⁽¹⁾ for full year Fiscal 2026 of $660.2 million, compared to $622.9 million for full year Fiscal 2025; Adjusted EBITDA from continuing operations ⁽¹⁾ for the fourth quarter of Fiscal 2026 of $176.4 million, compared to $176.8 million for the fourth quarter of Fiscal 2025

Water Solutions:

Record produced water volumes physically disposed of approximately 3.01 million barrels per day during the fourth quarter of Fiscal 2026, growing 10.0% from the fourth quarter of Fiscal 2025 and 2.91 million barrels per day for the entire year of Fiscal 2026, an 11.0% increase over the prior year
Paid and physically disposed water volumes of 3.09 million barrels per day during the fourth quarter of Fiscal 2026, growing 3.4% from the paid and physically disposed water volumes during the fourth quarter of Fiscal 2025
Record Water Solutions’ Adjusted EBITDA ⁽¹⁾ of $602.7 million for full year Fiscal 2026, an 11.2% increase over the prior year

Debt Transactions:

On March 12, 2026, we closed a debt refinancing transaction of $950.0 million consisting of a new seven-year Term Loan B. The net proceeds from this transaction were used to fund the redemption of the existing Term Loan B, the redemption of a portion of the Class D Preferred Units and the repayment of borrowings under the asset-based revolving credit facility (“ABL Facility”).
On March 12, 2026, we amended the ABL Facility to (i) reduce our total commitments to $425.0 million, (ii) reduce our sub-limit for letters of credit to $100.0 million, (iii) reduce the applicable margin for alternate base rate loans to a range of 1.00% to 1.50% and (iv) reduce the applicable margin for secured overnight financing rate to a range of 2.00% to 2.50%.

Equity Transactions:

We repurchased an additional 196,005 Class D preferred units in the quarter for a total of 284,511 Class D preferred units repurchased, or approximately 47%, of the originally outstanding Class D preferred units.
Under the Board authorized common unit repurchase program, we have repurchased an additional 297,126 common units in the quarter for a total of 8,698,477 common units under the repurchase program at an average price of $5.72.
On April 8, 2026, the board of directors of our general partner authorized another common unit repurchase program, under which we may repurchase up to $100.0 million of our outstanding common units from time to time in the open market or in other privately negotiated transactions. This program does not have a fixed expiration date.

“The Partnership ended Fiscal 2026, with Adjusted EBITDA ⁽¹⁾ of $660.2 million, at the high end of our previous guidance of $650 - $660 million. Fiscal 2027 is off to a solid start and we have more opportunities to continue growing our water business as well as addressing our capital structure and strengthening our balance sheet,” stated Mike Krimbill, NGL’s CEO. “We are guiding Fiscal 2027 full year consolidated Adjusted EBITDA ⁽²⁾ to a range of $715 - $725 million, the high end of which is a 10% increase above our Fiscal 2026 predominantly driven by the strong momentum we have in our Water Solutions segment. Also we are guiding to $45 million in maintenance and $200 million of growth capital expenditures for Fiscal 2027,” Krimbill concluded.

_____________

⁽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.

Quarterly Results of Operations

The following table summarizes operating income (loss) and Adjusted EBITDA from continuing operations ⁽¹⁾ by reportable segment for the periods indicated:

	Quarter Ended
	March 31, 2026		March 31, 2025
	Operating Income (Loss)		Adjusted EBITDA ⁽¹⁾	Operating Income (Loss)		Adjusted EBITDA ⁽¹⁾
	(in thousands)
Water Solutions	$	59,876		$	153,459		$	88,891		$	154,870
Crude Oil Logistics		(247,427	)		17,447			7,148			13,121
Liquids Logistics		4,901			16,895			(4,991	)		17,690
Corporate and Other		(23,968	)		(11,431	)		(9,926	)		(8,851	)
Total	$	(206,618	)	$	176,370		$	81,122		$	176,830

Water Solutions

Operating income for the Water Solutions segment decreased by $29.0 million for the quarter ended March 31, 2026, compared to the quarter ended March 31, 2025. The decrease was due primarily to higher net unrealized losses on skim oil hedges of $26.3 million, compared to the prior year period, due to a significant increase in crude oil prices in March 2026 resulting from the supply disruption caused by the U.S./Iran conflict. There were higher disposal revenues due to an increase in produced water volumes processed from contracted customers and increased water pipeline revenue due to the LEX II pipeline commencing operations. The Partnership processed approximately 3.01 million barrels of water per day during the quarter ended March 31, 2026, a 10.0% increase when compared to approximately 2.73 million barrels of water per day processed during the quarter ended March 31, 2025.

Revenues from recovered skim oil, including the impact from realized skim oil hedges, totaled $35.8 million for the quarter ended March 31, 2026, a decrease of $0.9 million from the prior year period. The decrease was due primarily to higher net realized losses on skim oil hedges due to a significant increase in crude oil prices, as discussed above, partially offset by an increase in skim oil barrels sold due to more skim oil recovered from receiving more produced water and higher realized crude oil prices received from the sale of skim oil barrels.

Operating expenses in the Water Solutions segment increased $3.0 million for the quarter ended March 31, 2026, compared to the quarter ended March 31, 2025 due primarily to higher royalty expense due to volumes related to the LEX II pipeline commencing operations and increased volumes at certain other saltwater disposal wells and higher utilities expense due to increased produced water volumes processed, partially offset by lower chemical expense due to purchasing fewer chemicals and using chemicals more efficiently. Operating expense per produced barrel processed was $0.22 for the quarter ended March 31, 2026, compared to $0.23 in the comparative quarter last year.

There was also a loss on the disposal or impairment of assets of $5.1 million for the quarter ended March 31, 2026, compared to a loss on the disposal or impairment of assets of $8.0 million in the prior year period.

Crude Oil Logistics

Operating income for the Crude Oil Logistics segment decreased by $254.6 million for the quarter ended March 31, 2026, compared to the quarter ended March 31, 2025. Operating loss for the fourth quarter of Fiscal 2026 includes a goodwill impairment charge of $247.8 million, compared to a gain of $0.6 million in the same period of the prior year. We also recognized a net loss on derivatives of $17.0 million compared to a net loss on derivatives of $0.4 million in the prior year period. The derivative losses were due to increasing crude oil prices, as discussed in the Water Solutions section above. Crude oil transportation revenue also decreased primarily due to the expiration of certain transportation services contracts on third-party pipelines. These decreases were partially offset by an increase in sales volumes and an increase in the margin per barrel due to selling lower-priced inventory into a rising market. During the quarter ended March 31, 2026, physical volumes on the Grand Mesa Pipeline averaged approximately 78,000 barrels per day, compared to approximately 56,000 barrels per day for the quarter ended March 31, 2025 due to higher production on acreage dedicated to us in the DJ Basin.

Liquids Logistics

Operating income for the Liquids Logistics segment increased by $9.9 million for the quarter ended March 31, 2026, compared to the quarter ended March 31, 2025. Impairment losses were lower by approximately $23.2 million during the quarter ended March 31, 2026, compared to the same period in the prior year. Other expenses were lower by $2.7 million due to the sale of the majority of our wholesale propane business. These amounts were partially offset by an increase in unrealized losses on butane derivatives for the quarter ended March 31, 2026 of $17.0 million, which was driven by the increase in commodity prices resulting from the crude oil supply disruption, as discussed in the sections above.

Capitalization and Liquidity

Total liquidity (cash plus available capacity on our ABL Facility) was approximately $237.9 million as of March 31, 2026. Borrowings under the Partnership’s ABL Facility totaled approximately $135.0 million as of March 31, 2026, due to an increase in capital spending within our Water Solutions segment and higher commodity prices due to the U.S./Iran conflict.

The Partnership is in compliance with all of its debt covenants and has no upcoming debt maturities.

Fourth Quarter Conference Call Information

A conference call to discuss NGL’s results of operations is scheduled for 4:00 pm Central Time on Thursday, May 28, 2026. Analysts, investors, and other interested parties may join the webcast via the event link: https://www.webcaster5.com/Webcast/Page/2808/54031 or by dialing (888) 506-0062 and providing conference code: 941890. 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 54031.

NGL filed its Annual Report on Form 10-K for the year ended March 31, 2026 with the Securities and Exchange Commission after market on May 28, 2026. A copy of the Form 10-K can be found on the Partnership’s website at www.nglenergypartners.com . Unitholders may also request, free of charge, a hard copy of our Form 10-K and our complete audited financial statements.

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 (loss) income, (loss) income from continuing operations 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.

Distributable Cash Flow is defined as Adjusted EBITDA minus maintenance capital expenditures, income tax expense, cash interest expense, preferred unit distributions and other. Maintenance capital expenditures represent capital expenditures necessary to maintain the Partnership’s operating capacity. 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, operates the largest integrated produced water pipeline, disposal, and water handling network in the Delaware Basin, supported by long-term, fee-based producer contracts and continues to enhance its ability to transport produced water from the wellhead to treatment for disposal, recycle, or discharge through our expanding pipeline infrastructure and ongoing disposal capacity investments. While maintaining complementary crude oil and natural gas liquids logistics operations, capital allocation and strategic focus are centered on providing water solutions services, which will reduce earnings volatility and enhance cash flow stability. For further information, visit the Partnership’s website at www.nglenergypartners.com .


NGL ENERGY PARTNERS LP AND SUBSIDIARIES
Unaudited Consolidated Balance Sheets
(in Thousands, except unit amounts)

	March 31,
	2026		2025
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	8,505		$	5,649
Accounts receivable, net of allowance for expected credit losses of $1,738 and $3,689, respectively		661,157			579,468
Accounts receivable-affiliates		313			730
Inventories		67,351			69,916
Prepaid expenses and other current assets		36,624			63,651
Assets held for sale		—			175,207
Assets of discontinued operations		—			67,432
Total current assets		773,950			962,053
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of $1,272,286 and $1,104,582, respectively		2,091,747			2,066,847
GOODWILL		351,506			599,348
INTANGIBLE ASSETS, net of accumulated amortization of $389,992 and $340,334, respectively		805,110			851,347
OPERATING LEASE RIGHT-OF-USE ASSETS		113,326			109,870
OTHER NONCURRENT ASSETS		39,900			19,975
Total assets	$	4,175,539		$	4,609,440
LIABILITIES AND (DEFICIT) EQUITY
CURRENT LIABILITIES:
Accounts payable	$	495,180		$	461,980
Accounts payable-affiliates		1			102
Accrued expenses and other payables		184,184			135,233
Advance payments received from customers		15,201			10,347
Current maturities of long-term debt		11,457			8,805
Operating lease obligations		33,459			27,911
Liabilities held for sale		—			42,103
Liabilities of discontinued operations		—			52,749
Total current liabilities		739,482			739,230
LONG-TERM DEBT, net of debt issuance costs of $41,264 and $43,144, respectively, and current maturities		3,223,126			2,961,703
OPERATING LEASE OBLIGATIONS		82,160			85,240
OTHER NONCURRENT LIABILITIES		136,953			125,897

CLASS D PREFERRED UNITS, 315,489 and 600,000 preferred units issued and outstanding, respectively		289,824			551,097
REDEEMABLE NONCONTROLLING INTERESTS		559			424

(DEFICIT) EQUITY:
General partner, representing a 0.1% interest, 123,938 and 132,145 notional units, respectively		(53,319	)		(52,913	)
Limited partners, representing a 99.9% interest, 123,814,289 and 132,012,766 common units issued and outstanding, respectively		(612,276	)		(170,275	)
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 income		—			9
Noncontrolling interests		20,671			20,669
Total (deficit) equity		(296,565	)		145,849
Total liabilities and (deficit) equity	$	4,175,539		$	4,609,440


NGL ENERGY PARTNERS LP AND SUBSIDIARIES
Unaudited Consolidated Statements of Operations
(in Thousands, except unit and per unit amounts)

	Three Months Ended March 31,		Year Ended March 31,
	2026		2025	2026		2025
REVENUES:
Product	$	759,042		$	778,604		$	2,396,188		$	2,742,953
Service and other		190,468			192,462			759,971			726,233
Total Revenues		949,510			971,066			3,156,159			3,469,186
COST OF SALES:
Product		726,825			695,171			2,160,353			2,437,331
Service and other		5,432			14,265			21,810			69,746
Total Cost of Sales		732,257			709,436			2,182,163			2,507,077
OPERATING COSTS AND EXPENSES:
Operating		78,672			75,651			293,587			297,686
General and administrative		26,031			13,483			70,108			55,593
Depreciation and amortization		61,973			64,455			254,831			254,732
Loss on disposal or impairment of assets, net		252,780			30,664			256,322			31,448
Revaluation of liabilities		4,415			(3,745	)		4,415			(6,705	)
Operating (Loss) Income		(206,618	)		81,122			94,733			329,355
OTHER INCOME (EXPENSE):
Equity in earnings of unconsolidated entities		—			3,367			201			6,565
Interest expense		(63,403	)		(70,101	)		(257,490	)		(280,078	)
Loss on early extinguishment of liabilities, net		(17,241	)		—			(16,749	)		—
Other income, net		574			1,778			526			4,262
(Loss) Income From Continuing Operations Before Income Taxes		(286,688	)		16,166			(178,779	)		60,104
INCOME TAX (EXPENSE) BENEFIT		(86	)		(13	)		276			4,885
(Loss) Income From Continuing Operations		(286,774	)		16,153			(178,503	)		64,989
(Loss) Income From Discontinued Operations, net of Tax		(43	)		(1,431	)		39,340			(21,826	)
Net (Loss) Income		(286,817	)		14,722			(139,163	)		43,163
LESS: NET INCOME FROM CONTINUING OPERATIONS ATTRIBUTABLE TO NONREDEEMABLE NONCONTROLLING INTERESTS		(1,189	)		(972	)		(3,376	)		(3,749	)
LESS: NET LOSS (INCOME) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO REDEEMABLE NONCONTROLLING INTERESTS		326			(26	)		244			(46	)
NET (LOSS) INCOME ATTRIBUTABLE TO NGL ENERGY PARTNERS LP	$	(287,680	)	$	13,724		$	(142,295	)	$	39,368

NET LOSS FROM CONTINUING OPERATIONS ALLOCATED TO COMMON UNITHOLDERS	$	(425,944	)	$	(14,677	)	$	(444,859	)	$	(57,096	)
NET (LOSS) INCOME FROM DISCONTINUED OPERATIONS ALLOCATED TO COMMON UNITHOLDERS		(43	)		(1,429	)		39,301			(21,804	)
NET LOSS ALLOCATED TO COMMON UNITHOLDERS	$	(425,987	)	$	(16,106	)	$	(405,558	)	$	(78,900	)
BASIC AND DILUTED (LOSS) INCOME PER COMMON UNIT
Loss From Continuing Operations	$	(3.44	)	$	(0.11	)	$	(3.50	)	$	(0.43	)
(Loss) Income From Discontinued Operations, net of Tax	$	—		$	(0.01	)	$	0.31		$	(0.16	)
Net Loss	$	(3.44	)	$	(0.12	)	$	(3.19	)	$	(0.60	)
BASIC AND DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING		123,849,123			132,012,766			127,020,619			132,204,283


EBITDA, ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW RECONCILIATION
(Unaudited)

The following table reconciles NGL’s net (loss) income to NGL’s EBITDA, Adjusted EBITDA and Distributable Cash Flow for the periods indicated:

	Three Months Ended March 31,		Year Ended March 31,
	2026		2025	2026		2025
	(in thousands)
Net (loss) income	$	(286,817	)	$	14,722		$	(139,163	)	$	43,163
Less: Net income from continuing operations attributable to nonredeemable noncontrolling interests		(1,189	)		(972	)		(3,376	)		(3,749	)
Less: Net loss (income) from continuing operations attributable to redeemable noncontrolling interests		326			(26	)		244			(46	)
Net (loss) income attributable to NGL Energy Partners LP		(287,680	)		13,724			(142,295	)		39,368
Interest expense		63,382			70,080			257,406			280,241
Income tax expense (benefit)		86			16			(260	)		(4,775	)
Depreciation and amortization		62,468			64,009			253,263			253,190
EBITDA		(161,744	)		147,829			368,114			568,024
Net unrealized losses (gains) on derivatives (1)		47,335			(707	)		36,462			21,782
Lower of cost or net realizable value adjustments (2)		26			2,590			(2,890	)		(1,619	)
Loss on disposal or impairment of assets, net (3)		252,841			32,644			218,010			33,705
Revaluation of liabilities		4,415			(3,745	)		4,415			(6,705	)
Loss on early extinguishment of liabilities, net		17,241			—			16,749			—
Equity-based compensation expense		11,206			—			11,206			—
Other (4)		5,075			(116	)		9,238			2,572
Adjusted EBITDA	$	176,395		$	178,495		$	661,304		$	617,759
Adjusted EBITDA - Discontinued Operations (5)	$	25		$	1,665		$	1,101		$	(5,133	)
Adjusted EBITDA - Continuing Operations	$	176,370		$	176,830		$	660,203		$	622,892
Less: Cash interest expense (6)		61,634			64,442			246,171			267,612
Less: Income tax expense (benefit)		86			13			(276	)		(4,885	)
Less: Maintenance capital expenditures		13,730			11,553			46,084			69,500
Less: Preferred unit distributions paid		29,562			28,935			113,486			305,291
Less: Other (7)		5,718			562			12,264			1,940
Distributable Cash Flow - Continuing Operations	$	65,640		$	71,325		$	242,474		$	(16,566	)

_____________
(1)		Due to the conflict between the United States and Iran, crude oil prices increased significantly during the month of March 2026. To better match the movement of inventory and derivative losses with the physical gains recognized by our Crude Oil Logistics segment in March 2026 and April 2026 and to align with how management evaluated these transactions, approximately $4.0 million of losses from settled contracts are included within these amounts.
(2)		Lower of cost or net realizable value adjustments in the table above differ from lower of cost or net realizable value adjustments reported in our consolidated statements of cash flows in the Partnership’s Annual Report on Form 10-K for the year ended March 31, 2026, as the amounts reported in the table above represent the change in lower of cost or net realizable value adjustments recorded in the consolidated statements of operations, which includes reversals, whereas the amounts reported in our consolidated statements of cash flows represent the lower of cost or net realizable value adjustments recorded at the balance sheet date.
(3)		Excludes amounts related to unconsolidated entities and noncontrolling interests.
(4)		Amounts represent accretion expense for asset retirement obligations, unrealized gains and losses on investments and marketable securities, a loss from a legal dispute and expenses incurred related to legal and advisory costs associated with acquisitions and dispositions. For the quarter and year ended March 31, 2026, the amounts include the difference in value recorded to cost of sales-product related to the misclassification of line fill within inventories as reported in the footnotes to our consolidated financial statements included in the Partnership’s Annual Report on Form 10-K for the year ended March 31, 2026.
(5)		Amounts include our refined products and biodiesel businesses.
(6)		Amounts represent interest expense payable in cash, excluding changes in the accrued interest balance.
(7)		Amounts represent cash paid to settle asset retirement obligations as well as approximately $4.0 million of losses from settled contracts in the current fiscal year as discussed above.


ADJUSTED EBITDA RECONCILIATION BY SEGMENT
(Unaudited)

	Three Months Ended March 31, 2026
	Water Solutions		Crude Oil Logistics	Liquids Logistics		Corporate and Other	Continuing Operations		Discontinued Operations	Consolidated
	(in thousands)
Operating income (loss)	$	59,876		$	(247,427	)	$	4,901		$	(23,968	)	$	(206,618	)	$	—	$	(206,618	)
Depreciation and amortization		53,566			6,127			1,553			727			61,973			—		61,973
Amortization in cost of sales-service		1,068			—			—			—			1,068			—		1,068
Net unrealized losses on derivatives		29,864			7,158			10,313			—			47,335			—		47,335
Lower of cost or net realizable value adjustments		—			(28	)		54			—			26			—		26
Loss on disposal or impairment of assets, net		5,101			247,653			26			—			252,780			—		252,780
Equity-based compensation expense		—			—			—			11,206			11,206			—		11,206
Other income (expense), net		344			(33	)		72			191			574			—		574
Adjusted EBITDA attributable to noncontrolling interest		(1,758	)		—			—			278			(1,480	)		—		(1,480	)
Revaluation of liabilities		4,415			—			—			—			4,415			—		4,415
Other		983			3,997			(24	)		135			5,091			—		5,091
Discontinued operations		—			—			—			—			—			25		25
Adjusted EBITDA	$	153,459		$	17,447		$	16,895		$	(11,431	)	$	176,370		$	25	$	176,395

	Three Months Ended March 31, 2025
	Water Solutions		Crude Oil Logistics	Liquids Logistics		Corporate and Other	Continuing Operations		Discontinued Operations	Consolidated
	(in thousands)
Operating income (loss)	$	88,891		$	7,148		$	(4,991	)	$	(9,926	)	$	81,122		$	—	$	81,122
Depreciation and amortization		55,161			5,984			2,466			844			64,455			—		64,455
Amortization in cost of sales-product		—			—			110			—			110			—		110
Net unrealized losses (gains) on derivatives		3,562			527			(6,116	)		—			(2,027	)		—		(2,027	)
Lower of cost or net realizable value adjustments		—			—			2,932			—			2,932			—		2,932
Loss (gain) on disposal or impairment of assets, net		8,033			(592	)		23,223			—			30,664			—		30,664
Other (expense) income, net		(331	)		(1	)		(1	)		2,111			1,778			—		1,778
Adjusted EBITDA attributable to unconsolidated entities		3,503			—			5			—			3,508			—		3,508
Adjusted EBITDA attributable to noncontrolling interest		(1,796	)		—			—			(78	)		(1,874	)		—		(1,874	)
Revaluation of liabilities		(3,745	)		—			—			—			(3,745	)		—		(3,745	)
Other		1,592			55			62			(1,802	)		(93	)		—		(93	)
Discontinued operations		—			—			—			—			—			1,665		1,665
Adjusted EBITDA	$	154,870		$	13,121		$	17,690		$	(8,851	)	$	176,830		$	1,665	$	178,495

	Year Ended March 31, 2026
	Water Solutions		Crude Oil Logistics	Liquids Logistics		Corporate and Other	Continuing Operations		Discontinued Operations	Consolidated
	(in thousands)
Operating income (loss)	$	335,366		$	(226,892	)	$	48,231		$	(61,972	)	$	94,733		$	—	$	94,733
Depreciation and amortization		221,048			24,331			6,201			3,251			254,831			—		254,831
Amortization in cost of sales-service		1,068			—			—			—			1,068			—		1,068
Net unrealized losses on derivatives		21,573			5,604			9,301			—			36,478			—		36,478
Lower of cost or net realizable value adjustments		—			—			(2,890	)		—			(2,890	)		—		(2,890	)
Loss (gain) on disposal or impairment of assets, net		20,114			251,761			(15,551	)		(2	)		256,322			—		256,322
Equity-based compensation expense		—			—			—			11,206			11,206			—		11,206
Other income (expense), net		4,352			(873	)		(284	)		(2,669	)		526			—		526
Adjusted EBITDA attributable to unconsolidated entities		221			—			4			—			225			—		225
Adjusted EBITDA attributable to noncontrolling interest		(6,012	)		—			—			40			(5,972	)		—		(5,972	)
Revaluation of liabilities		4,415			—			—			—			4,415			—		4,415
Other		581			5,010			471			3,199			9,261			—		9,261
Discontinued operations		—			—			—			—			—			1,101		1,101
Adjusted EBITDA	$	602,726		$	58,941		$	45,483		$	(46,947	)	$	660,203		$	1,101	$	661,304

	Year Ended March 31, 2025
	Water Solutions		Crude Oil Logistics	Liquids Logistics		Corporate and Other	Continuing Operations		Discontinued Operations	Consolidated
	(in thousands)
Operating income (loss)	$	311,457		$	46,101		$	14,058		$	(42,261	)	$	329,355		$	—		$	329,355
Depreciation and amortization		217,227			25,070			9,408			3,027			254,732			—			254,732
Amortization in cost of sales-product		—			—			257			—			257			—			257
Net unrealized losses (gains) on derivatives		4,953			(4,011	)		2,424			—			3,366			—			3,366
Lower of cost or net realizable value adjustments		—			—			2,916			—			2,916			—			2,916
Loss (gain) on disposal or impairment of assets, net		9,813			(1,004	)		22,596			43			31,448			—			31,448
Other income, net		485			1			1,518			2,258			4,262			—			4,262
Adjusted EBITDA attributable to unconsolidated entities		7,044			—			(51	)		—			6,993			—			6,993
Adjusted EBITDA attributable to noncontrolling interest		(6,196	)		—			—			(178	)		(6,374	)		—			(6,374	)
Revaluation of liabilities		(6,705	)		—			—			—			(6,705	)		—			(6,705	)
Other		3,918			216			243			(1,735	)		2,642			—			2,642
Discontinued operations		—			—			—			—			—			(5,133	)		(5,133	)
Adjusted EBITDA	$	541,996		$	66,373		$	53,369		$	(38,846	)	$	622,892		$	(5,133	)	$	617,759


OPERATIONAL DATA
(Unaudited)

	Three Months Ended	Year Ended
	March 31,	March 31,
	2026	2025	2026	2025
	(in thousands, except per day amounts)
Water Solutions:
Produced water processed (barrels per day)
Delaware Basin	2,651,062	2,424,683	2,555,166	2,303,142
Eagle Ford Basin	164,504	159,093	179,789	175,251
DJ Basin	190,646	148,001	177,963	146,956
Total	3,006,212	2,731,777	2,912,918	2,625,349
Recycled water (barrels per day)	225,454	206,552	198,709	116,058
Total (barrels per day)	3,231,666	2,938,329	3,111,627	2,741,407
Skim oil sold (barrels per day)	6,246	4,902	5,119	4,268

Crude Oil Logistics:
Crude oil sold (barrels)	4,640	1,978	15,419	10,412
Crude oil transported on owned pipelines (barrels)	7,044	5,066	26,451	22,238
Crude oil storage capacity - owned and leased (barrels) (1)			5,232	5,232
Crude oil inventory (barrels) (1)			298	339

Liquids Logistics:
Butane sold (gallons)	134,250	123,007	510,367	516,202
Propane sold (gallons)	156,522	314,709	365,736	760,287
Other products sold (gallons)	61,255	63,537	281,494	277,495
Natural gas liquids storage capacity - owned and leased (gallons) (1)			42,641	52,721
Butane inventory (gallons) (1)			23,774	21,871
Propane inventory (gallons) (1)			7,297	11,833
Other products inventory (gallons) (1)			5,166	8,556
_____________
(1) Information is presented as of March 31, 2026 and March 31, 2025, respectively.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260528081776/en/

David Sullivan, 918-495-4631
Vice President - Finance
David.Sullivan@nglep.com

NGL Energy Partners LP Announces Fourth Quarter and Full Year Fiscal 2026 Financial Results; Guidance for Fiscal 2027

NASDAQ: NET

NET Trading

NET Latest News

NET Stock Data

Subscribe to Our Newsletter

Link Market Wire News to Your X Account

Download The Market Wire News App