NGL Energy Partners LP Announces First Quarter Fiscal 2024 Financial Results

TULSA, Okla.--()--NGL Energy Partners LP (NYSE:NGL) (“NGL,” “our,” “we,” or the “Partnership”) today reported its first quarter Fiscal 2024 financial results. Highlights include:

  • Net income for the first quarter of Fiscal 2024 of $19.6 million, compared to net income of $23.1 million for the first quarter of Fiscal 2023
  • Adjusted EBITDA(1) for the first quarter of Fiscal 2024 of $134.7 million, compared to $123.9 million for the first quarter of Fiscal 2023
  • Produced water volumes processed of approximately 2.46 million barrels per day during the first quarter of Fiscal 2024, growing 14.1% from the first quarter of Fiscal 2023
  • Water Solutions’ quarterly Adjusted EBITDA(1) of $123.2 million for the first quarter of Fiscal 2024, a 17.3% increase compared to the first quarter of Fiscal 2023
  • Increasing asset sales guidance from $50 million to $75 million in Fiscal 2024
  • Reducing growth capital expenditures by $10 million, from $75 million to $65 million

“Our Water Solutions segment achieved strong Adjusted EBITDA(1) growth of 17.3% in the 1st quarter versus the same period in the prior year, with disposal volumes increasing 14.1%. During the quarter we purchased $99.3 million of the 2025 unsecured notes, leaving a very manageable outstanding balance of $280.7 million. We will continue to utilize operational free cash flow, reduced working capital, and proceeds from asset sales to further improve the balance sheet. We are reaffirming our full year consolidated Adjusted EBITDA(2) guidance of $645 million plus,” stated Mike Krimbill NGL’s CEO.

Quarterly Results of Operations

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

 

 

Quarter Ended

 

 

June 30, 2023

 

June 30, 2022

 

 

Operating
Income (Loss)

 

Adjusted
EBITDA(1)

 

Operating
Income (Loss)

 

Adjusted
EBITDA(1)

 

 

(in thousands)

Water Solutions

 

$

69,331

 

 

$

123,194

 

 

$

53,605

 

 

$

105,047

 

Crude Oil Logistics

 

 

17,007

 

 

 

23,791

 

 

 

18,989

 

 

 

15,078

 

Liquids Logistics

 

 

7,831

 

 

 

4,749

 

 

 

26,640

 

 

 

12,901

 

Corporate and Other

 

 

(22,149

)

 

 

(17,079

)

 

 

(11,971

)

 

 

(9,150

)

Total

 

$

72,020

 

 

$

134,655

 

 

$

87,263

 

 

$

123,876

 

_____________________________

(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 $15.7 million for the quarter ended June 30, 2023, compared to the quarter ended June 30, 2022. The Partnership processed approximately 2.46 million barrels of produced water per day during the quarter ended June 30, 2023, a 14.1% increase when compared to approximately 2.15 million barrels of water per day processed during the quarter ended June 30, 2022. This increase was due to an increase in produced water volumes processed from contracted customers mainly in the Delaware Basin, increased fees from new contracts entered into during fiscal year 2023 and higher fees charged for interruptible spot volumes.

Revenues from recovered skim oil totaled $23.0 million for the quarter ended June 30, 2023, a decrease of $15.4 million from the prior year period. This decrease was due primarily to lower realized crude oil prices received from the sale of skim oil barrels and lower skim oil volumes per barrel of produced water processed. While the amount of skim oil recovered was in line with historical averages, a certain amount of skim oil barrels was stored due to tighter pipeline specifications which reduced the amount of skim oil sold during the quarter. We expect to sell both stored and ongoing production of skim oil during the second quarter of fiscal year 2024.

Operating expenses in the Water Solutions segment increased $6.9 million for the quarter ended June 30, 2023, compared to the quarter ended June 30, 2022 due to increased produced water volumes processed while operating expense per produced barrel processed was $0.25 for the quarter ended June 30, 2023, compared to $0.25 in the comparative quarter last year.

Crude Oil Logistics

Operating income for the Crude Oil Logistics segment decreased $2.0 million for the quarter ended June 30, 2023, compared to the quarter ended June 30, 2022. The decrease was due to the sale of higher priced inventory into a market in which prices are declining. The lower crude oil prices resulted in lower contracted rates with certain producers, compared to the prior year. During the three months ended June 30, 2023, physical volumes on the Grand Mesa Pipeline averaged approximately 72,000 barrels per day, compared to approximately 79,000 barrels per day for the three months ended June 30, 2022, as lower demand for heavier crude oil grades, and resulting lower crude oil prices, resulted in lower contracted volumes. The decrease in operating income was offset by an increase in derivative gains of $33.1 million and lower operating and general and administrative expenses of $2.1 million, primarily related to the sale of our marine assets on March 30, 2023.

Liquids Logistics

Operating income for the Liquids Logistics segment decreased by $18.8 million for the quarter ended June 30, 2023, compared to the quarter ended June 30, 2022. The decline was primarily due to lower propane, butane and other product margins. Propane margins declined due to declining prices and weaker demand as the warm winter in the Northeast caused customers to pull their volumes later in the season and which carried them through the spring. Butane product margins declined as prices and volumes were lower due to weak spot and export markets. Margins for other product sales decreased due to an increase in supply in the market as the final renewable fuel standards mandate released by the EPA lowered the required amount of biodiesel required for blending. This decrease was offset by an increase in derivative gains of $19.7 million and increased refined products margin as a result of continuing to be well positioned from a supply and inventory perspective in certain markets experiencing tight supply during the first part of the current quarter.

Corporate and Other

The operating loss for the quarter ended June 30, 2023 includes losses from derivatives of $4.2 million. We have entered into economic hedges to protect our liquidity positions and leverage from a significant increase in commodity prices that drive our working capital demands, as we experienced in the prior fiscal year, thus impacting our ability to reduce absolute indebtedness until commodity prices weakened. These positions will expire between August 2023 and December 2023. Incentive compensation was also higher compared to the prior year quarter due to the timing of payments compared to the prior year when incentive compensation was paid during the second quarter of our fiscal year.

Capitalization and Liquidity

Total liquidity (cash plus available capacity on our asset-based revolving credit facility (“ABL Facility”)) was approximately $286.1 million as of June 30, 2023. Borrowings on the Partnership’s ABL Facility totaled approximately $180.0 million. The increase from March 31, 2023 was primarily due to increases in working capital balances driven by increased inventory volumes and higher net account receivable balances.

The Partnership is in compliance with all of its debt covenants and has no significant debt maturities before March 2025.

First Quarter Conference Call Information

A conference call to discuss NGL’s results of operations is scheduled for 4:30 pm Central Time on Wednesday, August 9, 2023. Analysts, investors, and other interested parties may join the webcast via the event link: https://www.webcaster4.com/Webcast/Page/2808/48748 or by dialing (888) 506-0062 and providing access code: 715919. 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 48748.

Non-GAAP Financial Measures

NGL defines EBITDA as net income (loss) attributable to NGL Energy Partners LP, plus interest expense, income tax expense (benefit), and depreciation and amortization expense. NGL defines 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, acquisition expense, revaluation of liabilities, certain legal settlements and other. NGL also includes in Adjusted EBITDA certain inventory valuation adjustments related to certain refined products businesses within NGL’s Liquids Logistics segment as discussed below. 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. NGL believes that EBITDA provides additional information to investors for evaluating NGL’s ability to make quarterly distributions to NGL’s unitholders and is presented solely as a supplemental measure. NGL believes that Adjusted EBITDA provides additional information to investors for evaluating NGL’s financial performance without regard to NGL’s financing methods, capital structure and historical cost basis. Further, EBITDA and Adjusted EBITDA, as NGL defines them, may not be comparable to EBITDA, Adjusted EBITDA, or similarly titled measures used by other entities.

Other than for certain businesses within NGL’s Liquids Logistics segment, for purposes of the Adjusted EBITDA calculation, NGL makes a distinction between realized and unrealized gains and losses on derivatives. During the period when a derivative contract is open, NGL records changes in the fair value of the derivative as an unrealized gain or loss. When a derivative contract matures or is settled, NGL reverses the previously recorded unrealized gain or loss and records a realized gain or loss. NGL does not draw such a distinction between realized and unrealized gains and losses on derivatives of certain businesses within NGL’s 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. NGL includes this in Adjusted EBITDA because the unrealized gains and losses associated with 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. In NGL’s Crude Oil Logistics segment, they 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 NGL’s contracts. To eliminate the volatility of the CMA Differential Roll, NGL 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 will differ from period to period depending on the current crude oil price and future estimated crude oil price which are valued utilizing third-party market quoted prices. NGL is recognizing in Adjusted EBITDA the gains and losses from the derivative instrument positions entered into in January 2021 to properly align with the physical margin NGL is hedging each month through the term of this transaction. This representation aligns with management’s evaluation of the transaction.

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. 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) 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.

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 limited partnership, is a diversified midstream energy company that transports, stores, markets and provides other logistics services for crude oil, natural gas liquids and other products and transports, treats and disposes of produced water generated as part of the oil and natural gas production process.

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)

 

 

June 30, 2023

 

March 31, 2023

ASSETS

 

 

 

CURRENT ASSETS:

 

 

 

Cash and cash equivalents

$

7,786

 

 

$

5,431

 

Accounts receivable-trade, net of allowance for expected credit losses of $1,888 and $1,964, respectively

 

892,266

 

 

 

1,033,956

 

Accounts receivable-affiliates

 

12,836

 

 

 

12,362

 

Inventories

 

185,638

 

 

 

142,607

 

Prepaid expenses and other current assets

 

84,339

 

 

 

98,089

 

Total current assets

 

1,182,865

 

 

 

1,292,445

 

PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of $921,300 and $898,184, respectively

 

2,196,845

 

 

 

2,223,380

 

GOODWILL

 

712,364

 

 

 

712,364

 

INTANGIBLE ASSETS, net of accumulated amortization of $600,613 and $580,860, respectively

 

1,038,775

 

 

 

1,058,668

 

INVESTMENTS IN UNCONSOLIDATED ENTITIES

 

20,049

 

 

 

21,090

 

OPERATING LEASE RIGHT-OF-USE ASSETS

 

97,327

 

 

 

90,220

 

OTHER NONCURRENT ASSETS

 

57,429

 

 

 

57,977

 

Total assets

$

5,305,654

 

 

$

5,456,144

 

LIABILITIES AND EQUITY

 

 

 

CURRENT LIABILITIES:

 

 

 

Accounts payable-trade

$

773,678

 

 

$

927,591

 

Accounts payable-affiliates

 

55

 

 

 

65

 

Accrued expenses and other payables

 

159,408

 

 

 

133,616

 

Advance payments received from customers

 

19,026

 

 

 

14,699

 

Operating lease obligations

 

34,702

 

 

 

34,166

 

Total current liabilities

 

986,869

 

 

 

1,110,137

 

LONG-TERM DEBT, net of debt issuance costs of $27,040 and $30,117, respectively, and current maturities

 

2,803,607

 

 

 

2,857,805

 

OPERATING LEASE OBLIGATIONS

 

64,998

 

 

 

58,450

 

OTHER NONCURRENT LIABILITIES

 

111,978

 

 

 

111,226

 

 

 

 

 

CLASS D 9.00% PREFERRED UNITS, 600,000 and 600,000 preferred units issued and outstanding, respectively

 

551,097

 

 

 

551,097

 

 

 

 

 

EQUITY:

 

 

 

General partner, representing a 0.1% interest, 132,059 and 132,059 notional units, respectively

 

(52,565

)

 

 

(52,551

)

Limited partners, representing a 99.9% interest, 131,927,343 and 131,927,343 common units issued and outstanding, respectively

 

475,353

 

 

 

455,564

 

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

 

(434

)

 

 

(450

)

Noncontrolling interests

 

16,392

 

 

 

16,507

 

Total equity

 

787,105

 

 

 

767,429

 

Total liabilities and equity

$

5,305,654

 

 

$

5,456,144

 

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Operations

(in Thousands, except unit and per unit amounts)

 

 

 

Three Months Ended June 30,

 

 

 

2023

 

 

 

2022

 

REVENUES:

 

 

 

 

Water Solutions

 

$

181,302

 

 

$

166,079

 

Crude Oil Logistics

 

 

464,390

 

 

 

865,371

 

Liquids Logistics

 

 

970,412

 

 

 

1,465,933

 

Total Revenues

 

 

1,616,104

 

 

 

2,497,383

 

COST OF SALES:

 

 

 

 

Water Solutions

 

 

2,569

 

 

 

10,225

 

Crude Oil Logistics

 

 

425,299

 

 

 

822,370

 

Liquids Logistics

 

 

947,247

 

 

 

1,422,416

 

Corporate and Other

 

 

4,214

 

 

 

 

Total Cost of Sales

 

 

1,379,329

 

 

 

2,255,011

 

OPERATING COSTS AND EXPENSES:

 

 

 

 

Operating

 

 

76,681

 

 

 

71,860

 

General and administrative

 

 

20,291

 

 

 

16,757

 

Depreciation and amortization

 

 

68,979

 

 

 

66,660

 

Gain on disposal or impairment of assets, net

 

 

(1,196

)

 

 

(168

)

Operating Income

 

 

72,020

 

 

 

87,263

 

OTHER INCOME (EXPENSE):

 

 

 

 

Equity in earnings of unconsolidated entities

 

 

91

 

 

 

674

 

Interest expense

 

 

(59,522

)

 

 

(67,311

)

Gain on early extinguishment of liabilities, net

 

 

6,808

 

 

 

1,662

 

Other income, net

 

 

306

 

 

 

646

 

Income Before Income Taxes

 

 

19,703

 

 

 

22,934

 

INCOME TAX (EXPENSE) BENEFIT

 

 

(140

)

 

 

172

 

Net Income

 

 

19,563

 

 

 

23,106

 

LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

 

(262

)

 

 

(245

)

NET INCOME ATTRIBUTABLE TO NGL ENERGY PARTNERS LP

 

$

19,301

 

 

$

22,861

 

NET LOSS ALLOCATED TO COMMON UNITHOLDERS

 

$

(14,482

)

 

$

(4,679

)

BASIC AND DILUTED LOSS PER COMMON UNIT

 

$

(0.11

)

 

$

(0.04

)

BASIC WEIGHTED AVERAGE COMMON UNITS OUTSTANDING

 

 

131,927,343

 

 

 

130,695,970

 

DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING

 

 

131,927,343

 

 

 

130,695,970

 

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:

 

 

 

Three Months Ended June 30,

 

 

 

2023

 

 

 

2022

 

 

 

(in thousands)

Net income

 

$

19,563

 

 

$

23,106

 

Less: Net income attributable to noncontrolling interests

 

 

(262

)

 

 

(245

)

Net income attributable to NGL Energy Partners LP

 

 

19,301

 

 

 

22,861

 

Interest expense

 

 

59,536

 

 

 

67,326

 

Income tax expense (benefit)

 

 

140

 

 

 

(172

)

Depreciation and amortization

 

 

68,921

 

 

 

66,614

 

EBITDA

 

 

147,898

 

 

 

156,629

 

Net unrealized gains on derivatives

 

 

(632

)

 

 

(56,902

)

CMA Differential Roll net losses (gains) (1)

 

 

(9,137

)

 

 

34,620

 

Inventory valuation adjustment (2)

 

 

336

 

 

 

(555

)

Lower of cost or net realizable value adjustments

 

 

2,764

 

 

 

(9,286

)

Gain on disposal or impairment of assets, net

 

 

(1,196

)

 

 

(168

)

Gain on early extinguishment of liabilities, net

 

 

(6,808

)

 

 

(1,662

)

Equity-based compensation expense

 

 

474

 

 

 

497

 

Acquisition expense (3)

 

 

5

 

 

 

 

Other (4)

 

 

951

 

 

 

703

 

Adjusted EBITDA

 

$

134,655

 

 

$

123,876

 

Less: Cash interest expense (5)

 

 

55,411

 

 

 

63,125

 

Less: Income tax expense (benefit)

 

 

140

 

 

 

(172

)

Less: Maintenance capital expenditures

 

 

16,527

 

 

 

15,367

 

Less: CMA Differential Roll (6)

 

 

(10,695

)

 

 

18,208

 

Less: Other (7)

 

 

218

 

 

 

93

 

Distributable Cash Flow

 

$

73,054

 

 

$

27,255

 

_____________________________

(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)

Amounts represent 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)

Amount represents expenses we incurred related to legal and advisory costs associated with acquisitions.

(4)

Amounts represent unrealized gains/losses on marketable securities and accretion expense for asset retirement obligations. Also, the amount for the three months ended June 30, 2022 includes non-cash operating expenses related to our Grand Mesa Pipeline.

(5)

Amounts represent interest expense payable in cash, excluding changes in the accrued interest balance.

(6)

Amount represents the cash portion of the adjustments of the Partnership’s CMA Differential Roll derivative instrument positions, as discussed above, that settled during the period.

(7)

Amounts represents cash paid to settle asset retirement obligations.

ADJUSTED EBITDA RECONCILIATION BY SEGMENT

 

 

Three Months Ended June 30, 2023

 

Water
Solutions

 

Crude Oil
Logistics

 

Liquids
Logistics

 

Corporate
and Other

 

Consolidated

 

(in thousands)

Operating income (loss)

$

69,331

 

 

$

17,007

 

 

$

7,831

 

 

$

(22,149

)

 

$

72,020

 

Depreciation and amortization

 

54,423

 

 

 

9,746

 

 

 

3,214

 

 

 

1,596

 

 

 

68,979

 

Amortization recorded to cost of sales

 

 

 

 

 

 

 

65

 

 

 

 

 

 

65

 

Net unrealized losses (gains) on derivatives

 

 

 

 

5,135

 

 

 

(8,719

)

 

 

2,952

 

 

 

(632

)

CMA Differential Roll net losses (gains)

 

 

 

 

(9,137

)

 

 

 

 

 

 

 

 

(9,137

)

Inventory valuation adjustment

 

 

 

 

 

 

 

336

 

 

 

 

 

 

336

 

Lower of cost or net realizable value adjustments

 

 

 

 

 

 

 

2,764

 

 

 

 

 

 

2,764

 

(Gain) loss on disposal or impairment of assets, net

 

(1,281

)

 

 

896

 

 

 

(811

)

 

 

 

 

 

(1,196

)

Equity-based compensation expense

 

 

 

 

 

 

 

 

 

 

474

 

 

 

474

 

Acquisition expense

 

1

 

 

 

 

 

 

19

 

 

 

(15

)

 

 

5

 

Other income, net

 

180

 

 

 

106

 

 

 

1

 

 

 

19

 

 

 

306

 

Adjusted EBITDA attributable to unconsolidated entities

 

227

 

 

 

 

 

 

(5

)

 

 

44

 

 

 

266

 

Adjusted EBITDA attributable to noncontrolling interest

 

(546

)

 

 

 

 

 

 

 

 

 

 

 

(546

)

Other

 

859

 

 

 

38

 

 

 

54

 

 

 

 

 

 

951

 

Adjusted EBITDA

$

123,194

 

 

$

23,791

 

 

$

4,749

 

 

$

(17,079

)

 

$

134,655

 

 

Three Months Ended June 30, 2022

 

Water
Solutions

 

Crude Oil
Logistics

 

Liquids
Logistics

 

Corporate
and Other

 

Consolidated

 

(in thousands)

Operating income (loss)

$

53,605

 

 

$

18,989

 

 

$

26,640

 

 

$

(11,971

)

 

$

87,263

 

Depreciation and amortization

 

49,848

 

 

 

11,754

 

 

 

3,381

 

 

 

1,677

 

 

 

66,660

 

Amortization recorded to cost of sales

 

 

 

 

 

 

 

68

 

 

 

 

 

 

68

 

Net unrealized gains on derivatives

 

(124

)

 

 

(51,005

)

 

 

(5,773

)

 

 

 

 

 

(56,902

)

CMA Differential Roll net losses (gains)

 

 

 

 

34,620

 

 

 

 

 

 

 

 

 

34,620

 

Inventory valuation adjustment

 

 

 

 

 

 

 

(555

)

 

 

 

 

 

(555

)

Lower of cost or net realizable value adjustments

 

 

 

 

1,567

 

 

 

(10,853

)

 

 

 

 

 

(9,286

)

Loss (gain) on disposal or impairment of assets, net

 

941

 

 

 

(1,260

)

 

 

 

 

 

151

 

 

 

(168

)

Equity-based compensation expense

 

 

 

 

 

 

 

 

 

 

497

 

 

 

497

 

Other income (expense), net

 

259

 

 

 

28

 

 

 

(93

)

 

 

452

 

 

 

646

 

Adjusted EBITDA attributable to unconsolidated entities

 

825

 

 

 

 

 

 

(7

)

 

 

44

 

 

 

862

 

Adjusted EBITDA attributable to noncontrolling interest

 

(532

)

 

 

 

 

 

 

 

 

 

 

 

(532

)

Other

 

225

 

 

 

385

 

 

 

93

 

 

 

 

 

 

703

 

Adjusted EBITDA

$

105,047

 

 

$

15,078

 

 

$

12,901

 

 

$

(9,150

)

 

$

123,876

 

OPERATIONAL DATA

(Unaudited)

 

 

Three Months Ended

 

June 30,

 

2023

 

2022

 

(in thousands, except per day amounts)

Water Solutions:

 

 

 

Produced water processed (barrels per day)

 

 

 

Delaware Basin

2,153,059

 

1,887,230

Eagle Ford Basin

132,934

 

98,513

DJ Basin

169,494

 

150,329

Other Basins

2,978

 

17,886

Total

2,458,465

 

2,153,958

Recycled water (barrels per day)

99,436

 

136,925

Total (barrels per day)

2,557,901

 

2,290,883

Skim oil sold (barrels per day)

3,710

 

3,957

 

 

 

 

Crude Oil Logistics:

 

 

 

Crude oil sold (barrels)

6,007

 

7,634

Crude oil transported on owned pipelines (barrels)

6,563

 

7,170

Crude oil storage capacity - owned and leased (barrels) (1)

5,232

 

5,232

Crude oil inventory (barrels) (1)

685

 

855

 

 

 

 

Liquids Logistics:

 

 

 

Refined products sold (gallons)

220,087

 

188,626

Propane sold (gallons)

139,753

 

164,844

Butane sold (gallons)

78,489

 

120,525

Other products sold (gallons)

91,099

 

93,637

Natural gas liquids and refined products storage capacity - owned and leased (gallons) (1)

158,124

 

167,559

Refined products inventory (gallons) (1)

504

 

1,110

Propane inventory (gallons) (1)

87,423

 

63,862

Butane inventory (gallons) (1)

69,632

 

49,547

Other products inventory (gallons) (1)

12,452

 

28,187

_____________________________

(1)

Information is presented as of June 30, 2023 and June 30, 2022, respectively.

 

Contacts

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

Release Summary

NGL Energy Partners LP Announces First Quarter Fiscal 2024 Financial Results

Contacts

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