NGL Energy Partners LP Earnings Call Transcripts
Fiscal Year 2026
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Fiscal 2026 saw record Water Solutions performance, EBITDA at $660M, and major capital structure improvements. Fiscal 2027 guidance targets up to 10% EBITDA growth, driven by Water Solutions expansion and strong demand for water disposal capacity.
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Record water disposal volumes and strong EBITDA growth highlight a successful quarter, with strategic focus on water solutions and continued capital allocation to growth and preferred unit redemptions. AI initiatives and a new nuclear desalination partnership support long-term goals.
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Record water and pipeline volumes drove a 12% year-over-year increase in Adjusted EBITDA, prompting a raised full-year guidance and significant growth CapEx. Strategic repurchases and deleveraging continue, with strong customer demand and infrastructure positioning supporting future expansion.
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Q1 adjusted EBITDA rose 4% year-over-year to $144M, led by strong Water Solutions performance and higher disposal volumes. Asset sales funded debt reduction and opportunistic repurchases. Full-year EBITDA guidance of $615M–$625M reaffirmed.
Fiscal Year 2025
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Asset sales streamlined operations and reduced leverage, with Water Solutions now driving 85% of EBITDA. Fiscal 2026 guidance is $615–$625 million in Adjusted EBITDA, with strong volumes and cost control in Water Solutions, and minimal impact expected from new regulatory guidelines.
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Q3 Adjusted EBITDA was $147.7M, with Water Solutions showing strong growth and Liquids Logistics impacted by the biodiesel exit. Asset sales and business exits are reducing working capital needs and debt, while new contracts are set to boost Grand Mesa pipeline volumes.
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Q2 Adjusted EBITDA was $147.3M, led by Water Solutions, with full-year guidance slightly reduced to $640–$650M due to weather and crude prices. Major warrant repurchase eliminated 18% potential dilution, and LEX II expansion was completed on time.
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Q1 saw strong results across all segments, with Adjusted EBITDA of $144.3M and Water Solutions leading growth. Guidance for full-year EBITDA is reaffirmed at $665M, with key projects like LEX II on track and capital focused on debt and preferred redemptions.
Fiscal Year 2024
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Fiscal 2024 saw transformational refinancing, asset sales, and a focus on capital structure, with Water Solutions delivering record results. Fiscal 2025 guidance targets 9% Adjusted EBITDA growth, driven by Water Solutions and new pipeline projects, while strategic alternatives are being explored for Liquids Logistics.