NGL Energy Partners LP Announces First Quarter Fiscal 2027 Financial Results

NGL Energy Partners LP (NYSE:NGL) (“NGL,” “we,” “us,” “our,” or the “Partnership”) today reported its first quarter Fiscal 2027 financial results. Highlights include:

Financial Results:

• Income from continuing operations for the first quarter of Fiscal 2027 of $80.0 million, compared to income from continuing operations of $30.3 million for the first quarter of Fiscal 2026

• Adjusted EBITDA from continuing operations⁽¹⁾ for the first quarter of Fiscal 2027 of $186.2 million, compared to $144.0 million for the first quarter of Fiscal 2026, nearly 30% increase

Water Solutions:

• On May 7, 2026, we announced the LEX II Extension, which expands the current long haul LEX Pipeline System to 81 miles with a capability to transport approximately 560,000 barrels per day of produced water from Eddy and Lea Counties, NM to Andrews County, TX. The LEX II Extension is underwritten by a newly executed long-term volume commitment contract that includes increased volume commitments, and an additional four township committed area in Eddy County, NM. The LEX II Extension is expected to be in service by the end of the calendar year.

• Record produced water volumes physically disposed of approximately 3.32 million barrels per day during the first quarter of Fiscal 2027, growing 19.6% from the first quarter of Fiscal 2026

• Paid and physically disposed water volumes of 3.43 million barrels per day during the first quarter of Fiscal 2027, growing 12.1% from the first quarter of Fiscal 2026

• Permitted injection capacity was increased by approximately 195,000 barrels during the first quarter of Fiscal 2027

Guidance:

• Raised our full year Fiscal 2027 Adjusted EBITDA⁽²⁾ guidance to $725-$735 million

“NGL is off to a very strong start to Fiscal 2027, the first quarter results were driven primarily by the Water Solutions segment. We are raising our full year guidance for Adjusted EBITDA⁽²⁾ from $715-$725 million to $725-$735 million based on our first quarter outperformance. We continue to see growth opportunities in the Water Solutions segment and expect the strong Water Solutions momentum to carry on for the remainder of this fiscal year which would allow us to further increase Adjusted EBITDA⁽²⁾ guidance.” stated Mike Krimbill NGL’s CEO.

________________
(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 the unaudited operating income (loss) and Adjusted EBITDA from continuing operations⁽¹⁾ by reportable segment for the periods indicated:

		Quarter Ended
		June 30, 2026								June 30, 2025
		Operating Income (Loss)				Adjusted EBITDA(1)				Operating Income (Loss)				Adjusted EBITDA(1)
		(in thousands)
Water Solutions		$	138,568			$	179,856			$	84,947			$	142,869
Crude Oil Logistics			5,858				8,641				672				9,583
Liquids Logistics			16,310				10,285				23,732				2,871
Corporate and Other			(15,417	)			(12,564	)			(11,901	)			(11,351	)
Total		$	145,319			$	186,218			$	97,450			$	143,972

Water Solutions

Operating income for the Water Solutions segment increased by $53.6 million for the quarter ended June 30, 2026, compared to the quarter ended June 30, 2025. The increase was due primarily to higher disposal revenues due to an increase in produced water volumes processed from contracted customers and increased water pipeline revenue primarily from a new contract that began in February 2026. The Partnership processed approximately 3.32 million barrels of produced water per day during the quarter ended June 30, 2026, a 19.6% increase when compared to approximately 2.77 million barrels of water per day processed during the quarter ended June 30, 2025.

Revenues from recovered skim oil, including the impact from realized skim oil hedges, totaled $40.3 million for the quarter ended June 30, 2026, an increase of $15.5 million from the prior year period. The increase was due primarily to higher realized crude oil prices received from the sale of skim oil barrels and an increase in skim oil barrels sold due to more skim oil recovered from receiving more produced water.

Operating expenses in the Water Solutions segment increased $8.0 million for the quarter ended June 30, 2026, compared to the quarter ended June 30, 2025 due primarily to higher royalty expense from increased volumes related to certain saltwater disposal wells, higher utilities expense due to increased produced water volumes processed and higher severance taxes due to the increase in revenue from recovered crude oil. Operating expense per produced barrel processed was $0.21 for the quarter ended June 30, 2026, compared to $0.22 in the comparative quarter last year.

There was also an increase in net unrealized gains on skim oil hedges of $15.5 million, compared to the prior year period, due to the volatility in crude oil prices caused by the U.S./Iran conflict.

Crude Oil Logistics

Operating income for the Crude Oil Logistics segment increased by $5.2 million for the quarter ended June 30, 2026, compared to the quarter ended June 30, 2025. The increase was due primarily to increased gains on derivatives and lower losses on the disposal of assets. These increases were partially offset by lower product margins, due to the expiration of a commercial contract and selling higher priced inventory into a declining market. During the quarter ended June 30, 2026, physical volumes on the Grand Mesa Pipeline averaged approximately 74,000 barrels per day, compared to approximately 55,000 barrels per day for the quarter ended June 30, 2025.

Liquids Logistics

Operating income for the Liquids Logistics segment decreased by $7.4 million for the quarter ended June 30, 2026, compared to the quarter ended June 30, 2025. This decrease was due primarily to the gain recognized in the prior year period from the sale of most of our Wholesale Propane business and 17 of our natural gas liquids terminals (“Wholesale Propane Disposition”). The decrease was partially offset by increased butane and propane margins, increased service revenue due to a new throughput contract and increased gains from derivative activity.

Capitalization and Liquidity

Total liquidity (cash plus available capacity on our asset-based revolving credit facility (“ABL Facility”)) was approximately $203.6 million as of June 30, 2026. Borrowings on the Partnership’s ABL Facility totaled approximately $177.0 million as of June 30, 2026, due to an increase in capital spending within our Water Solutions segment.

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

First Quarter Conference Call Information

A conference call to discuss NGL’s results of operations is scheduled for 4:00 pm Central Time on Tuesday, August 4, 2026. Analysts, investors, and other interested parties may join the webcast via the event link: https://www.webcaster5.com/Webcast/Page/2808/54286 or by dialing (888) 506-0062 and providing conference code: 303193. 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 54286.

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 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 paid 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 Condensed Consolidated Balance Sheets (in Thousands, except unit amounts)
		June 30, 2026				March 31, 2026
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	5,071			$	8,505
Accounts receivable, net of allowance for expected credit losses of $1,635 and $1,738, respectively			638,201				661,157
Accounts receivable-affiliates			526				313
Inventories			67,672				67,351
Prepaid expenses and other current assets			26,131				36,624
Total current assets			737,601				773,950
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of $1,312,835 and $1,272,286, respectively			2,150,699				2,091,747
GOODWILL			351,506				351,506
INTANGIBLE ASSETS, net of accumulated amortization of $405,622 and $389,992, respectively			794,183				805,110
OPERATING LEASE RIGHT-OF-USE ASSETS			115,338				113,326
OTHER NONCURRENT ASSETS			30,757				39,900
Total assets		$	4,180,084			$	4,175,539
LIABILITIES AND DEFICIT
CURRENT LIABILITIES:
Accounts payable		$	450,461			$	495,180
Accounts payable-affiliates			1				1
Accrued expenses and other payables			128,165				184,184
Advance payments received from customers			18,392				15,201
Current maturities of long-term debt			11,497				11,457
Operating lease obligations			36,199				33,459
Total current liabilities			644,715				739,482
LONG-TERM DEBT, net of debt issuance costs of $39,327 and $41,264, respectively, and current maturities			3,264,175				3,223,126
OPERATING LEASE OBLIGATIONS			81,435				82,160
OTHER NONCURRENT LIABILITIES			135,865				136,953
CLASS D PREFERRED UNITS, 315,489 and 315,489 preferred units issued and outstanding, respectively			289,824				289,824
REDEEMABLE NONCONTROLLING INTERESTS			598				559
DEFICIT:
General partner, representing a 0.1% interest, 124,939 and 123,938 notional units, respectively			(53,259	)			(53,319	)
Limited partners, representing a 99.9% interest, 124,814,289 and 123,814,289 common units issued and outstanding, respectively			(552,217	)			(612,276	)
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
Noncontrolling interests			20,589				20,671
Total deficit			(236,528	)			(296,565	)
Total liabilities and deficit		$	4,180,084			$	4,175,539

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,
			2026				2025
REVENUES:
Product		$	774,300			$	436,418
Service and other			215,692				185,738
Total Revenues			989,992				622,156
COST OF SALES:
Product			679,472				377,464
Service and other			4,937				5,348
Total Cost of Sales			684,409				382,812
OPERATING COSTS AND EXPENSES:
Operating			78,885				70,768
General and administrative			17,568				13,740
Depreciation and amortization			61,895				66,585
Loss (gain) on disposal or impairment of assets, net			1,916				(9,199	)
Operating Income			145,319				97,450
OTHER INCOME (EXPENSE):
Equity in earnings of unconsolidated entities			—				201
Interest expense			(67,068	)			(65,545	)
Gain on early extinguishment of liabilities, net			—				1,492
Other income (expense), net			1,496				(3,515	)
Income From Continuing Operations Before Income Taxes			79,747				30,083
INCOME TAX BENEFIT			299				182
Income From Continuing Operations			80,046				30,265
Income From Discontinued Operations, net of Tax			35				39,379
Net Income			80,081				69,644
LESS: NET INCOME FROM CONTINUING OPERATIONS ATTRIBUTABLE TO NONREDEEMABLE NONCONTROLLING INTERESTS			(1,377	)			(705	)
LESS: NET LOSS (INCOME) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO REDEEMABLE NONCONTROLLING INTERESTS			28				(17	)
NET INCOME ATTRIBUTABLE TO NGL ENERGY PARTNERS LP		$	78,732			$	68,922
NET INCOME (LOSS) FROM CONTINUING OPERATIONS ALLOCATED TO COMMON UNITHOLDERS		$	59,831			$	(34,024	)
NET INCOME FROM DISCONTINUED OPERATIONS ALLOCATED TO COMMON UNITHOLDERS			35				39,340
NET INCOME ALLOCATED TO COMMON UNITHOLDERS – BASIC		$	59,866			$	5,316
NET INCOME ALLOCATED TO COMMON UNITHOLDERS – DILUTED		$	61,212			$	5,316
BASIC AND DILUTED INCOME (LOSS) PER COMMON UNIT
Income (Loss) From Continuing Operations		$	0.48			$	(0.26	)
Income From Discontinued Operations, net of Tax		$	—			$	0.30
Net Income		$	0.48			$	0.04
BASIC WEIGHTED AVERAGE COMMON UNITS OUTSTANDING			124,803,300				131,747,544
DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING			128,085,880				131,747,544

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 June 30,
			2026				2025
		(in thousands)
Net income		$	80,081			$	69,644
Less: Net income from continuing operations attributable to nonredeemable noncontrolling interests			(1,377	)			(705	)
Less: Net loss (income) from continuing operations attributable to redeemable noncontrolling interests			28				(17	)
Net income attributable to NGL Energy Partners LP			78,732				68,922
Interest expense			67,049				65,525
Income tax benefit			(299	)			(182	)
Depreciation and amortization			62,925				65,826
EBITDA			208,407				200,091
Net unrealized gains on derivatives (1)			(39,360	)			(7,540	)
Lower of cost or net realizable value adjustments (2)			6,288				(2,944	)
Loss (gain) on disposal or impairment of assets, net (3)			1,907				(47,579	)
Gain on early extinguishment of liabilities, net			—				(1,492	)
Equity-based compensation expense			1,991				—
Other (4)			7,020				4,431
Adjusted EBITDA		$	186,253			$	144,967
Adjusted EBITDA – Discontinued Operations (5)		$	35			$	995
Adjusted EBITDA – Continuing Operations		$	186,218			$	143,972
Less: Cash interest expense (6)			65,417				61,791
Less: Income tax benefit			(299	)			(182	)
Less: Maintenance capital expenditures			15,451				11,099
Less: Preferred unit distributions paid			18,753				31,536
Less: Other (7)			(6,628	)			1,292
Distributable Cash Flow		$	93,524			$	38,436

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(1)	Due to the continued conflict between the United States and Iran, crude oil prices fluctuated significantly during the three months ended June 30, 2026. To better match the movement of inventory and derivative losses with the physical gains recognized by our Crude Oil Logistics segment in June 2026 and July 2026 and to align with how management evaluated these transactions, approximately $5.8 million of gains from settled contracts are included within this amount.
(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 unaudited condensed consolidated statements of cash flows in the Partnership’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, as the amounts reported in the table above represent the change in lower of cost or net realizable value adjustments recorded in our unaudited condensed consolidated statements of operations, which includes reversals, whereas the amounts reported in our unaudited condensed 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, expenses incurred related to legal and advisory costs associated with acquisitions and dispositions, unrealized gains and losses on investments and marketable securities and a loss from a legal dispute. In addition, the amount for the three months ended June 30, 2026 includes approximately $2.6 million of realized losses from derivatives associated with crude oil barrels reclassified as linefill as of 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. For the three months ended June 30, 2026, amount also includes realized losses for derivative contracts described in Notes 1 and 4 above, and excludes approximately $4.0 million of losses from settled contracts in the preceding quarter.

ADJUSTED EBITDA RECONCILIATION BY SEGMENT (unaudited)
	Three Months Ended June 30, 2026
	Water Solutions				Crude Oil Logistics				Liquids Logistics				Corporate and Other				Continuing Operations				Discontinued Operations				Consolidated
	(in thousands)
Operating income (loss)	$	138,568			$	5,858			$	16,310			$	(15,417	)		$	145,319			$	—			$	145,319
Depreciation and amortization		53,317				6,200				1,710				668				61,895				—				61,895
Amortization in cost of sales-service		1,602				—				—				—				1,602				—				1,602
Net unrealized gains on derivatives		(19,036	)			(12,605	)			(7,719	)			—				(39,360	)			—				(39,360	)
Lower of cost or net realizable value adjustments		—				6,341				(53	)			—				6,288				—				6,288
Loss (gain) on disposal or impairment of assets, net		1,818				117				(11	)			(8	)			1,916				—				1,916
Equity-based compensation expense		—				—				—				1,991				1,991				—				1,991
Other income (expense), net		1,420				(388	)			341				123				1,496				—				1,496
Adjusted EBITDA attributable to noncontrolling interests		(1,946	)			—				—				(21	)			(1,967	)			—				(1,967	)
Other		4,113				3,118				(293	)			100				7,038				—				7,038
Discontinued operations		—				—				—				—				—				35				35
Adjusted EBITDA	$	179,856			$	8,641			$	10,285			$	(12,564	)		$	186,218			$	35			$	186,253

	Three Months Ended June 30, 2025
	Water Solutions				Crude Oil Logistics				Liquids Logistics				Corporate and Other				Continuing Operations				Discontinued Operations				Consolidated
	(in thousands)
Operating income (loss)	$	84,947			$	672			$	23,732			$	(11,901	)		$	97,450			$	—			$	97,450
Depreciation and amortization		58,076				6,065				1,567				877				66,585				—				66,585
Net unrealized gains on derivatives		(3,514	)			(1,132	)			(2,879	)			—				(7,525	)			—				(7,525	)
Lower of cost or net realizable value adjustments		—				—				(2,944	)			—				(2,944	)			—				(2,944	)
Loss (gain) on disposal or impairment of assets, net		3,536				3,921				(16,655	)			(1	)			(9,199	)			—				(9,199	)
Other (expense) income, net		(133	)			1				(328	)			(3,055	)			(3,515	)			—				(3,515	)
Adjusted EBITDA attributable to unconsolidated entities		221				—				4				—				225				—				225
Adjusted EBITDA attributable to noncontrolling interests		(1,485	)			—				—				(68	)			(1,553	)			—				(1,553	)
Other		1,221				56				374				2,797				4,448				—				4,448
Discontinued operations		—				—				—				—				—				995				995
Adjusted EBITDA	$	142,869			$	9,583			$	2,871			$	(11,351	)		$	143,972			$	995			$	144,967

OPERATIONAL DATA (Unaudited)
		Three Months Ended
		June 30,
			2026				2025
		(in thousands, except per day amounts)
Water Solutions:
Produced water processed (barrels per day)
Delaware Basin			2,962,381				2,411,622
Eagle Ford Basin			176,712				200,773
DJ Basin			175,962				159,219
Total			3,315,055				2,771,614
Recycled water (barrels per day)			145,817				239,845
Total (barrels per day)			3,460,872				3,011,459
Skim oil sold (barrels per day)			6,177				4,603
Crude Oil Logistics:
Crude oil sold (barrels)			4,359				2,424
Crude oil transported on owned pipelines (barrels)			6,705				4,990
Crude oil storage capacity – owned and leased (barrels) (1)			5,232				5,232
Crude oil inventory (barrels) (1)			334				391
Liquids Logistics:
Butane sold (gallons)			119,846				96,938
Propane sold (gallons)			41,082				66,775
Other products sold (gallons)			61,175				71,616
Natural gas liquids storage capacity – owned and leased (gallons) (1)			46,841				52,721
Butane inventory (gallons) (1)			24,295				40,177
Propane inventory (gallons) (1)			13,052				13,283
Other products inventory (gallons) (1)			4,526				6,017

________________
(1)	Information is presented as of June 30, 2026 and June 30, 2025, respectively.

 

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