NGL Energy Partners LP Announces Fourth Quarter and Full Year Fiscal 2025 Financial Results; Guidance for Fiscal 2026

TULSA, Okla.--(BUSINESS WIRE)-- NGL Energy Partners LP (NYSE:NGL) (“NGL,” “we,” “us,” “our,” or the “Partnership”) today reported its fourth quarter and full year fiscal 2025 results.

Highlights for the fiscal year and quarter ended March 31, 2025 include:

• Income from continuing operations for full year Fiscal 2025 of $65.0 million, compared to a loss from continuing operations of $157.7 million for full year Fiscal 2024; income from continuing operations for the fourth quarter of Fiscal 2025 of $16.2 million, compared to a loss from continuing operations of $234.3 million for the fourth quarter of Fiscal 2024
• Adjusted EBITDA from continuing operations⁽¹⁾ for full year Fiscal 2025 of $622.9 million, compared to $593.4 million for full year Fiscal 2024; Adjusted EBITDA from continuing operations⁽¹⁾ for the fourth quarter of Fiscal 2025 of $176.8 million, compared to $147.9 million for the fourth quarter of Fiscal 2024
• Produced water volumes processed of approximately 2.73 million barrels per day during the fourth quarter of Fiscal 2025, growing 14.2% from the fourth quarter of Fiscal 2024 and 2.63 million barrels per day for the entire Fiscal 2025, an 8.6% increase over the prior year
• Record Water Solutions’ Adjusted EBITDA⁽¹⁾ of $542.0 million for full year Fiscal 2025, a 6.6% increase over the prior year and 8.7% when reducing prior year Adjusted EBITDA for assets sold
• Closed the sale of our natural gas liquids terminal in Green Bay, Wisconsin and certain railcars in our Crude Oil Logistics segment

Additional asset sales for the period subsequent to March 31, 2025 included the sale of:

• 17 of our natural gas liquids terminals, the majority of our wholesale propane business
• Our refined products Rack Marketing business
• Our ownership in Limestone Ranch in the Water Solutions segment
• Additional railcars in our Crude Oil Logistics segment

The Partnership commenced purchases of its Class D preferred, buying 20,000 units in the open market at a discount.

The asset sales, associated working capital, and other cash receipts raised approximately $270 million. These proceeds were used to repay the outstanding borrowings of the ABL, purchase preferred equity and will further reduce indebtedness.

“The Partnership ended Fiscal 2025, with Adjusted EBITDA⁽¹⁾ $622.9 million, versus our previous guidance of $620 million. Water Solutions achieved record annual water disposal volumes processed and Adjusted EBITDA⁽¹⁾, and the Partnership executed on non-core asset sales at attractive multiples. These asset sales will reduce the volatility and seasonality of our Adjusted EBITDA and working capital requirements. Fiscal 2026 holds more opportunities to continue addressing our capital structure and strengthening our balance sheet,” stated Mike Krimbill, NGL’s CEO. “We are guiding Fiscal 2026 full year consolidated Adjusted EBITDA⁽²⁾ to a range of $615 -$625 million which is an increase over Fiscal 2025 actuals adjusted for EBITDA associated with asset sales. Also, we are guiding to $45 million in maintenance and $60 million of growth capital expenditures for Fiscal 2026,” 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, 2025								March 31, 2024
		Operating Income (Loss)				Adjusted EBITDA(1)				Operating Income (Loss)				Adjusted EBITDA(1)
		(in thousands)
Water Solutions		$	88,891			$	154,870			$	28,537			$	123,440
Crude Oil Logistics			7,148				13,121				3,279				15,339
Liquids Logistics			(4,991	)			17,690				(49,920	)			22,213
Corporate and Other			(9,926	)			(8,851	)			(62,707	)			(13,054	)
Total		$	81,122			$	176,830			$	(80,811	)		$	147,938

Water Solutions

Operating income for the Water Solutions segment increased by $60.4 million for the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024. The increase was due primarily to higher disposal revenues due to an increase in produced water volumes processed from contracted customers and higher fees charged for interruptible spot volumes. There was also higher water pipeline revenue due to the LEX II pipeline commencing operations during the prior quarter. The Partnership processed approximately 2.73 million barrels of water per day during the quarter ended March 31, 2025, a 14.2% increase when compared to approximately 2.39 million barrels of water per day processed during the quarter ended March 31, 2024.

Revenues from recovered skim oil, including the impact from realized skim oil hedges, totaled $36.7 million for the quarter ended March 31, 2025, an increase of $8.3 million from the prior year period. The increase was due primarily to an increase in skim oil barrels sold due to more skim oil recovered from receiving more water in higher oil cut basins, partially offset by lower realized crude oil prices received from the sale of skim oil barrels.

Operating expenses in the Water Solutions segment increased $7.6 million for the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024 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, higher repairs and maintenance expense due to the timing of repairs and tank cleaning and higher business insurance expense for remediation costs incurred. Operating expense per produced barrel processed was $0.23 for the quarter ended March 31, 2025, compared to $0.23 in the comparative quarter last year.

Also contributing to the increase in operating income were lower losses on the disposal or impairment of assets of $8.0 million for the quarter ended March 31, 2025, compared to $31.8 million in the prior year period.

Crude Oil Logistics

Operating income for the Crude Oil Logistics segment increased by $3.9 million for the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024. For the quarter ended March 31, 2025, we incurred lower expenses of $3.9 million due to lower volumes flowing on the Grand Mesa Pipeline, lower depreciation due to certain assets becoming fully depreciated in the prior year, and we recorded a gain from the disposal of certain assets for the quarter ended March 31, 2025, compared to a loss in the prior year period. In addition, we recognized a net loss on derivatives of $0.4 million in the current year period compared to a net loss of $6.8 million in the prior year period. This was offset by lower product margin for crude oil sales due to lower production on the acreage dedicated to us in the DJ Basin and expiration of certain higher margin purchase contracts during the quarter ended March 31, 2024. During the quarter ended March 31, 2025, physical volumes on the Grand Mesa Pipeline averaged approximately 56,000 barrels per day, compared to approximately 67,000 barrels per day for the quarter ended March 31, 2024.

Liquids Logistics

Operating income for the Liquids Logistics segment increased by $44.9 million for the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024. Operating income for the fourth quarter of Fiscal 2025 includes impairment losses of $23.2 million, compared to impairment losses of $69.3 million in the same period of the prior year. Excluding these amounts, operating income decreased by $1.1 million for the fourth quarter of Fiscal 2025. Margins for product sales (excluding the impact of derivatives) decreased by approximately $7.1 million, as butane margins declined due to a weak gasoline blending season and asphalt margins declined due to lower supply. Propane margins were essentially flat quarter over quarter. Expenses decreased during the fourth quarter of Fiscal 2025 due to lower commission expense and incentive compensation due to lower operating results.

Capitalization and Liquidity

Total liquidity (cash plus available capacity on our asset-based revolving credit facility (“ABL Facility”)) was approximately $385.7 million as of March 31, 2025. On March 31, 2025, the borrowings under the ABL Facility were $109.0 million, compared to no borrowings under the ABL Facility at March 31, 2024. The ABL Facility was paid off with funds from asset sales on May 1, 2025.

As of March 31, 2025, the Partnership is in compliance with all of its debt covenants and has no significant current debt maturities before February 2029.

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 29, 2025. Analysts, investors, and other interested parties may join the webcast via the event link: https://www.webcaster4.com/Webcast/Page/2808/52485 or by dialing (888) 506-0062 and providing conference code: 625196. 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 52485.

NGL filed its Annual Report on Form 10-K for the year ended March 31, 2025 with the Securities and Exchange Commission after market on May 29, 2025. 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 income (loss), income (loss) 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. In our Crude Oil Logistics segment, we 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 our contracts. To eliminate the volatility of the CMA Differential Roll, we 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 differed from period to period depending on the current crude oil price and future estimated crude oil price which were valued utilizing third-party market quoted prices. We recognized in Adjusted EBITDA the gains and losses from the derivative instrument positions entered into in January 2021 to properly align with the physical margin we hedged each month through the term of this transaction. This representation aligns with management’s evaluation of the transaction. The derivative instrument positions we entered into related to the CMA Differential Roll expired as of December 31, 2023, and we have not entered into any new derivative instrument positions related to the CMA Differential Roll.

As previously reported, for purposes of our Adjusted EBITDA calculation, we did not draw a distinction between realized and unrealized gains and losses on derivatives of certain businesses within our Liquids Logistics segment, which are included in discontinued operations. 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. We include this in Adjusted EBITDA because the unrealized gains and losses for 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. Beginning April 1, 2024, and going forward, we will now be drawing a distinction between realized and unrealized gains and losses on derivatives and will no longer include the activity on the “inventory valuation adjustment” row in the reconciliation table for these certain businesses within our Liquids Logistics segment, which are included in discontinued operations. This change aligns with how management now views and evaluates the transactions within these businesses and is also consistent with the calculation of Adjusted EBITDA used in our other businesses. If this change was made as of April 1, 2023, Adjusted EBITDA for the three months and year ended March 31, 2024 would have been $147.7 million and $609.5 million, respectively.

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 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 network of large diameter wastewater pipelines, disposal wells and produced water handling systems in the Delaware Basin. NGL also operates wastewater disposal in the Eagle Ford and DJ Basins. In addition, NGL markets and provides other logistics services for crude oil, through its ownership of the Grand Mesa Pipeline System, Cushing terminal and other Gulf Coast terminals. 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,
		2025				2024
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	5,649			$	38,909
Accounts receivable, net of allowance for expected credit losses of $3,689 and $1,446, respectively		579,468				717,022
Accounts receivable-affiliates		730				1,501
Inventories		69,916				106,598
Prepaid expenses and other current assets		63,651				71,315
Assets held for sale		175,207				72,470
Assets of discontinued operations		67,432				172,838
Total current assets		962,053				1,180,653
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of $1,104,582 and $1,011,020, respectively		2,066,847				2,095,441
GOODWILL		599,348				617,231
INTANGIBLE ASSETS, net of accumulated amortization of $340,334 and $327,574, respectively		851,347				932,714
INVESTMENTS IN UNCONSOLIDATED ENTITIES		—				20,305
OPERATING LEASE RIGHT-OF-USE ASSETS		109,870				95,436
OTHER NONCURRENT ASSETS		19,975				52,128
ASSETS HELD FOR SALE		—				26,186
Total assets	$	4,609,440			$	5,020,094
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable	$	461,980			$	638,763
Accounts payable-affiliates		102				37
Accrued expenses and other payables		135,233				172,602
Advance payments received from customers		10,347				17,313
Current maturities of long-term debt		8,805				7,000
Operating lease obligations		27,911				29,387
Liabilities held for sale		42,103				2,064
Liabilities of discontinued operations		52,749				110,181
Total current liabilities		739,230				977,347
LONG-TERM DEBT, net of debt issuance costs of $43,144 and $49,178, respectively, and current maturities		2,961,703				2,843,822
OPERATING LEASE OBLIGATIONS		85,240				70,573
OTHER NONCURRENT LIABILITIES		125,897				129,185
CLASS D 9.00% PREFERRED UNITS, 600,000 and 600,000 preferred units issued and outstanding, respectively		551,097				551,097
REDEEMABLE NONCONTROLLING INTERESTS		424				—
EQUITY:
General partner, representing a 0.1% interest, 132,145 and 132,645 notional units, respectively		(52,913	)			(52,834	)
Limited partners, representing a 99.9% interest, 132,012,766 and 132,512,766 common units issued and outstanding, respectively		(170,275	)			134,807
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 (loss)		9				(499	)
Noncontrolling interests		20,669				18,237
Total equity		145,849				448,070
Total liabilities and equity	$	4,609,440			$	5,020,094

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,
			2025				2024				2025				2024
REVENUES:
Product		$	778,604			$	876,817			$	2,742,953			$	3,467,925
Service and other			192,462				162,345				726,233				685,382
Total Revenues			971,066				1,039,162				3,469,186				4,153,307
COST OF SALES:
Product			695,171				793,641				2,437,331				3,103,710
Service and other			14,265				18,499				69,746				81,724
Total Cost of Sales			709,436				812,140				2,507,077				3,185,434
OPERATING COSTS AND EXPENSES:
Operating			75,651				70,958				297,686				299,605
General and administrative			13,483				66,114				55,593				121,625
Depreciation and amortization			64,455				66,366				254,732				266,114
Loss on disposal or impairment of assets, net			30,664				101,715				31,448				115,936
Revaluation of liabilities			(3,745	)			2,680				(6,705	)			2,680
Operating Income (Loss)			81,122				(80,811	)			329,355				161,913
OTHER INCOME (EXPENSE):
Equity in earnings of unconsolidated entities			3,367				2,340				6,565				4,120
Interest expense			(70,101	)			(94,438	)			(280,078	)			(269,804	)
Loss on early extinguishment of liabilities, net			—				(62,152	)			—				(55,281	)
Other income, net			1,778				1,658				4,262				2,782
Income (Loss) From Continuing Operations Before Income Taxes			16,166				(233,403	)			60,104				(156,270	)
INCOME TAX (EXPENSE) BENEFIT			(13	)			(857	)			4,885				(1,458	)
Income (Loss) From Continuing Operations			16,153				(234,260	)			64,989				(157,728	)
(Loss) Income From Discontinued Operations, net of Tax			(1,431	)			(2,479	)			(21,826	)			14,604
Net Income (Loss)			14,722				(236,739	)			43,163				(143,124	)
LESS: NET INCOME FROM CONTINUING OPERATIONS ATTRIBUTABLE TO NONREDEEMABLE NONCONTROLLING INTERESTS			(972	)			(27	)			(3,749	)			(631	)
LESS: NET INCOME FROM CONTINUING OPERATIONS ATTRIBUTABLE TO REDEEMABLE NONCONTROLLING INTERESTS			(26	)			—				(46	)			—
NET INCOME (LOSS) ATTRIBUTABLE TO NGL ENERGY PARTNERS LP		$	13,724			$	(236,766	)		$	39,368			$	(143,755	)
NET LOSS FROM CONTINUING OPERATIONS ALLOCATED TO COMMON UNITHOLDERS		$	(14,677	)		$	(269,692	)		$	(57,096	)		$	(297,705	)
NET (LOSS) INCOME FROM DISCONTINUED OPERATIONS ALLOCATED TO COMMON UNITHOLDERS			(1,429	)			(2,477	)			(21,804	)			14,589
NET LOSS ALLOCATED TO COMMON UNITHOLDERS		$	(16,106	)		$	(272,169	)		$	(78,900	)		$	(283,116	)
BASIC AND DILUTED (LOSS) INCOME PER COMMON UNIT
Loss From Continuing Operations		$	(0.11	)		$	(2.04	)		$	(0.43	)		$	(2.25	)
(Loss) Income From Discontinued Operations, net of Tax		$	(0.01	)		$	(0.01	)		$	(0.16	)		$	0.11
Net Loss		$	(0.12	)		$	(2.05	)		$	(0.60	)		$	(2.14	)
BASIC AND DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING			132,012,766				132,512,766				132,204,283				132,146,477

EBITDA, ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW RECONCILIATION
(Unaudited)
The following table reconciles NGL’s net income (loss) to NGL’s EBITDA, Adjusted EBITDA and Distributable Cash Flow for the periods indicated:
		Three Months Ended March 31,								Year Ended March 31,
			2025				2024				2025				2024
		(in thousands)
Net income (loss)		$	14,722			$	(236,739	)		$	43,163			$	(143,124	)
Less: Net income from continuing operations attributable to nonredeemable noncontrolling interests			(972	)			(27	)			(3,749	)			(631	)
Less: Net income from continuing operations attributable to redeemable noncontrolling interests			(26	)			—				(46	)			—
Net income (loss) attributable to NGL Energy Partners LP			13,724				(236,766	)			39,368				(143,755	)
Interest expense			70,080				94,552				280,241				270,004
Income tax expense (benefit)			16				1,769				(4,775	)			2,405
Depreciation and amortization			64,009				66,282				253,190				266,287
EBITDA			147,829				(74,163	)			568,024				394,941
Net unrealized (gains) losses on derivatives			(707	)			7,145				21,782				63,762
Lower of cost or net realizable value adjustments (1)			2,590				(1,932	)			(1,619	)			1,337
Loss on disposal or impairment of assets, net (2)			32,644				101,651				33,705				115,555
Revaluation of liabilities			(3,745	)			2,680				(6,705	)			2,680
CMA Differential Roll net losses (gains) (3)			—				—				—				(71,285	)
Inventory valuation adjustment (4)			—				1,972				—				(3,419	)
Loss on early extinguishment of liabilities, net			—				62,152				—				55,281
Equity-based compensation expense			—				—				—				1,098
Other (5)			(116	)			48,037				2,572				50,131
Adjusted EBITDA		$	178,495			$	147,542			$	617,759			$	610,081
Adjusted EBITDA - Discontinued Operations (6)		$	1,665			$	(396	)		$	(5,133	)		$	16,667
Adjusted EBITDA - Continuing Operations		$	176,830			$	147,938			$	622,892			$	593,414
Less: Cash interest expense (7)			64,442				91,658				267,612				254,590
Less: Income tax expense (benefit)			13				857				(4,885	)			1,458
Less: Maintenance capital expenditures			11,553				13,189				69,500				54,854
Less: CMA Differential Roll (8)			—				—				—				(27,165	)
Less: Preferred unit distributions paid			28,935				178,299				305,291				178,299
Less: Other (9)			562				—				1,940				222
Distributable Cash Flow - Continuing Operations		$	71,325			$	(136,065	)		$	(16,566	)		$	131,156

_______________
(1)	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, 2025, 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.
(2)	Excludes amounts related to unconsolidated entities and noncontrolling interests.
(3)	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.
(4)	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.
(5)	Amounts represent accretion expense for asset retirement obligations, unrealized gains and losses on investments and marketable securities and expenses incurred related to legal and advisory costs associated with acquisitions and dispositions, including the accrued judgment related to the LCT Capital, LLC legal matter, excluding interest, and the write-off of the legal costs related to the LCT Capital, LLC legal matter that were originally allocated to the Partnership’s general partner 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, 2025.
(6)	Amounts include our refined products and biodiesel businesses.
(7)	Amounts represent interest expense payable in cash, excluding changes in the accrued interest balance.
(8)	Amounts represent the cash portion of the adjustments of the Partnership’s CMA Differential Roll derivative instrument positions, as discussed above, that settled during the period.
(9)	Amounts represent cash paid to settle asset retirement obligations.

ADJUSTED EBITDA RECONCILIATION BY SEGMENT
(Unaudited)
	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 recorded to cost of sales		—				—				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

	Three Months Ended March 31, 2024
	Water Solutions				Crude Oil Logistics				Liquids Logistics				Corporate and Other				Continuing Operations				Discontinued Operations				Consolidated
	(in thousands)
Operating income (loss)	$	28,537			$	3,279			$	(49,920	)		$	(62,707	)		$	(80,811	)		$	—			$	(80,811	)
Depreciation and amortization		55,361				8,058				2,282				665				66,366				—				66,366
Net unrealized losses on derivatives		2,354				4,113				678				—				7,145				—				7,145
Lower of cost or net realizable value adjustments		—				(785	)			(110	)			—				(895	)			—				(895	)
Loss (gain) on disposal or impairment of assets, net		31,799				623				69,298				(5	)			101,715				—				101,715
Other income (expense), net		194				(1	)			1				1,464				1,658				—				1,658
Adjusted EBITDA attributable to unconsolidated entities		2,419				—				7				(13	)			2,413				—				2,413
Adjusted EBITDA attributable to noncontrolling interest		(371	)			—				—				—				(371	)			—				(371	)
Revaluation of liabilities		2,680				—				—				—				2,680				—				2,680
Other		467				52				(23	)			47,542				48,038				—				48,038
Discontinued operations		—				—				—				—				—				(396	)			(396	)
Adjusted EBITDA	$	123,440			$	15,339			$	22,213			$	(13,054	)		$	147,938			$	(396	)		$	147,542

	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 recorded to cost of sales		—				—				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

	Year Ended March 31, 2024
	Water Solutions				Crude Oil Logistics				Liquids Logistics				Corporate and Other				Continuing Operations				Discontinued Operations			Consolidated
	(in thousands)
Operating income (loss)	$	231,256			$	52,074			$	(13,178	)		$	(108,239	)		$	161,913			$	—		$	161,913
Depreciation and amortization		214,480				36,922				9,963				4,749				266,114				—			266,114
Net unrealized losses (gains) on derivatives		385				65,786				(1,230	)			(1,179	)			63,762				—			63,762
CMA Differential Roll net losses (gains)		—				(71,285	)			—				—				(71,285	)			—			(71,285	)
Lower of cost or net realizable value adjustments		—				—				(2,408	)			—				(2,408	)			—			(2,408	)
Loss (gain) on disposal or impairment of assets, net		53,639				3,094				59,923				(720	)			115,936				—			115,936
Equity-based compensation expense		—				—				—				1,098				1,098				—			1,098
Other income, net		1,110				105				1				1,566				2,782				—			2,782
Adjusted EBITDA attributable to unconsolidated entities		4,393				—				(12	)			124				4,505				—			4,505
Adjusted EBITDA attributable to noncontrolling interest		(1,821	)			—				—				—				(1,821	)			—			(1,821	)
Revaluation of liabilities		2,680				—				—				—				2,680				—			2,680
Other		2,186				191				228				47,533				50,138				—			50,138
Discontinued operations		—				—				—				—				—				16,667			16,667
Adjusted EBITDA	$	508,308			$	86,887			$	53,287			$	(55,068	)		$	593,414			$	16,667		$	610,081

OPERATIONAL DATA
(Unaudited)
	Three Months Ended				Year Ended
	March 31,				March 31,
	2025		2024		2025		2024
	(in thousands, except per day amounts)
Water Solutions:
Produced water processed (barrels per day)
Delaware Basin	2,424,683		2,086,047		2,303,142		2,123,337
Eagle Ford Basin	159,093		161,976		175,251		142,374
DJ Basin	148,001		143,237		146,956		150,426
Other Basins	—		—		—		740
Total	2,731,777		2,391,260		2,625,349		2,416,877
Recycled water (barrels per day)	206,552		87,129		116,058		84,212
Total (barrels per day)	2,938,329		2,478,389		2,741,407		2,501,089
Skim oil sold (barrels per day)	4,902		4,217		4,268		3,992
Crude Oil Logistics:
Crude oil sold (barrels)	1,978		3,338		10,412		20,068
Crude oil transported on owned pipelines (barrels)	5,066		6,091		22,238		25,611
Crude oil storage capacity - owned and leased (barrels) (1)					5,232		5,232
Crude oil inventory (barrels) (1)					339		573
Liquids Logistics:
Propane sold (gallons)	314,709		287,028		760,287		811,035
Butane sold (gallons)	123,007		142,897		516,202		537,015
Other products sold (gallons)	63,537		66,442		277,495		263,422
Natural gas liquids storage capacity - owned and leased (gallons) (1)					52,721		122,831
Propane inventory (gallons) (1)					11,833		35,177
Butane inventory (gallons) (1)					21,871		17,790
Other products inventory (gallons) (1)					8,556		5,623

_______________
(1)	Information is presented as of March 31, 2025 and March 31, 2024, respectively.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250529660053/en/

David Sullivan, 918-495-4631

Vice President - Finance

David.Sullivan@nglep.com

Source: NGL Energy Partners LP