NGL Energy Partners LP (NYSE:NGL) (“NGL,” “our,” “we,” or the
“Partnership”) today reported its second quarter Fiscal 2024
financial results. Highlights include:
- Net income for the second quarter of Fiscal 2024 of $28.3
million, compared to net income of $3.6 million for the second
quarter of Fiscal 2023
- Adjusted EBITDA(1) for the second quarter of Fiscal 2024 of
$176.2 million, compared to $142.2 million for the second quarter
of Fiscal 2023
- Produced water volumes processed of approximately 2.44 million
barrels per day during the second quarter of Fiscal 2024, growing
7.7% from the second quarter of Fiscal 2023. Including minimum
volume commitment payments, the Partnership received revenue on an
additional 20.8 million barrels in the second quarter of Fiscal
2024
- Record Water Solutions’ quarterly Adjusted EBITDA(1) of $140.4
million for the second quarter of Fiscal 2024, a 34.0% increase
compared to the second quarter of Fiscal 2023
- Total leverage at the end of the quarter was 4.14 times, versus
6.11 times at the end of the second quarter of Fiscal 2023
“Our Water Solutions segment continues to outperform, so we are
increasing our Fiscal 2024 Adjusted EBITDA(2) guidance for this
segment to $500 million plus. The significant reduction in total
leverage should provide the financial flexibility to deal with our
capital structure. Currently, we are reducing indebtedness on our
ABL Facility, rather than the 2025 unsecured notes, as it is our
highest cost of debt. We will continue to utilize operational free
cash flow, reduced working capital, and asset sale proceeds to
further improve the balance sheet. We are reaffirming our full year
consolidated Adjusted EBITDA(2) guidance of $645 million plus
rather than increasing it commensurate with the Water Solutions’
increase as we are anticipating asset sales plus uncertainty around
the Liquid Logistics segment’s performance in the face of a
potentially warmer than normal winter.” 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 operating income (loss) and
Adjusted EBITDA(1) by reportable segment for the periods
indicated:
Quarter Ended
September 30, 2023
September 30, 2022
Operating Income
(Loss)
Adjusted EBITDA(1)
Operating Income
(Loss)
Adjusted EBITDA(1)
(in thousands)
Water Solutions
$
59,118
$
140,389
$
47,128
$
104,774
Crude Oil Logistics
14,778
30,713
32,927
32,863
Liquids Logistics
23,577
17,086
1,653
16,513
Corporate and Other
(11,443
)
(11,974
)
(12,938
)
(11,908
)
Total
$
86,030
$
176,214
$
68,770
$
142,242
Water Solutions
Operating income for the Water Solutions segment increased $12.0
million for the quarter ended September 30, 2023, compared to the
quarter ended September 30, 2022. The Partnership processed
approximately 2.44 million barrels of produced water per day during
the quarter ended September 30, 2023, a 7.7% increase when compared
to approximately 2.27 million barrels of water per day processed
during the quarter ended September 30, 2022. The increase was due
primarily to higher 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. Also, there was an
increase in payments made by certain producers for committed
volumes not delivered. In addition, during July 2023, we entered
into a transaction in which a portion of the total consideration
received was allocated to revenue due to the termination of a
minimum volume water disposal contract.
Revenues from recovered skim oil, including the impact from
realized skim oil hedges, totaled $31.1 million for the quarter
ended September 30, 2023, an increase of $6.9 million from the
prior year period. The increase was due primarily to greater skim
oil barrels sold as a result of higher skim oil recovered from
increased produced water processed, and the sale during the current
quarter of approximately 53,000 barrels of skim oil that were
stored at the end of the prior quarter due to tighter pipeline
specifications.
Operating expenses in the Water Solutions segment decreased $1.7
million for the quarter ended September 30, 2023, compared to the
quarter ended September 30, 2022 due primarily to lower chemical
expense and lower severance taxes as a result of a severance tax
refund in September 2023 related to prior periods. Operating
expense per produced barrel processed was $0.24 for the quarter
ended September 30, 2023, compared to $0.27 in the comparative
quarter last year.
Crude Oil Logistics
Operating income for the Crude Oil Logistics segment decreased
$18.1 million for the quarter ended September 30, 2023, compared to
the quarter ended September 30, 2022. The decrease was primarily
due to net losses on derivative contracts of $15.4 million compared
to net gains in the prior year of $27.8 million. Product margin for
crude oil sales increased due to the selling of lower priced
inventory into a rising price market. The decrease in operating
income was offset by a decrease in expenses of $5.3 million
primarily related to the sale of our marine assets on March 30,
2023. During the quarter ended September 30, 2023, physical volumes
on the Grand Mesa Pipeline averaged approximately 70,000 barrels
per day, compared to approximately 72,000 barrels per day for the
quarter ended September 30, 2022.
Liquids Logistics
Operating income for the Liquids Logistics segment increased by
$21.9 million for the quarter ended September 30, 2023, compared to
the quarter ended September 30, 2022. The increase was primarily
due to increased product margins (excluding the impact of
derivatives) for propane and butane, offset by lower product
margins for refined and other products. Propane margins increased
due to our selling lower priced inventory into a market with rising
prices. Butane product margins increased due to higher demand for
butane blending for the quarter ended September 30, 2023. Margins
for refined products declined as the supply issues in certain
regions, resulting in higher margins, were resolved and supply and
demand were more in balance. Margins for certain other products
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. In addition,
derivative gains increased by approximately $3.4 million and the
sale of two propane terminals in July 2023 netted a gain of
approximately $6.9 million.
Corporate and Other
The operating loss for Corporate and Other was lower by $1.5
million for the quarter ended September 30, 2023, compared to the
quarter ended September 30, 2022. Results for the current period
include gains from derivatives of $3.4 million as we have entered
into economic hedges to protect our liquidity positions and
leverage from a significant increase in commodity prices. These
positions will expire between November 2023 and March 2024. The
gains were partially offset by an increase in business insurance
and legal expenses.
Capitalization and Liquidity
Total liquidity (cash plus available capacity on our asset-based
revolving credit facility (“ABL Facility”)) was approximately
$307.7 million as of September 30, 2023. Borrowings on the
Partnership’s ABL Facility totaled approximately $156.0 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.
Second Quarter Conference Call Information
A conference call to discuss NGL’s results of operations is
scheduled for 4:00 pm Central Time on Thursday, November 9, 2023.
Analysts, investors, and other interested parties may join the
webcast via the event link:
https://www.webcaster4.com/Webcast/Page/2808/49346 or by dialing
(877) 545-0320 and providing access code: 476458. 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
49346.
Upcoming Events
Brad Cooper, NGL Energy Partners CFO, and other members of the
management team will be attending the Bank of America Leverage
Finance/Credit Conference in Boca Raton, FL on November 28, 2023
and the Wells Fargo Annual Midstream and Utilities Symposium in New
York City, NY on December 6, 2023.
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)
September 30, 2023
March 31, 2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
2,680
$
5,431
Accounts receivable-trade, net of
allowance for expected credit losses of $1,840 and $1,964,
respectively
1,157,710
1,033,956
Accounts receivable-affiliates
15,035
12,362
Inventories
250,572
142,607
Prepaid expenses and other current
assets
137,585
98,089
Total current assets
1,563,582
1,292,445
PROPERTY, PLANT AND EQUIPMENT, net of
accumulated depreciation of $908,595 and $898,184, respectively
2,166,103
2,223,380
GOODWILL
707,583
712,364
INTANGIBLE ASSETS, net of accumulated
amortization of $406,653 and $580,860, respectively
1,016,820
1,058,668
INVESTMENTS IN UNCONSOLIDATED ENTITIES
20,900
21,090
OPERATING LEASE RIGHT-OF-USE ASSETS
95,231
90,220
OTHER NONCURRENT ASSETS
57,696
57,977
Total assets
$
5,627,915
$
5,456,144
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable-trade
$
1,080,673
$
927,591
Accounts payable-affiliates
44
65
Accrued expenses and other payables
164,115
133,616
Advance payments received from
customers
29,239
14,699
Operating lease obligations
33,376
34,166
Total current liabilities
1,307,447
1,110,137
LONG-TERM DEBT, net of debt issuance costs
of $24,385 and $30,117, respectively
2,782,262
2,857,805
OPERATING LEASE OBLIGATIONS
63,975
58,450
OTHER NONCURRENT LIABILITIES
107,945
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
(52,572
)
(52,551
)
Limited partners, representing a 99.9%
interest, 131,927,343 and 131,927,343 common units issued and
outstanding, respectively
503,798
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
(473
)
(450
)
Noncontrolling interests
16,077
16,507
Total equity
815,189
767,429
Total liabilities and equity
$
5,627,915
$
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 September
30,
Six Months Ended September
30,
2023
2022
2023
2022
REVENUES:
Water Solutions
$
197,244
$
164,910
$
378,546
$
330,989
Crude Oil Logistics
489,713
574,783
954,103
1,440,154
Liquids Logistics
1,154,139
1,269,754
2,124,551
2,735,687
Total Revenues
1,841,096
2,009,447
3,457,200
4,506,830
COST OF SALES:
Water Solutions
7,424
920
9,993
11,145
Crude Oil Logistics
454,927
514,199
880,226
1,336,569
Liquids Logistics
1,119,478
1,249,001
2,066,725
2,671,417
Corporate and Other
(3,381
)
—
833
—
Total Cost of Sales
1,578,448
1,764,120
2,957,777
4,019,131
OPERATING COSTS AND EXPENSES:
Operating
77,389
84,158
154,070
156,018
General and administrative
17,496
16,628
37,787
33,385
Depreciation and amortization
65,526
68,118
134,505
134,778
Loss on disposal or impairment of assets,
net
16,207
7,653
15,011
7,485
Operating Income
86,030
68,770
158,050
156,033
OTHER INCOME (EXPENSE):
Equity in earnings of unconsolidated
entities
851
1,207
942
1,881
Interest expense
(58,627
)
(68,297
)
(118,149
)
(135,608
)
Gain on early extinguishment of
liabilities, net
63
2,479
6,871
4,141
Other income (expense), net
310
(15
)
616
631
Income Before Income Taxes
28,627
4,144
48,330
27,078
INCOME TAX EXPENSE
(342
)
(537
)
(482
)
(365
)
Net Income
28,285
3,607
47,848
26,713
LESS: NET INCOME ATTRIBUTABLE TO
NONCONTROLLING INTERESTS
(257
)
(97
)
(519
)
(342
)
NET INCOME ATTRIBUTABLE TO NGL ENERGY
PARTNERS LP
$
28,028
$
3,510
$
47,329
$
26,371
NET LOSS ALLOCATED TO COMMON
UNITHOLDERS
$
(6,709
)
$
(26,899
)
$
(21,191
)
$
(31,578
)
BASIC AND DILUTED LOSS PER COMMON UNIT
$
(0.05
)
$
(0.21
)
$
(0.16
)
$
(0.24
)
BASIC WEIGHTED AVERAGE COMMON UNITS
OUTSTANDING
131,927,343
130,695,970
131,927,343
130,695,970
DILUTED WEIGHTED AVERAGE COMMON UNITS
OUTSTANDING
131,927,343
130,695,970
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
for the periods indicated:
Three Months Ended September
30,
Six Months Ended September
30,
2023
2022
2023
2022
(in thousands)
Net income
$
28,285
$
3,607
$
47,848
$
26,713
Less: Net income attributable to
noncontrolling interests
(257
)
(97
)
(519
)
(342
)
Net income attributable to NGL Energy
Partners LP
28,028
3,510
47,329
26,371
Interest expense
58,642
68,313
118,178
135,639
Income tax expense
342
537
482
365
Depreciation and amortization
65,502
68,103
134,423
134,717
EBITDA
152,514
140,463
300,412
297,092
Net unrealized losses (gains) on
derivatives
9,691
(4,828
)
9,059
(61,730
)
CMA Differential Roll net losses (gains)
(1)
2,233
(6,518
)
(6,904
)
28,102
Inventory valuation adjustment (2)
(6,436
)
(3,560
)
(6,100
)
(4,115
)
Lower of cost or net realizable value
adjustments
1,080
10,143
3,844
857
Loss on disposal or impairment of assets,
net
16,207
7,653
15,011
7,485
Gain on early extinguishment of
liabilities, net
(63
)
(2,479
)
(6,871
)
(4,141
)
Equity-based compensation expense
410
479
884
976
Acquisition expense (3)
42
—
47
—
Other (4)
536
889
1,487
1,592
Adjusted EBITDA
$
176,214
$
142,242
$
310,869
$
266,118
Less: Cash interest expense (5)
54,483
64,096
109,894
127,221
Less: Income tax expense
342
537
482
365
Less: Maintenance capital expenditures
16,358
14,219
32,885
29,586
Less: CMA Differential Roll (6)
(7,352
)
(16,274
)
(18,047
)
1,934
Less: Other (7)
4
77
222
170
Distributable Cash Flow
$
112,379
$
79,587
$
185,433
$
106,842
(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)
Amounts represent 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 six months
ended September 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 September
30, 2023
Water Solutions
Crude Oil
Logistics
Liquids
Logistics
Corporate and
Other
Consolidated
(in thousands)
Operating income (loss)
$
59,118
$
14,778
$
23,577
$
(11,443
)
$
86,030
Depreciation and amortization
52,053
9,573
2,383
1,517
65,526
Amortization recorded to cost of sales
—
—
65
—
65
Net unrealized losses (gains) on
derivatives
4,471
4,554
3,230
(2,564
)
9,691
CMA Differential Roll net losses
(gains)
—
2,233
—
—
2,233
Inventory valuation adjustment
—
—
(6,436
)
—
(6,436
)
Lower of cost or net realizable value
adjustments
—
—
1,080
—
1,080
Loss (gain) on disposal or impairment of
assets, net
23,599
(467
)
(6,925
)
—
16,207
Equity-based compensation expense
—
—
—
410
410
Acquisition expense
(29
)
—
65
6
42
Other income (expense), net
248
(1
)
14
49
310
Adjusted EBITDA attributable to
unconsolidated entities
1,032
—
(21
)
51
1,062
Adjusted EBITDA attributable to
noncontrolling interest
(542
)
—
—
—
(542
)
Other
439
43
54
—
536
Adjusted EBITDA
$
140,389
$
30,713
$
17,086
$
(11,974
)
$
176,214
Three Months Ended September
30, 2022
Water Solutions
Crude Oil
Logistics
Liquids
Logistics
Corporate and
Other
Consolidated
(in thousands)
Operating income (loss)
$
47,128
$
32,927
$
1,653
$
(12,938
)
$
68,770
Depreciation and amortization
51,327
11,775
3,396
1,620
68,118
Amortization recorded to cost of sales
—
—
69
—
69
Net unrealized (gains) losses on
derivatives
(4,340
)
(4,575
)
4,087
—
(4,828
)
CMA Differential Roll net losses
(gains)
—
(6,518
)
—
—
(6,518
)
Inventory valuation adjustment
—
—
(3,560
)
—
(3,560
)
Lower of cost or net realizable value
adjustments
—
(493
)
10,636
—
10,143
Loss (gain) on disposal or impairment of
assets, net
9,035
(296
)
52
(1,138
)
7,653
Equity-based compensation expense
—
—
—
479
479
Other (expense) income, net
(251
)
303
(91
)
24
(15
)
Adjusted EBITDA attributable to
unconsolidated entities
1,387
—
(17
)
45
1,415
Adjusted EBITDA attributable to
noncontrolling interest
(373
)
—
—
—
(373
)
Other
861
(260
)
288
—
889
Adjusted EBITDA
$
104,774
$
32,863
$
16,513
$
(11,908
)
$
142,242
Six Months Ended September 30,
2023
Water Solutions
Crude Oil
Logistics
Liquids
Logistics
Corporate and
Other
Consolidated
(in thousands)
Operating income (loss)
$
128,449
$
31,785
$
31,408
$
(33,592
)
$
158,050
Depreciation and amortization
106,476
19,319
5,597
3,113
134,505
Amortization recorded to cost of sales
—
—
130
—
130
Net unrealized losses (gains) on
derivatives
4,471
9,689
(5,489
)
388
9,059
CMA Differential Roll net losses
(gains)
—
(6,904
)
—
—
(6,904
)
Inventory valuation adjustment
—
—
(6,100
)
—
(6,100
)
Lower of cost or net realizable value
adjustments
—
—
3,844
—
3,844
Loss (gain) on disposal or impairment of
assets, net
22,318
429
(7,736
)
—
15,011
Equity-based compensation expense
—
—
—
884
884
Acquisition expense
(28
)
—
84
(9
)
47
Other income, net
428
105
15
68
616
Adjusted EBITDA attributable to
unconsolidated entities
1,259
—
(26
)
95
1,328
Adjusted EBITDA attributable to
noncontrolling interest
(1,088
)
—
—
—
(1,088
)
Other
1,298
81
108
—
1,487
Adjusted EBITDA
$
263,583
$
54,504
$
21,835
$
(29,053
)
$
310,869
Six Months Ended September 30,
2022
Water Solutions
Crude Oil
Logistics
Liquids
Logistics
Corporate and
Other
Consolidated
(in thousands)
Operating income (loss)
$
100,733
$
51,916
$
28,293
$
(24,909
)
$
156,033
Depreciation and amortization
101,175
23,529
6,777
3,297
134,778
Amortization recorded to cost of sales
—
—
137
—
137
Net unrealized gains on derivatives
(4,464
)
(55,580
)
(1,686
)
—
(61,730
)
CMA Differential Roll net losses
(gains)
—
28,102
—
—
28,102
Inventory valuation adjustment
—
—
(4,115
)
—
(4,115
)
Lower of cost or net realizable value
adjustments
—
1,074
(217
)
—
857
Loss (gain) on disposal or impairment of
assets, net
9,976
(1,556
)
52
(987
)
7,485
Equity-based compensation expense
—
—
—
976
976
Other income (expense), net
8
331
(184
)
476
631
Adjusted EBITDA attributable to
unconsolidated entities
2,212
—
(24
)
89
2,277
Adjusted EBITDA attributable to
noncontrolling interest
(905
)
—
—
—
(905
)
Other
1,086
125
381
—
1,592
Adjusted EBITDA
$
209,821
$
47,941
$
29,414
$
(21,058
)
$
266,118
OPERATIONAL DATA
(Unaudited)
Three Months Ended
Six Months Ended
September 30,
September 30,
2023
2022
2023
2022
(in thousands, except per day
amounts)
Water Solutions:
Produced water processed (barrels per
day)
Delaware Basin
2,156,733
1,986,585
2,154,906
1,937,179
Eagle Ford Basin
138,509
112,337
135,737
105,463
DJ Basin
146,124
153,766
157,745
152,057
Other Basins
—
13,150
1,481
15,505
Total
2,441,366
2,265,838
2,449,869
2,210,204
Recycled water (barrels per day)
35,341
93,898
67,213
115,294
Total (barrels per day)
2,476,707
2,359,736
2,517,082
2,325,498
Skim oil sold (barrels per day)
4,378
3,216
4,046
3,584
Crude Oil Logistics:
Crude oil sold (barrels)
5,636
5,839
11,643
13,473
Crude oil transported on owned pipelines
(barrels)
6,484
6,600
13,047
13,770
Crude oil storage capacity - owned and
leased (barrels) (1)
5,232
5,232
Crude oil inventory (barrels) (1)
660
660
Liquids Logistics:
Refined products sold (gallons)
209,919
186,031
430,006
374,657
Propane sold (gallons)
129,988
169,775
269,741
334,619
Butane sold (gallons)
108,085
111,551
186,574
232,076
Other products sold (gallons)
100,389
104,979
191,488
198,616
Natural gas liquids and refined products
storage capacity - owned and leased (gallons) (1)
157,589
167,559
Refined products inventory (gallons)
(1)
707
1,990
Propane inventory (gallons) (1)
115,491
101,880
Butane inventory (gallons) (1)
92,651
84,928
Other products inventory (gallons) (1)
18,012
33,653
(1)
Information is presented as of
September 30, 2023 and September 30, 2022, respectively.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231109572038/en/
David Sullivan, 918-495-4631 Vice President - Finance
David.Sullivan@nglep.com
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