Core Insights - NGL Energy Partners faced challenges during the COVID-19 pandemic due to an unstable capital structure, leading to the suspension of common distributions in late 2020 [1] Group 1 - The company was unprepared for the market disruptions caused by the pandemic in 2020 [1] - By early 2021, the company had taken steps to address its financial instability following the suspension of distributions [1]

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J Studios/DigitalVision via Getty Images NGL First Quarter Earnings Review: NGL Partners (NYSE:NGL) reported an okay first quarter tonight (August 8th). Operationally, it looked similar to the Q4 report that I highlighted in my last public writeup on the company. Water dominated while crude oil logistics and liquids were marginal contributors. Part of this pattern is seasonal as fiscal Q1 and Q2 are the slowest quarters for liquids. The company also reaffirmed the guidance for both water and overall adjuste ...

Financial Data and Key Metrics Changes - Consolidated adjusted EBITDA for Q1 2025 was $144.3 million, showing strong performance across all business units [3] - Water Solutions adjusted EBITDA increased to $125.6 million from $123.2 million year-over-year [6] - Crude Oil Logistics adjusted EBITDA decreased to $18.6 million from $23.8 million in the prior year [7] - Liquids Logistics adjusted EBITDA improved significantly to $11.5 million from $4.7 million year-over-year [8] Business Line Data and Key Metrics Changes - Water Solutions physical disposal volumes averaged approximately 2.7 million barrels per day in July, with total volumes paid for disposal up 4% year-over-year [3][6] - Crude Oil Logistics physical volumes on the Grand Mesa pipeline averaged approximately 63,000 barrels per day, down from 72,000 barrels per day in the prior year [7] - Liquids Logistics experienced stronger butane lending margins and volumes, setting up for a favorable fiscal year [8] Market Data and Key Metrics Changes - The Water Solutions segment is expected to benefit from the expansion in the Delaware Basin, which will increase water volumes [10] - Crude Oil Logistics is seeing potential increases in production volumes in the DJ Basin, although long-term factors remain uncertain [10] - Liquids Logistics remains volatile, heavily influenced by winter weather patterns [11] Company Strategy and Development Direction - The company is focused on managing its balance sheet and reducing debt while pursuing internal growth opportunities [11] - The LEX II water pipeline project is on schedule for an October in-service date, with an initial capacity of 200,000 barrels per day expandable to 500,000 barrels per day [6][9] - The company is reaffirming its full-year EBITDA guidance of $665 million for the partnership and $550 million to $560 million for Water Solutions [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the short, medium, and long-term trends in the Water Solutions business, despite quarterly fluctuations [10] - The company anticipates an increase in crude oil volumes in the DJ Basin, indicating a potential bottoming out of the cycle [10][22] - Liquids Logistics is not expected to expand significantly, but internal growth opportunities are being explored [11] Other Important Information - The company completed the sale of two ranches for approximately $70 million and made its last arrearage payment on preferred shares [4] - A common unit repurchase program was authorized for up to $50 million, although no units have been repurchased yet [5] - The company successfully repriced its Term Loan B agreement, reducing interest expenses by $5.25 million annually [5] Q&A Session Summary Question: Water business volume and fee per barrel - Management noted that revenue per barrel increased slightly and that volumes are starting strong for the second quarter, impacted by recycling in Q1 [12][13] Question: Plans for preferred shares - Management plans to utilize free cash flow in Q3 and Q4 to address Class D preferred shares, with no immediate asset sales planned [17][19] Question: Step-up in disposal volumes - The increase in disposal volumes in July was attributed to producers using water for fracking, leading to higher volumes coming in [20][21] Question: Bottoming out of crude logistics - Management believes that increased efficiency in production and rig additions indicate a potential increase in volumes [22] Question: Strategic alternatives for Liquids business - No updates were provided on exploring strategic alternatives for the Liquids business at this time [24]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 001-35172 NGL Energy Partners LP (Exact Name of Registrant as Specified in Its Charter) Dela ...

A downtrend has been apparent in NGL Energy Partners LP (NGL) lately with too much selling pressure. The stock has declined 5.9% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround. We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is ...

NGL Energy Partners LP Common Units (NYSE:NGL) Q4 2024 Earnings Conference Call June 6, 2024 5:00 PM ET Company Participants Brad Cooper - Chief Financial Officer Mike Krimbill - Chief Executive Officer Conference Call Participants Tarek Hamid - J.P. Morgan Gregg Brody - Bank of America Jason Mendel - RBC Ned Baramov - Wells Fargo Operator Greetings. Welcome to the NGL Energy Partners 4Q '24 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow th ...

Water Solutions Segment - The Water Solutions segment handled approximately 884.6 million barrels of produced water during the year ended March 31, 2024, making the company the largest independent produced water transportation and disposal company in the U.S.[34] - The company has approximately 664,000 acres dedicated to its system under long-term agreements in the Northern Delaware Basin, with several minimum volume commitments and commercial agreements in place[34] - The Lea County Express Pipeline System is set to expand from a capacity of 140,000 barrels of water per day to 340,000 barrels per day, with completion expected in the second half of fiscal year 2025[36] - The company owns 89 water treatment and disposal facilities, with a total permitted processing capacity of 6,412,800 barrels per day across various basins[39] - During the year ended March 31, 2024, the company sold approximately 30.8 million barrels of recycled water[38] - 69% of the revenues from the Water Solutions segment were generated from the ten largest customers, indicating a significant reliance on key clients[45] - The company holds multiple patents for processing technologies, enhancing its operational capabilities in the Water Solutions segment[49] - Segment operating income for the water disposal segment increased to $231,256,000, up $32,332,000 or 16.3% from $198,924,000 in 2023[359] - Water disposal service fees rose to $572,972,000, an increase of $48,283,000 or 9.2% compared to $524,689,000 in 2023, driven by higher produced water volumes processed and increased fees[361] - Total revenues for the Water Solutions segment increased by $152.2 million to $697.0 million, driven by higher water disposal service fees and recovered crude oil sales[418] - Operating expenses in the Water Solutions segment increased by $37.1 million to $212.1 million, influenced by higher utility, royalty, and chemical expenses[427] Crude Oil Logistics Segment - The Grand Mesa Pipeline transported approximately 25.6 million barrels of crude oil during the year ended March 31, 2024, with a capacity of 150,000 barrels per day[51] - The Crude Oil Logistics segment generated 86% of its revenues from its ten largest customers during the year ended March 31, 2024[60] - The company has a network of crude oil transportation and storage assets that allows it to serve customers over a wide geographic area, optimizing sales through long-term contracts[32] - Crude oil sales for the year ended March 31, 2024, decreased to $1,597,238,000, down $779,196,000 or 32.8% from $2,376,434,000 in 2023, attributed to lower sales volumes and crude oil prices[373] - Crude oil product margin per barrel increased to $4.129 in 2024 from $4.014 in 2023, reflecting a positive change of $0.115 per barrel[376] Liquids Logistics Segment - The Liquids Logistics segment sold approximately 2.5 billion gallons of natural gas liquids, refined products, and renewables products, averaging about 166,000 barrels per day during the year ended March 31, 2024[67] - The company owns and operates 23 terminals for Liquids Logistics, with a total storage capacity of 34,710,400 gallons[75] - The Liquids Logistics segment serves approximately 1,200 customers across 48 states, Mexico, and Canada, with 23% of revenues generated from the ten largest customers[82] - For the year ended March 31, 2024, the Liquids Logistics segment reported sales of $2,192.8 million, a decrease of 14.1% from $2,554.1 million in 2023[387] - The segment's operating income fell significantly to $2.5 million in 2024 from $66.6 million in 2023, a decline of 96.3%[387] - The total expenses for the Liquids Logistics segment increased to $132.0 million in 2024, up 59.8% from $82.6 million in 2023[387] - Propane sales decreased by 36.3% to $739.6 million in 2024 from $1,161.1 million in 2023, primarily due to lower volumes and prices[387] - The refined products product margin per gallon decreased to $0.030 in 2024 from $0.054 in 2023, reflecting lower demand and restored supply balance[388][390] Financial Performance - Consolidated revenues for the year ended March 31, 2024, were $6,956,571, a decrease of 20% from $8,694,904 in 2023[349] - The cost of sales for the same period was $5,966,794, down from $7,650,024 in 2023, reflecting a 22% reduction[349] - Operating income decreased to $177,572 in 2024 from $289,163 in 2023, representing a decline of approximately 39%[349] - The net loss attributable to NGL Energy Partners LP for the year ended March 31, 2024, was $143,755 compared to a net income of $51,386 in 2023[349] - A debt refinancing transaction of $2.9 billion was completed on February 2, 2024, including $2.2 billion in senior secured notes and a $700 million senior secured term loan[352] - The company repurchased and/or redeemed $2.1 billion of its outstanding 2026 Senior Secured Notes and $280.7 million of the 2025 Notes during the three months ended March 31, 2024[353] - The company anticipates increased compliance costs due to more stringent environmental regulations, which could adversely affect profitability[126] - General and Administrative Expenses increased from $2.5 million to $36.0 million due to legal matters and write-offs related to LCT Capital, LLC[406] - Total interest expense decreased by $5.5 million to $269.9 million, primarily due to the repurchase of senior unsecured notes and a reduction in debt interest expense[411] - Loss on early extinguishment of liabilities was $55.3 million, compared to a gain of $6.2 million in the previous year, mainly due to call premiums and write-offs related to debt[412] Environmental and Regulatory Compliance - The company is subject to various environmental regulations that may impact operations and future expenditures for compliance[102] - The company has implemented safety protocols and training to ensure compliance with health and safety regulations[100] - The company is subject to various environmental regulations, including the Clean Water Act and the Safe Drinking Water Act, which impose strict controls on pollutant discharges and require permits for construction activities[106] - The company may incur significant costs related to compliance with the Resource Conservation and Recovery Act (RCRA) and similar state laws, particularly if certain non-hazardous wastes are reclassified as hazardous in the future[108] - The company is required to prepare and implement Spill Prevention Control and Countermeasure (SPCC) plans for facilities that could discharge oil into navigable waters, with violations potentially leading to monetary penalties[111][112] - The company faces regulatory scrutiny regarding air emissions under the Clean Air Act, which may necessitate capital expenditures for pollution control equipment[113] - The company must comply with the Underground Injection Control (UIC) Program, which regulates the injection of crude oil and natural gas wastes to protect underground sources of drinking water[115] - The company does not conduct hydraulic fracturing but is affected by legislative proposals that could impose additional regulations on hydraulic fracturing activities conducted by its customers[117][118] - The Endangered Species Act restricts operations in areas where endangered species are present, potentially leading to additional costs and operational restrictions[119] - The company is impacted by growing concerns over greenhouse gas emissions, with new regulations requiring disclosures of Scope 1 and Scope 2 emissions starting in 2026[120][122] - The EPA's final rule effective May 7, 2024, targets reductions in methane emissions from oil and gas operations, requiring monitoring and repair of leaks[121]

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers. Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-a ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, incl ...