NGL NGL Energy Partners LP

NGL Energy Partners LP (NYSE:NGL) (“NGL,” “we,” “us,” “our,” or the “Partnership”) today reported its first quarter Fiscal 2025 financial results. Highlights include:

• Net income for the first quarter of Fiscal 2025 of $10.5 million, compared to net income of $19.6 million for the first quarter of Fiscal 2024
• Adjusted EBITDA(1) for the first quarter of Fiscal 2025 of $144.3 million, compared to $134.7 million for the first quarter of Fiscal 2024
• On April 4, 2024, the board of directors of our general partner declared a cash distribution of 55.4% of the outstanding distribution arrearages through the quarter ended March 31, 2024 to the holders of the Class B preferred units, the Class C preferred units and the Class D preferred units. The total distribution of $120.0 million was made on April 18, 2024 to the holders of record at the close of trading on April 12, 2024.
• On April 9, 2024, the board of directors of our general partner declared a cash distribution to fully pay the remaining distribution arrearages and interest through the quarter ended March 31, 2024 to the holders of the Class B preferred units, the Class C preferred units and the Class D preferred units. The total distribution of $98.1 million was made on April 25, 2024 to the holders of record at the close of trading on April 19, 2024.
• During April and May 2024, we closed on the sale of two ranches located in Eddy and Lea Counties, New Mexico for consideration of $69.3 million, including working capital and the sale of certain saltwater disposal assets in the Delaware Basin and certain real estate located in Lea County, New Mexico for additional consideration of approximately $12.2 million.
• On June 5, 2024, the board of directors of our general partner authorized a common unit repurchase program, under which we may repurchase up to $50.0 million of our outstanding common units from time to time in the open market or in other privately negotiated transactions. This program does not have a fixed expiration date.

Highlight for the period subsequent to June 30, 2024:

• On August 5, 2024, we amended the Term Loan B agreement to reduce the SOFR margin from 4.50% to 3.75%.

“We have had a strong start to Fiscal 2025 with $144.3 million in Adjusted EBITDA(1) in the first quarter. We are reaffirming our guidance for Fiscal 2025 with Water Solutions Adjusted EBITDA(2) to a range of $550 - $560 million and full year consolidated Adjusted EBITDA(2) of $665 million. Our focus remains on continued balance sheet improvement by reducing absolute debt and leverage, plus the completion of the LEX II pipeline,” stated Mike Krimbill.

___________________________________ (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

 

 

June 30, 2024

 

June 30, 2023

 

 

Operating Income (Loss)

 

Adjusted EBITDA(1)

 

Operating Income (Loss)

 

Adjusted EBITDA(1)

 

 

(in thousands)

Water Solutions

 

$

84,358

 

 

$

125,603

 

 

$

69,331

 

 

$

123,194

 

Crude Oil Logistics

 

 

14,089

 

 

 

18,635

 

 

 

17,007

 

 

 

23,791

 

Liquids Logistics

 

 

(11,550

)

 

 

11,458

 

 

 

7,831

 

 

 

4,749

 

Corporate and Other

 

 

(11,946

)

 

 

(11,354

)

 

 

(22,149

)

 

 

(17,079

)

Total

 

$

74,951

 

 

$

144,342

 

 

$

72,020

 

 

$

134,655

 

 

Water Solutions

Operating income for the Water Solutions segment increased by $15.0 million for the quarter ended June 30, 2024, compared to the quarter ended June 30, 2023. The Partnership processed approximately 2.47 million barrels of produced water per day during the quarter ended June 30, 2024, a 0.3% increase when compared to approximately 2.46 million barrels of water per day processed during the quarter ended June 30, 2023. The decrease in water disposal services fees was primarily due to lower fees for produced water processed during the quarter due to rate changes for certain existing contracts, the expiration of certain higher fee per barrel contracts which were replaced with lower fee per barrel contracts with an extended term and higher volumes received under contracts with lower fees per barrel. Also contributing to the decrease were lower produced water volumes processed mainly in the DJ Basin as certain producers reused their water in their operations. These decreases were partially offset by an increase in produced water volumes processed from contracted customers in the Eagle Ford and Delaware Basins and higher fees charged for interruptible spot volumes. There was also an increase in payments made by certain producers for committed volumes not delivered.

Revenues from recovered skim oil, including the impact from realized skim oil hedges, totaled $30.7 million for the quarter ended June 30, 2024, an increase of $7.7 million from the prior year period. The increase was due primarily to an increase in skim oil barrels sold as a result of higher skim oil recovered from increased produced water processed and higher realized crude oil prices received from the sale of skim oil barrels. While the amount of skim oil recovered in the prior year quarter was in line with historical averages, a certain amount of skim oil barrels was stored due to tighter pipeline specifications which reduced the amount of skim oil sold during the prior year quarter.

Operating expenses in the Water Solutions segment decreased $2.3 million for the quarter ended June 30, 2024, compared to the quarter ended June 30, 2023 due primarily to lower chemical expense due to purchasing fewer chemicals and using chemicals more efficiently and lower repairs and maintenance expense due to the timing of repairs and tank cleaning. Operating expense per produced barrel processed was $0.24 for the quarter ended June 30, 2024, compared to $0.25 in the comparative quarter last year.

Crude Oil Logistics

Operating income for the Crude Oil Logistics segment decreased by $2.9 million for the quarter ended June 30, 2024, compared to the quarter ended June 30, 2023. Product margin for crude oil sales decreased year over year primarily due to lower sales volumes from lower production volumes on acreage dedicated to us in the DJ Basin. The decrease in product margin from crude oil sales was partially offset by higher tariff revenue on the Grand Mesa Pipeline from signing on a new shipper during the open season that ended on January 5, 2024 and higher price and quality differentials realized in the current quarter. During the quarter ended June 30, 2024, physical volumes on the Grand Mesa Pipeline averaged approximately 63,000 barrels per day, compared to approximately 72,000 barrels per day for the quarter ended June 30, 2023.

Liquids Logistics

Operating income for the Liquids Logistics segment decreased by $19.4 million for the quarter ended June 30, 2024, compared to the quarter ended June 30, 2023. Product margins (excluding the impact of derivatives) for refined products were lower as the supply issues seen in certain markets in the prior year, resulting in higher margins, were resolved and supply and demand were more in balance and lower propane margins due to lower demand. This was partially offset by an increase in butane margins due to the higher demand for butane blending. Also the butane margins for the quarter ended June 30, 2023 included a lower of cost or net realizable value adjustment of $5.4 million. During the quarter ended June 30, 2024, we recorded net derivative losses of $15.0 million compared to derivative gains of $9.9 million during the quarter ended June 30, 2023.

Corporate and Other

The operating loss for Corporate and Other was lower by $10.2 million for the quarter ended June 30, 2024, compared to the quarter ended June 30, 2023. The decrease related to lower general and administration expenses due to the timing of incentive compensation payments compared to the prior year, the elimination of share-based compensation expense due to all outstanding long-term incentive plan awards being fully vested in November 2023 and lower legal expenses. Also, there was a decrease due to a derivative loss during the quarter ended June 30, 2023 of $4.2 million.

Capitalization and Liquidity

Total liquidity (cash plus available capacity on our asset-based revolving credit facility (“ABL Facility”)) was approximately $348.7 million as of June 30, 2024. Borrowings on the Partnership’s ABL Facility totaled approximately $169.0 million as of June 30, 2024, as we funded certain capital projects and began to build inventory for the blending and heating seasons.

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 Thursday, August 8, 2024. Analysts, investors, and other interested parties may join the webcast via the event link: https://www.webcaster4.com/Webcast/Page/2808/50965 or by dialing (844) 369-8770 and providing conference code: NGL Energy Partners. 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 50965.

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 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. 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 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. Beginning April 1, 2024, and going forward, we will now be drawing a distinction between realized and unrealized gains and losses on derivatives and no longer include the activity on the “inventory valuation adjustment” row in the reconciliation table for these certain businesses within our Liquids Logistics segment. 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 ended June 30, 2023 would have been $136.0 million.

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, is a diversified midstream energy partnership that transports, treats, recycles and disposes of produced and flowback water generated as part of the energy production process as well as transports, stores, markets and provides other logistics services for crude oil and liquid hydrocarbons.

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, 2024

 

March 31, 2024

ASSETS

 

 

 

CURRENT ASSETS:

 

 

 

Cash and cash equivalents

$

5,269

 

 

$

38,909

 

Accounts receivable-trade, net of allowance for expected credit losses of $2,173 and $1,671, respectively

 

752,392

 

 

 

814,087

 

Accounts receivable-affiliates

 

1,501

 

 

 

1,501

 

Inventories

 

158,710

 

 

 

130,907

 

Prepaid expenses and other current assets

 

72,385

 

 

 

126,933

 

Assets held for sale

 

—

 

 

 

66,597

 

Total current assets

 

990,257

 

 

 

1,178,934

 

PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of $1,049,187 and $1,011,274, respectively

 

2,125,421

 

 

 

2,096,702

 

GOODWILL

 

634,282

 

 

 

634,282

 

INTANGIBLE ASSETS, net of accumulated amortization of $347,932 and $332,560, respectively

 

928,687

 

 

 

939,978

 

INVESTMENTS IN UNCONSOLIDATED ENTITIES

 

19,219

 

 

 

20,305

 

OPERATING LEASE RIGHT-OF-USE ASSETS

 

91,544

 

 

 

97,155

 

OTHER NONCURRENT ASSETS

 

50,169

 

 

 

52,738

 

Total assets

$

4,839,579

 

 

$

5,020,094

 

LIABILITIES AND EQUITY

 

 

 

CURRENT LIABILITIES:

 

 

 

Accounts payable-trade

$

627,714

 

 

$

707,536

 

Accounts payable-affiliates

 

6

 

 

 

37

 

Accrued expenses and other payables

 

175,513

 

 

 

213,757

 

Advance payments received from customers

 

25,439

 

 

 

17,313

 

Current maturities of long-term debt

 

7,846

 

 

 

7,000

 

Operating lease obligations

 

28,033

 

 

 

31,090

 

Liabilities held for sale

 

—

 

 

 

614

 

Total current liabilities

 

864,551

 

 

 

977,347

 

LONG-TERM DEBT, net of debt issuance costs of $47,337 and $49,178, respectively, and current maturities

 

3,018,427

 

 

 

2,843,822

 

OPERATING LEASE OBLIGATIONS

 

67,270

 

 

 

70,573

 

OTHER NONCURRENT LIABILITIES

 

124,067

 

 

 

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 INTEREST

 

174

 

 

 

—

 

 

 

 

 

EQUITY:

 

 

 

General partner, representing a 0.1% interest, 132,645 and 132,645 notional units, respectively

 

(52,853

)

 

 

(52,834

)

Limited partners, representing a 99.9% interest, 132,512,766 and 132,512,766 common units issued and outstanding, respectively

 

(101,095

)

 

 

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 loss

 

(523

)

 

 

(499

)

Noncontrolling interests

 

20,105

 

 

 

18,237

 

Total equity

 

213,993

 

 

 

448,070

 

Total liabilities and equity

$

4,839,579

 

 

$

5,020,094

 

 

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,

 

2024

 

2023

REVENUES:

 

 

 

Water Solutions

$

181,410

 

 

$

181,302

 

Crude Oil Logistics

 

280,103

 

 

 

464,390

 

Liquids Logistics

 

925,746

 

 

 

970,412

 

Total Revenues

 

1,387,259

 

 

 

1,616,104

 

COST OF SALES:

 

 

 

Water Solutions

 

1,000

 

 

 

2,569

 

Crude Oil Logistics

 

249,497

 

 

 

425,299

 

Liquids Logistics

 

922,711

 

 

 

947,247

 

Corporate and Other

 

—

 

 

 

4,214

 

Total Cost of Sales

 

1,173,208

 

 

 

1,379,329

 

OPERATING COSTS AND EXPENSES:

 

 

 

Operating

 

72,533

 

 

 

76,681

 

General and administrative

 

15,014

 

 

 

20,291

 

Depreciation and amortization

 

62,219

 

 

 

68,979

 

Gain on disposal or impairment of assets, net

 

(10,666

)

 

 

(1,196

)

Operating Income

 

74,951

 

 

 

72,020

 

OTHER INCOME (EXPENSE):

 

 

 

Equity in earnings of unconsolidated entities

 

300

 

 

 

91

 

Interest expense

 

(69,739

)

 

 

(59,522

)

Gain on early extinguishment of liabilities, net

 

—

 

 

 

6,808

 

Other income, net

 

167

 

 

 

306

 

Income Before Income Taxes

 

5,679

 

 

 

19,703

 

INCOME TAX BENEFIT (EXPENSE)

 

4,796

 

 

 

(140

)

Net Income

 

10,475

 

 

 

19,563

 

LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

(792

)

 

 

(262

)

NET INCOME ATTRIBUTABLE TO NGL ENERGY PARTNERS LP

$

9,683

 

 

$

19,301

 

NET LOSS ALLOCATED TO COMMON UNITHOLDERS

$

(19,112

)

 

$

(14,482

)

BASIC AND DILUTED LOSS PER COMMON UNIT

$

(0.14

)

 

$

(0.11

)

BASIC AND DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING

 

132,512,766

 

 

 

131,927,343

 

 

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,

 

2024

 

2023

 

(in thousands)

Net income

$

10,475

 

 

$

19,563

 

Less: Net income attributable to noncontrolling interests

 

(792

)

 

 

(262

)

Net income attributable to NGL Energy Partners LP

 

9,683

 

 

 

19,301

 

Interest expense

 

69,738

 

 

 

59,536

 

Income tax (benefit) expense

 

(4,796

)

 

 

140

 

Depreciation and amortization

 

61,849

 

 

 

68,921

 

EBITDA

 

136,474

 

 

 

147,898

 

Net unrealized losses (gains) on derivatives

 

17,956

 

 

 

(632

)

Lower of cost or net realizable value adjustments

 

(330

)

 

 

2,764

 

Gain on disposal or impairment of assets, net

 

(10,666

)

 

 

(1,196

)

CMA Differential Roll net losses (gains) (1)

 

—

 

 

 

(9,137

)

Inventory valuation adjustment (2)

 

—

 

 

 

336

 

Gain on early extinguishment of liabilities, net

 

—

 

 

 

(6,808

)

Equity-based compensation expense

 

—

 

 

 

474

 

Other (3)

 

908

 

 

 

956

 

Adjusted EBITDA

$

144,342

 

 

$

134,655

 

Less: Cash interest expense (4)

 

67,218

 

 

 

55,411

 

Less: Income tax (benefit) expense

 

(4,796

)

 

 

140

 

Less: Maintenance capital expenditures

 

22,804

 

 

 

16,527

 

Less: CMA Differential Roll (5)

 

—

 

 

 

(10,695

)

Less: Preferred unit distributions paid

 

218,091

 

 

 

—

 

Less: Other (6)

 

65

 

 

 

218

 

Distributable Cash Flow

$

(159,040

)

 

$

73,054

 

______________

(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) Amount represents 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 accretion expense for asset retirement obligations and expenses incurred related to legal and advisory costs associated with acquisitions and dispositions. Also, the amount for the three months ended June 30, 2023 included unrealized gains/losses on marketable securities.

(4) Amounts represent interest expense payable in cash, excluding changes in the accrued interest balance.

(5) 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.

(6) Amounts represent cash paid to settle asset retirement obligations.

 

ADJUSTED EBITDA RECONCILIATION BY SEGMENT

 

 

Three Months Ended June 30, 2024

 

Water Solutions

 

Crude Oil Logistics

 

Liquids Logistics

 

Corporate and Other

 

Consolidated

 

(in thousands)

Operating income (loss)

$

84,358

 

 

$

14,089

 

 

$

(11,550

)

 

$

(11,946

)

 

$

74,951

 

Depreciation and amortization

 

52,712

 

 

 

6,441

 

 

 

2,411

 

 

 

655

 

 

 

62,219

 

Amortization recorded to cost of sales

 

—

 

 

 

—

 

 

 

65

 

 

 

—

 

 

 

65

 

Net unrealized (gains) losses on derivatives

 

(861

)

 

 

(1,980

)

 

 

20,797

 

 

 

—

 

 

 

17,956

 

Lower of cost or net realizable value adjustments

 

—

 

 

 

—

 

 

 

(330

)

 

 

—

 

 

 

(330

)

(Gain) loss on disposal or impairment of assets, net

 

(10,696

)

 

 

30

 

 

 

—

 

 

 

—

 

 

 

(10,666

)

Other income, net

 

106

 

 

 

2

 

 

 

22

 

 

 

37

 

 

 

167

 

Adjusted EBITDA attributable to unconsolidated entities

 

387

 

 

 

—

 

 

 

(16

)

 

 

—

 

 

 

371

 

Adjusted EBITDA attributable to noncontrolling interest

 

(1,314

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(1,314

)

Other

 

911

 

 

 

53

 

 

 

59

 

 

 

(100

)

 

 

923

 

Adjusted EBITDA

$

125,603

 

 

$

18,635

 

 

$

11,458

 

 

$

(11,354

)

 

$

144,342

 

   

 

Three Months Ended June 30, 2023

 

Water Solutions

 

Crude Oil Logistics

 

Liquids Logistics

 

Corporate and Other

 

Consolidated

 

(in thousands)

Operating income (loss)

$

69,331

 

 

$

17,007

 

 

$

7,831

 

 

$

(22,149

)

 

$

72,020

 

Depreciation and amortization

 

54,423

 

 

 

9,746

 

 

 

3,214

 

 

 

1,596

 

 

 

68,979

 

Amortization recorded to cost of sales

 

—

 

 

 

—

 

 

 

65

 

 

 

—

 

 

 

65

 

Net unrealized losses (gains) on derivatives

 

—

 

 

 

5,135

 

 

 

(8,719

)

 

 

2,952

 

 

 

(632

)

CMA Differential Roll net losses (gains)

 

—

 

 

 

(9,137

)

 

 

—

 

 

 

—

 

 

 

(9,137

)

Inventory valuation adjustment

 

—

 

 

 

—

 

 

 

336

 

 

 

—

 

 

 

336

 

Lower of cost or net realizable value adjustments

 

—

 

 

 

—

 

 

 

2,764

 

 

 

—

 

 

 

2,764

 

(Gain) loss on disposal or impairment of assets, net

 

(1,281

)

 

 

896

 

 

 

(811

)

 

 

—

 

 

 

(1,196

)

Equity-based compensation expense

 

—

 

 

 

—

 

 

 

—

 

 

 

474

 

 

 

474

 

Other income, net

 

180

 

 

 

106

 

 

 

1

 

 

 

19

 

 

 

306

 

Adjusted EBITDA attributable to unconsolidated entities

 

227

 

 

 

—

 

 

 

(5

)

 

 

44

 

 

 

266

 

Adjusted EBITDA attributable to noncontrolling interest

 

(546

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(546

)

Other

 

860

 

 

 

38

 

 

 

73

 

 

 

(15

)

 

 

956

 

Adjusted EBITDA

$

123,194

 

 

$

23,791

 

 

$

4,749

 

 

$

(17,079

)

 

$

134,655

 

 

OPERATIONAL DATA

(Unaudited)

 

 

 

Three Months Ended

 

June 30,

 

2024

 

2023

 

(in thousands, except per day amounts)

Water Solutions:

 

 

 

Produced water processed (barrels per day)

 

 

 

Delaware Basin

2,161,362

 

2,153,059

Eagle Ford Basin

176,306

 

132,934

DJ Basin

127,698

 

169,494

Other Basins

—

 

2,978

Total

2,465,366

 

2,458,465

Recycled water (barrels per day)

104,432

 

99,436

Total (barrels per day)

2,569,798

 

2,557,901

Skim oil sold (barrels per day)

4,425

 

3,710

 

 

 

 

Crude Oil Logistics:

 

 

 

Crude oil sold (barrels)

3,174

 

6,007

Crude oil transported on owned pipelines (barrels)

5,713

 

6,563

Crude oil storage capacity - owned and leased (barrels) (1)

5,232

 

5,232

Crude oil inventory (barrels) (1)

524

 

685

 

 

 

 

Liquids Logistics:

 

 

 

Refined products sold (gallons)

199,949

 

220,087

Propane sold (gallons)

112,504

 

139,753

Butane sold (gallons)

95,189

 

78,489

Other products sold (gallons)

86,807

 

91,099

Natural gas liquids and refined products storage capacity - owned and leased (gallons) (1)

130,441

 

158,124

Refined products inventory (gallons) (1)

1,806

 

504

Propane inventory (gallons) (1)

55,676

 

87,423

Butane inventory (gallons) (1)

52,667

 

69,632

Other products inventory (gallons) (1)

15,744

 

12,452

______________

(1) Information is presented as of June 30, 2024 and June 30, 2023, respectively.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240808447101/en/

David Sullivan, 918-495-4631 Vice President - Finance David.Sullivan@nglep.com