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• Consolidated Adjusted EBITDA: $144.3 million in the first quarter.

• Water Solutions Adjusted EBITDA: $125.6 million in the first quarter, up from $123.2 million in the prior year.

• Crude Oil Logistics Adjusted EBITDA: $18.6 million in the first quarter, down from $23.8 million in the prior year.

• Liquids Logistics Adjusted EBITDA: $11.5 million in the first quarter, up from $4.7 million in the prior year.

• Water Disposal Volumes: 2.47 million barrels per day in the first quarter, up from 2.4 million barrels per day in the prior year.

• Operating Expenses in Water Solutions: $0.24 per unit in Q1, down from $0.25 in the prior year.

• Interest Expense Reduction: $5.25 million per year due to repricing and amending the SOFR margin.

• Common Unit Repurchase Program: Authorized up to $50 million, no purchases made yet.

• Preferred Class B, C, and D Payments: Last arrears payment made, current on all preferred classes.

• Quarterly Distribution for Preferred Classes: Declared and paid on July 15.

• Warning! GuruFocus has detected 4 Warning Signs with NGL.

Release Date: August 08, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• NGL Energy Partners LP (NYSE:NGL) reported strong quarterly results across all three business units, with consolidated adjusted EBITDA reaching $144.3 million.

• The Water Solutions segment performed well, with physical disposal volumes averaging approximately 2.7 million barrels per day in July.

• NGL Energy Partners LP (NYSE:NGL) successfully completed the sale of two ranches for approximately $70 million, enhancing their financial position.

• The company reduced its interest expense by $5.25 million annually through repricing and amending the SOFR margin on its Term Loan B.

• The Liquids Logistics segment saw a significant increase in adjusted EBITDA, rising to $11.5 million from $4.7 million in the prior year, driven by strong butane lending margins and volumes.

Negative Points

• Crude Oil Logistics adjusted EBITDA decreased to $18.6 million from $23.8 million in the prior year's first quarter, primarily due to lower volumes from production in the DJ Basin.

• NGL Energy Partners LP (NYSE:NGL) has not yet repurchased any common units under its authorized $50 million repurchase program.

• The company faces challenges in the Liquids Logistics segment, which is highly volatile and dependent on winter weather conditions.

• NGL Energy Partners LP (NYSE:NGL) continues to manage high costs associated with preferred stock, which are considered expensive financial instruments.

• The company anticipates lumpiness in water disposal volumes due to producers' completion schedules, impacting short-term performance.