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• Consolidated Adjusted EBITDA: $147.7 million in Q3, down from $151.7 million in the prior year.

• Water Solutions Adjusted EBITDA: $132.7 million in Q3, up from $121.3 million in the prior year.

• Physical Water Disposal Volumes: 2.62 million barrels per day in Q3, up from 2.38 million barrels per day in the prior year.

• Crude Oil Logistics Adjusted EBITDA: $17.4 million in Q3, up from $17 million in the prior year.

• Liquid Logistics Adjusted EBITDA: $8.2 million in Q3, down from $26.3 million in the prior year.

• Biodiesel Negative Adjusted EBITDA: $12.1 million in Q3.

• Operating Expense per Produced Barrel: $0.21 in Q3, down from $0.25 in the prior year.

• Projected Full Year EBITDA: $620 million.

• Proceeds from Asset Sales: Approximately $95 million from terminal sales and $20 million from railcar sales.

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

Release Date: February 10, 2025

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

Positive Points

• NGL Energy Partners LP (NYSE:NGL) secured new long-term contracts with Prairie operating and another producer, potentially increasing crude oil volumes on the Grand Mesa pipeline to 100,000 barrels per day.

• The company signed agreements to sell 18 natural gas liquids terminals, expected to generate approximately $95 million in proceeds, which will be used to reduce debt.

• The Lex 2 project commenced operations in October and is performing as expected, contributing positively to the company's operations.

• NGL Energy Partners LP (NYSE:NGL) successfully reduced working capital needs by $60 to $70 million annually through the sale of non-core assets and winding down the biodiesel marketing business.

• Water solutions adjusted EBITDA increased to $132.7 million in the third quarter, up from $121.3 million in the prior year, with disposal volumes rising by 12% year-over-year.

Negative Points

• The winding down of the biodiesel business negatively impacted the quarter's adjusted EBITDA by $12.1 million.

• Consolidated adjusted EBITDA for the quarter decreased to $147.7 million from $151.7 million in the prior year, reflecting challenges in certain business segments.

• Crude oil logistics volumes on the Grand Mesa pipeline decreased to 61,000 barrels per day from 70,000 barrels per day in the previous year.

• Liquid logistics adjusted EBITDA fell significantly to $8.2 million from $26.3 million in the prior third quarter, primarily due to the biodiesel business wind-down.

• The company is experiencing performance volatility and seasonality in its liquids logistics businesses, complicating earnings predictability.