NGL Energy Partners LP Reports 17.1% Revenue Decline in Q3 Fiscal 2025

NGL Energy Partners LP reported a significant decline in financial performance for the third quarter of fiscal 2025, with total revenues of $1.55 billion, down 17.1% from $1.87 billion in the same period last year. The decrease was primarily driven by a sharp drop in the Crude Oil Logistics segment, which saw revenues fall to $195.6 million from $425.3 million, reflecting lower sales volumes and prices. The company's net income attributable to NGL Energy Partners LP was $13.5 million, a decrease of 70.5% compared to $45.7 million in the prior year, resulting in a basic loss per common unit of $0.12.

In comparison to the previous fiscal period, NGL Energy's total revenues for the nine months ended December 31, 2024, were $4.29 billion, down from $5.33 billion in the same period of the prior year. The decline in revenues was attributed to lower crude oil prices and reduced volumes across its segments, particularly in Crude Oil Logistics and Liquids Logistics. The company also reported a net loss of $62.8 million for the nine-month period, compared to a loss of $10.9 million in the previous year.

Strategically, NGL Energy has initiated the winding down of its biodiesel business, which is expected to be completed by the end of February 2025. The company has also engaged in several asset sales, including the sale of certain saltwater disposal assets and real estate, which contributed to a total of $68.5 million in proceeds from divestitures during the nine months ended December 31, 2024. Additionally, the company has been actively managing its capital expenditures, which totaled $208 million for the nine-month period, up from $120 million in the previous year.

Operationally, NGL Energy reported a total of 132,012,766 common units outstanding as of December 31, 2024. The company has seen fluctuations in customer demand and engagement metrics, particularly in its Water Solutions segment, where produced water processed increased to 2.69 million barrels per day, up from 2.49 million barrels per day in the prior year. However, the company faced challenges in its Crude Oil Logistics segment, where crude oil sold decreased significantly to 8.43 million barrels from 16.73 million barrels.

Looking ahead, NGL Energy anticipates continued volatility in commodity prices and market conditions, which may impact its financial performance. The company is focused on managing its liquidity and capital resources, with a current asset position exceeding current liabilities by approximately $169.4 million. NGL Energy plans to evaluate the reinstatement of common unit distributions in the future, contingent on its leverage, liquidity, and overall business performance.