NGL Energy Partners Reports Revenue Decline and Improved Net Income in Q3 Fiscal 2026

NGL Energy Partners LP reported a decline in revenue for the third quarter of fiscal 2026, with total revenues of $909.8 million, down from $982.4 million in the same period last year. The decrease was attributed to lower product sales, which fell to $716.5 million from $799.5 million, and a slight increase in service revenues, which rose to $193.3 million from $183.0 million. The partnership's net income for the quarter was $48.2 million, compared to $14.6 million in the prior year, reflecting a significant improvement in profitability.

For the nine months ending December 31, 2025, NGL Energy reported total revenues of $2.21 billion, down from $2.50 billion in the previous year. The partnership's net income for this period was $147.7 million, a substantial increase from $28.4 million in the same period last year. The improved profitability was driven by higher operating income, which rose to $301.4 million from $248.2 million, primarily due to increased water disposal revenues and lower expenses in the Water Solutions segment.

Strategically, NGL Energy has undergone significant changes, including the sale of its refined products business and the winding down of its biodiesel operations, which were completed in April 2025. These actions are part of a broader strategy to focus on its core segments: Water Solutions, Crude Oil Logistics, and Liquids Logistics. The partnership also reported a gain of $55.5 million from the sale of its wholesale propane business, which is expected to positively impact future operations.

Operationally, the partnership processed an average of 3.26 million barrels of produced water per day during the quarter, an increase from 2.69 million barrels per day in the prior year. The Crude Oil Logistics segment saw an increase in crude oil sold, reaching 5.18 million barrels, up from 2.39 million barrels. However, the Liquids Logistics segment experienced a decline in sales due to lower product margins for propane and butane, attributed to market conditions and the impact of the Wholesale Propane Disposition.

Looking ahead, NGL Energy anticipates continued challenges in the market, particularly related to commodity price fluctuations and operational costs. The partnership expects to maintain its focus on optimizing its core operations while managing its capital expenditures, projected to be between $220 million and $230 million for the fiscal year ending March 31, 2026. The board of directors is also evaluating the potential reinstatement of common unit distributions, contingent on financial performance and liquidity considerations.