NGL Energy Partners LP reported a significant decline in financial performance for the three months ended June 30, 2025, with total revenues of $622.2 million, down from $759.2 million in the same period last year. The decrease was primarily driven by a drop in product revenues, which fell to $436.4 million from $589.9 million, while service revenues increased slightly to $185.7 million from $169.4 million. The partnership's net income rose to $69.6 million, compared to $10.5 million in the prior year, largely due to gains from discontinued operations and a reduction in interest expenses.
The company experienced notable changes in its operational structure, having completed the sale of its refined products business and exited the biodiesel sector as of April 30, 2025. This strategic shift is expected to significantly impact future operations and financial results. Additionally, NGL Energy Partners LP sold certain investments in unconsolidated entities and related assets for $40 million in cash, and most of its wholesale propane business for approximately $154.9 million, which contributed to the gains reported in the current quarter.
Operationally, the partnership's Water Solutions segment reported increased disposal service fees, reflecting higher volumes processed, while the Crude Oil Logistics segment faced challenges with lower sales volumes and prices. The Liquids Logistics segment saw a mixed performance, with butane sales increasing slightly, while propane sales decreased significantly due to the recent divestiture. The total number of common units outstanding as of June 30, 2025, was 127,847,423, reflecting ongoing repurchase activities under the company's unit repurchase program.
Looking ahead, NGL Energy Partners LP anticipates that the strategic divestitures will enhance its focus on core operations and improve financial stability. The company is committed to managing its liquidity effectively, with current assets exceeding current liabilities by approximately $116.8 million as of June 30, 2025. The partnership plans to continue evaluating its capital structure and may consider reinstating common unit distributions in the future, depending on various financial factors, including leverage and cash flow sustainability.
About NGL Energy Partners LP
NGL Energy Partners LP is a diversified midstream energy company providing water solutions, crude oil transportation, storage, and liquids logistics services across key U.S. oil and gas producing regions. It operates long-term, fee-based contracts with major producers, offering environmentally responsible water disposal, recycling, and transportation. The company focuses on stable cash flows, strategic asset management, and industry relationships within the North American energy infrastructure sector.
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