Q4 2025 NGL Energy Partners LP Earnings Call Transcript
Key Points
- NGL Energy Partners LP (NGL) successfully executed non-core asset sales, including natural gas liquids terminals and other businesses, generating proceeds at a double-digit multiple.
- The company reduced its working capital needs by eliminating $75 million on average, and over $100 million at peak, through asset sales and business wind-downs.
- NGL Energy Partners LP (NGL) achieved a 20% increase in consolidated adjusted EBITDA for the fourth quarter, driven by strong performance in the water solutions segment.
- The water solutions business segment reported record water disposal volumes and adjusted EBITDA, with disposal volumes up 11% year-over-year.
- The company has made significant progress in reducing leverage by paying off outstanding indebtedness and purchasing Class D preferred units at a discount.
- Crude oil logistics adjusted EBITDA decreased due to lower volumes on the Grand Mesa pipeline, impacting overall financial performance.
- Liquid's logistics segment experienced a decline in adjusted EBITDA, with butane margins affected by a weak gasoline blending season.
- The company faces potential challenges from oil price uncertainty and its impact on water solutions segment activity levels.
- NGL Energy Partners LP (NGL) anticipates a $20 million decline in skim oil revenues due to lower crude prices in fiscal 2026.
- The company is not planning to reinstate common unit distributions in the near term, focusing instead on reducing leverage and addressing Class D preferred units.
Greetings. Welcome to the NGL Energy Partners 4Q '25 earnings call. At this time, all participants are in a listen-only mode. (Operator Instructions) Please note this conference is being recorded.
I will now turn the conference over to your host, Brad Cooper, CFO. You may begin.
Good afternoon and thank you to everyone for joining us on the call today. Our comments today will include plans, forecasts, and estimates that are forward-looking statements under the US securities law. These comments are subject to assumptions, risks, and uncertainties that could cause actual results to differ from the forward-looking statements. Please take note of the cautionary language and risk factors provided in our presentation materials and our other public disclosure materials.
Before I start discussing our fourth quarter and full year results, I would like to thank the NGO employees for executing on our strategic initiatives and executing on the non-core asset sales
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
