Q3 2026 NGL Energy Partners LP Earnings Call Transcript
Key Points
- NGL Energy Partners LP (NGL) reported a 9.2% increase in adjusted EBITDA from continuing operations, reaching $172.5 million compared to $158 million a year ago.
- The company achieved record water disposal volumes, processing approximately 3.07 million barrels per day, a 17.1% increase from the prior year.
- NGL Energy Partners LP (NGL) successfully executed on financial strategies, including reducing higher-cost preferred equity and repurchasing common units.
- The company has significant growth contracted for fiscal 2027, projecting to exceed $700 million of EBITDA for the first time in its history.
- NGL Energy Partners LP (NGL) is advancing its AI machine-based learning project to improve operational efficiencies and reduce expenses.
- Crude oil logistics adjusted EBITDA decreased to $15.4 million from $17.3 million in the prior year's third quarter.
- Margins for barrels on the Grand Mesa pipeline were lower due to reduced oil prices and decreased volumes from committed producers with higher contracted tariffs.
- Liquid logistics adjusted EBITDA fell to $15.2 million from $18.6 million in the prior year's third quarter.
- The company experienced a few days of reduced water disposal volumes due to extreme cold weather, although it is not expected to materially impact the full-year guidance.
- Concerns were raised about near-term capital obligations for water treatment projects that might not be material for several quarters or years.
Greetings. Welcome to NGL Energy Partners 3Q, '26 earnings call. (Operator Instructions) Please note this conference is being recorded. I will now turn the conference over to your host, Brad Cooper, CFO at NGL Partners. 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. We delivered another strong quarter highlighted by record water disposal volumes and water solutions and continued execution on our financial strategy.
For the quarter, adjusted EBITDA from continuing operations was $172.5 million, up
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