Q3 2025 NGL Energy Partners LP Earnings Call Transcript
Key Points
- NGL Energy Partners LP (NGL) secured new long-term contracts with Prairie operating and another producer, potentially increasing crude oil volumes on the Grand Mesa pipeline to 100,000 barrels per day.
- The company signed agreements to sell 18 natural gas liquids terminals, expected to generate approximately $95 million in proceeds, which will be used to reduce debt.
- The Lex 2 project commenced operations in October and is performing as expected, contributing positively to the company's operations.
- NGL Energy Partners LP (NGL) successfully reduced working capital needs by $60 to $70 million annually through the sale of non-core assets and winding down the biodiesel marketing business.
- Water solutions adjusted EBITDA increased to $132.7 million in the third quarter, up from $121.3 million in the prior year, with disposal volumes rising by 12% year-over-year.
- The winding down of the biodiesel business negatively impacted the quarter's adjusted EBITDA by $12.1 million.
- Consolidated adjusted EBITDA for the quarter decreased to $147.7 million from $151.7 million in the prior year, reflecting challenges in certain business segments.
- Crude oil logistics volumes on the Grand Mesa pipeline decreased to 61,000 barrels per day from 70,000 barrels per day in the previous year.
- Liquid logistics adjusted EBITDA fell significantly to $8.2 million from $26.3 million in the prior third quarter, primarily due to the biodiesel business wind-down.
- The company is experiencing performance volatility and seasonality in its liquids logistics businesses, complicating earnings predictability.
Greetings. Welcome to the NGL Energy Partners 3Q '25 earnings call. (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.
Thank you. 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 we start discussing our third quarter results, I would like to update everyone on some of the operational and corporate strategic initiatives that we completed during the third quarter and subsequent to quarter end.
| 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
