Ngl Energy Partners Lp Stock Earnings Reports

NGL Energy Partners reported 1Q FY'26 consolidated adjusted EBITDA of $144 million, up ~4% year-over-year, driven primarily by strong Water Solutions performance. Water Solutions EBITDA rose ~13.8% to $142.9 million driven by higher produced-water volumes and new pipeline revenue (LEX II). Physical disposal volumes increased ~12.4% and total paid disposal volumes (including deficiency volumes) rose ~18% year-over-year. Management reaffirmed full-year adjusted EBITDA guidance of $615–$625 million but will reevaluate after Q2 and may raise guidance if results continue to exceed expectations. The company closed several asset sales during the quarter (Rack marketing business, Limestone Ranch interest, and majority of wholesale propane business) and used proceeds to significantly de-lever: fully paid down the ABL during the quarter (with a small expected temporary balance related to butane build), purchased $19 million of 2032 notes at a discount, repaid other debt, repurchased Class D preferred units and ~4.7 million common units (~3.5% of common units outstanding at an average $4.30/unit). Management emphasized an opportunistic capital-allocation strategy prioritizing balance-sheet improvement and EBITDA growth. Crude Logistics was weaker this quarter (Grand Mesa volumes down) but management expects volumes to ramp (noting July was ~25% higher than June). Liquids Logistics EBITDA was lower and is now focused primarily on butane blending, with most EBITDA expected in the back half of the fiscal year. The business retains strong contract protection: ~90% of volumes committed via acreage dedications and MVCs, and ~80% of volumes tied to investment-grade counterparties. Management expects continued focus on shrinking the Liquids footprint and further asset sales to reduce leverage.