NGL Energy Partners LP Reports First Quarter Fiscal 2025 Earnings
Intellectia.AI Updated: 1970-01-01
NGL Energy Partners LP Reports First Quarter Fiscal 2025 Earnings
NGL Energy Partners LP (NYSE:NGL) announced its financial results for the first quarter of Fiscal 2025, which ended on June 30, 2024.
Key Financial Metrics
| Metric | Q1 FY2025 | Q1 FY2024 | YoY Change | Consensus Estimate |
|---|---|---|---|---|
| Net Income | $10.5 million | $19.6 million | -46.4% | N/A |
| Adjusted EBITDA(1) | $144.3 million | $134.7 million | +7.1% | N/A |
| Earnings Per Share (EPS) | $0.07 | N/A | N/A | $0.07 |
| Total Revenue | $1.44 billion | N/A | N/A | $1.44 billion |
The company reported a decline in net income year-over-year, which dropped from $19.6 million in Q1 FY2024 to $10.5 million in Q1 FY2025. However, it posted an increase in adjusted EBITDA, which grew by 7.1% to $144.3 million. The EPS met the Wall Street consensus estimate of $0.07, while revenue also aligned with analyst expectations of $1.44 billion.
Segment Revenue Performance
| Segment | Q1 FY2025 | YoY Change | Previous Guidance |
|---|---|---|---|
| Water Solutions | Operating income +$15M | N/A | $550-$560 million FY2025 |
| Crude Oil Logistics | Operating income -$2.9M | N/A | N/A |
| Liquids Logistics | Operating income -$19.4M | N/A | N/A |
| Corporate and Other | Operating loss -$10.2M | N/A | N/A |
Interpretation: The Water Solutions segment showed robust performance, with an increase in operating income by $15 million compared to the previous year. Despite some reduction in disposal service fees, this segment benefited from increased skim oil revenues and reduced operating expenses. On the contrary, the Crude Oil Logistics and Liquids Logistics segments experienced declines in operating income due to lowered sales volumes and product margins. However, the Corporate and Other segment saw a significant reduction in operating loss due to lower general and administrative expenses.
Operational Data
| Operational Data | Q1 FY2025 | YoY Change |
|---|---|---|
| Produced Water Processed per Day | 2.47 million barrels | +0.3% |
| Skim Oil Revenue | $30.7 million | +$7.7 million |
Executive Comments
Mike Krimbill, CEO of NGL Energy Partners LP, stated, "We have had a strong start to Fiscal 2025 with $144.3 million in Adjusted EBITDA in the first quarter. We are reaffirming our guidance for Fiscal 2025 with Water Solutions Adjusted EBITDA to a range of $550-$560 million and full-year consolidated Adjusted EBITDA of $665 million. Our focus remains on continued balance sheet improvement by reducing absolute debt and leverage, plus the completion of the LEX II pipeline."
Dividends and Share Repurchase Program
On April 4, 2024, the board declared a cash distribution of 55.4% of the outstanding distribution arrearages, totaling $120.0 million, which was paid on April 18, 2024. On April 9, 2024, an additional cash distribution of $98.1 million was declared and paid on April 25, 2024. Moreover, in June 2024, a $50 million share repurchase program was authorized.
Forward Guidance
NGL reaffirmed its guidance for Fiscal 2025, projecting Water Solutions Adjusted EBITDA to fall between $550 million and $560 million, with full-year consolidated Adjusted EBITDA of $665 million.
Stock Price Movement
The stock price remained stable with no percentage change reported after the earnings release.
