10-K · May 28, 2026
NGL Energy Partners LP reported a significant decline in performance for FY 2026, notably a goodwill impairment of $247.8 million in its Crude Oil Logistics segment. The company continues to manage liquidity concerns…
Earnings analysis · 10-Q
NGL earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
NGL reported a strong year-over-year operating improvement: revenue rose $367.836 million to $989.992 million, operating income increased $47.869 million to $145.319 million, and continuing-operations Adjusted EBITDA…
Read full summary
NGL reported a strong year-over-year operating improvement: revenue rose $367.836 million to $989.992 million, operating income increased $47.869 million to $145.319 million, and continuing-operations Adjusted EBITDA rose $42.246 million to $186.218 million. Water Solutions was the central driver, with segment operating income up $53.621 million on materially higher Delaware Basin disposal volumes and recovered-crude revenue. Sequentially, revenue and calculated margins recovered versus the preceding quarter, but free cash flow was negative $31.759 million as $108.762 million of capital spending exceeded $77.003 million of operating cash flow. Liquidity is adequate by management's assessment, though substantial debt, variable-rate exposure, commodity-driven working-capital needs, and an expected $245 million fiscal-2027 capital program remain key constraints.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
-
Revenue up 59% year over year
Revenue rose to $989.992 million from $622.156 million in the prior-year quarter, a $367.836 million increase. Operating income increased $47.869 million to $145.319 million, lifting operating margin to 14.68% from 15.66% a year earlier as the revenue mix shifted materially toward lower-margin commodity sales.
-
Water Solutions drove earnings growth
Water Solutions segment operating income increased $53.621 million to $138.568 million. Produced-water volumes processed rose by 543,441 barrels per day to 3,315,055 barrels per day, while water-disposal service-fee revenue increased $20.004 million to $182.079 million.
-
EBITDA and operating cash flow improved
Continuing-operations Adjusted EBITDA increased $42.246 million to $186.218 million. Net cash provided by continuing operating activities improved to $77.003 million from $17.256 million.
-
Crude logistics volumes and sales expanded
Crude Oil Logistics revenue increased $271.829 million to $439.460 million, supported by higher prices and DJ Basin production. Grand Mesa Pipeline physical volumes averaged about 74,000 barrels per day versus about 55,000 barrels per day in the prior-year quarter.
-
LEX II expansion supports future volume growth
The LEX II expansion adds 165,000 barrels per day of capacity, targets approximately 560,000 barrels per day of system capacity, and is underwritten by a new long-term volume-commitment contract. The project is expected to enter service by the end of calendar 2026.
-
Positive working capital and ABL capacity
Current assets exceeded current liabilities by approximately $92.9 million at June 30, 2026. The ABL borrowing base was $417.3 million, against $177.0 million outstanding borrowings and $49.5 million of letters of credit.
-
Sequential margin recovery
Sequentially, revenue increased from $950 million in the preceding quarter to $989.992 million, while calculated gross margin improved from 22.9% to 30.87% and operating margin improved from 5.2% to 14.68%. Reported EPS was not disclosed in the provided filing extract.
What to watch
-
Leverage and floating-rate exposure remain high
The partnership had $947.6 million outstanding under its variable-rate 2026 Term Loan B and $177.0 million drawn on the ABL Facility at June 30, 2026, in addition to $2.2 billion of senior secured notes. A 0.125% interest-rate change would change annual interest expense by $1.2 million on the Term Loan B and $0.2 million on the ABL balance.
-
Growth spending pressured free cash flow
Cash capital expenditures were $108.762 million, exceeding $77.003 million of operating cash flow and resulting in calculated free cash flow of negative $31.759 million. Management expects approximately $245 million of fiscal 2027 growth and maintenance capital expenditures.
-
Commodity volatility compressed crude margins
Crude Oil Logistics physical product margin fell to $1.482 per barrel from $4.174 per barrel, reflecting higher-priced inventory sold into a declining market and expiration of a producer purchase agreement. A 10% increase in underlying butane prices would change derivative fair value by $15.512 million.
-
No formal risk-factor updates
No material changes were made to the risk factors disclosed in the March 31, 2026 Form 10-K. Nonetheless, management states that a significant commodity-price increase could raise working-capital needs, limit deleveraging, and restrict financial flexibility.
Management's outlook
No quantitative revenue or EPS outlook was provided in the 10-Q. Management expects fiscal 2027 capital expenditures of approximately $200 million for growth and $45 million for maintenance; LEX II is expected in service by the end of calendar 2026.
Earlier filings 4
10-Q · November 9, 2023
NGL reported Q1 (three months ended Sept 30, 2023) revenues of $1,841,096,000, down from $2,009,447,000 a year ago, while gross profit expanded to $262,648,000 (14.27% margin) and operating income rose to $86,030,000.…
10-Q · August 9, 2023
NGL reported total revenues of $1,616,104 (in thousands) for the quarter ended June 30, 2023, down from $2,497,383 (in thousands) a year earlier. Gross margin expanded to 14.65% from 9.71% and operating margin improved…
10-Q · February 9, 2023
NGL reported Q3 (three months ended December 31, 2022) revenue of $2,139,240,000, down modestly from $2,171,876,000 a year earlier, while gross margin expanded to about 13.0% and operating income roughly doubled to…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.