NGL Energy Partners LP Announces Third Quarter Fiscal 2024 Financial Results

NGL Energy Partners LP (NYSE:NGL) (“NGL,” “we,” “us,” “our,” or the “Partnership”) today reported its third quarter Fiscal 2024 financial results. Highlights include:

  • Net income for the third quarter of Fiscal 2024 of $45.8 million, compared to net income of $59.0 million for the third quarter of Fiscal 2023 which included income of $29.5 million from the settlement of a dispute
  • Adjusted EBITDA(1) for the third quarter of Fiscal 2024 of $151.7 million, compared to $193.3 million for the third quarter of Fiscal 2023
  • Total leverage at the end of the quarter was 4.26 times, versus 5.28 times at the end of the third quarter of Fiscal 2023
  • On December 6, 2023, we announced an open season for the Grand Mesa Pipeline. This open season ended at the close of business on January 5, 2024, and resulted in a new shipper with a five-year minimum volume commitment contract.
  • NGL now expects total asset sales in Fiscal 2025 of $150 million plus, versus previous guidance of $100 million plus.

Highlights for the period subsequent to December 31, 2023 included:

  • On January 19, 2024, we delivered notice to the holders of our 2025 and 2026 senior unsecured notes and to the holders of our 2026 senior secured notes of our intention to redeem all of the existing notes. The 2026 senior secured notes were redeemed on February 6, 2024, and the 2025 and 2026 senior unsecured notes will be redeemed on February 20, 2024 and April 14, 2024, respectively.
  • On January 22, 2024, we announced that our Water Solutions business is commencing expansion of its Lea County Express Pipeline System from a capacity of 140,000 barrels of water per day to 340,000 barrels per day in 2024, with the ability to expand the capacity to 500,000 barrels of water per day. This project is fully underwritten by a recently executed minimum volume commitment contract that includes an acreage dedication extension with an investment grade oil and gas producer. We expect the pipeline expansion to be completed during the second half of our 2025 fiscal year.
  • On February 2, 2024, we closed a debt refinancing transaction of $2.9 billion consisting of a private offering of $2.2 billion of senior secured notes, which includes $900.0 million of 8.125% senior secured notes due 2029 and $1.3 billion of 8.375% senior secured notes due 2032. We also entered into a new seven-year $700.0 million senior secured term loan “B” credit facility. The net proceeds from these transactions were used and will primarily be used to fund the redemption of the 2026 senior secured notes and the 2025 and 2026 senior unsecured notes.
  • On February 6, 2024, the Board of Directors of our general partner declared a distribution of 50% of the outstanding arrearages earned for Class B, Class C, and Class D preferred unit holders through December 31, 2023. The distribution will be made on February 27, 2024 to the holders of record at the close of trading on February 16, 2024.

“The Partnership has achieved many significant accomplishments since our previous quarter ended September 30, 2023. First, Crude Oil Logistics completed a successful open season on Grand Meas Pipeline. Second, Water Solutions is expanding its Lea County Express Pipeline system, which is fully underwritten by an executed minimum volume commitment contract that includes an acreage dedication extension with an investment grade oil and gas producer. Third, we completed a $2.9 billion global refinancing extending maturities and amending and extending the ABL Facility to 2029. Fourth, the Board of Directors approved a 50% arrearage distribution payment for the Class B, Class C, and Class D preferred units as of December 31, 2023.” stated Mike Krimbill NGL’s CEO. “All of these actions taken have positioned the Partnership to continue to optimize the capital structure, and increase future Adjusted EBITDA(1), which benefits all stakeholders. We are also reaffirming our Fiscal 2024 Adjusted EBITDA(2) guidance for Water Solutions of $500 million plus and consolidated Adjusted EBITDA(2) of $645 million,” Krimbill concluded.

_______________________________________
(1)See the “Non-GAAP Financial Measures” section of this release for the definition of Adjusted EBITDA (as used herein) and a discussion of this non-GAAP financial measure.
(2)Certain of the forward-looking financial measures are provided on a non-GAAP basis. A reconciliation of forward-looking financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP is potentially misleading and not practical given the difficulty of projecting event driven transactional and other non-core operating items in any future period. The magnitude of these items, however, may be significant..
 

Quarterly Results of Operations

The following table summarizes operating income (loss) and Adjusted EBITDA(1) by reportable segment for the periods indicated:

  Quarter Ended
  December 31, 2023 December 31, 2022
  OperatingIncome (Loss) AdjustedEBITDA(1) OperatingIncome (Loss) AdjustedEBITDA(1)
  (in thousands)
Water Solutions $74,270  $121,285  $59,721  $121,712
Crude Oil Logistics  17,010   17,044   35,096   33,260
Liquids Logistics  22,449   26,302   20,513   18,763
Corporate and Other  (11,940)  (12,961)  (12,660)  19,521
Total $101,789  $151,670  $102,670  $193,256
 

Water Solutions

Operating income for the Water Solutions segment increased $14.5 million for the quarter ended December 31, 2023, compared to the quarter ended December 31, 2022. The Partnership processed approximately 2.38 million barrels of produced water per day during the quarter ended December 31, 2023, a 2.0% decrease when compared to approximately 2.43 million barrels of water per day processed during the quarter ended December 31, 2022. The decrease in produced water volumes processed was primarily due to certain producers in the Delaware Basin reusing their water in their operations. Though the produced water volumes processed declined in the quarter, water disposal service fee revenue increased due primarily to increased fees from new contracts entered into during fiscal year 2023 and higher fees charged for interruptible spot volumes. In addition, there was also an increase in payments made by certain producers for committed volumes not delivered.

Revenues from recovered skim oil, including the impact from realized skim oil hedges, totaled $24.0 million for the quarter ended December 31, 2023, a decrease of $6.3 million from the prior year period. The decrease was due primarily to a decrease in skim oil barrels sold as a result of lower skim oil recovered from decreased produced water processed and lower realized crude oil prices received from the sale of skim oil barrels.

Operating expenses in the Water Solutions segment decreased $0.8 million for the quarter ended December 31, 2023, compared to the quarter ended December 31, 2022 due primarily to lower chemical expense, lower generator rental expense, lower utilities expense and lower severance taxes due to a decrease in revenue from recovered crude oil. These decreases were partially offset by higher repairs and maintenance expense due to the timing of repairs, preventative maintenance and tank cleaning. Operating expense per produced barrel processed was $0.25 for the quarter ended December 31, 2023, unchanged when compared to the same quarter in the prior year.

Crude Oil Logistics

Operating income for the Crude Oil Logistics segment decreased $18.1 million for the quarter ended December 31, 2023, compared to the quarter ended December 31, 2022. Product margin for crude oil sales decreased due to lower crude oil prices, which lowered contracted rates with certain producers, and lower contract differentials negatively impacted certain other sales contracts. In addition, volume decreased due to lower production on acreage dedicated to us in the DJ Basin. During the quarter ended December 31, 2023, physical volumes on the Grand Mesa Pipeline averaged approximately 70,000 barrels per day, compared to approximately 77,000 barrels per day for the quarter ended December 31, 2022. The decrease in operating income was also impacted by the sale of our marine assets on March 30, 2023.

Liquids Logistics

Operating income for the Liquids Logistics segment increased by $1.9 million for the quarter ended December 31, 2023, compared to the quarter ended December 31, 2022. Product margins (excluding the impact of derivatives) increased for butane in the current quarter primarily due to the higher demand for butane blending. This was offset by lower propane margins due to lower volumes, lower margins from refined products as the supply issues seen in certain markets in the prior year, resulting in higher margins, were resolved and supply and demand were more in balance and lower margins from the sale of other products due to lower biodiesel prices and lower natural gas liquid volumes due to the loss of certain supply contracts. Additionally, we recorded net derivative losses of $0.5 million during the quarter ended December 31, 2023, compared to derivative losses of $6.1 million during the quarter ended December 31, 2022.

Corporate and Other

The operating loss for Corporate and Other was lower by $0.7 million for the quarter ended December 31, 2023, compared to the quarter ended December 31, 2022. Results for the current period include gains from derivatives of $1.8 million as we have entered into economic hedges to protect our liquidity positions and leverage from a significant increase in commodity prices. All of these hedges matured as of December 31, 2023, and there were no open hedge positions. These gains were offset by an increase in expenses due to lower allocations of expense to the other business segments.

Capitalization and Liquidity

Total liquidity (cash plus available capacity on our asset-based revolving credit facility (“ABL Facility”)) was approximately $415.6 million as of December 31, 2023. Borrowings on the Partnership’s ABL Facility totaled approximately $55.0 million as of December 31, 2023. The decrease from March 31, 2023 was primarily due to cash generated during the quarter being used to pay down the outstanding balance under the ABL Facility rather than to retire other indebtedness.

The Partnership is in compliance with all of its debt covenants and has no upcoming debt maturities.

Third Quarter Conference Call Information

A conference call to discuss NGL’s results of operations is scheduled for 4:00 pm Central Time on Thursday, February 8, 2024. Analysts, investors, and other interested parties may join the webcast via the event link: https://www.webcaster4.com/Webcast/Page/2808/49742 or by dialing (888) 506-0062 and providing access code: 847654. An archived audio replay of the call will be available for 14 days, which can be accessed by dialing (877) 481-4010 and providing replay passcode 49742.

Non-GAAP Financial Measures

We define EBITDA as net income (loss) attributable to NGL Energy Partners LP, plus interest expense, income tax expense (benefit), and depreciation and amortization expense. We define Adjusted EBITDA as EBITDA excluding net unrealized gains and losses on derivatives, lower of cost or net realizable value adjustments, gains and losses on disposal or impairment of assets, gains and losses on early extinguishment of liabilities, equity-based compensation expense, acquisition expense, revaluation of liabilities, certain legal settlements and other. We also include in Adjusted EBITDA certain inventory valuation adjustments related to certain refined products businesses within our Liquids Logistics segment as discussed below. EBITDA and Adjusted EBITDA should not be considered as alternatives to net income, income before income taxes, cash flows from operating activities, or any other measure of financial performance calculated in accordance with GAAP, as those items are used to measure operating performance, liquidity or the ability to service debt obligations. We believe that EBITDA provides additional information to investors for evaluating our ability to make quarterly distributions to our unitholders and is presented solely as a supplemental measure. We believe that Adjusted EBITDA provides additional information to investors for evaluating our financial performance without regard to our financing methods, capital structure and historical cost basis. Further, EBITDA and Adjusted EBITDA, as we define them, may not be comparable to EBITDA, Adjusted EBITDA, or similarly titled measures used by other entities.

Other than for certain businesses within our Liquids Logistics segment, for purposes of our Adjusted EBITDA calculation, we make a distinction between realized and unrealized gains and losses on derivatives. During the period when a derivative contract is open, we record changes in the fair value of the derivative as an unrealized gain or loss. When a derivative contract matures or is settled, we reverse the previously recorded unrealized gain or loss and record a realized gain or loss. We do not draw such a distinction between realized and unrealized gains and losses on derivatives of certain businesses within our Liquids Logistics segment. The primary hedging strategy of these businesses is to hedge against the risk of declines in the value of inventory over the course of the contract cycle, and many of the hedges cover extended periods of time. The “inventory valuation adjustment” row in the reconciliation table reflects the difference between the market value of the inventory of these businesses at the balance sheet date and its cost. We include this in Adjusted EBITDA because the unrealized gains and losses associated with derivative contracts associated with the inventory of this segment, which are intended primarily to hedge inventory holding risk and are included in net income, also affect Adjusted EBITDA. In our Crude Oil Logistics segment, we purchase certain crude oil barrels using the West Texas Intermediate (“WTI”) calendar month average (“CMA”) price and sell the crude oil barrels using the WTI CMA price plus the Argus CMA Differential Roll Component (“CMA Differential Roll”) per our contracts. To eliminate the volatility of the CMA Differential Roll, we entered into derivative instrument positions in January 2021 to secure a margin of approximately $0.20 per barrel on 1.5 million barrels per month from May 2021 through December 2023. Due to the nature of these positions, the cash flow and earnings recognized on a GAAP basis differed from period to period depending on the current crude oil price and future estimated crude oil price which were valued utilizing third-party market quoted prices. We recognized in Adjusted EBITDA the gains and losses from the derivative instrument positions entered into in January 2021 to properly align with the physical margin we hedged each month through the term of this transaction. This representation aligns with management’s evaluation of the transaction. The derivative instrument positions we entered into related to the CMA Differential Roll expired as of December 31, 2023, and we have not entered into any new derivative instrument positions related to the CMA Differential Roll.

Distributable Cash Flow is defined as Adjusted EBITDA minus maintenance capital expenditures, income tax expense, cash interest expense, preferred unit distributions and other. Maintenance capital expenditures represent capital expenditures necessary to maintain the Partnership’s operating capacity. For the CMA Differential Roll transaction, as discussed above, we have included an adjustment to Distributable Cash Flow to reflect, in the period for which they relate, the actual cash flows for the positions that settled that are not being recognized in Adjusted EBITDA. Distributable Cash Flow is a performance metric used by senior management to compare cash flows generated by the Partnership (excluding growth capital expenditures and prior to the establishment of any retained cash reserves by the Board of Directors of our general partner) to the cash distributions expected to be paid to unitholders. Using this metric, management can quickly compute the coverage ratio of estimated cash flows to planned cash distributions. This financial measure also is important to investors as an indicator of whether the Partnership is generating cash flow at a level that can sustain, or support an increase in, quarterly distribution rates. Actual distribution amounts are set by the Board of Directors of our general partner.

We do not provide a reconciliation for non-GAAP estimates on a forward-looking basis where we are unable to provide a meaningful calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or amount of various items that would impact the most directly comparable forward-looking U.S. GAAP financial measure that have not yet occurred, are out of the Partnership’s control and/or cannot be reasonably predicted. Forward-looking non-GAAP financial measures provided without the most directly comparable U.S. GAAP financial measures may vary materially from the corresponding U.S. GAAP financial measures.

Forward-Looking Statements

This press release includes “forward-looking statements.” All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Actual results could vary significantly from those expressed or implied in such statements and are subject to a number of risks and uncertainties. While NGL believes such forward-looking statements are reasonable, NGL cannot assure they will prove to be correct. The forward-looking statements involve risks and uncertainties that affect operations, financial performance, and other factors as discussed in filings with the Securities and Exchange Commission. Other factors that could impact any forward-looking statements are those risks described in NGL’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other public filings. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, specifically those under the heading “Risk Factors.” NGL undertakes no obligation to publicly update or revise any forward-looking statements except as required by law.

NGL provides Adjusted EBITDA guidance that does not include certain charges and costs, which in future periods are generally expected to be similar to the kinds of charges and costs excluded from Adjusted EBITDA in prior periods, such as income taxes, interest and other non-operating items, depreciation and amortization, net unrealized gains and losses on derivatives, lower of cost or net realizable value adjustments, gains and losses on disposal or impairment of assets, gains and losses on early extinguishment of liabilities, equity-based compensation expense, acquisition expense, revaluation of liabilities and items that are unusual in nature or infrequently occurring. The exclusion of these charges and costs in future periods will have a significant impact on the Partnership’s Adjusted EBITDA, and the Partnership is not able to provide a reconciliation of its Adjusted EBITDA guidance to net income (loss) without unreasonable efforts due to the uncertainty and variability of the nature and amount of these future charges and costs and the Partnership believes that such reconciliation, if possible, would imply a degree of precision that would be potentially confusing or misleading to investors.

About NGL Energy Partners LP

NGL Energy Partners LP, a Delaware limited partnership, is a diversified midstream energy company that transports, stores, markets and provides other logistics services for crude oil, natural gas liquids and other products and transports, treats and disposes of produced water generated as part of the oil and natural gas production process.

For further information, visit the Partnership’s website at www.nglenergypartners.com.

 
 
 
 
NGL ENERGY PARTNERS LP AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance Sheets
(in Thousands, except unit amounts)
 
 
 December 31, 2023 March 31, 2023
ASSETS   
CURRENT ASSETS:   
Cash and cash equivalents$738  $5,431 
Accounts receivable-trade, net of allowance for expected credit losses of $1,928 and $1,964, respectively 999,503   1,033,956 
Accounts receivable-affiliates 15,459   12,362 
Inventories 201,575   142,607 
Prepaid expenses and other current assets 123,292   98,089 
Total current assets 1,340,567   1,292,445 
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of $945,414 and $898,184, respectively 2,137,386   2,223,380 
GOODWILL 707,583   712,364 
INTANGIBLE ASSETS, net of accumulated amortization of $371,703 and $580,860, respectively 999,636   1,058,668 
INVESTMENTS IN UNCONSOLIDATED ENTITIES 19,535   21,090 
OPERATING LEASE RIGHT-OF-USE ASSETS 101,549   90,220 
OTHER NONCURRENT ASSETS 56,231   57,977 
Total assets$5,362,487  $5,456,144 
LIABILITIES AND EQUITY   
CURRENT LIABILITIES:   
Accounts payable-trade$831,991  $927,591 
Accounts payable-affiliates 28   65 
Accrued expenses and other payables 195,427   133,616 
Advance payments received from customers 27,727   14,699 
Operating lease obligations 32,839   34,166 
Total current liabilities 1,088,012   1,110,137 
LONG-TERM DEBT, net of debt issuance costs of $21,729 and $30,117, respectively 2,683,918   2,857,805 
OPERATING LEASE OBLIGATIONS 70,830   58,450 
OTHER NONCURRENT LIABILITIES 107,806   111,226 
    
CLASS D 9.00% PREFERRED UNITS, 600,000 and 600,000 preferred units issued and outstanding, respectively 551,097   551,097 
    
EQUITY:   
General partner, representing a 0.1% interest, 132,645 and 132,059 notional units, respectively (52,562)  (52,551)
Limited partners, representing a 99.9% interest, 132,512,766 and 131,927,343 common units issued and outstanding, respectively 549,600   455,564 
Class B preferred limited partners, 12,585,642 and 12,585,642 preferred units issued and outstanding, respectively 305,468   305,468 
Class C preferred limited partners, 1,800,000 and 1,800,000 preferred units issued and outstanding, respectively 42,891   42,891 
Accumulated other comprehensive loss (457)  (450)
Noncontrolling interests 15,884   16,507 
Total equity 860,824   767,429 
Total liabilities and equity$5,362,487  $5,456,144 
 
 
 
 
NGL ENERGY PARTNERS LP AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(in Thousands, except unit and per unit amounts)
 
 
  Three Months Ended December 31, Nine Months Ended December 31,
   2023   2022   2023   2022 
REVENUES:        
Water Solutions $179,301  $180,242  $557,847  $511,231 
Crude Oil Logistics  425,294   531,613   1,379,397   1,971,767 
Liquids Logistics  1,265,182   1,427,385   3,389,733   4,163,072 
Total Revenues  1,869,777   2,139,240   5,326,977   6,646,070 
COST OF SALES:        
Water Solutions  (2,573)  2,534   7,420   13,679 
Crude Oil Logistics  386,418   471,891   1,266,644   1,808,460 
Liquids Logistics  1,224,059   1,385,943   3,290,784   4,057,360 
Corporate and Other  (1,772)     (939)   
Total Cost of Sales  1,606,132   1,860,368   4,563,909   5,879,499 
OPERATING COSTS AND EXPENSES:        
Operating  79,115   81,353   233,185   237,371 
General and administrative  17,934   17,216   55,721   50,601 
Depreciation and amortization  65,597   69,327   200,102   204,105 
(Gain) loss on disposal or impairment of assets, net  (790)  8,306   14,221   15,791 
Operating Income  101,789   102,670   259,839   258,703 
OTHER INCOME (EXPENSE):        
Equity in earnings of unconsolidated entities  838   1,213   1,780   3,094 
Interest expense  (57,221)  (75,920)  (175,370)  (211,528)
Gain on early extinguishment of liabilities, net     2,667   6,871   6,808 
Other income, net  515   28,100   1,131   28,731 
Income Before Income Taxes  45,921   58,730   94,251   85,808 
INCOME TAX (EXPENSE) BENEFIT  (154)  252   (636)  (113)
Net Income  45,767   58,982   93,615   85,695 
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS  (85)  (448)  (604)  (790)
NET INCOME ATTRIBUTABLE TO NGL ENERGY PARTNERS LP $45,682  $58,534  $93,011  $84,905 
NET INCOME (LOSS) ALLOCATED TO COMMON UNITHOLDERS – BASIC $10,244  $26,007  $(10,947) $(5,571)
NET INCOME (LOSS) ALLOCATED TO COMMON UNITHOLDERS – DILUTED $10,244  $26,123  $(10,947) $(5,571)
BASIC INCOME (LOSS) PER COMMON UNIT $0.08  $0.20  $(0.08) $(0.04)
DILUTED INCOME (LOSS) PER COMMON UNIT $0.08  $0.19  $(0.08) $(0.04)
BASIC WEIGHTED AVERAGE COMMON UNITS OUTSTANDING  132,220,055   131,015,658   132,025,268   130,802,920 
DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING  132,498,734   134,485,325   132,025,268   130,802,920 
 
 
 
 
EBITDA, ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW RECONCILIATION
(Unaudited) 
 
The following table reconciles NGL’s net income to NGL’s EBITDA, Adjusted EBITDA and Distributable Cash Flow for the periods indicated: 
 
  Three Months Ended December 31, Nine Months Ended December 31,
   2023   2022   2023   2022 
  (in thousands)
Net income $45,767  $58,982  $93,615  $85,695 
Less: Net income attributable to noncontrolling interests  (85)  (448)  (604)  (790)
Net income attributable to NGL Energy Partners LP  45,682   58,534   93,011   84,905 
Interest expense  57,274   75,934   175,452   211,573 
Income tax expense (benefit)  154   (252)  636   113 
Depreciation and amortization  65,582   69,308   200,005   204,025 
EBITDA  168,692   203,524   469,104   500,616 
Net unrealized losses (gains) on derivatives  47,558   4,800   56,617   (56,930)
CMA Differential Roll net losses (gains) (1)  (64,381)  (8,678)  (71,285)  19,424 
Inventory valuation adjustment (2)  709   (2,650)  (5,391)  (6,765)
Lower of cost or net realizable value adjustments  (575)  (12,568)  3,269   (11,711)
(Gain) loss on disposal or impairment of assets, net  (1,107)  8,290   13,904   15,775 
Gain on early extinguishment of liabilities, net     (2,667)  (6,871)  (6,808)
Equity-based compensation expense  214   890   1,098   1,866 
Acquisition expense (3)        47    
Other (4)  560   2,315   2,047   3,907 
Adjusted EBITDA $151,670  $193,256  $462,539  $459,374 
Less: Cash interest expense (5)  53,042   71,751   162,936   198,972 
Less: Income tax expense (benefit)  154   (252)  636   113 
Less: Maintenance capital expenditures  8,780   11,464   41,665   41,050 
Less: CMA Differential Roll (6)  (9,118)  (15,147)  (27,165)  (13,213)
Less: Other (7)     1   222   171 
Distributable Cash Flow $98,812  $125,439  $284,245  $232,281 
_______________________________________
(1)Adjustment to align, within Adjusted EBITDA, the net gains and losses of the Partnership’s CMA Differential Roll derivative instruments positions with the physical margin being hedged. See “Non-GAAP Financial Measures” section above for a further discussion.
(2)Amounts represent the difference between the market value of the inventory at the balance sheet date and its cost. See “Non-GAAP Financial Measures” section above for a further discussion.
(3)Amounts represent expenses we incurred related to legal and advisory costs associated with acquisitions. 
(4)Amounts represent unrealized gains/losses on marketable securities and accretion expense for asset retirement obligations. Also, the amount for the nine months ended December 31, 2022 includes non-cash operating expenses related to our Grand Mesa Pipeline. 
(5)Amounts represent interest expense payable in cash, excluding changes in the accrued interest balance. 
(6)Amounts represent the cash portion of the adjustments of the Partnership’s CMA Differential Roll derivative instrument positions, as discussed above, that settled during the period. 
(7)Amounts represent cash paid to settle asset retirement obligations. 
 
 
 
 
ADJUSTED EBITDA RECONCILIATION BY SEGMENT 
 
 Three Months Ended December 31, 2023
 WaterSolutions Crude OilLogistics LiquidsLogistics Corporateand Other Consolidated
 (in thousands)
Operating income (loss)$74,270  $17,010  $22,449  $(11,940) $101,789 
Depreciation and amortization 52,643   9,545   2,438   971   65,597 
Amortization recorded to cost of sales       65      65 
Net unrealized (gains) losses on derivatives (6,440)  51,984   3,581   (1,567)  47,558 
CMA Differential Roll net losses (gains)    (64,381)        (64,381)
Inventory valuation adjustment       709      709 
Lower of cost or net realizable value adjustments    785   (1,360)     (575)
(Gain) loss on disposal or impairment of assets, net (478)  2,042   (1,639)  (715)  (790)
Equity-based compensation expense          214   214 
Other income (expense), net 488   1   (8)  34   515 
Adjusted EBITDA attributable to unconsolidated entities 715      7   42   764 
Adjusted EBITDA attributable to noncontrolling interest (362)           (362)
Other 449   58   60      567 
Adjusted EBITDA$121,285  $17,044  $26,302  $(12,961) $151,670 
 
 Three Months Ended December 31, 2022
 WaterSolutions Crude OilLogistics LiquidsLogistics Corporateand Other Consolidated
 (in thousands)
Operating income (loss)$59,721  $35,096  $20,513  $(12,660) $102,670 
Depreciation and amortization 52,591   11,664   3,417   1,655   69,327 
Amortization recorded to cost of sales       68      68 
Net unrealized (gains) losses on derivatives    (1,810)  6,610      4,800 
CMA Differential Roll net losses (gains)    (8,678)        (8,678)
Inventory valuation adjustment       (2,650)     (2,650)
Lower of cost or net realizable value adjustments    (3,321)  (9,247)     (12,568)
Loss (gain) on disposal or impairment of assets, net 7,959   277   (1)  71   8,306 
Equity-based compensation expense          890   890 
Other income (expense), net 2   59   (1,481)  29,520   28,100 
Adjusted EBITDA attributable to unconsolidated entities 1,357      21   45   1,423 
Adjusted EBITDA attributable to noncontrolling interest (747)           (747)
Other 829   (27)  1,513      2,315 
Adjusted EBITDA$121,712  $33,260  $18,763  $19,521  $193,256 
 
 Nine Months Ended December 31, 2023
 WaterSolutions Crude OilLogistics LiquidsLogistics Corporateand Other Consolidated
 (in thousands)
Operating income (loss)$202,719  $48,795  $53,857  $(45,532) $259,839 
Depreciation and amortization 159,119   28,864   8,035   4,084   200,102 
Amortization recorded to cost of sales       195      195 
Net unrealized (gains) losses on derivatives (1,969)  61,673   (1,908)  (1,179)  56,617 
CMA Differential Roll net losses (gains)    (71,285)        (71,285)
Inventory valuation adjustment       (5,391)     (5,391)
Lower of cost or net realizable value adjustments    785   2,484      3,269 
Loss (gain) on disposal or impairment of assets, net 21,840   2,471   (9,375)  (715)  14,221 
Equity-based compensation expense          1,098   1,098 
Acquisition expense (28)     84   (9)  47 
Other income, net 916   106   7   102   1,131 
Adjusted EBITDA attributable to unconsolidated entities 1,974      (19)  137   2,092 
Adjusted EBITDA attributable to noncontrolling interest (1,450)           (1,450)
Other 1,747   139   168      2,054 
Adjusted EBITDA$384,868  $71,548  $48,137  $(42,014) $462,539 
 
 Nine Months Ended December 31, 2022
 WaterSolutions Crude OilLogistics LiquidsLogistics Corporateand Other Consolidated
 (in thousands)
Operating income (loss)$160,454  $87,012  $48,806  $(37,569) $258,703 
Depreciation and amortization 153,766   35,193   10,194   4,952   204,105 
Amortization recorded to cost of sales       205      205 
Net unrealized (gains) losses on derivatives (4,464)  (57,390)  4,924      (56,930)
CMA Differential Roll net losses (gains)    19,424         19,424 
Inventory valuation adjustment       (6,765)     (6,765)
Lower of cost or net realizable value adjustments    (2,247)  (9,464)     (11,711)
Loss (gain) on disposal or impairment of assets, net 17,935   (1,279)  51   (916)  15,791 
Equity-based compensation expense          1,866   1,866 
Other income (expense), net 10   390   (1,665)  29,996   28,731 
Adjusted EBITDA attributable to unconsolidated entities 3,569      (3)  134   3,700 
Adjusted EBITDA attributable to noncontrolling interest (1,652)           (1,652)
Other 1,915   98   1,894      3,907 
Adjusted EBITDA$331,533  $81,201  $48,177  $(1,537) $459,374 
 
 
 
 
OPERATIONAL DATA
(Unaudited) 
 
 Three Months Ended Nine Months Ended
 December 31, December 31,
 2023 2022 2023 2022
 (in thousands, except per day amounts)
Water Solutions:       
Produced water processed (barrels per day)       
Delaware Basin2,097,428 2,128,673 2,135,677 2,001,242
Eagle Ford Basin136,185 131,551 135,887 114,191
DJ Basin142,978 151,265 152,805 151,792
Other Basins 14,335 985 15,114
Total2,376,591 2,425,824 2,425,354 2,282,339
Recycled water (barrels per day)115,141 167,774 83,247 132,851
Total (barrels per day)2,491,732 2,593,598 2,508,601 2,415,190
Skim oil sold (barrels per day)3,663 4,099 3,918 3,757
        
Crude Oil Logistics:       
Crude oil sold (barrels)5,087 5,955 16,730 19,428
Crude oil transported on owned pipelines (barrels)6,473 7,062 19,520 20,832
Crude oil storage capacity – owned and leased (barrels) (1)    5,232 5,232
Crude oil inventory (barrels) (1)    790 892
        
Liquids Logistics:       
Refined products sold (gallons)201,796 192,340 631,802 566,997
Propane sold (gallons)254,266 305,067 524,007 639,686
Butane sold (gallons)207,544 177,061 394,118 409,137
Other products sold (gallons)85,410 96,349 276,898 294,965
Natural gas liquids and refined products storage capacity – owned and leased (gallons) (1)    157,409 159,999
Refined products inventory (gallons) (1)    2,020 1,738
Propane inventory (gallons) (1)    92,861 97,283
Butane inventory (gallons) (1)    35,951 31,029
Other products inventory (gallons) (1)    19,526 13,360
_______________________________________
(1)Information is presented as of December 31, 2023 and December 31, 2022, respectively.