NGL Energy Partners LP: Q4 & Full Year Fiscal 2024 Results, Fiscal 2025 Guidance

NGL Energy Partners LP (NYSE) has reported its fourth quarter and full-year fiscal 2024 results. Key highlights for the fiscal year and quarter ending March 31, 2024, include:

  • A net loss for full-year fiscal 2024 of $143.1 million, compared to net income of $52.5 million for full-year fiscal 2023. For the fourth quarter of fiscal 2024, there was a net loss of $236.7 million, compared to a net loss of $33.2 million for the fourth quarter of fiscal 2023. The fiscal 2024 fourth quarter includes a loss from the impairment of goodwill, an adverse litigation judgment, and call premiums and other costs related to refinancing.
  • Adjusted EBITDA for full-year fiscal 2024 was $610.1 million, compared to $632.7 million for full-year fiscal 2023. For the fourth quarter of fiscal 2024, Adjusted EBITDA was $147.5 million, compared to $173.3 million for the fourth quarter of fiscal 2023.
  • Record Water Solutions’ Adjusted EBITDA reached $508.3 million for full-year fiscal 2024, marking a 10% increase over the prior year. Additionally, annual water disposal volumes processed by Water Solutions reached 884.6 million for full-year fiscal 2024, up by 4.1% from the prior year.
  • On January 22, 2024, NGL announced the expansion of its Lea County Express Pipeline System to accommodate a capacity increase from 140,000 barrels of water per day to 340,000 barrels per day in 2024, with the potential to further expand to 500,000 barrels per day. This expansion project is fully underwritten by a recently executed minimum volume commitment contract.
  • On February 2, 2024, NGL completed a debt refinancing transaction of $2.9 billion, including a private offering of $2.2 billion of senior secured notes and a new seven-year $700.0 million senior secured term loan “B” credit facility. Proceeds from these transactions were used to fund the redemption of certain senior secured and senior unsecured notes.
  • On February 6, 2024, NGL’s board of directors declared a cash distribution of outstanding arrearages through December 31, 2023, to holders of preferred units.
  • Highlights for the period after March 31, 2024, included additional cash distributions to holders of preferred units, the sale of two ranches in New Mexico, and the closure of certain asset sales in the Delaware Basin and Lea County, New Mexico.
  • On June 5, 2024, NGL’s board authorized a common unit repurchase program, allowing the repurchase of up to $50.0 million of outstanding common units from time to time in the open market or through privately negotiated transactions.

Mike Krimbill, NGL’s CEO, highlighted the company’s achievements in fiscal 2024, including record Adjusted EBITDA for Water Solutions, a global refinancing, and the sale of non-core assets. Looking ahead to fiscal 2025, Krimbill emphasized growth opportunities with attractive returns and continued leverage reduction. The company provided guidance for fiscal 2025 Water Solutions Adjusted EBITDA and full-year consolidated Adjusted EBITDA, as well as total maintenance and growth capital expenditures for fiscal 2025.

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