NGL Energy Partners LP (NYSE:NGL)
$ 4.13 -0.27 (-6.14%) Market Cap: 547.28 Mil Enterprise Value: 3.70 Bil PE Ratio: 0 PB Ratio: 2.83 GF Score: 52/100

Q1 2025 NGL Energy Partners LP Earnings Call Transcript

Aug 08, 2024 / 09:00PM GMT
Release Date Price: $4.09

Key Points

Positve
  • NGL Energy Partners LP (NGL) reported strong quarterly results across all three business units, with consolidated adjusted EBITDA reaching $144.3 million.
  • The Water Solutions segment performed well, with physical disposal volumes averaging approximately 2.7 million barrels per day in July.
  • NGL Energy Partners LP (NGL) successfully completed the sale of two ranches for approximately $70 million, enhancing their financial position.
  • The company reduced its interest expense by $5.25 million annually through repricing and amending the SOFR margin on its Term Loan B.
  • The Liquids Logistics segment saw a significant increase in adjusted EBITDA, rising to $11.5 million from $4.7 million in the prior year, driven by strong butane lending margins and volumes.
Negative
  • Crude Oil Logistics adjusted EBITDA decreased to $18.6 million from $23.8 million in the prior year's first quarter, primarily due to lower volumes from production in the DJ Basin.
  • NGL Energy Partners LP (NGL) has not yet repurchased any common units under its authorized $50 million repurchase program.
  • The company faces challenges in the Liquids Logistics segment, which is highly volatile and dependent on winter weather conditions.
  • NGL Energy Partners LP (NGL) continues to manage high costs associated with preferred stock, which are considered expensive financial instruments.
  • The company anticipates lumpiness in water disposal volumes due to producers' completion schedules, impacting short-term performance.
Operator

Thank you for standing by. My name is Max, and I will be your conference operator for today. At this time I would like to welcome everyone to NGL Energy Partners' first-quarter 2025 earnings call. (Operator Instructions)

I would now like to turn the call over to Brad Cooper, CFO. Please go ahead.

Brad Cooper
NGL Energy Partners LP - Executive Vice President and Chief Financial Officer

Good afternoon, and thank you to everyone for joining us on the call today. Our comments today will include plans, forecasts and estimates that are forward-looking statements under the US securities law. These comments are subject to assumptions, risks, and uncertainties that could cause actual results to differ from the forward-looking statements. Please take note of the cautionary language and risk factors provided in our presentation materials and our other public disclosure materials.

Let's get into the quarterly results. Our results for the quarter were strong across all three business units. Water solutions, crude oil logistics, and liquids logistics all

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