NGL Energy Partners (NGL) Q1 2027 earnings summary

Executive summary

• Income from continuing operations rose to $80.0 million in Q1 FY2027, up from $30.3 million in Q1 FY2026, driven by strong Water Solutions performance and growth in core segments.

• Adjusted EBITDA from continuing operations reached $186.2 million, up nearly 30% year-over-year from $144.0 million, reflecting improved segment results and operational efficiencies.

• Water Solutions remains the dominant segment, contributing over 90% of total EBITDA, supported by long-term contracts and investment grade customers.

• Produced water volumes reached a record 3.32 million barrels per day in Q1, up 19.6% year-over-year.

• Expansion projects and new contracts, including the LEX II Extension, increased total committed water volumes and permitted injection capacity.

Financial highlights

• Total revenues increased to $990.0 million from $622.2 million year-over-year, primarily due to higher volumes and prices in Water Solutions and Crude Oil Logistics.

• Water Solutions adjusted EBITDA rose 26% to $179.9 million, accounting for 91% of total partnership EBITDA.

• Operating income was $145.3 million, compared to $97.5 million in the prior year.

• Operating expenses in Water Solutions were $0.21 per barrel, down from $0.22 year-over-year.

• Net cash provided by operating activities from continuing operations was $77.0 million, up from $17.3 million in the prior year.

Outlook and guidance

• Full-year FY2027 Adjusted EBITDA guidance raised to $725–$735 million, up from $715–$725 million.

• Growth capital expenditures for the year expected to exceed $200 million, with most spending in the first two quarters.

• Fiscal 2028 expected to mirror fiscal 2027 as additional growth projects come online.

• Board will evaluate reinstatement of common unit distributions based on leverage, liquidity, and business performance.

• LEX II water pipeline expansion expected to be in service by year-end 2026, increasing capacity and committed volumes.