Tulsa-based NGL Energy Partners LP reported a net loss of nearly $64 million for the quarter ending June 30, 2017.
The loss of $63.7 million compared to net income of $182.8 million in a year ago, leading CEO Mike Krimbill to explain, “Our first quarter results (2018) were impacted by the continued challenges facing our Refined Products segment.”
He said the company made adjustments to marketing contracts and reduced shipments and purchased third-party line space.
“This effort will reduce volatility in earnings and improve the performance of this segment going forward, which we have already realized in the month of July,” he added.
NGL reported ups and downs in its various segments. The Partnership’s Crude Oil Logistics segment generated adjusted EBITDA of $25.8 million compared to $9.8 million a year ago. Its Grand Mesa Pipeline started commercial operations last fall and contributed nearly $30 million n the first quarter.
Volumes on the pipeline are continuing to grow as volumes averaged more than 74,000 barrels a day. Still, the company admitted the Crude Oil Logistics segment continues to be affected by increased competition and lower margins in the majority of the basins across the U.S.
“The Partnership continues to market crude volumes in this lower price environment to support its various pipeline, terminal and transportation assets,” stated the company.
NGL’s Refined Products and Renewables segment generated $7.8 million compared to $37.3 million a year earlier. It blamed “the continued decline in gasoline line space values on the Colonial Pipeline that impacted marketing margins.”to improve throughout the remainder of this fiscal year as variability in earnings tied to line space is reduced.”
The company’s retail Propane segment also lost money in the quarter, dropping from $7.4 million a year ago to $6.6 million this year.
But NGL’s Water Solutions segment saw significant gains, going from $10.4 million last year to $22.1 million in the most recent quarter.