Big jump in quarterly earnings for Tulsa’s NGL Energy Partners LP

Tulsa-based NGL Energy Partners LP announced its second quarter net income of $354.9 million—far better than the $173.6 million it lost a year ago.  Net income for the quarter included a gain of $408.6 million on the sale of the company’s remaining Retail Propane segment.

NGL’s second quarter ended Sept. 30 and the adjusted earnings before interest, taxes, depreciation and amortization were $95.4 million compared to the $90.8 million for the second quarter of Fiscal 2018

“ We believe we have successfully repositioned NGL over the past twelve months by raising $1.5 billion in asset sales at double digit multiples, lowering leverage substantially and expanding our Water Solutions business in the Permian Basin,” stated NGL’s CEO Mike Krimbill. “Our Water Solutions business continues to grow as we execute on securing long-term contracts for wastewater disposal and build our water pipeline infrastructure. Our Refined Products profitability has shifted to the second half of the Fiscal Year. ”

The company stated that its Crude Oil Logistics segment generated adjusted EBITDA of $48.5 million compared to the nearly $30 million reported a year earlier. Credit goes to the increased volumes on NGL’s Grand Mesa Pipeline.

The Partnership’s Grand Mesa Pipeline contributed Adjusted EBITDA of approximately $46.1 million during the second quarter of Fiscal 2019, an increase of $8.1 million when compared to Adjusted EBITDA of approximately $38.0 million during the same quarter of last year, due to increased volumes related to production growth in the DJ Basin.

Refined product barrels sold during the quarter ended September 30, 2018 totaled approximately 59.1 million barrels, an increase of approximately 17.7 million barrels compared to the same period in the prior year due to an increase in bulk sales volumes.

NGL indicated its propane volumes were up 3.4%, mostly due to an increase in natural gas liquids volumes being moved by rail due to increased production and third-party pipeline infrastructure issues.

Its Water Solutions segment saw increased adjusted earnings reaching $38.8 million as the firm processed more than 1 million barrels of wastewater a day. That’s a nearly 54% increase compared to a year ago.

Processed water volumes have increased in each basin in which the segment operates as the segment continued to benefit from high crude oil prices, increased rig activity and crude oil production. Revenues from recovered hydrocarbons totaled $18.3 million for the quarter ended September 30, 2018, an increase of $7.8 million over the prior year period, related to an increase in the volume of wastewater processed and increased crude oil prices; however, these revenues were negatively impacted by lower skim oil volumes recovered per wastewater barrel processed and basin differentials impacting the net price received for the skim oil sales.