A drop in earnings for the second quarter of Fiscal 2022 was reported by Tulsa’s NGL Energy Partners LP. The company said it suffered a $1.2 million loss from continuing operations compared to $6 million income for the second quarter of Fiscal 2021.
NGL’s quarterly report indicated that excluding losses on the disposal and impairment of assets, income from continuing operations was $12.5 million compared to $11.9 million a year earlier.
But the firm’s adjusted EBITDA increased to $146.3 million for the latest quarter compared to $138 million a year ago. It also had a record quarterly adjusted EBITDA of $87.4 million in its Water solutions segment, a 43% increase versus the second quarter of Fiscal 2021.
“Our Water Solutions segment achieved strong growth due to increased customer activities in the Delaware basin. Produced water volumes have grown meaningfully year-over-year and sequentially quarter-over-quarter,” said Mike Krimbill, NGL CEO.
The Partnership processed approximately 1.8 million barrels of water per day during the quarter ended September 30, 2021 , a 37.3% increase when compared to approximately 1.3 million barrels of water per day processed during the quarter ended September 30, 2020 , due to higher production volumes primarily in the Delaware Basin driven by the recovery in crude oil prices from the prior year.
Revenues from recovered crude oil, including the impact from realized skim oil hedges, totaled $19.3 million for the quarter ended September 30, 2021 , an increase of $6.8 million from the prior year period. This was due to higher crude oil prices, larger amounts of skim oil recovered per barrel of water processed and increasing producer activity.
Total liquidity was approximately $207 million as of September 30, 2021 . Borrowings on the Partnership’s revolving credit facility totaled approximately $146.0 million . The balance increase from March 31, 2021 was primarily due to increases in working capital balances driven by increased inventory volumes and higher commodity prices.
