Tulsa’s NGL Energy Partners LP managed to cut its quarterly losses and increase its adjusted earnings for the third quarter Fiscal 2022.
The company announced Thursday its losses were slashed from more than $380 million a year ago to $19 million this year. The firm said it was primarily a result of a $383.6 million write down of goodwill and certain intangibles connected to the impact of the bankruptcy rejection of transportation contracts with Extraction Oil & Gas, Inc..
Excluding losses on the disposal or impairment of assets, loss from continuing operations for the third quarter of Fiscal 2022 was $6.7 million, compared to a loss from continuing operations of $6.6 million for the third quarter of Fiscal 2021.
NGL’s adjusted EBITDA from continuing operations for the quarter were $147.7 million compared to $125 million for the third quarter of Fiscal 2021. At the same time, NGL reported a 30% increase in produced water volumes over a year ago and a 4.5% growth from the preceding quarter.
NGL leadership expects business to growth because of its recently announced collaboration with XRI Holdings, LCC to advance full cycle produced water management in the Delaware Basin.
“We continue to see growth in our Water Solutions segment due to increased customer activities as well as additional agreements negotiated with producer customers. Additionally, the collaboration we previously announced with XRI will allow us to service produced water reuse and recycle demand in the Delaware Basin while focusing on environmentally-friendly solutions for our customers” stated Mike Krimbill, NGL’s CEO.
He said by all accounts, it appears the fourth fiscal quarter will see increased volumes of produced water for the company.
NGL said its operating income for the Water Solutions segment increased $4 million for the third quarter from the previous year. Its revenues from recovered crude oil grew by more than $8 million to reach $19.5 million for the quarter that ended Dec. 31, 2021. At the same time, NGL’s Water Solutions operating expenses decreased to 26 cents a barrel compared to 27 cents in the quarter a year earlier.
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