Not only did NGL Energy Partners LP see a huge jump in net income for the second quarter of its fiscal year, but a significant jump in the company’s adjusted EBITDA.
The company released its financial report showing net income was $28.3 million in the second quarter of Fiscal 2024, nearly 9 times more than $3.6 million in net income for the second quarter of Fiscal 2023.
NGL’s adjusted EBITDA for the quarter totaled $176.2 million compared to $142.2 million a year earlier. The company said its Water Solutions segment inreased operating income by $12 million over the previous year. It also saw a nearly 8% increase in the amount of produced water in the past year.
“Our Water Solutions segment continues to outperform, so we are increasing our Fiscal 2024 Adjusted EBITDA guidance for this segment to $500 million plus,” stated Mike Krimbill NGL’s CEO.
Operating income for the Crude Oil Logistics segment decreased $18.1 million for the quarter ended September 30, 2023, compared to the quarter ended September 30, 2022. The decrease was primarily due to net losses on derivative contracts of $15.4 million compared to net gains in the prior year of $27.8 million.
Operating income for the Liquids Logistics segment increased by $21.9 million for the quarter ended September 30, 2023, compared to the quarter ended September 30, 2022. The increase was primarily due to increased product margins (excluding the impact of derivatives) for propane and butane, offset by lower product margins for refined and other products.