NGL Energy Partners LP suffered a massive drop in third quarter earnings compared to a year earlier.
The Tulsa company released quarterly results this week showing net income for the third quarter of Fiscal 2025 was $14.6 million, far below the $45.8 million reported in the third quarter of Fiscal 2024. Adjusted EBITDA came out much better, $147.7 million compared to $151.7 million a year earlier.
A breakdown of its different segments revealed:
Water Solutions
Operating income for the Water Solutions segment decreased by $8.9 million for the quarter ended December 31, 2024, compared to the quarter ended December 31, 2023. The decrease was due primarily to higher losses on the disposal or impairment of assets of $10.5 million in the current period compared to a gain of $0.5 million in the prior year period.
Crude Oil Logistics
Operating income for the Crude Oil Logistics segment decreased by $7.0 million for the quarter ended December 31, 2024, compared to the quarter ended December 31, 2023. The decrease was due to reduced sales volumes as a result of lower production on acreage dedicated to us in the DJ Basin and lower crude oil prices and an increase in derivative losses. During the quarter ended December 31, 2024, physical volumes on the Grand Mesa Pipeline averaged approximately 61,000 barrels per day, compared to approximately 70,000 barrels per day for the quarter ended December 31, 2023.
Liquids Logistics
Operating income for the Liquids Logistics segment decreased by $10.8 million for the quarter ended December 31, 2024, compared to the quarter ended December 31, 2023, primarily due to lower propane and refined products margins, excluding the impact of derivatives, and an increase in derivative losses for all products.
Corporate and Other
The operating loss for Corporate and Other was lower by $0.4 million for the quarter ended December 31, 2024, compared to the quarter ended December 31, 2023. General and administrative expenses decreased due to lower business insurance expense and lower legal expenses due to the resolution of several large cases in prior periods.
The company also explained it sold 143 railcars for $12.5 million this month and anticipates selling more railcars for approximately $10 million.
