NGL Energy Partners LP Announces Third Quarter Fiscal 2026 Financial Results

Financial Results:

• Income from continuing operations for the third quarter of Fiscal 2026 of $48.2 million, compared to income from continuing operations of $23.7 million for the third quarter of Fiscal 2025
• Adjusted EBITDA from continuing operations⁽¹⁾ for the third quarter of Fiscal 2026 of $172.5 million, compared to $158.0 million for the third quarter of Fiscal 2025

Water Solutions Volumes:

• Record produced water volumes physically disposed of approximately 3.07 million barrels per day during the third quarter of Fiscal 2026, growing 17.1% from the water volumes physically disposed of during the third quarter of Fiscal 2025
• Paid and physically disposed water volumes of 3.13 million barrels per day during the third quarter of Fiscal 2026, growing 7% from the paid and physically disposed water volumes during the third quarter of Fiscal 2025

Equity Transactions:

• In October, NGL purchased an additional 18,506 of the Class D preferred units resulting in a combined total of 88,506 of our Class D preferred units redeemed, or approximately 15% of the originally outstanding Class D preferred units
• Under the board authorized common unit repurchase plan, we have repurchased an additional 1,611,088 common units in the quarter for a total of 8,698,477 common units under the repurchase program at an average price of $5.6963

“NGL posted another strong quarter driven by the Water Solutions segment. We are reaffirming our full year guide for Adjusted EBITDA⁽²⁾ of between $650 million to $660 million. We continue to see opportunities in the Water Solutions segment that continues to indicate Fiscal 2027 will be another strong year for the Partnership with Adjusted EBITDA⁽²⁾ eclipsing $700 million,” stated Mike Krimbill NGL’s CEO.

Quarterly Results of Operations

The following table summarizes the unaudited operating income (loss) and Adjusted EBITDA from continuing operations⁽¹⁾ by reportable segment for the periods indicated:

Water Solutions

Operating income for the Water Solutions segment increased by $32.8 million for the quarter ended December 31, 2025, compared to the quarter ended December 31, 2024. The increase was due primarily to higher disposal revenues due to an increase in produced water volumes processed from contracted customers and increased water pipeline revenue due to the LEX II pipeline commencing operations during the quarter ended December 31, 2024. The Partnership processed approximately 3.07 million barrels of produced water per day during the quarter ended December 31, 2025, a 17.1% increase when compared to approximately 2.62 million barrels of water per day processed during the quarter ended December 31, 2024.

Revenues from recovered skim oil, including the impact from realized skim oil hedges, totaled $23.3 million for the quarter ended December 31, 2025, a decrease of $0.8 million from the prior year period. The decrease was due primarily to lower realized crude oil prices received from the sale of skim oil barrels, partially offset by an increase in skim oil barrels sold due to more skim oil recovered from receiving more produced water.

Operating expenses in the Water Solutions segment decreased $0.4 million for the quarter ended December 31, 2025, compared to the quarter ended December 31, 2024 due primarily to lower incentive compensation expense and lower chemical expense due to purchasing fewer chemicals and using chemicals more efficiently, partially offset by higher utilities expense due to increased produced water volumes processed and higher royalty expense due to volumes related to the LEX II pipeline commencing operations and increased volumes at certain other saltwater disposal wells. Operating expense per produced barrel processed was $0.18 for the quarter ended December 31, 2025, compared to $0.21 in the comparative quarter last year.

There was also a loss on the disposal or impairment of assets of $5.7 million for the quarter ended December 31, 2025, compared to a loss on the disposal or impairment of assets of $10.5 million in the prior year period.

Crude Oil Logistics

Operating income for the Crude Oil Logistics segment increased by $1.6 million for the quarter ended December 31, 2025, compared to the quarter ended December 31, 2024. The increase was due primarily to increased margins, due to increased volumes, and gains recognized on derivatives that hedge our physical product for the current period, compared to losses in the prior year period. This increase was offset by lower transportation revenue. During the quarter ended December 31, 2025, physical volumes on the Grand Mesa Pipeline averaged approximately 85,000 barrels per day, compared to approximately 61,000 barrels per day for the quarter ended December 31, 2024.

Liquids Logistics

Operating income for the Liquids Logistics segment decreased by $7.6 million for the quarter ended December 31, 2025, compared to the quarter ended December 31, 2024. This decrease was due primarily to lower product margins due to the sale of our Wholesale Propane business and 17 natural gas liquid terminals (“Wholesale Propane Disposition”), a weak gasoline blending season in certain markets and lower asphalt volumes and margins due to tighter supply. This decrease was partially offset by lower operating expenses due to the Wholesale Propane Disposition and lower losses on derivatives that hedge our physical product.

Capitalization and Liquidity

Total liquidity (cash plus available capacity on our asset-based revolving credit facility (“ABL Facility”)) was approximately $331.1 million as of December 31, 2025. Borrowings on the Partnership’s ABL Facility totaled approximately $92.0 million as of December 31, 2025, due to an increase in capital spending within our Water Solutions segment.

The Partnership is in compliance with all of its debt covenants and has no upcoming debt maturities.

Third Quarter Conference Call Information

A conference call to discuss NGL’s results of operations is scheduled for 4:00 pm Central Time on Tuesday, February 3, 2026. Analysts, investors, and other interested parties may join the webcast via the event link: https://www.webcaster5.com/Webcast/Page/2808/53486 or by dialing (888) 506-0062 and providing conference code: 607307. An archived audio replay of the call will be available for 14 days, which can be accessed by dialing (877) 481-4010 and providing replay passcode 53486.

Non-GAAP Financial Measures

We define EBITDA as net income (loss) attributable to NGL Energy Partners LP, plus interest expense, income tax expense (benefit), and depreciation and amortization expense. We define Adjusted EBITDA as EBITDA excluding net unrealized gains and losses on derivatives, lower of cost or net realizable value adjustments, gains and losses on disposal or impairment of assets, gains and losses on early extinguishment of liabilities, revaluation of liabilities and other. EBITDA and Adjusted EBITDA should not be considered as alternatives to net income, income from continuing operations before income taxes, cash flows from operating activities, or any other measure of financial performance calculated in accordance with GAAP, as those items are used to measure operating performance, liquidity or the ability to service debt obligations. We believe that EBITDA provides additional information to investors for evaluating our ability to make quarterly distributions to our unitholders and is presented solely as a supplemental measure. We believe that Adjusted EBITDA provides additional information to investors for evaluating our financial performance without regard to our financing methods, capital structure and historical cost basis. Further, EBITDA and Adjusted EBITDA, as we define them, may not be comparable to EBITDA, Adjusted EBITDA, or similarly titled measures used by other entities.

For purposes of our Adjusted EBITDA calculation, we make a distinction between realized and unrealized gains and losses on derivatives. During the period when a derivative contract is open, we record changes in the fair value of the derivative as an unrealized gain or loss. When a derivative contract matures or is settled, we reverse the previously recorded unrealized gain or loss and record a realized gain or loss.

Distributable Cash Flow is defined as Adjusted EBITDA minus maintenance capital expenditures, income tax expense, cash interest expense, preferred unit distributions paid and other. Maintenance capital expenditures represent capital expenditures necessary to maintain the Partnership’s operating capacity. Distributable Cash Flow is a performance metric used by senior management to compare cash flows generated by the Partnership (excluding growth capital expenditures and prior to the establishment of any retained cash reserves by the board of directors of our general partner) to the cash distributions expected to be paid to unitholders. Using this metric, management can quickly compute the coverage ratio of estimated cash flows to planned cash distributions. This financial measure also is important to investors as an indicator of whether the Partnership is generating cash flow at a level that can sustain, or support an increase in, quarterly distribution rates. Actual distribution amounts are set by the board of directors of our general partner.

We do not provide a reconciliation for non-GAAP estimates on a forward-looking basis where we are unable to provide a meaningful calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or amount of various items that would impact the most directly comparable forward-looking U.S. GAAP financial measure that have not yet occurred, are out of the Partnership’s control and/or cannot be reasonably predicted. Forward-looking non-GAAP financial measures provided without the most directly comparable U.S. GAAP financial measures may vary materially from the corresponding U.S. GAAP financial measures.

Forward-Looking Statements

This press release includes “forward-looking statements.” All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Actual results could vary significantly from those expressed or implied in such statements and are subject to a number of risks and uncertainties. While NGL believes such forward-looking statements are reasonable, NGL cannot assure they will prove to be correct. The forward-looking statements involve risks and uncertainties that affect operations, financial performance, and other factors as discussed in filings with the Securities and Exchange Commission. Other factors that could impact any forward-looking statements are those risks described in NGL’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other public filings. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, specifically those under the heading “Risk Factors.” NGL undertakes no obligation to publicly update or revise any forward-looking statements except as required by law.

NGL provides Adjusted EBITDA guidance that does not include certain charges and costs, which in future periods are generally expected to be similar to the kinds of charges and costs excluded from Adjusted EBITDA in prior periods, such as income taxes, interest and other non-operating items, depreciation and amortization, net unrealized gains and losses on derivatives, lower of cost or net realizable value adjustments, gains and losses on disposal or impairment of assets, gains and losses on early extinguishment of liabilities, acquisition expense, revaluation of liabilities and items that are unusual in nature or infrequently occurring. The exclusion of these charges and costs in future periods will have a significant impact on the Partnership’s Adjusted EBITDA, and the Partnership is not able to provide a reconciliation of its Adjusted EBITDA guidance to net income (loss) without unreasonable efforts due to the uncertainty and variability of the nature and amount of these future charges and costs and the Partnership believes that such reconciliation, if possible, would imply a degree of precision that would be potentially confusing or misleading to investors.

About NGL Energy Partners LP

NGL Energy Partners LP, a Delaware master limited partnership, operates the largest integrated network of large diameter wastewater pipelines, disposal wells and produced water handling systems in the Delaware Basin. NGL also operates wastewater disposal in the Eagle Ford and DJ Basins. In addition, NGL markets and provides other logistics services for crude oil, through its ownership of the Grand Mesa Pipeline System, Cushing terminal and other Gulf Coast terminals. For further information, visit the Partnership’s website at www.nglenergypartners.com.