Record Water Volumes and Grand Mesa Growth
NGL Energy Partners reported a record in water volumes and a 30% growth in Grand Mesa volumes. Consolidated adjusted EBITDA from continuing operations was $167.3 million, up 12% from the previous year, driven by the Water Solutions segment.
Increased Full Year Adjusted EBITDA Guidance
NGL increased its full year adjusted EBITDA guidance to $650 million to $660 million, up from the previous range of $615 million to $625 million, reflecting strong performance and growth opportunities in the Water Solutions segment.
Reduction in Term Loan B Interest Rates
NGL repriced its Term Loan B to reduce the SOFR margin from 375 basis points to 350 basis points, with annual interest savings of $15 million, showing effective financial management.
Strong Water Solutions Performance
Water Solutions adjusted EBITDA was $151.9 million, an 18% increase from the previous year, driven by higher disposal revenues and increased skim oil revenue.
Strategic Capital Allocation
NGL purchased 88,506 Class D preferred units, saving $10.4 million in annual distributions, and repurchased 6.8 million common units, reflecting strategic capital allocation.
Significant Delaware Basin Capacity
NGL has over 5 million barrels per day of permitted injection capacity in the Delaware Basin and is pioneering the first large-scale produced water treatment plant in the area.