NGL Energy Partners LP(US:NGL)2024-11-12 21:20Financial Performance - Revenues for the three months ended September 30, 2024, were $1,352,675,000, a decrease of 26.5% compared to $1,841,096,000 for the same period in 2023[171]. - Net income attributable to NGL Energy Partners LP for the three months ended September 30, 2024, was $2,454,000, down 91.3% from $28,028,000 in the prior year[171]. - For the three months ended September 30, 2024, the company reported total revenues of $243.841 million, a decrease of $246.009 million compared to $489.850 million in the same period of 2023[193]. - Net income for the three months ended September 30, 2024, was $3,391,000, compared to $28,285,000 for the same period in 2023, representing a decrease of approximately 88%[294]. - Adjusted EBITDA for the three months ended September 30, 2024, was $147,270,000, down from $176,214,000 in the same period of 2023, reflecting a decline of about 16.5%[294]. - The company reported a net cash used in operating activities of $(11,341) thousand for the six months ended September 30, 2024, compared to $131,100 thousand in the same period of 2023[324]. Segment Performance - The Water Solutions segment reported total revenues of $181,867,000 for the three months ended September 30, 2024, a decrease of 7.8% from $197,244,000 in the same period of 2023[179]. - Operating income for the Water Solutions segment rose to $72,829,000, an increase of 23.2% compared to $59,118,000 in the prior year[179]. - The Crude Oil Logistics segment reported an operating income of $14,840,000 for the three months ended September 30, 2024, compared to $14,778,000 in the same period of 2023, a slight increase of approximately 0.4%[301]. - Total revenues for the Water Solutions segment decreased by $15.4 million, from $197.2 million in Q3 2023 to $181.9 million in Q3 2024, representing a decline of approximately 7.8%[179]. - Segment operating income for Water Solutions increased by $28.7 million, from $128.4 million in the six months ended September 30, 2023 to $157.2 million in the same period of 2024, an increase of approximately 22.4%[233]. Sales and Pricing - Crude oil sales decreased to $225.013 million from $475.103 million, reflecting a decline of $250.090 million year-over-year[193]. - The average service fees for produced water processed decreased to $0.60 per barrel in Q3 2024, down from $0.69 per barrel in Q3 2023[179]. - The crude oil product margin per barrel decreased to $2.935 from $6.282, a decline of $3.347 year-over-year[193]. - Refined products sold decreased by 3,004 gallons, from 209,919 gallons in September 30, 2023 to 206,915 gallons in September 30, 2024[204]. - Propane sold decreased by 21,399 gallons, from 129,988 gallons in September 30, 2023 to 108,589 gallons in September 30, 2024[204]. - The company’s refined products product margin per gallon decreased to $0.012 for the six months ended September 30, 2024, down from $0.043 in the same period of 2023[259]. Expenses and Costs - Operating expenses for the Crude Oil Logistics segment were $10.249 million, slightly up from $9.946 million in the prior year, an increase of $303,000[193]. - General and administrative expenses decreased by $5.1 million, from $13.3 million in September 30, 2023 to $8.2 million in September 30, 2024[222]. - Total debt interest expense increased by $18.8 million, from $58.6 million in September 30, 2023 to $77.4 million in September 30, 2024[228]. - The cost of sales excluding the impact of derivatives for the Crude Oil Logistics segment decreased by $405.3 million, from $872.4 million in the six months ended September 30, 2023 to $467.0 million in the same period of 2024, a decline of approximately 46.4%[246]. - The company’s total expenses for the six months ended September 30, 2024 were $33,081, an increase of $6,663 from $26,418 in the same period of 2023[257]. Asset Management - The company experienced a loss on disposal or impairment of assets of $1,951,000 in Q3 2024, significantly lower than the $23,599,000 loss in the same quarter of 2023[179]. - The company recorded a net gain of $0.4 million from asset disposals during the three months ended September 30, 2024, compared to a net gain of $0.5 million in the same period of 2023[200]. - The company recorded a net gain of $10.5 million related to the sale of certain assets during the six months ended September 30, 2024, compared to a net loss of $16.2 million in the same period of 2023[243]. - The company experienced a loss on disposal or impairment of assets of $1,509,000 for the three months ended September 30, 2024, compared to a gain of $16,207,000 in the same period of 2023, indicating a significant shift in asset performance[299]. Market Conditions and Outlook - The company anticipates continued volatility in commodity prices due to global conflicts and inflationary pressures, which may impact future financial performance[174][175]. - The SEC has adopted new climate-related disclosure rules, which may affect the company's reporting and compliance requirements moving forward[177]. - The company is engaged in collaborative efforts to mitigate induced seismic events associated with water disposal, which may impact operational strategies[176]. - The company expects capital expenditures for the fiscal year ending March 31, 2025, to be approximately $210 million[316]. - The company anticipates that cash flows from operations and borrowing capacity will be sufficient to meet liquidity needs, particularly during the seasonal demand period from June to December[305].