NGL Energy Partners LP reported QQ1 2026 results with a standout gross margin of 88.6% and a robust EBITDA of $161.7 million, despite a sharp year-over-year revenue decline. Revenue came in at $622.2 million, down 61.82% year-over-year and 59.84% quarter-over-quarter, reflecting the cyclicality of U.S. energy volumes and commodity pricing. Management delivered an operating income of $87.1 million and a net income of $68.9 million, resulting in a net income margin of 11.1% and an earnings per share (EPS) of $0.0403. The company generated EBITDA margin of 25.99% (EBITDA/Revenue), underscoring the earnings power of its integrated midstream operations despite revenue headwinds.
From a cash flow perspective, net cash provided by operating activities was $33.2 million, with capital expenditures of $22.1 million and a negative free cash flow of $4.9 million. The balance sheet shows total assets of $4.19 billion against total liabilities of $4.05 billion, with total stockholders’ equity of $142.5 million. Notably, the company carries a sizable stock of noncurrent liabilities (around $3.58 billion) relative to its current assets, highlighting balance sheet leverage and potential liquidity considerations. Net debt stood at approximately $121.0 million, implying a leverage profile that is manageable on an EBITDA basis but warrants monitoring given the noncurrent liability stack.
Looking ahead, the absence of formal forward guidance in the disclosed materials means investors should weigh macro energy markets, continued volume recoveries in liquids and water solutions, and the trajectory of commodity spreads. The core strengths are the diversified three-segment platform, a diversified asset base with export capabilities, and solid EBITDA generation. The primary overhangs are funding liquidity given the noncurrent liabilities backdrop and sensitivity to energy price and demand cycles. Overall, the QQ1 2026 print signals positive operating discipline and earnings power, but prudence on liquidity management and debt composition is warranted.