"Consolidated Adjusted EBITDA came at $147.3 million for the second quarter. The consolidated Adjusted EBITDA was primarily driven by our Water Solutions and Crude Logistics segments."
— Brad Cooper, CFO
03Detailed Report
NGL
Company NGL
Period
Q2 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 21, 2026
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Executive Summary
NGL Energy Partners LP reported Q2 2025 revenue of $1.353 billion and GAAP net income of $2.45 million, with Adjusted EBITDA of $147.3 million and GAAP EBITDA of $143.1 million. The quarter featured meaningful performance by the Water Solutions segment, which posted Adjusted EBITDA of $182.9 million and saw water disposal volumes rise roughly 9% QoQ to 2.68 million barrels per day, supported by margin discipline (costs per barrel fell to $0.22 from $0.24). Crude Oil Logistics and Liquids Logistics contributed more modestly, with Adjusted EBITDA of $17.3 million and $9.4 million, respectively, as the company navigates soft interim demand in parts of the liquids network and a warier propane environment.
Key Performance Indicators
Revenue
Decreasing
1.35B
QoQ: -2.49% | YoY: -26.53%
Gross Profit
Decreasing
169.55M
12.53% margin
QoQ: 0.84% | YoY: -8.48%
Operating Income
Decreasing
77.73M
QoQ: 3.71% | YoY: -9.65%
Net Income
Decreasing
2.45M
QoQ: -74.66% | YoY: -91.24%
EPS
Decreasing
-0.21
QoQ: -50.00% | YoY: -200.00%
Revenue Trend
Margin Analysis
Financial Highlights
Financial delta drivers include: Revenue $1,352.68 million in Q2 2025, down 2.49% QoQ and down 26.53% YoY to the prior-year quarter; Gross profit $169.55 million (gross margin 12.53%); Operating income $77.73 million (operating margin 5.75%); EBITDA $143.11 million (EBITDA margin 10.58%); Adjusted EBITDA $147.30 million. Net income $2.45 million (net margin 0.18%); EPS -$0.21. Free cash flow negative $82.90 million; cash flow from operations $6.72 million; capital expenditures $89.62 million; total debt $3.231 billion; net debt $3.227 billion. Balance sheet highlights: total assets $4.89 billion; total liabilities $4.153 billion; total stockholders’ equity $185.34 million; current ratio 1.21; quick ratio 0.98; cash ratio 0.0054. Leverage remains elevated with debt-to-capitalization near 0.946 and long-term debt-to-capitalization near 0.944. Management commentary indicates a strategic focus on Water Solutions as the growth engine, ongoing LEX II expansion (initial 200,000 bpd, expandable to 500,000 bpd) placed in service, and a program to reduce dilution via warrant repurchase.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.35B
-26.53%
-2.49%
Gross Profit
169.55M
-8.48%
0.84%
Operating Income
77.73M
-9.65%
3.71%
Net Income
2.45M
-91.24%
-74.66%
EPS
-0.21
-200.00%
-50.00%
Key Financial Ratios
Gross Profit Margin
Weak
12.50%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Fair
5.75%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Weak
0.18%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.05%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
1.32%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.21
Current ratio meets minimum requirements but limited cushion
Debt to Equity
High Risk
17.44
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
High Growth
60.64x
Very high P/E indicates aggressive growth expectations, higher risk
Price to Book
Premium
3.21x
Trading at premium to book value, reflects strong intangibles or growth
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