NGL Energy Partners LP (NGL) Q3 2025 Earnings Report

NGL delivered a solid Q3 2025 EBITDA performance despite the ongoing wind-down of non-core assets and a prioritization of balance sheet deleveraging. Consolidated adjusted EBITDA totaled $147.7 million for the quarter, vs. $151.7 million in the year-ago period. Excluding biodiesel, adjusted EBITDA was approximately $160 million, about 5% higher year-over-year, underscoring that core Water Solutions and Crude Oil/Liquids logistics remained cash-flow positive even as the biodiesel wind-down weighed on near-term profitability. Water Solutions continued to show momentum with EBITDA of $132.7 million and a 2.62 million barrels per day (MMBPD) disposal volume in Q3 2025, up from 2.38 MMBPD a year ago and 2.91 MMBPD of total disposed volumes (including deficiency volumes) up 12% YoY. Crude Oil Logistics posted EBITDA of $17.4 million, with Grand Mesa volumes averaging ~61,000 BPD (down from 70,000 BPD prior year), reflecting the ongoing transition but with multiple long-term acreage dedications positioned to lift volumes toward the 100,000 BPD target. Liquids Logistics delivered EBITDA of $8.2 million; however, biodiesel wind-down contributed a negative $12.1 million of adjusted EBITDA in the quarter, highlighting the scale of strategic exit effects. Management reaffirmed a full-year EBITDA target of $620 million, signaling ongoing deleveraging and capital-recycling initiatives, including asset sales of non-core terminals and a broader push to convert the portfolio toward a Water Solutions–Crude Oil Logistics model. The quarter also featured material balance-sheet actions and capital allocation moves (warrant repurchase, advanced asset sales, and a plan to deploy proceeds to the balance sheet), all aimed at reducing working capital needs and positioning the company for debt reduction and potential preferred-share redemption. This analysis connects the quarterly results to management’s longer-term strategy and outlines the investment implications for equity and debt holders in a volatile midstream environment.