We executed on our plan to attack the capital structure and address our maturities during the fiscal year. Being current on the preferred arrearages by the end of April exceeded all internal expectations and we believe exceeded most of the external expectations.
— Brad Cooper
03Detailed Report
NGL
Company NGL
Period
Q4 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 27, 2026
Swipe to view all report sections
Executive Summary
NGL Energy Partners LP reported its fourth quarter of fiscal 2024 with revenue of $1.6296 billion and a net loss of $236.8 million, or $1.79 per unit, reflecting ongoing leverage and segment mix headwinds even as the company advanced a significant capital-structure transformation. Water Solutions stood out, delivering a fourth-quarter adjusted EBITDA of $123.4 million and a full-year record of $508.3 million, +10% year over year, driven by higher disposal volumes and disciplined cost management. The company’s broader midstream franchise remains exposed to commodity and rate volatility, but the proactive refinancing and preferred arrearage curing completed in early 2024 have materially de-risked near-term maturities and provided greater balance-sheet flexibility. Management outlined a clear set of catalysts for 2025: (i) Water Solutions' 8-10% EBITDA growth, aided by the LEX II expansion (200,000 barrels per day, expandable to 500,000 bpd) with in-service targeted for October 2024; (ii) Grand Mesa Pipeline volume recovery, with exit-2024 volumes guided towards 110,000–115,000 bpd over the next 6–12 months; (iii) a disciplined CapEx plan of roughly $210 million for fiscal 2025, with around 60% tied to LEX II; (iv) a common unit repurchase program of up to $50 million to optimize capital structure. While the 2025 EBITDA target of $665 million implies ~9% growth, the company remains priced with meaningful leverage, potential working-capital relief from asset divestitures, and sensitivity to propane demand and crude differentials. The near-term investment thesis centers on execution of the LEX II ramp, selective disposition opportunities in Liquids Logistics, and continued deleveraging by capital-allocation flexibility, balanced against commodity exposure and a still-levered balance sheet.
Key Performance Indicators
Revenue
Decreasing
1.63B
QoQ: -12.85% | YoY: -20.46%
Gross Profit
Decreasing
160.29M
9.84% margin
QoQ: -13.14% | YoY: -23.23%
Operating Income
Decreasing
-82.27M
QoQ: -180.82% | YoY: -370.08%
Net Income
Decreasing
-236.77M
QoQ: -618.29% | YoY: -606.36%
EPS
Stable
-1.79
QoQ: -611.43% | YoY: N/A
Revenue Trend
Margin Analysis
Financial Highlights
Overview of the QQ4 2024 financials and notable trend signals:
- Revenue: $1.6296 billion; YoY decline of 20.5%; QoQ decline of 12.9%.
- Gross profit: $160.3 million; gross margin 9.84%.
- Operating income: -$82.3 million; operating margin -5.05%.
- EBITDA: -$73.9 million; EBITDA margin -4.54%.
- Net income: -$236.8 million; net income margin -14.53%; EPS -$1.79 (diluted).
- Water Solutions: Q4 adjusted EBITDA $123.4 million; full-year adjusted EBITDA $508.3 million, +10% YoY; physical disposed water volumes 2.39 million barrels/day in Q4 (2.46 in prior Q4).
- Volumes and utilization: Total produced-water disposed for fiscal 2024 averaged +4% vs. 2023; total volumes paid to dispose rose 7% to 2.59 million barrels/day (fiscal 2024).
- Grand Mesa Pipeline: Q4 physical volumes ~67,000 bpd vs. ~76,000 bpd prior-year quarter; management sees potential up to 110–115k bpd exit volumes in 6–12 months.
- Crude Logistics: Q4 EBITDA $15.3 million vs. $29.7 million prior-year quarter; margin pressure from lower production on long-tenor acreage and a contract expiration (Dec 31, 2023).
- Liquids Logistics: Q4 EBITDA $21.8 million vs. $28.5 million prior-year quarter; weakness driven by lower propane margins, terminal closures/sales, and warmer winter conditions; biodiesel pricing pressure from late-2023 mandates.
- Cash flow and capital allocation: Net cash provided by operating activities $152.2 million; free cash flow $119.8 million; capex $32.4 million; dividends paid $178.3 million; net cash used in financing activities $79.6 million; cash balance at period-end $38.9 million.
- Balance sheet and leverage: Total assets $5.02 billion; total Liabilities $4.02 billion; total debt $2.95 billion; net debt $2.91 billion; stockholders’ equity negative about $0.499 million; debt-to-capitalization ratio ~1.00; interest coverage negative; cash ratio ~0.0398; current ratio ~1.206. Note: equity impairment reflects heavy debt load and preferred equity structure.
- Guidance: Fiscal 2025 consolidated adjusted EBITDA guidance of $665 million, implying ~9% YoY growth; Water Solutions expected to drive most of the growth (8–10% range). CapEx guidance of $210 million for 2025 (approx. 60% tied to LEX II). Common-unit repurchase program authorized up to $50 million. Soft-call on Term Loan B at 101 through July; potential opportunities for debt repayment thereafter.
- Operational efficiency: Water Solutions operating costs per barrel run at $0.23 in Q4 and ~$0.24 per barrel for FY2024, highlighting disciplined cost control in a variable-margin environment.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.63B
-20.46%
-12.85%
Gross Profit
160.29M
-23.23%
-13.14%
Operating Income
-82.27M
-370.08%
-180.82%
Net Income
-236.77M
-606.36%
-618.29%
EPS
-1.79
N/A
-611.43%
Key Financial Ratios
Gross Profit Margin
Weak
9.84%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
-0.05%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.15%
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
Strong
474.48%
Return on equity demonstrates excellent capital efficiency and value creation
Current Ratio
Adequate
1.21
Current ratio meets minimum requirements but limited cushion
Debt to Equity
Conservative
-5,916.80
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Negative
-0.81x
Negative earnings make P/E ratio not meaningful
Price to Book
Undervalued
-1,540.23x
Trading below book value, potential value opportunity or distressed
Management Insights Available for Members
Get exclusive access to management commentary, earnings call quotes, and forward guidance from company leadership.