NGL Energy Partners Posts $44.3 Million Quarterly Loss

The Tip Desk · November 7, 2026 · 4 min read

A $58.1 million Crude Oil Logistics impairment and a $30.4 million Water Solutions derivative loss reversed $78.7 million of net income from the prior quarter.

NGL Energy Partners LP (NGL), a Delaware master limited partnership that transports produced water and natural gas liquids, reported a net loss attributable to the partnership of $44.3 million for the three months ended September 30, 2026, reversing net income of $78.7 million in the three months ended June 30, 2026.

Operating income fell to $23.9 million from $145.3 million, a $121.4 million sequential decline. Consolidated revenues were $986.6 million, essentially unchanged from $990.0 million in the prior quarter. Adjusted EBITDA from continuing operations rose to $192.4 million from $186.2 million.

The partnership said the $70.3 million year-over-year decrease in operating income was driven primarily by a $58.1 million impairment of certain long-lived assets in Crude Oil Logistics, higher derivative losses, and higher compensation expense.

Crude Oil Logistics swung to a $56.6 million operating loss from $5.9 million of operating income. The segment recorded the $58.1 million net loss on disposal or impairment of assets, versus a $0.1 million net loss in the June quarter. Crude oil sold was 4.604 million barrels, up from 4.359 million barrels. The price received for crude oil sold was $88.15 a barrel, down from $98.81 a barrel. Product margin excluding derivatives was $3.95 a barrel, versus $1.48 a barrel. Segment Adjusted EBITDA was $11.9 million, up from $8.6 million.

The company said sales and cost of sales excluding derivatives rose primarily because of higher commodity prices, partially offset by lower volumes due primarily to lower production on acreage dedicated in the DJ Basin. Physical volumes on the Grand Mesa Pipeline averaged about 64,000 barrels per day, down from about 74,000 barrels per day. Operating and general and administrative expenses included $4.7 million in severance payments tied to a reorganization of the segment.

Water Solutions segment operating income was $94.7 million, down from $138.6 million. Total revenues held at $254.4 million. The segment posted $30.4 million of derivative losses, comprising $21.6 million unrealized and $8.7 million realized, reversing a $19.0 million unrealized derivative gain in the June quarter. Segment Adjusted EBITDA was $178.3 million, slightly below $179.9 million.

Produced water processed averaged 3,446,689 barrels per day, up from 3,315,055 barrels per day. The Delaware Basin accounted for 3,112,866 barrels per day, versus 2,962,381 barrels per day. Service fees for produced water processed were $0.59 a barrel, down from $0.60 a barrel. Water disposal service fees were $187.1 million. Recovered crude oil revenue was $47.4 million. Other revenues, including pipeline fees, were $18.4 million.

The company said the increase in water disposal service fees was due primarily to higher produced water volumes from contracted customers. Recovered crude oil revenue rose on higher realized prices and more skim oil barrels sold. Other revenues rose on higher water pipeline revenue from a new contract that began in February 2026, plus higher reimbursements from construction projects and booster operating fees.

Liquids Logistics operating income fell to $3.5 million from $16.3 million. Butane product margin excluding derivatives was $2.8 million, versus $15.0 million. Propane product margin excluding derivatives was a $0.5 million loss, versus a $2.9 million gain. Segment Adjusted EBITDA rose to $14.2 million from $10.3 million. Butane sold was 122.172 million gallons, with a product margin excluding derivatives of $0.116 a gallon, versus $0.074 a gallon.

The company said butane sales and cost of sales excluding derivatives rose on higher prices and volumes. Butane product margins excluding derivatives increased primarily due to a strong gasoline blending market and increased export demands, partially offset by higher rail fuel surcharges. Service sales rose on a new throughput contract at one terminal.

Corporate and Other operating loss widened to $17.6 million from $15.4 million, primarily on equity-based compensation under the 2025 Long-Term Incentive Plan. Total interest expense was $66.8 million.

On October 13, 2026, the partnership exercised $50.0 million of the accordion feature under its asset-based revolving credit facility, raising commitments to $475.0 million. The LEX II expansion, announced in May 2026 to add 165,000 barrels of water per day and lift LEX II capacity to about 560,000 barrels per day, is expected to be in service by the end of calendar year 2026.