NGL Energy Partners LP Announces Fourth Quarter and Full Year Fiscal 2026 Financial Results; Guidance for Fiscal 2027

NGL Energy Partners LP (NYSE:NGL) ("NGL," "we," "us," "our," or the "Partnership") today reported its fourth quarter and full year fiscal 2026 results.

Highlights for the fiscal year and quarter ended March 31, 2026 include:

• Loss from continuing operations for full year Fiscal 2026 of $178.5 million, compared to income from continuing operations of $65.0 million for full year Fiscal 2025; loss from continuing operations for the fourth quarter of Fiscal 2026 of $286.8 million including a loss from the impairment of goodwill, compared to income from continuing operations of $16.2 million for the fourth quarter of Fiscal 2025
• Adjusted EBITDA from continuing operations⁽¹⁾ for full year Fiscal 2026 of $660.2 million, compared to $622.9 million for full year Fiscal 2025; Adjusted EBITDA from continuing operations⁽¹⁾ for the fourth quarter of Fiscal 2026 of $176.4 million, compared to $176.8 million for the fourth quarter of Fiscal 2025

Water Solutions:

• Record produced water volumes physically disposed of approximately 3.01 million barrels per day during the fourth quarter of Fiscal 2026, growing 10.0% from the fourth quarter of Fiscal 2025 and 2.91 million barrels per day for the entire year of Fiscal 2026, an 11.0% increase over the prior year
• Paid and physically disposed water volumes of 3.09 million barrels per day during the fourth quarter of Fiscal 2026, growing 3.4% from the paid and physically disposed water volumes during the fourth quarter of Fiscal 2025
• Record Water Solutions' Adjusted EBITDA⁽¹⁾ of $602.7 million for full year Fiscal 2026, an 11.2% increase over the prior year

Debt Transactions:

• On March 12, 2026, we closed a debt refinancing transaction of $950.0 million consisting of a new seven-year Term Loan B. The net proceeds from this transaction were used to fund the redemption of the existing Term Loan B, the redemption of a portion of the Class D Preferred Units and the repayment of borrowings under the asset-based revolving credit facility ("ABL Facility").
• On March 12, 2026, we amended the ABL Facility to (i) reduce our total commitments to $425.0 million, (ii) reduce our sub-limit for letters of credit to $100.0 million, (iii) reduce the applicable margin for alternate base rate loans to a range of 1.00% to 1.50% and (iv) reduce the applicable margin for secured overnight financing rate to a range of 2.00% to 2.50%.

Equity Transactions:

• We repurchased an additional 196,005 Class D preferred units in the quarter for a total of 284,511 Class D preferred units repurchased, or approximately 47%, of the originally outstanding Class D preferred units.
• Under the Board authorized common unit repurchase program, we have repurchased an additional 297,126 common units in the quarter for a total of 8,698,477 common units under the repurchase program at an average price of $5.72.
• On April 8, 2026, the board of directors of our general partner authorized another common unit repurchase program, under which we may repurchase up to $100.0 million of our outstanding common units from time to time in the open market or in other privately negotiated transactions. This program does not have a fixed expiration date.

"The Partnership ended Fiscal 2026, with Adjusted EBITDA⁽¹⁾ of $660.2 million, at the high end of our previous guidance of $650 - $660 million. Fiscal 2027 is off to a solid start and we have more opportunities to continue growing our water business as well as addressing our capital structure and strengthening our balance sheet," stated Mike Krimbill, NGL's CEO. "We are guiding Fiscal 2027 full year consolidated Adjusted EBITDA⁽²⁾ to a range of $715 - $725 million, the high end of which is a 10% increase above our Fiscal 2026 predominantly driven by the strong momentum we have in our Water Solutions segment. Also we are guiding to $45 million in maintenance and $200 million of growth capital expenditures for Fiscal 2027," Krimbill concluded.

Quarterly Results of Operations

The following table summarizes operating income (loss) and Adjusted EBITDA from continuing operations⁽¹⁾ by reportable segment for the periods indicated:

Water Solutions

Operating income for the Water Solutions segment decreased by $29.0 million for the quarter ended March 31, 2026, compared to the quarter ended March 31, 2025. The decrease was due primarily to higher net unrealized losses on skim oil hedges of $26.3 million, compared to the prior year period, due to a significant increase in crude oil prices in March 2026 resulting from the supply disruption caused by the U.S./Iran conflict. There were higher disposal revenues due to an increase in produced water volumes processed from contracted customers and increased water pipeline revenue due to the LEX II pipeline commencing operations. The Partnership processed approximately 3.01 million barrels of water per day during the quarter ended March 31, 2026, a 10.0% increase when compared to approximately 2.73 million barrels of water per day processed during the quarter ended March 31, 2025.

Revenues from recovered skim oil, including the impact from realized skim oil hedges, totaled $35.8 million for the quarter ended March 31, 2026, a decrease of $0.9 million from the prior year period. The decrease was due primarily to higher net realized losses on skim oil hedges due to a significant increase in crude oil prices, as discussed above, partially offset by an increase in skim oil barrels sold due to more skim oil recovered from receiving more produced water and higher realized crude oil prices received from the sale of skim oil barrels.

Operating expenses in the Water Solutions segment increased $3.0 million for the quarter ended March 31, 2026, compared to the quarter ended March 31, 2025 due primarily to higher royalty expense due to volumes related to the LEX II pipeline commencing operations and increased volumes at certain other saltwater disposal wells and higher utilities expense due to increased produced water volumes processed, partially offset by lower chemical expense due to purchasing fewer chemicals and using chemicals more efficiently. Operating expense per produced barrel processed was $0.22 for the quarter ended March 31, 2026, compared to $0.23 in the comparative quarter last year.

There was also a loss on the disposal or impairment of assets of $5.1 million for the quarter ended March 31, 2026, compared to a loss on the disposal or impairment of assets of $8.0 million in the prior year period.

Crude Oil Logistics

Operating income for the Crude Oil Logistics segment decreased by $254.6 million for the quarter ended March 31, 2026, compared to the quarter ended March 31, 2025. Operating loss for the fourth quarter of Fiscal 2026 includes a goodwill impairment charge of $247.8 million, compared to a gain of $0.6 million in the same period of the prior year. We also recognized a net loss on derivatives of $17.0 million compared to a net loss on derivatives of $0.4 million in the prior year period. The derivative losses were due to increasing crude oil prices, as discussed in the Water Solutions section above. Crude oil transportation revenue also decreased primarily due to the expiration of certain transportation services contracts on third-party pipelines. These decreases were partially offset by an increase in sales volumes and an increase in the margin per barrel due to selling lower-priced inventory into a rising market. During the quarter ended March 31, 2026, physical volumes on the Grand Mesa Pipeline averaged approximately 78,000 barrels per day, compared to approximately 56,000 barrels per day for the quarter ended March 31, 2025 due to higher production on acreage dedicated to us in the DJ Basin.

Liquids Logistics

Operating income for the Liquids Logistics segment increased by $9.9 million for the quarter ended March 31, 2026, compared to the quarter ended March 31, 2025. Impairment losses were lower by approximately $23.2 million during the quarter ended March 31, 2026, compared to the same period in the prior year. Other expenses were lower by $2.7 million due to the sale of the majority of our wholesale propane business. These amounts were partially offset by an increase in unrealized losses on butane derivatives for the quarter ended March 31, 2026 of $17.0 million, which was driven by the increase in commodity prices resulting from the crude oil supply disruption, as discussed in the sections above.

Capitalization and Liquidity

Total liquidity (cash plus available capacity on our ABL Facility) was approximately $237.9 million as of March 31, 2026. Borrowings under the Partnership's ABL Facility totaled approximately $135.0 million as of March 31, 2026, due to an increase in capital spending within our Water Solutions segment and higher commodity prices due to the U.S./Iran conflict.

The Partnership is in compliance with all of its debt covenants and has no upcoming debt maturities.

Fourth Quarter Conference Call Information

A conference call to discuss NGL's results of operations is scheduled for 4:00 pm Central Time on Thursday, May 28, 2026. Analysts, investors, and other interested parties may join the webcast via the event link: https://www.webcaster5.com/Webcast/Page/2808/54031 or by dialing (888) 506-0062 and providing conference code: 941890. An archived audio replay of the call will be available for 14 days, which can be accessed by dialing (877) 481-4010 and providing replay passcode 54031.

NGL filed its Annual Report on Form 10-K for the year ended March 31, 2026 with the Securities and Exchange Commission after market on May 28, 2026. A copy of the Form 10-K can be found on the Partnership's website at www.nglenergypartners.com. Unitholders may also request, free of charge, a hard copy of our Form 10-K and our complete audited financial statements.

Non-GAAP Financial Measures

We define EBITDA as net income (loss) attributable to NGL Energy Partners LP, plus interest expense, income tax expense (benefit), and depreciation and amortization expense. We define Adjusted EBITDA as EBITDA excluding net unrealized gains and losses on derivatives, lower of cost or net realizable value adjustments, gains and losses on disposal or impairment of assets, gains and losses on early extinguishment of liabilities, equity-based compensation expense, revaluation of liabilities and other. EBITDA and Adjusted EBITDA should not be considered as alternatives to net (loss) income, (loss) income from continuing operations before income taxes, cash flows from operating activities, or any other measure of financial performance calculated in accordance with GAAP, as those items are used to measure operating performance, liquidity or the ability to service debt obligations. We believe that EBITDA provides additional information to investors for evaluating our ability to make quarterly distributions to our unitholders and is presented solely as a supplemental measure. We believe that Adjusted EBITDA provides additional information to investors for evaluating our financial performance without regard to our financing methods, capital structure and historical cost basis. Further, EBITDA and Adjusted EBITDA, as we define them, may not be comparable to EBITDA, Adjusted EBITDA, or similarly titled measures used by other entities.

For purposes of our Adjusted EBITDA calculation, we make a distinction between realized and unrealized gains and losses on derivatives. During the period when a derivative contract is open, we record changes in the fair value of the derivative as an unrealized gain or loss. When a derivative contract matures or is settled, we reverse the previously recorded unrealized gain or loss and record a realized gain or loss.

Distributable Cash Flow is defined as Adjusted EBITDA minus maintenance capital expenditures, income tax expense, cash interest expense, preferred unit distributions and other. Maintenance capital expenditures represent capital expenditures necessary to maintain the Partnership's operating capacity. Distributable Cash Flow is a performance metric used by senior management to compare cash flows generated by the Partnership (excluding growth capital expenditures and prior to the establishment of any retained cash reserves by the board of directors of our general partner) to the cash distributions expected to be paid to unitholders. Using this metric, management can quickly compute the coverage ratio of estimated cash flows to planned cash distributions. This financial measure also is important to investors as an indicator of whether the Partnership is generating cash flow at a level that can sustain, or support an increase in, quarterly distribution rates. Actual distribution amounts are set by the board of directors of our general partner.

We do not provide a reconciliation for non-GAAP estimates on a forward-looking basis where we are unable to provide a meaningful calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or amount of various items that would impact the most directly comparable forward-looking U.S. GAAP financial measure that have not yet occurred, are out of the Partnership's control and/or cannot be reasonably predicted. Forward-looking non-GAAP financial measures provided without the most directly comparable U.S. GAAP financial measures may vary materially from the corresponding U.S. GAAP financial measures.

Forward-Looking Statements

This press release includes "forward-looking statements." All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Actual results could vary significantly from those expressed or implied in such statements and are subject to a number of risks and uncertainties. While NGL believes such forward-looking statements are reasonable, NGL cannot assure they will prove to be correct. The forward-looking statements involve risks and uncertainties that affect operations, financial performance, and other factors as discussed in filings with the Securities and Exchange Commission. Other factors that could impact any forward-looking statements are those risks described in NGL's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other public filings. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, specifically those under the heading "Risk Factors." NGL undertakes no obligation to publicly update or revise any forward-looking statements except as required by law.

NGL provides Adjusted EBITDA guidance that does not include certain charges and costs, which in future periods are generally expected to be similar to the kinds of charges and costs excluded from Adjusted EBITDA in prior periods, such as income taxes, interest and other non-operating items, depreciation and amortization, net unrealized gains and losses on derivatives, lower of cost or net realizable value adjustments, gains and losses on disposal or impairment of assets, gains and losses on early extinguishment of liabilities, equity-based compensation expense, acquisition expense, revaluation of liabilities and items that are unusual in nature or infrequently occurring. The exclusion of these charges and costs in future periods will have a significant impact on the Partnership's Adjusted EBITDA, and the Partnership is not able to provide a reconciliation of its Adjusted EBITDA guidance to net income (loss) without unreasonable efforts due to the uncertainty and variability of the nature and amount of these future charges and costs and the Partnership believes that such reconciliation, if possible, would imply a degree of precision that would be potentially confusing or misleading to investors.

About NGL Energy Partners LP

NGL Energy Partners LP, a Delaware master limited partnership, operates the largest integrated produced water pipeline, disposal, and water handling network in the Delaware Basin, supported by long-term, fee-based producer contracts and continues to enhance its ability to transport produced water from the wellhead to treatment for disposal, recycle, or discharge through our expanding pipeline infrastructure and ongoing disposal capacity investments. While maintaining complementary crude oil and natural gas liquids logistics operations, capital allocation and strategic focus are centered on providing water solutions services, which will reduce earnings volatility and enhance cash flow stability. For further information, visit the Partnership's website at www.nglenergypartners.com.

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David Sullivan, 918-495-4631

Vice President - Finance

David.Sullivan@nglep.com