TULSA, Okla., November 12, 2024--(BUSINESS WIRE)--NGL Energy Partners LP (NYSE:NGL) ("NGL," "we," "us," "our," or the "Partnership") today reported its second quarter Fiscal 2025 financial results. Highlights include:

Net income for the second quarter of Fiscal 2025 of $3.4 million, compared to net income of $28.3 million for the second quarter of Fiscal 2024 Adjusted EBITDA(1) for the second quarter of Fiscal 2025 of $147.3 million, compared to $176.2 million for the second quarter of Fiscal 2024 On August 5, 2024, we amended the Term Loan B agreement to reduce the SOFR margin from 4.50% to 3.75%.

Highlights for the period subsequent to September 30, 2024:

On November 1, 2024, we commenced operations on our expanded Lea County Express Pipeline system (LEX II). On November 11, 2024, we entered into an agreement to purchase 23,375,000 of our outstanding warrants for approximately $6.9 million. This transaction is expected to close on November 22, 2024.

"We continue to grow our disposed water volumes with the current quarter volumes increasing by approximately 9% over the preceding quarter. As indicated previously, our capital expenditures for the year were front loaded with LEX II so the back half of the fiscal year will generate a majority of our free cash flow. We are on track for the first six months of the fiscal year but are lowering our full year consolidated Adjusted EBITDA(2) guidance to a range of $640 to $650 million, as a result of projected warmer weather, lower crude oil prices and other Liquids Logistics results," stated Mike Krimbill. "We are seeing continued demand for new water disposal capacity, and our conversations with producers to contract additional volumes on Grand Mesa are going well. We continue to work on additional non-core asset sales," he added.

Quarterly Results of Operations

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

Quarter Ended September 30, 2024  September 30, 2023 Operating
Income (Loss)  Adjusted
EBITDA(1)  Operating
Income (Loss)  Adjusted
EBITDA(1) (in thousands) Water Solutions  $ 72,829   $ 128,862   $ 59,118   $ 140,389  Crude Oil Logistics   14,840    17,263    14,778    30,713  Liquids Logistics   (1,133 )   9,235    23,577    17,086  Corporate and Other   (8,807 )   (8,090 )   (11,443 )   (11,974 ) Total  $ 77,729   $ 147,270   $ 86,030   $ 176,214

________________ (1) See the "Non-GAAP Financial Measures" section of this release for the definition of Adjusted EBITDA (as used herein) and a discussion of this non-GAAP financial measure. (2) Certain of the forward-looking financial measures are provided on a non-GAAP basis. A reconciliation of forward-looking financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP is potentially misleading and not practical given the difficulty of projecting event driven transactional and other non-core operating items in any future period. The magnitude of these items, however, may be significant.

Water Solutions

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Operating income for the Water Solutions segment increased by $13.7 million for the quarter ended September 30, 2024, compared to the quarter ended September 30, 2023. The increase was due primarily to lower losses on the disposal or impairment of assets of $2.0 million in the current period compared to $23.6 million in the prior year period. Also contributing to the increase was an increase in net gains from derivatives. These increases were partially offset by lower disposal revenues due to the timing and recognition of payments made by certain producers for committed volumes not delivered and the prior year period including the acceleration of revenue from the termination of a water disposal contract with a minimum volume commitment. Excluding these items, disposal revenues increased due to an increase in produced water volumes processed on our system. The Partnership processed approximately 2.68 million barrels of produced water per day during the quarter ended September 30, 2024, a 9.8% increase when compared to approximately 2.44 million barrels of water per day processed during the quarter ended September 30, 2023.

Revenues from recovered skim oil, including the impact from realized skim oil hedges, totaled $27.4 million for the quarter ended September 30, 2024, a decrease of $3.7 million from the prior year period. The decrease was due primarily to a decrease in skim oil barrels sold as a result of lower skim oil recovered as certain producers recycled their water for use in their operations, lower realized crude oil prices received from the sale of skim oil barrels and the sale during the prior year quarter of approximately 53,000 barrels of skim oil that were stored at June 30, 2023 due to tighter pipeline specifications.

Operating expenses in the Water Solutions segment decreased $0.3 million for the quarter ended September 30, 2024, compared to the quarter ended September 30, 2023 due primarily to lower chemical expense due to purchasing fewer chemicals and using chemicals more efficiently, as well as lower repairs and maintenance expense due to the timing of repairs and tank cleaning. These decreases were partially offset by higher business insurance expense for remediation costs incurred, higher utilities expense due to increased produced water volumes processed and lower severance taxes in the prior year quarter as a result of a severance tax refund received in September 2023 that related to prior periods. Operating expense per produced barrel processed was $0.22 for the quarter ended September 30, 2024, compared to $0.24 in the comparative quarter last year.

Crude Oil Logistics

Operating income for the Crude Oil Logistics segment increased by $0.1 million for the quarter ended September 30, 2024, compared to the quarter ended September 30, 2023. The increase was due to net gains on derivative contracts of $4.4 million in the current period compared to net losses of $15.4 million in the prior year period. This was offset by lower margins due to reduced sales volumes as a result of lower production on acreage dedicated to us in the DJ Basin. In addition, margin per barrel decreased due to the selling higher priced inventory into a market in which prices were declining. During the quarter ended September 30, 2024, physical volumes on the Grand Mesa Pipeline averaged approximately 63,000 barrels per day, compared to approximately 70,000 barrels per day for the quarter ended September 30, 2023.

Liquids Logistics

Operating income for the Liquids Logistics segment decreased by $24.7 million for the quarter ended September 30, 2024, compared to the quarter ended September 30, 2023, primarily due to lower margins. Butane margins declined primarily due to an increase in derivative losses and the prior year period benefiting from a lower of cost or realizable value adjustment. Margins for propane declined due to lower contracted volumes due to reduced retail customer demand as a result of warmer weather, which was offset by an increase in derivative gains. Margins for refined products declined due to lower customer demand and aggressive pricing by some competitors in certain markets. Margins for other products declined primarily due to selling higher priced biodiesel inventory into a market in which prices were declining and lower derivative gains. In addition, a net gain of $6.9 million related to the sale of two propane terminals was realized in the prior year period.

Corporate and Other

The operating loss for Corporate and Other was lower by $2.6 million for the quarter ended September 30, 2024, compared to the quarter ended September 30, 2023. General and administrative expenses decreased due to lower legal expenses as several large cases ended and the reimbursement of legal expenses relating to a dispute associated with commercial activities in prior periods and a decrease in business insurance. The results for the prior period included gains from derivatives of $3.4 million as we had entered into economic hedges to protect our liquidity positions and leverage from a significant increase in commodity prices.

Capitalization and Liquidity

Total liquidity (cash plus available capacity on our asset-based revolving credit facility ("ABL Facility")) was approximately $251.1 million as of September 30, 2024. Borrowings on the Partnership’s ABL Facility totaled approximately $274.0 million as of September 30, 2024, as we funded certain capital projects and began to build inventory for the blending and heating seasons.

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

Second Quarter Conference Call Information

A conference call to discuss NGL’s results of operations is scheduled for 4:00 pm Central Time on Tuesday, November 12, 2024. Analysts, investors, and other interested parties may join the webcast via the event link: https://www.webcaster4.com/Webcast/Page/2808/51470 or by dialing (877) 545-0523 and providing conference code: 395492. 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 51470.

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 income, income 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. In our Crude Oil Logistics segment, we purchase certain crude oil barrels using the West Texas Intermediate ("WTI") calendar month average ("CMA") price and sell the crude oil barrels using the WTI CMA price plus the Argus CMA Differential Roll Component ("CMA Differential Roll") per our contracts. To eliminate the volatility of the CMA Differential Roll, we entered into derivative instrument positions in January 2021 to secure a margin of approximately $0.20 per barrel on 1.5 million barrels per month from May 2021 through December 2023. Due to the nature of these positions, the cash flow and earnings recognized on a GAAP basis differed from period to period depending on the current crude oil price and future estimated crude oil price which were valued utilizing third-party market quoted prices. We recognized in Adjusted EBITDA the gains and losses from the derivative instrument positions entered into in January 2021 to properly align with the physical margin we hedged each month through the term of this transaction. This representation aligns with management’s evaluation of the transaction. The derivative instrument positions we entered into related to the CMA Differential Roll expired as of December 31, 2023, and we have not entered into any new derivative instrument positions related to the CMA Differential Roll.

As previously reported, for purposes of our Adjusted EBITDA calculation, we did not draw a distinction between realized and unrealized gains and losses on derivatives of certain businesses within our Liquids Logistics segment. The primary hedging strategy of these businesses is to hedge against the risk of declines in the value of inventory over the course of the contract cycle, and many of the hedges cover extended periods of time. The "inventory valuation adjustment" row in the reconciliation table reflects the difference between the market value of the inventory of these businesses at the balance sheet date and its cost. We include this in Adjusted EBITDA because the unrealized gains and losses for derivative contracts associated with the inventory of this segment, which are intended primarily to hedge inventory holding risk and are included in net income, also affect Adjusted EBITDA. Beginning April 1, 2024, and going forward, we will now be drawing a distinction between realized and unrealized gains and losses on derivatives and will no longer include the activity on the "inventory valuation adjustment" row in the reconciliation table for these certain businesses within our Liquids Logistics segment. This change aligns with how management now views and evaluates the transactions within these businesses and is also consistent with the calculation of Adjusted EBITDA used in our other businesses. If this change was made as of April 1, 2023, Adjusted EBITDA for the three months and six months ended September 30, 2023 would have been $175.8 million and $311.8 million, respectively.

Distributable Cash Flow is defined as Adjusted EBITDA minus maintenance capital expenditures, income tax expense, cash interest expense, preferred unit distributions paid and other. Maintenance capital expenditures represent capital expenditures necessary to maintain the Partnership’s operating capacity. For the CMA Differential Roll transaction, as discussed above, we have included an adjustment to Distributable Cash Flow to reflect, in the period for which they relate, the actual cash flows for the positions that settled that are not being recognized in Adjusted EBITDA. 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, is a diversified midstream energy partnership that transports, treats, recycles and disposes of produced and flowback water generated as part of the energy production process as well as transports, stores, markets and provides other logistics services for crude oil and liquid hydrocarbons.

For further information, visit the Partnership’s website at www.nglenergypartners.com.

NGL ENERGY PARTNERS LP AND SUBSIDIARIES Unaudited Condensed Consolidated Balance Sheets (in Thousands, except unit amounts)  September 30, 2024  March 31, 2024 ASSETS  CURRENT ASSETS:  Cash and cash equivalents $ 4,495   $ 38,909  Accounts receivable-trade, net of allowance for expected credit losses of $2,932 and $1,671, respectively  727,520    814,087  Accounts receivable-affiliates  1,569    1,501  Inventories  193,886    130,907  Prepaid expenses and other current assets  75,990    126,933  Assets held for sale  —    66,597  Total current assets  1,003,460    1,178,934  PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of $1,098,141 and $1,011,274, respectively  2,165,779    2,096,702  GOODWILL  634,282    634,282  INTANGIBLE ASSETS, net of accumulated amortization of $343,925 and $332,560, respectively  915,869    939,978  INVESTMENTS IN UNCONSOLIDATED ENTITIES  20,137    20,305  OPERATING LEASE RIGHT-OF-USE ASSETS  97,756    97,155  OTHER NONCURRENT ASSETS  52,896    52,738  Total assets $ 4,890,179   $ 5,020,094  LIABILITIES AND EQUITY  CURRENT LIABILITIES:  Accounts payable-trade $ 594,547   $ 707,536  Accounts payable-affiliates  72    37  Accrued expenses and other payables  173,683    213,757  Advance payments received from customers  25,158    17,313  Current maturities of long-term debt  7,865    7,000  Operating lease obligations  27,660    31,090  Liabilities held for sale  —    614  Total current liabilities  828,985    977,347  LONG-TERM DEBT, net of debt issuance costs of $46,997 and $49,178, respectively, and current maturities  3,121,794    2,843,822  OPERATING LEASE OBLIGATIONS  74,118    70,573  OTHER NONCURRENT LIABILITIES  128,671    129,185   CLASS D 9.00% PREFERRED UNITS, 600,000 and 600,000 preferred units issued and outstanding, respectively  551,097    551,097  REDEEMABLE NONCONTROLLING INTEREST  179    —   EQUITY:  General partner, representing a 0.1% interest, 132,145 and 132,645 notional units, respectively  (52,881 )   (52,834 ) Limited partners, representing a 99.9% interest, 132,012,766 and 132,512,766 common units issued and outstanding, respectively  (131,712 )   134,807  Class B preferred limited partners, 12,585,642 and 12,585,642 preferred units issued and outstanding, respectively  305,468    305,468  Class C preferred limited partners, 1,800,000 and 1,800,000 preferred units issued and outstanding, respectively  42,891    42,891  Accumulated other comprehensive loss  (99 )   (499 ) Noncontrolling interests  21,668    18,237  Total equity  185,335    448,070  Total liabilities and equity $ 4,890,179   $ 5,020,094

NGL ENERGY PARTNERS LP AND SUBSIDIARIES Unaudited Condensed Consolidated Statements of Operations (in Thousands, except unit and per unit amounts)  Three Months Ended September 30,  Six Months Ended September 30, 2024  2023  2024  2023 REVENUES:  Water Solutions  $ 181,867   $ 197,244   $ 363,277   $ 378,546  Crude Oil Logistics   243,757    489,713    523,860    954,103  Liquids Logistics   926,977    1,154,139    1,852,723    2,124,551  Corporate and Other   74    —    74    —  Total Revenues   1,352,675    1,841,096    2,739,934    3,457,200  COST OF SALES:  Water Solutions   (567 )   7,424    433    9,993  Crude Oil Logistics   212,148    454,927    461,645    880,226  Liquids Logistics   909,614    1,119,478    1,832,325    2,066,725  Corporate and Other   —    (3,381 )   —    833  Total Cost of Sales   1,121,195    1,578,448    2,294,403    2,957,777  OPERATING COSTS AND EXPENSES:  Operating   78,132    77,389    150,665    154,070  General and administrative   12,179    17,496    27,193    37,787  Depreciation and amortization   61,931    65,526    124,150    134,505  Loss (gain) on disposal or impairment of assets, net   1,509    16,207    (9,157 )   15,011  Operating Income   77,729    86,030    152,680    158,050  OTHER INCOME (EXPENSE):  Equity in earnings of unconsolidated entities   1,522    851    1,822    942  Interest expense   (77,404 )   (58,627 )   (147,143 )   (118,149 ) Gain on early extinguishment of liabilities, net   —    63    —    6,871  Other income, net   1,822    310    1,989    616  Income Before Income Taxes   3,669    28,627    9,348    48,330  INCOME TAX (EXPENSE) BENEFIT   (278 )   (342 )   4,518    (482 ) Net Income   3,391    28,285    13,866    47,848  LESS: NET INCOME ATTRIBUTABLE TO NONREDEEMABLE NONCONTROLLING INTERESTS   (932 )   (257 )   (1,724 )   (519 ) LESS: NET INCOME ATTRIBUTABLE TO REDEEMABLE NONCONTROLLING INTERESTS   (5 )   —    (5 )   —  NET INCOME ATTRIBUTABLE TO NGL ENERGY PARTNERS LP  $ 2,454   $ 28,028   $ 12,137   $ 47,329  NET LOSS ALLOCATED TO COMMON UNITHOLDERS  $ (28,270 )  $ (6,709 )  $ (47,382 )  $ (21,191 ) BASIC AND DILUTED LOSS PER COMMON UNIT  $ (0.21 )  $ (0.05 )  $ (0.36 )  $ (0.16 ) BASIC AND DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING   132,274,669    131,927,343    132,393,067    131,927,343

EBITDA, ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW RECONCILIATION (Unaudited)  The following table reconciles NGL’s net income to NGL’s EBITDA, Adjusted EBITDA and Distributable Cash Flow for the periods indicated:  Three Months Ended September 30,  Six Months Ended September 30, 2024  2023  2024  2023 (in thousands) Net income  $ 3,391   $ 28,285   $ 13,866   $ 47,848  Less: Net income attributable to nonredeemable noncontrolling interests   (932 )   (257 )   (1,724 )   (519 ) Less: Net income attributable to redeemable noncontrolling interests   (5 )   —    (5 )   —  Net income attributable to NGL Energy Partners LP   2,454    28,028    12,137    47,329  Interest expense   77,391    58,642    147,129    118,178  Income tax expense (benefit)   278    342    (4,518 )   482  Depreciation and amortization   61,546    65,502    123,395    134,423  EBITDA   141,669    152,514    278,143    300,412  Net unrealized losses on derivatives   5,632    9,691    23,588    9,059  Lower of cost or net realizable value adjustments   (901 )   1,080    (1,231 )   3,844  Loss (gain) on disposal or impairment of assets, net   1,515    16,207    (9,151 )   15,011  CMA Differential Roll net losses (gains) (1)   —    2,233    —    (6,904 ) Inventory valuation adjustment (2)   —    (6,436 )   —    (6,100 ) Gain on early extinguishment of liabilities, net   —    (63 )   —    (6,871 ) Equity-based compensation expense   —    410    —    884  Other (3)   (645 )   578    263    1,534  Adjusted EBITDA  $ 147,270   $ 176,214   $ 291,612   $ 310,869  Less: Cash interest expense (4)   68,491    54,483    135,709    109,894  Less: Income tax expense (benefit)   278    342    (4,518 )   482  Less: Maintenance capital expenditures   16,572    16,358    39,376    32,885  Less: CMA Differential Roll (5)   —    (7,352 )   —    (18,047 ) Less: Preferred unit distributions paid   27,513    —    245,604    —  Less: Other (6)   —    4    65    222  Distributable Cash Flow  $ 34,416   $ 112,379   $ (124,624 )  $ 185,433

_______________ (1) Adjustment to align, within Adjusted EBITDA, the net gains and losses of the Partnership’s CMA Differential Roll derivative instruments positions with the physical margin being hedged. See "Non-GAAP Financial Measures" section above for a further discussion. (2) Amount represents the difference between the market value of the inventory at the balance sheet date and its cost. See "Non-GAAP Financial Measures" section above for a further discussion. (3) Amounts represent accretion expense for asset retirement obligations and expenses incurred related to legal and advisory costs associated with acquisitions and dispositions. Also, amounts for the three months and six months ended September 30, 2023 included unrealized gains/losses on marketable securities. (4) Amounts represent interest expense payable in cash, excluding changes in the accrued interest balance. (5) Amounts represent the cash portion of the adjustments of the Partnership’s CMA Differential Roll derivative instrument positions, as discussed above, that settled during the period. (6) Amounts represent cash paid to settle asset retirement obligations.

ADJUSTED EBITDA RECONCILIATION BY SEGMENT (unaudited)  Three Months Ended September 30, 2024 Water Solutions  Crude Oil Logistics  Liquids Logistics  Corporate and Other  Consolidated (in thousands) Operating income (loss) $ 72,829   $ 14,840   $ (1,133 )  $ (8,807 )  $ 77,729  Depreciation and amortization  52,523    6,285    2,421    702    61,931  Amortization recorded to cost of sales  —    —    102    —    102  Net unrealized losses (gains) on derivatives  388    (4,012 )   9,256    —    5,632  Lower of cost or net realizable value adjustments  —    540    (1,441 )   —    (901 ) Loss (gain) on disposal or impairment of assets, net  1,951    (442 )   —    —    1,509  Other income (expense), net  1,805    (1 )   (12 )   30    1,822  Adjusted EBITDA attributable to unconsolidated entities  1,649    —    (19 )   —    1,630  Adjusted EBITDA attributable to noncontrolling interest  (1,522 )   —    —    (34 )   (1,556 ) Other  (761 )   53    61    19    (628 ) Adjusted EBITDA $ 128,862   $ 17,263   $ 9,235   $ (8,090 )  $ 147,270

Three Months Ended September 30, 2023 Water Solutions  Crude Oil Logistics  Liquids Logistics  Corporate and Other  Consolidated (in thousands) Operating income (loss) $ 59,118   $ 14,778   $ 23,577   $ (11,443 )  $ 86,030  Depreciation and amortization  52,053    9,573    2,383    1,517    65,526  Amortization recorded to cost of sales  —    —    65    —    65  Net unrealized losses (gains) on derivatives  4,471    4,554    3,230    (2,564 )   9,691  CMA Differential Roll net losses (gains)  —    2,233    —    —    2,233  Inventory valuation adjustment  —    —    (6,436 )   —    (6,436 ) Lower of cost or net realizable value adjustments  —    —    1,080    —    1,080  Loss (gain) on disposal or impairment of assets, net  23,599    (467 )   (6,925 )   —    16,207  Equity-based compensation expense  —    —    —    410    410  Other income (expense), net  248    (1 )   14    49    310  Adjusted EBITDA attributable to unconsolidated entities  1,032    —    (21 )   51    1,062  Adjusted EBITDA attributable to noncontrolling interest  (542 )   —    —    —    (542 ) Other  410    43    119    6    578  Adjusted EBITDA $ 140,389   $ 30,713   $ 17,086   $ (11,974 )  $ 176,214

Six Months Ended September 30, 2024 Water Solutions  Crude Oil Logistics  Liquids Logistics  Corporate and Other  Consolidated (in thousands) Operating income (loss) $ 157,187   $ 28,929   $ (12,683 )  $ (20,753 )  $ 152,680  Depreciation and amortization  105,235    12,726    4,832    1,357    124,150  Amortization recorded to cost of sales  —    —    167    —    167  Net unrealized (gains) losses on derivatives  (473 )   (5,992 )   30,053    —    23,588  Lower of cost or net realizable value adjustments  —    540    (1,771 )   —    (1,231 ) Gain on disposal or impairment of assets, net  (8,745 )   (412 )   —    —    (9,157 ) Other income, net  1,911    1    10    67    1,989  Adjusted EBITDA attributable to unconsolidated entities  2,036    —    (35 )   —    2,001  Adjusted EBITDA attributable to noncontrolling interest  (2,836 )   —    —    (34 )   (2,870 ) Other  150    106    120    (81 )   295  Adjusted EBITDA $ 254,465   $ 35,898   $ 20,693   $ (19,444 )  $ 291,612

Six Months Ended September 30, 2023 Water Solutions  Crude Oil Logistics  Liquids Logistics  Corporate and Other  Consolidated (in thousands) Operating income (loss) $ 128,449   $ 31,785   $ 31,408   $ (33,592 )  $ 158,050  Depreciation and amortization  106,476    19,319    5,597    3,113    134,505  Amortization recorded to cost of sales  —    —    130    —    130  Net unrealized losses (gains) on derivatives  4,471    9,689    (5,489 )   388    9,059  CMA Differential Roll net losses (gains)  —    (6,904 )   —    —    (6,904 ) Inventory valuation adjustment  —    —    (6,100 )   —    (6,100 ) Lower of cost or net realizable value adjustments  —    —    3,844    —    3,844  Loss (gain) on disposal or impairment of assets, net  22,318    429    (7,736 )   —    15,011  Equity-based compensation expense  —    —    —    884    884  Other income, net  428    105    15    68    616  Adjusted EBITDA attributable to unconsolidated entities  1,259    —    (26 )   95    1,328  Adjusted EBITDA attributable to noncontrolling interest  (1,088 )   —    —    —    (1,088 ) Other  1,270    81    192    (9 )   1,534  Adjusted EBITDA $ 263,583   $ 54,504   $ 21,835   $ (29,053 )  $ 310,869

OPERATIONAL DATA (Unaudited)  Three Months Ended  Six Months Ended September 30,  September 30, 2024  2023  2024  2023 (in thousands, except per day amounts) Water Solutions:  Produced water processed (barrels per day)  Delaware Basin 2,349,333  2,156,733  2,255,861  2,154,906 Eagle Ford Basin 188,250  138,509  182,311  135,737 DJ Basin 143,947  146,124  135,867  157,745 Other Basins —  —  —  1,481 Total 2,681,530  2,441,366  2,574,039  2,449,869 Recycled water (barrels per day) 92,301  35,341  98,334  67,213 Total (barrels per day) 2,773,831  2,476,707  2,672,373  2,517,082 Skim oil sold (barrels per day) 3,776  4,378  4,099  4,046  Crude Oil Logistics:  Crude oil sold (barrels) 2,868  5,636  6,042  11,643 Crude oil transported on owned pipelines (barrels) 5,807  6,484  11,520  13,047 Crude oil storage capacity - owned and leased (barrels) (1)     5,232  5,232 Crude oil inventory (barrels) (1)     450  660  Liquids Logistics:  Refined products sold (gallons) 206,915  209,919  406,864  430,006 Propane sold (gallons) 108,589  129,988  221,093  269,741 Butane sold (gallons) 109,783  108,085  204,972  186,574 Other products sold (gallons) 121,317  100,389  208,124  191,488 Natural gas liquids and refined products storage capacity - owned and leased (gallons) (1)     124,141  157,589 Refined products inventory (gallons) (1)     1,404  707 Propane inventory (gallons) (1)     80,323  115,491 Butane inventory (gallons) (1)     81,441  92,651 Other products inventory (gallons) (1)     12,813  18,012

_______________ (1) Information is presented as of September 30, 2024 and September 30, 2023, respectively.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241112929360/en/

Contacts

David Sullivan, 918-495-4631
Vice President - Finance
[email protected]

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