Midstream energy company NGL Energy Partners LP saw its net income for the third quarter plummet year on year from $45.8 million in fiscal year 2024 to $14.6 million in fiscal year 2025.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the third quarter of fiscal 2025 totaled $147.7 million, compared to $151.7 million for the third quarter of fiscal 2024, it said in a media release.
In the third quarter of fiscal 2025, Prairie Operating signed a long-term acreage dedication contract for current and future production growth capacity on the Grand Mesa pipeline.
“We are very excited about our new customers on Grand Mesa and believe we have a much brighter future in the DJ Basin”, Mike Krimbill, NGL Energy Partners CEO, said.
“We have also been looking to reduce the volatility in our results by divesting certain assets in the Liquids Logistics segment and are meeting with some success.
“We continue to grow the Water Solutions business, focusing on minimum volume commitments and acreage dedications”.
NGL Energy Partners said that Water Solutions’ operating income slipped by $8.9 million for the quarter under review due to higher losses from asset disposals or impairments. “This decrease was partially offset by a gain of $3.0 million due to the write-off of a contingent consideration liability and higher disposal revenues due to an increase in produced water volumes processed from contracted customers and higher fees charged for interruptible spot volumes”, the company said.
Pipeline revenue rose due to the LEX II pipeline commencing operations during the current quarter, NGL Energy Partners said. The partnership processed approximately 2.62 million barrels of produced water per day during the quarter ended December 31, 2024, a 10.4 percent increase compared to approximately 2.38 million barrels of water per day processed during the quarter ended December 31, 2023, it said.
Operating income for the Crude Oil Logistics segment decreased by $7.0 million for the quarter under review versus the corresponding month in 2023. The company blamed the decrease on reduced sales volumes as a result of lower production on acreage in the DJ Basin, lower crude oil prices, and an increase in derivative losses.
Operating income for the Liquids Logistics segment decreased by $10.8 million, compared to the corresponding quarter a year prior. This was primarily due to lower propane and refined products margins, excluding the impact of derivatives, and an increase in derivative losses for all products, NGL Energy Partners said.
Source: By Paul Anderson from Rigzone.com