NGL Energy Partners Q1 FY2027: Income from Continuing Operations Surges to $80M, Water Solutions Drives Beat
NGL has more than doubled off its 52-week low of $3.945.
Summary
NGL Energy Partners reported a strong Q1 FY2027, with income from continuing operations of $80.0 million, up from $30.3 million a year ago, driven by record water disposal volumes and higher commodity prices. The partnership is investing heavily in growth, but faces a new lawsuit alleging environmental damage from its operations.
Key Events · Earnings and Guidance · NGL
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Earnings Surge
Income from continuing operations reached $80.0 million in Q1 FY2027, up from $30.3 million in Q1 FY2026. Water Solutions Adjusted EBITDA rose 26% to $179.9 million on higher produced water volumes and recovered crude oil sales.
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Revenue Growth
Total revenues increased 59% to $990.0 million, driven by higher crude oil and NGL prices and a 20% increase in produced water volumes processed in the Delaware Basin.
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Capital Expansion
Capital expenditures surged to $108.8 million from $22.1 million, primarily for the LEX II pipeline expansion, which will add 165,000 barrels per day of water disposal capacity and is expected in service by end of calendar 2026.
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New Lawsuit Filed
Titus Oil & Gas filed a lawsuit on July 29, 2026, alleging that NGL's saltwater disposal operations flooded its mineral estate, seeking unspecified damages and injunctive relief. NGL denies the allegations and intends to defend vigorously.
Analysis · NGL · Energy & Transportation
A standout fiscal first quarter saw income from continuing operations leap to $80.0 million from $30.3 million a year ago, underscoring the partnership's operational momentum. The Water Solutions segment led the charge, with produced water volumes processed in the Delaware Basin climbing 23% and Adjusted EBITDA for the segment rising 26%. Total revenues expanded 59% to $990 million, buoyed by higher crude oil and NGL prices. Growth investments are accelerating—capital expenditures quintupled to $108.8 million, largely directed at the LEX II pipeline expansion, which will add 165,000 barrels per day of water disposal capacity by year-end. On the risk front, a new lawsuit from Titus Oil & Gas alleges that NGL's saltwater disposal operations flooded the plaintiff's mineral estate, seeking unspecified damages and injunctive relief; the company denies the allegations and intends to defend vigorously. The balance sheet remains highly leveraged with $3.3 billion in long-term debt, yet the partnership was in compliance with all covenants and generated $77 million in operating cash flow from continuing operations. A $100 million common unit repurchase program was authorized in April, though no units have been bought back yet.
At the time of this filing, NGL was trading at $17.33 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $2B. The 52-week trading range was $3.95 to $18.80. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.