Overview

• US water solutions provider's fiscal Q4 revenue declined slightly year-over-year

• Company posted a large net loss for Q4 due to a goodwill impairment in Crude Oil Logistics

• Board authorized a new $100 mln common unit repurchase program

Outlook

• NGL Energy Partners guides fiscal 2027 full-year Adjusted EBITDA to $715-$725 mln

• Company expects $45 mln in maintenance and $200 mln in growth capital expenditures for fiscal 2027

• Company says strong momentum in Water Solutions segment expected to drive fiscal 2027 results

Result Drivers

• DERIVATIVE AND IMPAIRMENT LOSSES - Higher net unrealized losses on skim oil hedges and a $247.8 mln goodwill impairment in Crude Oil Logistics segment weighed on results

• CONTRACT EXPIRATION IMPACT - Crude oil transportation revenue decreased due to expiration of certain transportation services contracts on third-party pipelines

• WATER VOLUMES - Record produced water volumes processed in Water Solutions segment, up 10% year-over-year, supported by new pipeline activity

Company press release: ID:nBw1Hn4cva

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Revenue		$949.50 mln
Q4 Net Loss		286.81
Q4 EPS		-$3.44

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil & gas refining and marketing peer group is "buy"

• Wall Street's median 12-month price target for NGL Energy Partners LP is $21.00, about 25.1% above its May 27 closing price of $16.78

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 14 three months ago

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