NGL Energy Partners LP announced a $100 million common unit repurchase program, a move designed to return capital to investors and reduce potential dilution of existing units.
The buyback follows a series of capital‑structure repairs that included the redemption of preferred units and the refinancing of debt. The company closed a $950 million senior secured term loan facility and amended its asset‑based revolving credit facility, actions that are expected to save roughly $15 million in annual debt service costs, while eliminating preferred dividend arrearages.
Water solutions remain the company’s growth engine. Record water disposal volumes in the Permian Basin have driven a strong performance in that segment, and the company has reaffirmed its full‑year fiscal 2026 Adjusted EBITDA guidance while projecting fiscal 2027 Adjusted EBITDA to exceed $700 million.
The $100 million program is part of a broader strategy to strengthen the balance sheet and enhance shareholder value. NGL previously authorized a $50 million common unit repurchase program in June 2024, of which $20.1 million had been repurchased by June 30 2025; the new program expands that commitment.
CEO Mike Krimbill said the company posted another strong quarter driven by the Water Solutions segment and reaffirmed its full‑year guidance, underscoring management’s confidence in the company’s cash‑flow generation and its ability to fund future capital‑allocation initiatives.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.