NGL Energy Partners LP reported its third‑quarter fiscal 2026 results, posting revenue of $909.82 million—$213 million above the consensus estimate of $700.8 million—and an adjusted EBITDA of $172.5 million. The company earned earnings per share of $0.10, falling $0.06 short of the $0.16 consensus. Adjusted EBITDA rose 9.5% from $158.0 million in the same quarter a year earlier, driven largely by the Water Solutions segment.
Revenue growth was largely powered by the Water Solutions business, which recorded an adjusted EBITDA of $154.5 million—$21.8 million higher than the $132.7 million reported in Q3 2025. The segment’s performance was underpinned by record water disposal volumes and the operational start‑up of the LEX II pipeline, which expanded the company’s capacity to serve the Permian Basin’s growing water‑management needs.
The EPS miss can be traced to higher operating expenses and margin compression in the Liquids Logistics and Crude Oil Logistics segments. Liquids Logistics adjusted EBITDA fell to $15.2 million from $18.6 million a year earlier, a decline attributed to the sale of the wholesale propane business and the exit from the refined‑products market. Crude Oil Logistics adjusted EBITDA also slipped to $15.4 million from $17.3 million, reflecting a weaker gasoline‑blending season.
The Water Solutions segment’s robust performance signals the company’s strategic pivot toward a predominantly water‑solutions business model. CEO Mike Krimbill emphasized that the company is “moving toward a predominantly water solutions company,” highlighting the segment’s role in driving future growth.
NGL reaffirmed its full‑year 2026 adjusted EBITDA guidance at $650 million to $660 million and projected 2027 EBITDA to exceed $700 million, indicating management confidence in continued expansion. The company also continued its capital‑allocation strategy, redeeming preferred equity and repurchasing common units to return value to shareholders.
CFO Brad Cooper noted that the quarter was “strong, driven by Water Solutions and execution on financial strategy,” underscoring the company’s focus on cost discipline and strategic investments in high‑return verticals.
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