NGL Energy Partners LP reported a Fiscal Year 2025 Adjusted EBITDA of $622.9 million, surpassing its previous guidance of $620 million. For the fourth quarter of Fiscal 2025, Adjusted EBITDA was $176.83 million, an increase from $147.938 million in the prior year period. The Water Solutions segment achieved record annual water disposal volumes and Adjusted EBITDA for FY2025, with Q4 operating income increasing by $60.4 million and processing 2.73 million barrels of water per day, a 14.2% increase.
The partnership provided Fiscal Year 2026 consolidated Adjusted EBITDA guidance in the range of $615 million to $625 million. This guidance includes $45 million for maintenance capital expenditures and $60 million for growth capital expenditures. Management noted that this guidance implies an underlying growth expectation of $20 million to $25 million in the go-forward business, absorbing declines from lower skim oil revenues and asset sales.
NGL also announced the commencement of purchases of its Class D preferred units, acquiring 20,000 units in the open market at a discount. The proceeds of approximately $270 million from recent asset sales were used to repay the outstanding borrowings of the ABL facility, which was paid off on May 1, 2025, and to purchase preferred equity. Total liquidity stood at approximately $385.7 million as of March 31, 2025, with ABL borrowings at $109.0 million before the payoff.
The Crude Oil Logistics segment's Q4 operating income increased by $3.9 million, but Grand Mesa volumes averaged 56,000 barrels per day, down from 67,000 barrels per day in the prior year period. The Liquids Logistics segment's Q4 operating income increased by $44.9 million, primarily due to lower impairment losses compared to the previous year.
The strong FY2025 performance, particularly in Water Solutions, coupled with the strategic deleveraging efforts and the initiation of preferred unit repurchases, underscores the partnership's commitment to strengthening its balance sheet and optimizing its capital structure. The focused capital allocation for FY2026 further supports the growth trajectory of its core segments.
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