NGL Energy Partners LP Announces Third Quarter Fiscal 2022 Financial Results
NGL Energy Partners LP (NYSE:NGL) (“NGL,” “our,” “we,” or the “Partnership”) today reported its third quarter Fiscal 2022 results. Highlights for the quarter include:
Loss from continuing operations for the third quarter of Fiscal 2022 of $19.0 million, compared to a loss from continuing operations of $380.4 million for the third quarter of Fiscal 2021, primarily a result of a $383.6 million write down of goodwill and certain intangibles related to the impact of the bankruptcy rejection of transportation contracts with Extraction Oil & Gas, Inc. (“Extraction”). Excluding losses on the disposal or impairment of assets, loss from continuing operations for the third quarter of Fiscal 2022 was $6.7 million, compared to a loss from continuing operations of $6.6 million for the third quarter of Fiscal 2021 Adjusted EBITDA1 from continuing operations for the third quarter of Fiscal 2022 of $147.7 million, compared to $125.0 million for the third quarter of Fiscal 2021 Produced water volumes processed increased approximately 30% versus the same period in the prior year, with volumes growing 4.5% versus the preceding quarter Announced collaboration with XRI Holdings, LLC (“XRI”) to advance full cycle produced water management across operations in the Delaware Basin and to support increasing demand for sustainable use of produced water in completion activities Updated guidance for Fiscal 2022 Adjusted EBITDA to $550 million - $560 million and expected full year capital expenditures to $125 million -$130 million, net of anticipated reimbursements from insurance claims2“We continue to see growth in our Water Solutions segment due to increased customer activities as well as additional agreements negotiated with producer customers. Additionally, the collaboration we previously announced with XRI will allow us to service produced water reuse and recycle demand in the Delaware Basin while focusing on environmentally-friendly solutions for our customers” stated Mike Krimbill, NGL’s CEO. “While warmer than normal weather and commodity price movements affected our wholesale propane and crude oil logistics businesses, our butane and refined products businesses performed quite well. Looking towards our fourth fiscal quarter, we continue to see produced water volumes increasing, winter weather has finally arrived and crude oil prices have increased, which will benefit us going forward” Krimbill concluded.
_____________________
1 See the “Non-GAAP Financial Measures” section of this release for the definition of Adjusted EBITDA (as used herein) and a discussion of this non-GAAP financial measure.
2 See the “Forward-Looking Statements” section of this release for more information.
Quarterly Results of Operations
The following table summarizes operating income (loss) and Adjusted EBITDA from continuing operations by reportable segment for the periods indicated:
Quarter Ended
December 31, 2021
December 31, 2020
Operating
Income (Loss)
Adjusted
EBITDA
Operating
Income (Loss)
Adjusted
EBITDA
(in thousands)
Water Solutions
$
19,851
$
82,744
$
15,821
$
65,554
Crude Oil Logistics
21,291
29,764
(382,192
)
26,332
Liquids Logistics
23,158
47,979
32,438
41,824
Corporate and Other
(15,190
)
(12,747
)
(12,374
)
(8,670
)
Total
$
49,110
$
147,740
$
(346,307
)
$
125,040
Water Solutions
Operating income for the Water Solutions segment increased $4.0 million for the quarter ended December 31, 2021, compared to the quarter ended December 31, 2020. The Partnership processed approximately 1.84 million barrels of water per day during the quarter ended December 31, 2021, a 30.3% increase when compared to approximately 1.41 million barrels of water per day processed during the quarter ended December 31, 2020, due to higher production volumes primarily in the Delaware Basin driven by the recovery in crude oil prices from the prior year.
Revenues from recovered crude oil, including the impact from realized skim oil hedges, totaled $19.5 million for the quarter ended December 31, 2021, an increase of $8.2 million from the prior year period. This increase was due to increased skim oil barrels sold due to higher produced water volumes processed and higher realized crude oil prices.
Operating expenses in the Water Solutions segment decreased to $0.26 per barrel compared to $0.27 per barrel in the comparative quarter last year primarily due to continued efforts to reduce operating costs per barrel along with higher produced water volumes processed.
Crude Oil Logistics
Operating income for the third quarter of Fiscal 2022 increased compared to the third quarter of Fiscal 2021 primarily due to an impairment charge of $383.6 million in the prior year related to the write down of goodwill of the Extraction transportation agreement (as part of its bankruptcy). Excluding impairments, operating income increased $22.5 million due primarily to increased margins, excluding the impact of derivatives. Our margins continue to benefit from high crude oil prices, which increase the contracted rates with certain producers.
During the three months ended December 31, 2021, financial volumes on the Grand Mesa Pipeline averaged approximately 83,000 barrels per day, compared to approximately 69,000 barrels per day for the three months ended December 31, 2020. This increase was due primarily to the new supply agreement signed with Extraction (now known as Civitas Resources, Inc.) after they exited bankruptcy.
Liquids Logistics
Operating income for the Liquids Logistics segment decreased $9.3 million for the quarter ended December 31, 2021, compared to the quarter ended December 31, 2020. This decrease is mainly related to lower product margins on propane due to reduced demand and falling prices during the last two months of the current quarter, lower service revenues and higher compensation expenses. The decrease was offset by higher product margins for butane and refined products as a result of tighter supply markets for butane, extended refinery downtime in certain refined products markets and favorable supply contracts.
Propane volumes decreased by approximately 87.3 million gallons, or 22.9%, compared to the quarter ended December 31, 2020, as demand decreased due to the unseasonably warm weather. Butane volumes decreased by approximately 32.5 million gallons, or 15.3%, compared to the quarter ended December 31, 2020, due to the tight supply market and an increase in demand for exports.
Corporate and Other
Corporate and Other expenses increased from the comparable prior year period primarily due to increased incentive compensation and outside consulting fees, which were offset by lower legal expenses.
Capitalization and Liquidity
Total liquidity (cash plus available capacity on our asset-based revolving credit facility) was approximately $182.5 million as of December 31, 2021. Borrowings on the Partnership’s revolving credit facility totaled approximately $156.0 million. The balance increase from March 31, 2021 was primarily due to increases in working capital balances driven by increased inventory volumes and higher commodity prices.
The Partnership is in compliance with all of its debt covenants and has no significant debt maturities before November 2023. The Partnership expects to generate operational free cash flow in Fiscal Year 2022, which will be utilized to repay outstanding indebtedness and improve leverage.
Third Quarter Conference Call Information
A conference call to discuss NGL’s results of operations is scheduled for 4:00 pm Central Time on Wednesday, February 9, 2022. Analysts, investors, and other interested parties may join the webcast via the event link: https://www.webcaster4.com/Webcast/Page/2808/44432 or by dialing (888) 506-0062 and providing access code: 294091. An archived audio replay of the call will be available for 14 days, which can be accessed by dialing (877) 481-4010 and providing replay passcode 44432.
Non-GAAP Financial Measures
NGL defines EBITDA as net income (loss) attributable to NGL Energy Partners LP, plus interest expense, income tax expense (benefit), and depreciation and amortization expense. NGL defines Adjusted EBITDA as EBITDA excluding net unrealized gains and losses on derivatives, lower of cost or net realizable value adjustments, gains and losses on disposal or impairment of assets, gains and losses on early extinguishment of liabilities, equity-based compensation expense, acquisition expense, revaluation of liabilities, certain legal settlements and other. NGL also includes in Adjusted EBITDA certain inventory valuation adjustments related to TransMontaigne Product Services, LLC (“TPSL”), our refined products business in the mid-continent region of the United States (“Mid-Con”) and our gas blending business in the southeastern and eastern regions of the United States (“Gas Blending”), which are included in discontinued operations, and certain refined products businesses within NGL’s Liquids Logistics segment, as discussed below. EBITDA and Adjusted EBITDA should not be considered as alternatives to net loss, loss from continuing operations before income taxes, cash flows from operating activities, or any other measure of financial performance calculated in accordance with GAAP, as those items are used to measure operating performance, liquidity or the ability to service debt obligations. NGL believes that EBITDA provides additional information to investors for evaluating NGL’s ability to make quarterly distributions to NGL’s unitholders and is presented solely as a supplemental measure. NGL believes that Adjusted EBITDA provides additional information to investors for evaluating NGL’s financial performance without regard to NGL’s financing methods, capital structure and historical cost basis. Further, EBITDA and Adjusted EBITDA, as NGL defines them, may not be comparable to EBITDA, Adjusted EBITDA, or similarly titled measures used by other entities.
Other than for certain businesses within NGL’s Liquids Logistics segment, for purposes of the Adjusted EBITDA calculation, NGL makes a distinction between realized and unrealized gains and losses on derivatives. During the period when a derivative contract is open, NGL records changes in the fair value of the derivative as an unrealized gain or loss. When a derivative contract matures or is settled, NGL reverses the previously recorded unrealized gain or loss and records a realized gain or loss. NGL does not draw such a distinction between realized and unrealized gains and losses on derivatives of certain businesses within NGL’s Liquids Logistics segment. The primary hedging strategy of these businesses is to hedge against the risk of declines in the value of inventory over the course of the contract cycle, and many of the hedges cover extended periods of time. The “inventory valuation adjustment” row in the reconciliation table reflects the difference between the market value of the inventory of these businesses at the balance sheet date and its cost, adjusted for the impact of seasonal market movements related to our base inventory and the related hedge. NGL includes this in Adjusted EBITDA because the unrealized gains and losses associated with derivative contracts associated with the inventory of this segment, which are intended primarily to hedge inventory holding risk and are included in net income, also affect Adjusted EBITDA. In NGL’s Crude Oil Logistics segment, they purchase certain crude oil barrels using the West Texas Intermediate (“WTI”) calendar month average (“CMA”) price and sell the crude oil barrels using the WTI CMA price plus the Argus CMA Differential Roll Component (“CMA Differential Roll”) per NGL’s contracts. To eliminate the volatility of the CMA Differential Roll, NGL entered into derivative instrument positions in January 2021 to secure a margin of approximately $0.20 per barrel on 1.5 million barrels per month from May 2021 through December 2023. Due to the nature of these positions, the cash flow and earnings recognized on a GAAP basis will differ from period to period depending on the current crude oil price and future estimated crude oil price which are valued utilizing third-party market quoted prices. NGL is recognizing in Adjusted EBITDA the gains and losses from the derivative instrument positions entered into in January 2021 to properly align with the physical margin NGL is hedging each month through the term of this transaction. This representation aligns with management’s evaluation of the transaction.
Distributable Cash Flow is defined as Adjusted EBITDA minus maintenance capital expenditures, income tax expense, cash interest expense, preferred unit distributions and other. Maintenance capital expenditures represent capital expenditures necessary to maintain the Partnership’s operating capacity. For the CMA Differential Roll transaction, as discussed above, we have included an adjustment to Distributable Cash Flow to reflect, in the period for which they relate, the actual cash flows for the positions that settled that are not being recognized in Adjusted EBITDA. Distributable Cash Flow is a performance metric used by senior management to compare cash flows generated by the Partnership (excluding growth capital expenditures and prior to the establishment of any retained cash reserves by the Board of Directors) to the cash distributions expected to be paid to unitholders. Using this metric, management can quickly compute the coverage ratio of estimated cash flows to planned cash distributions. This financial measure also is important to investors as an indicator of whether the Partnership is generating cash flow at a level that can sustain, or support an increase in, quarterly distribution rates. Actual distribution amounts are set by the Board of Directors.
Forward-Looking Statements
This press release includes “forward-looking statements.” All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Actual results could vary significantly from those expressed or implied in such statements and are subject to a number of risks and uncertainties. While NGL believes such forward-looking statements are reasonable, NGL cannot assure they will prove to be correct. The forward-looking statements involve risks and uncertainties that affect operations, financial performance, and other factors as discussed in filings with the Securities and Exchange Commission. Other factors that could impact any forward-looking statements are those risks described in NGL’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other public filings. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, specifically those under the heading “Risk Factors.” NGL undertakes no obligation to publicly update or revise any forward-looking statements except as required by law.
NGL provides Adjusted EBITDA guidance that does not include certain charges and costs, which in future periods are generally expected to be similar to the kinds of charges and costs excluded from Adjusted EBITDA in prior periods, such as income taxes, interest and other non-operating items, depreciation and amortization, net unrealized gains and losses on derivatives, lower of cost or net realizable value adjustments, gains and losses on disposal or impairment of assets, gains and losses on early extinguishment of liabilities, equity-based compensation expense, acquisition expense, revaluation of liabilities and items that are unusual in nature or infrequently occurring. The exclusion of these charges and costs in future periods will have a significant impact on the Partnership’s Adjusted EBITDA, and the Partnership is not able to provide a reconciliation of its Adjusted EBITDA guidance to net income (loss) without unreasonable efforts due to the uncertainty and variability of the nature and amount of these future charges and costs and the Partnership believes that such reconciliation, if possible, would imply a degree of precision that would be potentially confusing or misleading to investors.
About NGL Energy Partners LP
NGL Energy Partners LP, a Delaware limited partnership, is a diversified midstream energy company that transports, stores, markets and provides other logistics services for crude oil, natural gas liquids and other products and transports, treats and disposes of produced water generated as part of the oil and natural gas production process.
For further information, visit the Partnership’s website at www.nglenergypartners.com.
NGL ENERGY PARTNERS LP AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance Sheets
(in Thousands, except unit amounts)
December 31, 2021
March 31, 2021
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
5,456
$
4,829
Accounts receivable-trade, net of allowance for expected credit losses of $2,227 and $2,192, respectively
1,042,641
725,943
Accounts receivable-affiliates
8,824
9,435
Inventories
333,923
158,467
Prepaid expenses and other current assets
131,696
109,164
Total current assets
1,522,540
1,007,838
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of $887,840 and $776,279, respectively
2,483,876
2,706,853
GOODWILL
744,439
744,439
INTANGIBLE ASSETS, net of accumulated amortization of $546,221 and $517,518, respectively
1,152,198
1,262,613
INVESTMENTS IN UNCONSOLIDATED ENTITIES
21,263
22,719
OPERATING LEASE RIGHT-OF-USE ASSETS
122,976
152,146
OTHER NONCURRENT ASSETS
47,479
50,733
Total assets
$
6,094,771
$
5,947,341
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable-trade
$
973,471
$
679,868
Accounts payable-affiliates
260
119
Accrued expenses and other payables
165,031
170,400
Advance payments received from customers
16,240
11,163
Current maturities of long-term debt
2,328
2,183
Operating lease obligations
43,822
47,070
Total current liabilities
1,201,152
910,803
LONG-TERM DEBT, net of debt issuance costs of $46,156 and $55,555, respectively, and current maturities
3,411,757
3,319,030
OPERATING LEASE OBLIGATIONS
78,628
103,637
OTHER NONCURRENT LIABILITIES
108,422
114,615
CLASS D 9.00% PREFERRED UNITS, 600,000 and 600,000 preferred units issued and outstanding, respectively
551,097
551,097
EQUITY:
General partner, representing a 0.1% interest, 130,114 and 129,724 notional units, respectively
(52,422
)
(52,189
)
Limited partners, representing a 99.9% interest, 129,984,138 and 129,593,939 common units issued and outstanding, respectively
430,358
582,784
Class B preferred limited partners, 12,585,642 and 12,585,642 preferred units issued and outstanding, respectively
305,468
305,468
Class C preferred limited partners, 1,800,000 and 1,800,000 preferred units issued and outstanding, respectively
42,891
42,891
Accumulated other comprehensive loss
(314
)
(266
)
Noncontrolling interests
17,734
69,471
Total equity
743,715
948,159
Total liabilities and equity
$
6,094,771
$
5,947,341
NGL ENERGY PARTNERS LP AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
(in Thousands, except unit and per unit amounts)
Three Months Ended December 31,
Nine Months Ended December 31,
2021
2020
2021
2020
REVENUES:
Water Solutions
$
130,653
$
98,925
$
397,089
$
275,668
Crude Oil Logistics
607,203
485,289
1,715,657
1,228,169
Liquids Logistics
1,434,020
877,491
3,301,922
1,969,813
Other
—
314
—
942
Total Revenues
2,171,876
1,462,019
5,414,668
3,474,592
COST OF SALES:
Water Solutions
5,030
3,280
21,791
8,559
Crude Oil Logistics
556,531
448,933
1,591,877
1,053,261
Liquids Logistics
1,388,760
826,211
3,187,039
1,857,633
Other
—
455
—
1,363
Total Cost of Sales
1,950,321
1,278,879
4,800,707
2,920,816
OPERATING COSTS AND EXPENSES:
Operating
72,807
61,427
207,610
182,468
General and administrative
18,925
16,044
46,149
50,677
Depreciation and amortization
68,480
78,200
222,145
249,655
Loss on disposal or impairment of assets, net
12,233
373,776
93,463
391,752
Operating Income (Loss)
49,110
(346,307
)
44,594
(320,776
)
OTHER INCOME (EXPENSE):
Equity in earnings of unconsolidated entities
119
344
765
1,134
Interest expense
(68,379
)
(47,252
)
(204,004
)
(138,148
)
Gain on early extinguishment of liabilities, net
9
11,190
1,131
44,292
Other income, net
24
440
2,003
3,060
Loss From Continuing Operations Before Income Taxes
(19,117
)
(381,585
)
(155,511
)
(410,438
)
INCOME TAX BENEFIT
135
1,162
820
2,237
Loss From Continuing Operations
(18,982
)
(380,423
)
(154,691
)
(408,201
)
Loss From Discontinued Operations, net of Tax
—
(107
)
—
(1,746
)
Net Loss
(18,982
)
(380,530
)
(154,691
)
(409,947
)
LESS: NET LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
63
34
(705
)
(185
)
NET LOSS ATTRIBUTABLE TO NGL ENERGY PARTNERS LP
$
(18,919
)
$
(380,496
)
$
(155,396
)
$
(410,132
)
NET LOSS FROM CONTINUING OPERATIONS ALLOCATED TO COMMON UNITHOLDERS
$
(45,233
)
$
(403,755
)
$
(232,361
)
$
(477,503
)
NET LOSS FROM DISCONTINUED OPERATIONS ALLOCATED TO COMMON UNITHOLDERS
$
—
$
(107
)
$
—
$
(1,744
)
NET LOSS ALLOCATED TO COMMON UNITHOLDERS
$
(45,233
)
$
(403,862
)
$
(232,361
)
$
(479,247
)
BASIC LOSS PER COMMON UNIT
Loss From Continuing Operations
$
(0.35
)
$
(3.13
)
$
(1.79
)
$
(3.71
)
Loss From Discontinued Operations, net of Tax
$
—
$
—
$
—
$
(0.01
)
Net Loss
$
(0.35
)
$
(3.13
)
$
(1.79
)
$
(3.72
)
DILUTED LOSS PER COMMON UNIT
Loss From Continuing Operations
$
(0.35
)
$
(3.13
)
$
(1.79
)
$
(3.71
)
Loss From Discontinued Operations, net of Tax
$
—
$
—
$
—
$
(0.01
)
Net Loss
$
(0.35
)
$
(3.13
)
$
(1.79
)
$
(3.72
)
BASIC WEIGHTED AVERAGE COMMON UNITS OUTSTANDING
129,810,245
128,991,414
129,666,303
128,845,214
DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING
129,810,245
128,991,414
129,666,303
128,845,214
EBITDA, ADJUSTED EBITDA AND DISTRIBUTABLE CASH FLOW RECONCILIATION
(Unaudited)
The following table reconciles NGL’s net loss to NGL’s EBITDA, Adjusted EBITDA and Distributable Cash Flow:
Three Months Ended December 31,
Nine Months Ended December 31,
2021
2020
2021
2020
(in thousands)
Net loss
$
(18,982
)
$
(380,530
)
$
(154,691
)
$
(409,947
)
Less: Net loss (income) attributable to noncontrolling interests
63
34
(705
)
(185
)
Net loss attributable to NGL Energy Partners LP
(18,919
)
(380,496
)
(155,396
)
(410,132
)
Interest expense
68,395
47,253
204,037
138,159
Income tax benefit
(135
)
(1,163
)
(820
)
(2,291
)
Depreciation and amortization
68,452
77,531
221,352
247,555
EBITDA
117,793
(256,875
)
269,173
(26,709
)
Net unrealized (gains) losses on derivatives
(13,500
)
16,529
(48,254
)
47,657
CMA Differential Roll net losses (gains) (1)
23,872
—
60,987
—
Inventory valuation adjustment (2)
1,145
(786
)
1,912
1,393
Lower of cost or net realizable value adjustments
2,921
321
2,636
(33,213
)
Loss on disposal or impairment of assets, net
12,035
373,777
93,268
392,924
Gain on early extinguishment of liabilities, net
(9
)
(11,190
)
(1,168
)
(44,292
)
Equity-based compensation expense (3)
749
1,120
(1,044
)
5,678
Acquisition expense (4)
(36
)
589
67
915
Other (5)
2,770
1,448
7,525
9,049
Adjusted EBITDA
$
147,740
$
124,933
$
385,102
$
353,402
Adjusted EBITDA - Discontinued Operations (6)
$
—
$
(107
)
$
—
$
(591
)
Adjusted EBITDA - Continuing Operations
$
147,740
$
125,040
$
385,102
$
353,993
Less: Cash interest expense (7)
64,049
43,993
191,137
127,960
Less: Income tax benefit
(135
)
(1,162
)
(820
)
(2,237
)
Less: Maintenance capital expenditures
13,330
6,269
38,054
22,267
Less: CMA Differential Roll (8)
15,354
—
49,254
—
Less: Preferred unit distributions paid
—
23,770
—
53,908
Less: Other (9)
—
9
—
9
Distributable Cash Flow - Continuing Operations
$
55,142
$
52,161
$
107,477
$
152,086
_____________________
(1)Adjustment to align, within Adjusted EBITDA, the net gains and losses of the Partnership’s CMA Differential Roll derivative instruments positions with the physical margin being hedged. See “Non-GAAP Financial Measures” section above for a further discussion.
(2)
Amount reflects the difference between the market value of the inventory at the balance sheet date and its cost, adjusted for the impact of seasonal market movements related to our base inventory and the related hedge. See “Non-GAAP Financial Measures” section above for a further discussion.
(3)
Equity-based compensation expense in the table above may differ from equity-based compensation expense reported in the footnotes to our unaudited condensed consolidated financial statements included in the Partnership’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2021. Amounts reported in the table above include expense accruals for bonuses expected to be paid in common units, whereas the amounts reported in the footnotes to our unaudited condensed consolidated financial statements only include expenses associated with equity-based awards that have been formally granted.
(4)
Amounts represent expenses we incurred related to legal and advisory costs associated with acquisitions.
(5)
Amounts for the three months and nine months ended December 31, 2021 and 2020 represent non-cash operating expenses related to our Grand Mesa Pipeline, unrealized losses on marketable securities and accretion expense for asset retirement obligations.
(6)
Amounts include the operations of TPSL, Gas Blending and Mid-Con.
(7)
Amounts represent interest expense payable in cash for the period presented, excluding changes in the accrued interest balance.
(8)
Amount represents the cash portion of the adjustments of the Partnership’s CMA Differential Roll derivative instrument positions, as discussed above, that settled during the period.
(9)
Amounts represents cash paid to settle asset retirement obligations.
ADJUSTED EBITDA RECONCILIATION BY SEGMENT
Three Months Ended December 31, 2021
Water
Solutions
Crude Oil
Logistics
Liquids
Logistics
Corporate
and Other
Consolidated
(in thousands)
Operating income (loss)
$
19,851
$
21,291
$
23,158
$
(15,190
)
$
49,110
Depreciation and amortization
50,815
12,166
3,756
1,743
68,480
Amortization recorded to cost of sales
—
—
69
—
69
Net unrealized losses (gains) on derivatives
1,758
(32,201
)
16,943
—
(13,500
)
CMA Differential Roll net losses (gains)
—
23,872
—
—
23,872
Inventory valuation adjustment
—
—
1,145
—
1,145
Lower of cost or net realizable value adjustments
—
—
2,921
—
2,921
Loss (gain) on disposal or impairment of assets, net
9,997
2,262
(26
)
—
12,233
Equity-based compensation expense
—
—
—
749
749
Acquisition expense
4
—
—
(40
)
(36
)
Other (expense) income, net
(6
)
—
(31
)
61
24
Adjusted EBITDA attributable to unconsolidated entities
384
—
10
(70
)
324
Adjusted EBITDA attributable to noncontrolling interest
(419
)
—
(3
)
—
(422
)
Other
360
2,374
37
—
2,771
Adjusted EBITDA
$
82,744
$
29,764
$
47,979
$
(12,747
)
$
147,740
Three Months Ended December 31, 2020
Water
Solutions
Crude Oil
Logistics
Liquids
Logistics
Corporate
and Other
Continuing
Operations
Discontinued
Operations
(TPSL, Mid-Con,
Gas Blending)
Consolidated
(in thousands)
Operating income (loss)
$
15,821
$
(382,192
)
$
32,438
$
(12,374
)
$
(346,307
)
$
—
$
(346,307
)
Depreciation and amortization
53,327
16,513
6,976
1,384
78,200
—
78,200
Amortization recorded to cost of sales
—
—
77
—
77
—
77
Net unrealized losses on derivatives
5,800
7,878
2,851
—
16,529
—
16,529
Inventory valuation adjustment
—
—
(802
)
—
(802
)
—
(802
)
Lower of cost or net realizable value adjustments
—
(166
)
502
—
336
—
336
(Gain) loss on disposal or impairment of assets, net
(9,967
)
383,251
(43
)
535
373,776
—
373,776
Equity-based compensation expense
—
—
—
1,120
1,120
—
1,120
Acquisition expense
4
—
—
585
589
—
589
Other income, net
1
2
341
96
440
—
440
Adjusted EBITDA attributable to unconsolidated entities
573
—
3
(16
)
560
—
560
Adjusted EBITDA attributable to noncontrolling interest
(389
)
—
(544
)
—
(933
)
—
(933
)
Other
384
1,046
25
—
1,455
—
1,455
Discontinued operations
—
—
—
—
—
(107
)
(107
)
Adjusted EBITDA
$
65,554
$
26,332
$
41,824
$
(8,670
)
$
125,040
$
(107
)
$
124,933
Nine Months Ended December 31, 2021
Water
Solutions
Crude Oil
Logistics
Liquids
Logistics
Corporate
and Other
Consolidated
(in thousands)
Operating income (loss)
$
60,206
$
37,941
$
(18,790
)
$
(34,763
)
$
44,594
Depreciation and amortization
164,466
37,029
15,409
5,241
222,145
Amortization recorded to cost of sales
—
—
213
—
213
Net unrealized losses (gains) on derivatives
6,845
(53,808
)
(1,291
)
—
(48,254
)
CMA Differential Roll net losses (gains)
—
60,987
—
—
60,987
Inventory valuation adjustment
—
—
1,912
—
1,912
Lower of cost or net realizable value adjustments
—
(11
)
2,647
—
2,636
Loss on disposal or impairment of assets, net
19,450
2,206
71,807
—
93,463
Equity-based compensation expense
—
—
—
(1,044
)
(1,044
)
Acquisition expense
4
—
—
63
67
Other income, net
616
350
627
410
2,003
Adjusted EBITDA attributable to unconsolidated entities
1,559
—
(9
)
(190
)
1,360
Adjusted EBITDA attributable to noncontrolling interest
(1,987
)
—
(529
)
—
(2,516
)
Other
520
6,994
22
—
7,536
Adjusted EBITDA
$
251,679
$
91,688
$
72,018
$
(30,283
)
$
385,102
Nine Months Ended December 31, 2020
Water
Solutions
Crude Oil
Logistics
Liquids
Logistics
Corporate
and Other
Continuing
Operations
Discontinued
Operations
(TPSL, Mid-Con,
Gas Blending)
Consolidated
(in thousands)
Operating (loss) income
$
(13,503
)
$
(310,633
)
$
51,338
$
(47,978
)
$
(320,776
)
$
—
$
(320,776
)
Depreciation and amortization
173,680
50,540
22,158
3,277
249,655
—
249,655
Amortization recorded to cost of sales
—
—
230
—
230
—
230
Net unrealized losses on derivatives
23,525
19,199
4,933
—
47,657
—
47,657
Inventory valuation adjustment
—
—
1,399
—
1,399
—
1,399
Lower of cost or net realizable value adjustments
—
(29,245
)
(3,974
)
—
(33,219
)
—
(33,219
)
(Gain) loss on disposal or impairment of assets, net
(3,415
)
384,391
4
10,772
391,752
—
391,752
Equity-based compensation expense
—
—
—
5,678
5,678
—
5,678
Acquisition expense
17
—
—
898
915
—
915
Other income, net
259
1,515
1,004
282
3,060
—
3,060
Adjusted EBITDA attributable to unconsolidated entities
1,883
—
(11
)
(143
)
1,729
—
1,729
Adjusted EBITDA attributable to noncontrolling interest
(1,317
)
—
(1,816
)
—
(3,133
)
—
(3,133
)
Intersegment transactions (1)
—
—
(27
)
—
(27
)
—
(27
)
Other
2,398
6,600
75
—
9,073
—
9,073
Discontinued operations
—
—
—
—
—
(591
)
(591
)
Adjusted EBITDA
$
183,527
$
122,367
$
75,313
$
(27,214
)
$
353,993
$
(591
)
$
353,402
_____________________
(1)
Amount reflects the transactions with TPSL, Mid-Con and Gas Blending that are eliminated in consolidation.
OPERATIONAL DATA
(Unaudited)
Three Months Ended
Nine Months Ended
December 31,
December 31,
2021
2020
2021
2020
(in thousands, except per day amounts)
Water Solutions:
Produced water processed (barrels per day)
Delaware Basin
1,551,621
1,216,096
1,488,529
1,127,679
Eagle Ford Basin
110,243
72,951
99,298
83,151
DJ Basin
159,332
96,383
142,606
114,256
Other Basins
18,351
26,532
25,516
28,359
Total
1,839,547
1,411,962
1,755,949
1,353,445
Recycled water (barrels per day)
52,854
95,903
76,319
43,008
Total Produced Water Processed and/or Sold (barrels per day)
1,892,401
1,507,865
1,832,268
1,396,453
Skim oil sold (barrels per day)
2,678
2,004
2,667
1,771
Crude Oil Logistics:
Crude oil sold (barrels)
7,515
10,733
23,027
30,203
Crude oil transported on owned pipelines (barrels)
7,590
6,368
21,961
26,836
Crude oil storage capacity - owned and leased (barrels) (1)
5,232
5,239
Crude oil inventory (barrels) (1)
1,295
1,019
Liquids Logistics:
Refined products sold (gallons)
203,898
214,132
586,136
646,349
Propane sold (gallons)
294,282
381,590
644,883
886,572
Butane sold (gallons)
180,191
212,697
427,646
475,655
Other products sold (gallons)
99,915
122,645
290,078
351,591
Natural gas liquids and refined products storage capacity - owned and leased (gallons) (1)
168,189
426,962
Refined products inventory (gallons) (1)
1,314
1,190
Propane inventory (gallons) (1)
125,235
128,568
Butane inventory (gallons) (1)
45,129
31,847
Other products inventory (gallons) (1)
23,491
21,326
_____________________
(1)
Information is presented as of December 31, 2021 and December 31, 2020, respectively.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220208006296/en/