NGL Energy Partners Achieves Record-Breaking Quarter with 19.6% Growth in Produced Water Volumes
NGL Energy Partners has kicked off fiscal year 2027 on a high note, with the company announcing a record-breaking quarter for produced water volumes and revenue.
According to the company's Q1 2027 conference call transcript, NGL achieved a significant milestone in physical water disposal volumes, reaching an all-time high of approximately 3.32 million barrels per day during the first quarter of fiscal 2027. This represents a notable 19.6% increase from the same period last year.
The impressive growth is a testament to the company's strategic investments and customer commitments made in fiscal 2026, which are now bearing fruit in the current financial year. The Water Solutions business segment, in particular, has seen remarkable progress, with adjusted EBITDA reaching $179.9 million for the quarter, up from $142.9 million in the prior first quarter.
"We're pleased to report a strong start to fiscal 2027 and continued execution on our multi-year strategy of de-leveraging the balance sheet through high-return water growth projects," said Brad Cooper, CFO of NGL Energy Partners, during the conference call. "This positions the partnership to continue to address the Class D preferreds later this fiscal year."
The company's commitment to expanding its permitted injection capacity has also shown significant progress, with an increase of approximately 200,000 barrels per day in the first quarter of fiscal 2027. This brings the total permitted capacity up to 5.62 million barrels per day.
NGL Energy Partners' focus on improving its credit profile through strategic customer partnerships has yielded positive results as well. The company reports that over 90% of its produced water is delivered from investment-grade counterparties, further enhancing its financial stability and prospects for future growth.
The company's confidence in its customers' execution and the overall performance of its business segments has prompted a revision to its fiscal 2027 adjusted EBITDA guidance. NGL now expects to achieve an adjusted EBITDA range of $725 million-$735 million, up from the previous guidance of $715 million-$725 million.
The first quarter's consolidated adjusted EBITDA from continuing operations came in at $186.2 million, nearly 30% higher than the prior first quarter. This robust performance is largely attributed to the exceptional results from the Water Solutions business segment.
NGL Energy Partners' growth capital spend and strategic investments are expected to continue driving momentum throughout fiscal year 2027. The company's commitment to expanding its infrastructure and enhancing customer relationships will likely result in sustained revenue growth, positioning NGL for continued success in the water management industry.
