NGL Energy (NGL) Q3 2026 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
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Should l Buy NGL?
Source: NASDAQ.COM
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Analyst Views on NGL
About NGL
NGL Energy Partners LP is a master limited partnership. It operates an integrated network of large-diameter wastewater pipelines, disposal wells and produced water handling systems in the Delaware Basin. It also operates wastewater disposal in the Eagle Ford and DJ Basins. In addition, it markets and provides other logistics services for crude oil, through its ownership of the Grand Mesa Pipeline System, Cushing terminal and other Gulf Coast terminals. Its Water Solutions segment transports, treats, recycles and disposes of produced and flowback water generated from crude oil and natural gas production. Its Crude Oil Logistics segment purchases crude oil from producers and marketers and transports it to refineries or for resale at pipeline injection stations, storage terminals, barge loading facilities, rail facilities and other trade hubs, and provides storage, terminaling and transportation services. Its Liquids Logistics segment conducts supply operations for natural gas liquids.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
NGL Energy (NGL) Q3 2026 Earnings Call Transcript
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NGL Energy Partners Reports Q3 Earnings with Mixed Results
- Earnings Performance: NGL Energy Partners reported a GAAP EPS of $0.10 for Q3, missing expectations by $0.06, indicating a shortfall in profitability that could negatively impact investor confidence.
- Revenue Analysis: The company's revenue of $909.82 million represents a 7.4% year-over-year decline, although it exceeded market expectations by $209.06 million, the ongoing revenue drop may affect future growth outlooks.
- Growth Potential: NGL Energy Partners has proposed an attractive growth strategy as its water business ramps up, indicating a strategic intent to diversify operations, which could lay the groundwork for a performance rebound in the future.
- Market Reaction: Following a recent 135% rally in stock price, the market has reassessed NGL Energy Partners' stock rating, and despite potential short-term volatility, the long-term growth prospects continue to attract investor interest.
See More
NGL Energy Partners Reports Strong Q3 Fiscal 2026 Results Driven by Water Solutions
- Water Solutions Growth: For the quarter ended December 31, 2025, NGL's Water Solutions segment saw operating income increase by $32.8 million year-over-year to $98.2 million, primarily driven by higher processed water volumes and the operational commencement of the LEX II pipeline, indicating strong market demand and growth potential with projected Adjusted EBITDA exceeding $700 million for Fiscal 2027.
- Adjusted EBITDA Guidance: The company reaffirms its full-year guidance for Adjusted EBITDA between $650 million and $660 million, reflecting ongoing growth and opportunities in the Water Solutions segment, suggesting a positive outlook for future financial performance.
- Increased Capital Expenditures: As of December 31, 2025, NGL reported total liquidity of approximately $331.1 million, primarily allocated to capital expenditures within the Water Solutions segment, demonstrating the company's commitment to investment and confidence in future growth.
- Overall Financial Performance: Total revenue for Q3 2025 reached $909.8 million, and despite a $7.6 million decline in operating income from the Liquids Logistics segment, overall operating income still amounted to $109.7 million, showcasing the company's resilience and adaptability across its diversified operations.
See More
NGL Energy Partners Reports Strong Q3 Fiscal 2026 Results with Record Water Solutions Volumes
- Significant Revenue Growth: In Q3 of Fiscal 2026, NGL reported income from continuing operations of $48.2 million, a remarkable 102.5% increase from $23.7 million in Q3 of Fiscal 2025, indicating strong performance in the Water Solutions segment and enhancing future financial stability.
- Adjusted EBITDA Increase: The Adjusted EBITDA for the third quarter reached $172.5 million, up 9.2% from $158.0 million in the same quarter last year, reflecting ongoing improvements in operational efficiency and cost control, which bolster investor confidence.
- Record Water Disposal Volumes: NGL disposed of approximately 3.07 million barrels of water per day in Q3, a 17.1% year-over-year increase, which not only enhances market share but also underscores the company's leadership in water solutions, setting a solid foundation for future growth.
- Share Repurchase Program: The company repurchased over 1.61 million common units during the quarter, bringing the total repurchased to approximately 8.7 million units at an average price of $5.6963, a move that not only boosts earnings per share but also reflects confidence in the company's intrinsic value.
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Natura Partners with NGL to Develop Nuclear Desalination Technology
- Agreement Signed: Natura Resources has signed an agreement with NGL Water Solutions to combine its 100-megawatt molten salt reactor with NGL's desalination technology, aiming to provide flexible and economical energy and water solutions for Texas, promoting sustainability.
- Enhanced Water Treatment: This collaboration will leverage NGL's capacity to treat over 3 million barrels of produced water daily, potentially scaling treatment capabilities for industrial applications, thereby meeting the demand for clean water in sectors like data centers and agriculture, enhancing water sustainability.
- Technological Advantages: Natura's molten salt reactor features modular construction, a smaller footprint, and reduced water requirements, expected to generate 24/7 power at costs lower than other clean energy sources, thereby enhancing energy security and minimizing waste.
- Future Deployment Plans: Natura anticipates deploying its first 100-megawatt commercial-scale reactor by 2029, further advancing the development of advanced nuclear technology in the U.S. to meet the growing domestic and global demands for reliable energy and clean water.
See More
NGL Energy Partners Set to Release Q3 Earnings on February 3rd
- Earnings Announcement: NGL Energy Partners is scheduled to announce its Q3 2023 earnings on February 3rd after market close, with consensus estimates predicting an EPS of $0.16 and revenue of $700.76 million, reflecting a significant year-over-year decline of 54.8%.
- Historical Performance Review: Over the past year, NGL has only beaten EPS estimates 25% of the time and revenue estimates 25% of the time, indicating considerable volatility in its performance, which necessitates cautious evaluation by investors.
- Water Business Growth: The company's water business is ramping up, and market analysts believe that this expansion presents an attractive growth proposal, potentially improving future financial performance as demand increases.
- Stock Performance Analysis: NGL Energy Partners' stock has surged by 135% recently, accompanied by rating upgrades, indicating growing market confidence in its future growth potential, despite current financial data showing some pressure.
See More
NGL Energy (NGL) Q3 2026 Earnings Call Transcript
See More
NGL Energy Partners Reports Q3 Earnings with Mixed Results
- Earnings Performance: NGL Energy Partners reported a GAAP EPS of $0.10 for Q3, missing expectations by $0.06, indicating a shortfall in profitability that could negatively impact investor confidence.
- Revenue Analysis: The company's revenue of $909.82 million represents a 7.4% year-over-year decline, although it exceeded market expectations by $209.06 million, the ongoing revenue drop may affect future growth outlooks.
- Growth Potential: NGL Energy Partners has proposed an attractive growth strategy as its water business ramps up, indicating a strategic intent to diversify operations, which could lay the groundwork for a performance rebound in the future.
- Market Reaction: Following a recent 135% rally in stock price, the market has reassessed NGL Energy Partners' stock rating, and despite potential short-term volatility, the long-term growth prospects continue to attract investor interest.
See More
NGL Energy Partners Reports Strong Q3 Fiscal 2026 Results Driven by Water Solutions
- Water Solutions Growth: For the quarter ended December 31, 2025, NGL's Water Solutions segment saw operating income increase by $32.8 million year-over-year to $98.2 million, primarily driven by higher processed water volumes and the operational commencement of the LEX II pipeline, indicating strong market demand and growth potential with projected Adjusted EBITDA exceeding $700 million for Fiscal 2027.
- Adjusted EBITDA Guidance: The company reaffirms its full-year guidance for Adjusted EBITDA between $650 million and $660 million, reflecting ongoing growth and opportunities in the Water Solutions segment, suggesting a positive outlook for future financial performance.
- Increased Capital Expenditures: As of December 31, 2025, NGL reported total liquidity of approximately $331.1 million, primarily allocated to capital expenditures within the Water Solutions segment, demonstrating the company's commitment to investment and confidence in future growth.
- Overall Financial Performance: Total revenue for Q3 2025 reached $909.8 million, and despite a $7.6 million decline in operating income from the Liquids Logistics segment, overall operating income still amounted to $109.7 million, showcasing the company's resilience and adaptability across its diversified operations.
See More
NGL Energy Partners Reports Strong Q3 Fiscal 2026 Results with Record Water Solutions Volumes
- Significant Revenue Growth: In Q3 of Fiscal 2026, NGL reported income from continuing operations of $48.2 million, a remarkable 102.5% increase from $23.7 million in Q3 of Fiscal 2025, indicating strong performance in the Water Solutions segment and enhancing future financial stability.
- Adjusted EBITDA Increase: The Adjusted EBITDA for the third quarter reached $172.5 million, up 9.2% from $158.0 million in the same quarter last year, reflecting ongoing improvements in operational efficiency and cost control, which bolster investor confidence.
- Record Water Disposal Volumes: NGL disposed of approximately 3.07 million barrels of water per day in Q3, a 17.1% year-over-year increase, which not only enhances market share but also underscores the company's leadership in water solutions, setting a solid foundation for future growth.
- Share Repurchase Program: The company repurchased over 1.61 million common units during the quarter, bringing the total repurchased to approximately 8.7 million units at an average price of $5.6963, a move that not only boosts earnings per share but also reflects confidence in the company's intrinsic value.
See More
Natura Partners with NGL to Develop Nuclear Desalination Technology
- Agreement Signed: Natura Resources has signed an agreement with NGL Water Solutions to combine its 100-megawatt molten salt reactor with NGL's desalination technology, aiming to provide flexible and economical energy and water solutions for Texas, promoting sustainability.
- Enhanced Water Treatment: This collaboration will leverage NGL's capacity to treat over 3 million barrels of produced water daily, potentially scaling treatment capabilities for industrial applications, thereby meeting the demand for clean water in sectors like data centers and agriculture, enhancing water sustainability.
- Technological Advantages: Natura's molten salt reactor features modular construction, a smaller footprint, and reduced water requirements, expected to generate 24/7 power at costs lower than other clean energy sources, thereby enhancing energy security and minimizing waste.
- Future Deployment Plans: Natura anticipates deploying its first 100-megawatt commercial-scale reactor by 2029, further advancing the development of advanced nuclear technology in the U.S. to meet the growing domestic and global demands for reliable energy and clean water.
See More
NGL Energy Partners Set to Release Q3 Earnings on February 3rd
- Earnings Announcement: NGL Energy Partners is scheduled to announce its Q3 2023 earnings on February 3rd after market close, with consensus estimates predicting an EPS of $0.16 and revenue of $700.76 million, reflecting a significant year-over-year decline of 54.8%.
- Historical Performance Review: Over the past year, NGL has only beaten EPS estimates 25% of the time and revenue estimates 25% of the time, indicating considerable volatility in its performance, which necessitates cautious evaluation by investors.
- Water Business Growth: The company's water business is ramping up, and market analysts believe that this expansion presents an attractive growth proposal, potentially improving future financial performance as demand increases.
- Stock Performance Analysis: NGL Energy Partners' stock has surged by 135% recently, accompanied by rating upgrades, indicating growing market confidence in its future growth potential, despite current financial data showing some pressure.
See More
