NGL Energy Partners LP (NGL): Business Model Canvas [Dec-2025 Updated]

You're digging into NGL Energy Partners LP's current setup, and honestly, the story isn't just about moving molecules anymore; it's about a sharp, necessary pivot toward water infrastructure and aggressive balance sheet repair. The 2025 numbers clearly show the focus is laser-sharp: dominating water solutions-processing nearly 2.63 million barrels of produced water daily-while simultaneously raising about $270 million from non-core asset sales to tackle that significant $279.7 million interest expense. This strategic shift, which drove their $65.0 million income from continuing operations, defines their near-term playbook. Dive into the full Business Model Canvas below to see exactly how their key resources and contract structures are supporting this deleveraging and water-centric future.

NGL Energy Partners LP (NGL) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep NGL Energy Partners LP moving product and managing its balance sheet as of late 2025. These partnerships are critical for volume throughput and financial stability, especially after the strategic shifts this year.

Oil and gas producers with acreage dedication contracts

NGL Energy Partners LP relies on long-term commitments from producers to secure steady volumes, particularly for its Crude Oil Logistics segment. The performance here directly impacts the utilization of assets like the Grand Mesa Pipeline.

For the quarter ended March 31, 2025, physical volumes on the Grand Mesa Pipeline averaged approximately 56,000 barrels per day. This was a decrease from the 67,000 barrels per day seen in the quarter ended March 31, 2024.

The partnership is actively working to secure higher volumes through new agreements:

• Prairie Operating signed a long-term acreage dedication contract for Grand Mesa, also covering water disposal services.
• NGL Energy Partners LP signed a term crude oil purchase and sale agreement with another DJ Basin producer, with volumes starting in April 2025.
• These two deals offer the potential to increase crude oil volumes on Grand Mesa up to 100,000 barrels per day.

In the Water Solutions segment, the volume growth is strong, driven by contracted customers. The Partnership processed approximately 2.63 million barrels per day for the entire Fiscal 2025, an 8.6% increase over the prior year.

Third-party midstream companies connecting to NGL's infrastructure

Connecting with other midstream players helps NGL Energy Partners LP expand its network reach and secure new revenue streams, especially in the Water Solutions segment.

The expansion of the Lea County Express Pipeline system (LEX II) commenced operations during the quarter ending December 31, 2024, adding to water pipeline revenue.

Looking forward, NGL Energy Partners LP has underwritten new growth capital projects based on producer commitments:

Metric	Volume/Capacity	Timeline/Term
Newly Contracted Volume Commitments (Growth Projects)	Approximately 750,000 barrels per day	Scheduled for in-service by the end of calendar year 2025
Total Volume Commitments (Post-New Contracts)	1.5 million barrels per day	Going into fiscal 2027 with an average remaining term of almost nine years

The company also entered an agreement with a third-party to connect their crude oil gathering system to the Riverside, Colorado terminal facility.

Financial institutions for debt refinancing and liquidity

Managing the capital structure is a key focus, involving significant transactions with financial institutions to manage debt maturities and improve credit standing. NGL Energy Partners LP completed a major refinancing effort in early 2024.

Key debt refinancing details from February 2024:

• NGL closed $2.9 billion of refinancing transactions.
• This included a $2.2 billion senior secured notes offering ($900 million at 8.125% due 2029 and $1.3 billion at 8.375% due 2032) and a $700.0 million senior secured term loan facility.
• The proceeds funded the redemption of senior notes due in 2025 and 2026, and repaid all borrowings under the Asset-Based Revolving Credit Facility (ABL Facility).
• The ABL Facility maturity was extended to February 2029.

As of the end of Fiscal 2025 (March 31, 2025), the borrowings under the ABL Facility were $109.0 million, but this facility was paid off on May 1, 2025, using asset sale proceeds. The company also made two arrearage catch-up payments in Fiscal 2025, becoming current on all preferred classes B, C, and D in April 2025.

Strategic buyers for non-core asset divestitures

NGL Energy Partners LP executed a strategy to reduce volatility and deleverage by selling non-core assets throughout 2025.

The total cash proceeds generated from these divestitures amounted to approximately $270 million.

The assets sold to strategic buyers included:

• The sale of 17 natural gas liquids (NGL) terminals and the Green Bay terminal.
• The Rack Marketing refined products business.
• Ownership in Limestone Ranch.
• The remaining crude railcar fleet, which generated proceeds of $12.5 million from 143 railcars sold in January/February 2025, with an anticipation of another $10 million from additional sales.

The primary use of the $270 million in proceeds was to fully pay off the remaining balance on the Asset-Based Lending (ABL) facility and for additional deleveraging.

Finance: draft 13-week cash view by Friday.

NGL Energy Partners LP (NGL) - Canvas Business Model: Key Activities

The core operational activities for NGL Energy Partners LP centered on executing major infrastructure expansions and strategically streamlining the asset base during the period leading up to late 2025.

Operating and expanding the Water Solutions pipeline network (LEX II) involved bringing the Lea County Express Pipeline System expansion online. This LEX II Expansion, which commenced in 2024, added a second 27-mile, 30-inch diameter produced water pipeline, increasing the system's capacity from 140,000 barrels of water per day to 340,000 barrels per day. The project was placed in service in October of Fiscal 2025 and is designed to be expandable up to 500,000 barrels per day of capacity. This expansion was fully underwritten by a minimum volume commitment contract with an investment grade producer, providing cash flow certainty.

The Water Solutions segment's key activity of treating and disposing of produced water saw significant volume growth. For the full Fiscal Year 2025, NGL Energy Partners LP treated and disposed of approximately 2.63 million barrels of produced water daily. This resulted in record annual water disposal volumes processed and contributed to the segment achieving an Adjusted EBITDA of $542.0 million for the full year Fiscal 2025. For the quarter ended March 31, 2025, volumes processed reached approximately 2.73 million barrels of water per day, marking a 14.2% increase compared to the same quarter in the prior year.

Key operational metrics for the Water Solutions segment during FY2025 included:

• Water Solutions Adjusted EBITDA (FY2025): $542.0 million
• Produced Water Volumes Processed (FY2025 Average Daily): 2.63 million barrels
• Produced Water Volumes Processed (Q4 FY2025 Daily Average): 2.73 million barrels
• LEX II Initial Incremental Capacity: 200,000 barrels per day

Transporting and storing crude oil via the Grand Mesa Pipeline remains a critical activity within the Crude Oil Logistics segment. The Grand Mesa Pipeline itself is a 550 mile, 20" diameter conduit originating in Weld County, Colorado, with a total capacity to transport up to 150,000 bpd of crude oil to the Cushing, Oklahoma storage terminal. For the quarter ended March 31, 2025, physical volumes on the Grand Mesa Pipeline averaged approximately 56,000 barrels per day. This activity supports producers in the Denver-Julesburg Basin by offering an alternative to rail and truck transport.

The final major activity involved financial restructuring through asset disposition. NGL Energy Partners LP executed non-core asset sales, raising approximately $270 million in cash proceeds. These sales, which closed around May 2025, included the divestiture of 17 natural gas liquids terminals, the Green Bay terminal, the Rack Marketing refined products business, Limestone Ranch ownership, and the remaining crude railcar fleet. The proceeds were directed toward repaying the outstanding borrowings of the Asset-Based Revolving Credit Facility, which was paid off on May 1, 2025, and for additional deleveraging.

A comparison of key logistics throughputs is presented below:

Asset/Metric	Capacity/Volume (bpd)	Reporting Period
Grand Mesa Pipeline Total Capacity	150,000	System Design
Grand Mesa Pipeline Physical Volumes	56,000	Quarter Ended March 31, 2025
Grand Mesa Pipeline Physical Volumes	61,000	Quarter Ended December 31, 2024
LEX II Pipeline System Capacity (Post-Expansion)	340,000	As of Late 2025
LEX II Pipeline System Capacity (Ultimate Potential)	500,000	Future Expansion Target

The execution of these activities supported a significant financial turnaround, with Income from continuing operations for the full Fiscal 2025 reaching $65.0 million, compared to a loss of $157.7 million for Fiscal 2024. Finance: draft 13-week cash view by Friday.

NGL Energy Partners LP (NGL) - Canvas Business Model: Key Resources

You're looking at the core assets that make NGL Energy Partners LP tick, the physical stuff and the contracts that lock in future cash flow. These resources are what anchor the Water Solutions segment, which, honestly, is the engine room, generating over 80% of consolidated EBITDA as of early 2025.

The foundation is the extensive produced water disposal and recycling infrastructure. This isn't just a few pits; it's a massive network built for scale. As of the end of Fiscal 2025, the Partnership was processing significant volumes, hitting approximately 2.73 million barrels of water per day for the quarter ended March 31, 2025. This network spans key basins, including the Delaware, Eagle Ford, and DJ.

The sheer scale of the physical plant is impressive, even if some of the capacity figures are from slightly earlier reports. Here's a breakdown of what we know about the water infrastructure:

• ~90 water treatment and disposal facilities in service.
• Approximately ~194 disposal wells across the operating footprint.
• Combined permitted disposal capacity totals around ~6.5 million bpd.
• Over 800 miles of large-diameter water pipelines are in-service.
• Water transported on pipelines was over 88% of the total, a figure NGL Energy Partners LP is actively increasing.

The balance sheet reflects the value of this infrastructure. Net property and equipment was valued at $2.249 billion as of the late 2025 period you are asking about, representing the net book value of these substantial, long-lived assets [cite: The required figure in the prompt].

Next up, we have the crude oil pipelines and storage terminals, primarily centered around the Grand Mesa Pipeline. This asset is a 550-mile, 20" diameter line moving crude from the DJ Basin to Cushing, Oklahoma. Its maximum design capacity is 150,000 barrels per day (bpd). For the quarter ending March 31, 2025, the actual physical volumes averaged approximately 56,000 bpd.

The storage and logistics network complements the pipeline system:

Asset Type	Quantity/Capacity	Location/Detail
Storage Terminal Facilities Owned	6 facilities	Various locations
Cushing, OK Storage	3.6 MMBBLS	NGL Crude Cushing, LLC terminal
Storage Outside Cushing	1.6 MMBBLS	Additional storage capacity
Grand Mesa Pipeline Capacity	150,000 bpd	DJ Basin takeaway

Finally, the contracts provide the revenue certainty that makes these assets so valuable. NGL Energy Partners LP relies on long-term acreage dedication contracts for guaranteed volume, especially in the Water Solutions segment, which often include Minimum Volume Commitments (MVCs). These fixed-fee structures help limit exposure to commodity price swings. For the Crude Oil Logistics segment, a new long-term acreage dedication contract signed with Prairie Operating has the potential to boost Grand Mesa volumes up to 100,000 bpd for current and future production growth.

NGL Energy Partners LP (NGL) - Canvas Business Model: Value Propositions

You're looking at the core promises NGL Energy Partners LP makes to its customers and stakeholders as of late 2025. It's all about reliable service delivery, risk mitigation for producers, integrated midstream capabilities, and a clear focus on strengthening the balance sheet.

Reliable, high-capacity produced water disposal services

The Water Solutions segment is the primary engine now, delivering essential services to the oil and gas production base. Reliability is backed by expanding infrastructure and growing throughput.

NGL Energy Partners LP processed produced water volumes of approximately 2.73 million barrels of water per day during the quarter ended March 31, 2025, which was a 14.2% increase compared to the same quarter last year. This performance contributed to Water Solutions achieving record annual water disposal volumes processed for Fiscal Year 2025. The commencement of operations on the expanded Lea County Express Pipeline system (LEX II) during the third quarter of Fiscal 2025 directly supported this capacity growth and higher disposal revenues.

Operationally, NGL Energy Partners LP supports this with a significant physical footprint:

• The company has about 90 facilities across the US.
• The network includes approximately 194 disposal wells.
• The prior LEX expansion increased capacity from 140,000 to 340,000 barrels of water per day.

The segment's operating income for the fourth quarter of Fiscal 2025 increased by $60.4 million compared to the fourth quarter of Fiscal 2024, showing the financial benefit of this high-volume service.

Reduced environmental liability for energy producers

For energy producers, NGL Energy Partners LP offers a way to manage the environmental burden associated with oil and gas extraction. This value is rooted in long-term expertise in handling and treating the produced water.

NGL Energy Partners LP highlights its specific capabilities in water management that directly address producer liability concerns:

• Offers transportation, treatment, and recycling of water used in production.
• Possesses water recycling expertise, with a history of cleaning produced water to drinking quality for 10 years.

This service allows producers to outsource a complex, regulated, and growing operational requirement.

Integrated logistics for crude oil transportation and storage

The Crude Oil Logistics segment provides critical midstream services, connecting production areas to market hubs through owned and contracted assets. This offers producers optionality and fixed-fee transportation solutions.

Key logistics assets quantify this value proposition:

Asset Component	Capacity/Volume Metric	Latest Reported Data Point
Cushing Storage	7.7 MMbbls total storage	3.6 MMbbls leased storage
Gulf Coast Terminals	Aggregate capacity of ~850 Mbbls	5 terminal facilities owned
Grand Mesa Pipeline	150 MBPD capacity	Averaged 61,000 barrels per day in Q3 FY2025
Barge Fleet	Capacity per barge	Owns 8 tows and 19 barges
Rail Fleet	Volume moved	Approximately ~30K bbls/day moved

Furthermore, strategic contracts are in place, such as a long-term acreage dedication that could potentially increase crude oil volumes on the Grand Mesa Pipeline to 100,000 barrels per day.

Financial stability focus through debt reduction and asset sales

A major value proposition for NGL Energy Partners LP's capital providers is the aggressive pivot toward financial de-risking, moving away from volatile businesses to focus on the core water segment.

The company executed significant asset sales in Fiscal Year 2025 to achieve this stability. The asset sales, associated working capital, and other cash receipts raised approximately $270 million. These sales included 17 natural gas liquids terminals and the terminal in Green Bay, Wisconsin, plus the sale of 143 railcars for proceeds of $12.5 million. These proceeds were used to repay the outstanding borrowings of the ABL Facility, which stood at $109.0 million as of March 31, 2025, and to further reduce indebtedness. The ABL Facility was fully paid off with these funds on May 1, 2025. The total liquidity as of March 31, 2025, was approximately $385.7 million. The company ended Fiscal 2025 with long-term debt of roughly $2.9 billion, but the operational focus resulted in a strong financial outcome:

• Income from continuing operations for full year Fiscal 2025 totaled $65.0 million.
• Adjusted EBITDA from continuing operations for full year Fiscal 2025 was $622.9 million.
• This compares to a loss from continuing operations of $157.7 million for Fiscal 2024.

This strategic shift is intended to reduce the volatility and seasonality of Adjusted EBITDA and working capital requirements.

NGL Energy Partners LP (NGL) - Canvas Business Model: Customer Relationships

The customer relationships for NGL Energy Partners LP center heavily on securing long-term, committed volumes, particularly within the Water Solutions segment, which now forms the core of the business after strategic divestitures.

Long-term, contract-based relationships with minimum volume commitments

NGL Energy Partners LP structures many of its Water Solutions relationships around agreements that provide predictable cash flows. These contracts often feature acreage dedications and minimum volume commitments, which helps mitigate volumetric risk for NGL Energy Partners LP, even as commodity price exposure has been lessened through asset sales. The company has been actively expanding this base:

• NGL Energy Partners LP has underwritten new growth capital projects for approximately 750,000 barrels per day of newly contracted volume commitments, scheduled to be placed in service by the end of the calendar year 2025.
• This activity is set to increase total volume commitments to 1.5 million barrels per day going into fiscal 2027.
• These commitments carry an average remaining term of almost nine years.
• Water Solutions Adjusted EBITDA for the full fiscal year 2025 reached $542.0 million.
• For the second quarter of fiscal 2026, Water Solutions Adjusted EBITDA was $151.9 million, an increase of 18% year-over-year.

Dedicated account management for large contracted producers

The focus on long-term, integrated water solutions in key basins like the Delaware Basin necessitates close management of the upstream customers providing the produced water. This relationship management supports the stable contract base:

Metric	Water Solutions Volume (FY2025)	Water Solutions Volume (Q4 FY2025)	Water Solutions Volume (Q3 FY2025)
Produced Water Processed (bpd)	Approximately 2.63 million barrels per day	Approximately 2.73 million barrels per day	Approximately 2.62 million barrels per day
Year-over-Year Volume Growth	8.6% increase over prior year (FY2024)	14.2% increase over Q4 FY2024	10.4% increase over Q3 FY2024

Transactional sales for interruptible spot volumes in Water Solutions

While contracts form the foundation, NGL Energy Partners LP also captures upside through transactional business, which is often priced at higher fees when capacity allows. This flexibility is key to maximizing revenue from their fixed assets:

• Disposal revenues saw increases due to higher fees charged for interruptible spot volumes in addition to volumes from contracted customers.
• The company processed approximately 2.73 million barrels of water per day in the quarter ended March 31, 2025.

Direct sales and logistics support for NGL and refined products

NGL Energy Partners LP has strategically reduced its customer base in the NGL and refined products areas to lower EBITDA volatility and working capital needs. This means direct sales and logistics support is now focused on a much smaller, more stable core:

• NGL Energy Partners LP completed the sale of its refined products Rack Marketing business and the majority of its wholesale propane business during the fiscal year 2025.
• The Liquids Logistics segment contributed an Adjusted EBITDA of $9.4 million in the second quarter of fiscal 2025.
• Crude Oil Logistics, which also relies on acreage dedications and minimum volume commitments, saw physical volumes on the Grand Mesa Pipeline average approximately 56,000 barrels per day in the fourth quarter of Fiscal 2025.

Finance: review the Q2 FY2026 Water Solutions cost per barrel efficiency against Q1 FY2026 by Wednesday.

NGL Energy Partners LP (NGL) - Canvas Business Model: Channels

You're looking at how NGL Energy Partners LP gets its services-water handling and crude logistics-to the customer base, which is heavily weighted toward the producers in the basins they serve. The channels are physical infrastructure and dedicated sales efforts.

Dedicated pipeline systems (e.g., Grand Mesa, LEX II)

The pipeline network is a core channel for moving produced water and crude oil. The expansion of the Lea County Express Pipeline system, known as LEX II, is a key recent development, having commenced operations in the prior quarter to Q4 Fiscal 2025.

• LEX II initial capacity: 200,000 barrels per day, expandable to 500,000 barrels per day.
• Grand Mesa Pipeline physical volumes averaged 56,000 barrels per day in the quarter ended March 31, 2025.
• Grand Mesa Pipeline capacity is up to 150,000 barrels per day.
• Acreage dedication on Grand Mesa could potentially support volumes up to 100,000 barrels per day.

The utilization of the water pipeline network is high, with over 88% of water moving on pipelines across the footprint, which is a deliberate channel strategy to increase efficiency over trucked volumes.

Company-owned and operated water treatment and disposal facilities

The physical facilities are the end-points for the water logistics channel. NGL Energy Partners LP processes significant volumes through this network.

Metric	Q4 Fiscal 2025 (Ended 3/31/2025)	Full Year Fiscal 2025	Comparative Q4 FY2024
Water Processed (Barrels per Day)	2.73 million	2.63 million	2.39 million
Water Solutions Adjusted EBITDA (Millions)	$176.8 million (Q4 FY2025)	$542.0 million	$147.9 million (Q4 FY2024)

The Water Solutions segment also utilizes its owned real estate for supporting operations. NGL owns or has a possessory interest in over 120,000 acres of real estate in Eddy and Lea Counties, New Mexico, securing locations for pipeline infrastructure and other facilities.

Crude oil terminals and storage hubs

For the Liquids Logistics segment, terminals and storage act as critical connection points between producers/refiners and the broader market. NGL Energy Partners LP operates a network that includes the Grand Mesa Pipeline terminus.

• The Grand Mesa Pipeline delivers to NGL Crude Cushing, LLC's storage terminal at Cushing, Oklahoma.
• The Liquids Logistics segment operates through five owned terminals.
• The company completed sales of non-core liquids logistics assets, including 17 NGL terminals and the Green Bay terminal, raising approximately $270 million in proceeds, focusing the remaining channel on core crude logistics assets like the Grand Mesa Pipeline and Cushing terminal.

These terminals provide shippers access to U.S. Midcontinent refining and trading markets, plus the Texas Gulf Coast refinery complex.

Direct sales teams for securing long-term contracts

The contracts are the commercial layer of the channel strategy, locking in volume and revenue stability. You see this effort reflected in the Water Solutions segment's reliance on contracted customers for disposal revenues.

In the Crude Oil Logistics segment, specific sales efforts in Q3 Fiscal 2025 secured future volume commitments:

• Signed a long-term acreage dedication contract with Prairie Operating for Grand Mesa.
• Entered an agreement with a third-party to connect their crude oil gathering system to the Riverside, Colorado terminal facility.
• Signed a term crude oil purchase and sale agreement with another DJ Basin producer, with volumes starting April 2025.

These contracts are designed to support the infrastructure channels with guaranteed minimum volume commitments or acreage dedications, which is defintely how NGL Energy Partners LP ensures steady cash flow from its assets.

NGL Energy Partners LP (NGL) - Canvas Business Model: Customer Segments

You're looking at NGL Energy Partners LP's customer base as of late 2025, which shows a clear strategic pivot, especially following significant divestitures in the Liquids Logistics area.

Crude oil and natural gas exploration and production (E&P) companies form the core of the remaining, high-growth Water Solutions segment. These producers are the source of the produced water NGL Energy Partners LP treats and disposes of, often under long-term contracts, minimum volume commitments, or acreage dedications. The operational scale with these customers is substantial.

The Crude Oil Logistics segment also directly serves producers and marketers by purchasing crude oil and providing transportation and storage to refineries and trade hubs. The Grand Mesa Pipeline, a foundational asset, is supported by contracts with these upstream customers.

The customer base for the former wholesale propane and refined products business has been largely streamlined. NGL Energy Partners LP executed asset sales that substantially reduced exposure to this area, aiming for less volatile cash flows. This included the sale of the majority of the wholesale propane business.

The focus on specific geographic basins highlights where NGL Energy Partners LP concentrates its service offerings to E&P customers. The Water Solutions segment is heavily invested in the Permian Basin and the DJ Basin, while the Crude Oil Logistics segment's Grand Mesa Pipeline serves the DJ Basin producers.

Here's a look at the operational scale tied to these customer groups based on the latest reported figures:

Customer Group/Metric	Latest Reporting Period	Value	Unit
Produced Water Volumes Processed	Q4 Fiscal 2025	2.73 million	Barrels per day (bpd)
Produced Water Volumes Processed	Full Year Fiscal 2025	2.63 million	bpd
Grand Mesa Pipeline Throughput	Q2 Fiscal 2026 (ended September 30, 2025)	72,000	bpd
NGL Terminal Sale Proceeds (Wholesale Propane/NGLs)	Fiscal 2025 Divestitures	$95.0 million	USD
Total Asset Sale Proceeds (Including Wholesale Propane/Rack Marketing)	Fiscal 2025 Divestitures	$270 million	USD
Full Year Adjusted EBITDA (Continuing Operations)	Fiscal 2025	$622.9 million	USD

The strategic shift means the customer segments are now more concentrated in the midstream services supporting oil and gas production, rather than the downstream distribution of refined products.

The key customer types driving the Water Solutions segment success include those providing:

• Minimum volume commitments requiring the customer to deliver a specified minimum volume of produced water over a specified period of time.
• Acreage dedications requiring the customer to deliver all volumes produced from the dedicated acreage with NGL Energy Partners LP.
• Produced water pipeline and trucked disposal agreements providing interruptible service in exchange for a fee per barrel.

For the Crude Oil Logistics segment, the customer relationships are supported by long-term, fixed rate contracts that include minimum volume commitments on owned and leased pipelines, such as the Grand Mesa Pipeline.

NGL Energy Partners LP (NGL) - Canvas Business Model: Cost Structure

You're looking at the major drains on NGL Energy Partners LP's cash flow for the fiscal year ending March 31, 2025. Honestly, the cost structure is dominated by financing costs and the necessary upkeep of that massive infrastructure.

The financing cost, specifically the significant interest expense, was reported at $279.7 million for FY2025. That's a big number you have to cover before anything else. On top of that, you have the ongoing need for high capital expenditure for infrastructure maintenance and expansion, which was guided to be $210 million in total maintenance and growth capital expenditures for Fiscal 2025. That CapEx is crucial for keeping the Water Solutions segment growing and the Crude Oil Logistics assets running reliably.

When we drill down into the operating costs, the Water Solutions segment shows a variable cost tied directly to activity. The operating expenses for water treatment per barrel processed fluctuated within the fiscal year reporting period, showing figures like $0.22 per barrel and $0.24 per barrel processed. You'll want to track that closely against the volumes processed, which hit approximately 2.73 million barrels per day in the fourth quarter of Fiscal 2025.

The overhead, or the fixed-ish costs, also need attention. The general and administrative expenses for NGL Energy Partners LP in FY2025 were listed at $55.6 million. This covers the corporate team, compliance, and the general running of the partnership.

Here's a quick look at those key cost components for the fiscal year:

Cost Component	FY2025 Amount/Rate
Interest Expense	$279.7 million
Total Maintenance & Growth Capital Expenditures	$210 million
General and Administrative Expenses	$55.6 million
Water Operating Expense (Range for Period)	$0.22 to $0.24 per barrel processed

The cost structure also involves other operating expenses that aren't explicitly itemized here, but they are part of the overall spend to keep the segments moving. You can expect costs related to:

• Utility expenses for disposal wells.
• Royalty expenses tied to produced water volumes.
• Chemical expenses for water treatment processes.
• Depreciation and amortization across the asset base.

The asset sales executed during the year were intended to reduce the volatility and working capital requirements, which indirectly helps manage the pressure on these cost lines going forward. Finance: draft 13-week cash view by Friday.

NGL Energy Partners LP (NGL) - Canvas Business Model: Revenue Streams

You're looking at the revenue side of NGL Energy Partners LP (NGL) as of late 2025, and the story is clearly about a strategic pivot. The overall annual revenue for the fiscal year ending March 31, 2025, was reported at $3.47B, which was a decrease of -16.47% year-over-year. However, the underlying segment performance shows where the future cash flow is being built.

Water disposal and treatment fees, a major growth driver

This segment is now the core of NGL Energy Partners LP's operations. The focus here is on providing transportation, treatment, and recycling of produced water used in oil and gas production. This business is supported by long-term, fixed fee contracts and acreage dedications with major producers.

The operational metrics for the Water Solutions segment show significant traction:

• Produced water volumes processed for the entire Fiscal 2025 averaged 2.63 million barrels per day, marking an 8.6% increase over the prior year.
• In the fourth quarter of Fiscal 2025, volumes processed hit approximately 2.73 million barrels per day, a 14.2% jump compared to the fourth quarter of Fiscal 2024.
• Revenues from recovered skim oil, including hedge impacts, totaled $36.7 million for the fourth quarter of Fiscal 2025, up $8.3 million year-over-year.

The financial impact of this focus is clear in the profitability metrics. Water Solutions achieved record Adjusted EBITDA of $542.0 million for the full Fiscal 2025 year, representing a 6.6% increase over the prior year. To be fair, this segment is driving the majority of the partnership's earnings power, reportedly accounting for 85% of adjusted EBITDA recently.

Here's a snapshot of the segment's financial strength:

Metric	Fiscal Year 2025 Value	Comparison/Context
Water Solutions Adjusted EBITDA	$542.0 million	Record annual performance
Q4 Fiscal 2025 Water Disposal Volume	Approx. 2.73 million barrels per day	14.2% growth over Q4 2024
Q4 Fiscal 2025 Skim Oil Revenue	$36.7 million	Up $8.3 million from prior year
Segment Contribution to Adjusted EBITDA	Approx. 85%	Indicates core business focus

Crude oil transportation and storage fees

Revenue in the Crude Oil Logistics segment comes from purchasing crude oil from producers and providing transportation, storage, and terminaling services. While the segment is strategic, volumes can fluctuate. For instance, physical volumes on the Grand Mesa Pipeline averaged approximately 56,000 barrels per day during the fourth quarter of Fiscal 2025. This contrasts with the third quarter of Fiscal 2025, where volumes were around 61,000 barrels per day.

Sales of natural gas liquids and refined products

This revenue source has been intentionally reduced as NGL Energy Partners LP executed a strategic divestiture plan to lower volatility and debt. The partnership closed the sale of its natural gas liquids terminal in Green Bay, Wisconsin, and certain railcars in the Crude Oil Logistics segment during the fourth quarter of Fiscal 2025. More significantly, during the full fiscal year, the company sold 17 natural gas liquids terminals, which comprised the majority of its wholesale propane business, and its refined products Rack Marketing business. These asset sales, along with others, raised approximately $270 million in cash proceeds. The winding down of the biodiesel business also negatively impacted adjusted EBITDA by $12.1 million in the third quarter of Fiscal 2025.

Income from continuing operations of $65.0 million for Fiscal 2025

The overall profitability picture for the year shows a significant turnaround. NGL Energy Partners LP reported Income from continuing operations for the full Fiscal 2025 year of $65.0 million. This compares favorably to a loss from continuing operations of $157.7 million reported for the full Fiscal 2024 year. The fourth quarter of Fiscal 2025 specifically saw income from continuing operations of $16.2 million, up from a loss of $234.3 million in the fourth quarter of Fiscal 2024.

Finance: draft the Q1 FY2026 revenue forecast by end of next week.