NGL Energy Partners LP
NGL Energy Partners LP is a Delaware master limited partnership that operates midstream energy assets in the United States and Canada. Its core businesses are water solutions for oil and gas production and crude oil logistics, including transportation, storage, terminaling, and related services for liquid hydrocarbons.
Fiscal year 2026 · change from previous year
Development 2021–2026
Business
Share of revenueProduced and flowback water transport, treatment, recycling, disposal and related services.
Crude oil purchasing, transportation, storage and terminaling through owned assets.
Natural gas liquids wholesale, storage and terminaling activities where applicable.
Products
Reported · share of revenue- Products75.9 %
- Services24.1 %
Source: 10-K FY2026, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
NGL sells primarily to oil and gas producers, marketers, refiners, and wholesale energy customers that need water handling or crude oil logistics services. Its water business is tied to producer activity in active basins, while its logistics businesses serve customers that need reliable transport, storage, and market access for crude oil and natural gas liquids.
Buy produced-water transport, treatment, recycling and disposal tied to drilling and completion activity.
Use crude oil transport, storage and terminaling to move barrels to refineries or trading hubs.
Buy storage, terminaling and wholesale liquids logistics services for propane, butane and related products.
Use ancillary logistics and water services where NGL's asset network provides local access.
Strategy
NGL's strategy is to use contracted midstream assets to generate recurring service revenue from water handling and crude oil logistics. It also emphasizes asset optimization, long-term customer relationships, and basin proximity to capture volumes where production activity is concentrated.
Water handling demand follows drilling and completion activity in core producing areas.
Pipeline, storage and terminal assets are more valuable when throughput and occupancy stay high.
Contracted volumes help support more predictable cash flows and defend market position.
Geography
NGL's operations are concentrated in major U.S. producing basins, especially the Delaware Basin in New Mexico and Texas, the DJ Basin in Colorado, and the Eagle Ford Basin in Texas. It also operates crude oil and liquids logistics assets across the United States and has customer and supply exposure in Canada through its broader midstream footprint.
Risks
NGL is exposed to producer activity, commodity prices, and competition across water disposal and midstream logistics. Its business also carries meaningful leverage, operational, regulatory, and cybersecurity risk because service interruptions or weaker drilling activity can quickly affect volumes and cash generation.
- Dependence on crude oil and natural gas production activityImpact: HighLikelihood: High
Water disposal and logistics volumes fall when producers drill and complete fewer wells.
Exposure: Water Solutions and Crude Oil Logistics
- Commodity price and volume sensitivityImpact: HighLikelihood: High
Lower oil prices can reduce producer activity and lower skim oil and disposal volumes.
Exposure: Produced water and crude oil-related revenues
- Operational interruptions and infrastructure failuresImpact: HighLikelihood: Medium
Service outages at pipelines, terminals or disposal facilities can stop throughput and revenue.
Exposure: Owned and contracted midstream assets
- Leverage and financing constraintsImpact: HighLikelihood: Medium
Substantial indebtedness can limit flexibility and increase sensitivity to interest rates.
Exposure: Partnership-level capital structure
- Customer concentrationImpact: HighLikelihood: Low
A small number of customers can represent a large share of segment revenue.
Exposure: Crude Oil Logistics and Liquids Logistics
- Environmental, safety and regulatory complianceImpact: MediumLikelihood: Medium
Water disposal, pipelines and storage assets face permitting, environmental and safety oversight.
Exposure
Accounting
Judgemental itemsFees depend on estimated volumes and contract terms, which can shift reported revenue timing.
Impact: Water Solutions revenue and contract assets/liabilities
Management must estimate future production and delivered volumes under fixed-fee arrangements.
Impact: Reported revenue and margin volatility
Midstream asset values can change with throughput expectations and market conditions.
Impact: Potential non-cash impairment charges
Pipelines, wells and related facilities require future abandonment or remediation spending.
Impact: Balance sheet liabilities and accretion expense
Asset sales and business exits can reclassify prior results and affect trend analysis.
Impact: Comparability of revenue, EBITDA and cash flow
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Last updated: 24/09/2026