Dependence on crude oil and natural gas production activity
Water disposal and logistics volumes fall when producers drill and complete fewer wells.
- Scope
- Water Solutions and Crude Oil Logistics
- Materiality
- high
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.
11,5 %
30,9 %
−4,5 %
−9,0 %
1.05
0.96
| % | |
|---|---|
| Water Solutions | 55% Produced and flowback water transport, treatment, recycling, disposal and related services. |
| Crude Oil Logistics | 35% Crude oil purchasing, transportation, storage and terminaling through owned assets. |
| Liquids Logistics | 10% Natural gas liquids wholesale, storage and terminaling activities where applicable. |
NGL sells primarily to oil and gas producers, marketers, refiners, and wholesale energy customers that need water...
- Oil and gas producersprimary
Buy produced-water transport, treatment, recycling and disposal tied to drilling and completion activity.
- Crude oil refiners and marketersprimary
Use crude oil transport, storage and terminaling to move barrels to refineries or trading hubs.
- Natural gas liquids wholesale customerssecondary
Buy storage, terminaling and wholesale liquids logistics services for propane, butane and related products.
- Industrial and other logistics customerssecondary
Use ancillary logistics and water services where NGL's asset network provides local access.
NGL's operations are concentrated in major U.S. producing basins, especially the Delaware Basin in New Mexico and...
- •Operations centered in U.S. shale basins with high produced-water volumes
- •Delaware Basin is a core water-solutions market
- •DJ Basin and Eagle Ford support water and crude logistics activity
- •Crude oil logistics assets span multiple U.S. states and trade hubs
- •United States and Canada are the main operating geographies
NGL's strategy is to use contracted midstream assets to generate recurring service revenue from water handling and...
01
Grow Water Solutions volumes in active shale basinsmedium-term
Water handling demand follows drilling and completion activity in core producing areas.
02
Maximize utilization of contracted logistics assetsmedium-term
Pipeline, storage and terminal assets are more valuable when throughput and occupancy stay high.
03
Maintain long-term customer contracts and acreage dedicationsshort-term
Contracted volumes help support more predictable cash flows and defend market position.
NGL is exposed to producer activity, commodity prices, and competition across water disposal and midstream logistics...
Commodity price and volume sensitivity
Lower oil prices can reduce producer activity and lower skim oil and disposal volumes.
- Scope
- Produced water and crude oil-related revenues
- Materiality
- high
Customer concentration
A small number of customers can represent a large share of segment revenue.
- Scope
- Crude Oil Logistics and Liquids Logistics
- Materiality
- high
Operational interruptions and infrastructure failures
Service outages at pipelines, terminals or disposal facilities can stop throughput and revenue.
- Scope
- Owned and contracted midstream assets
- Materiality
- high
Leverage and financing constraints
Substantial indebtedness can limit flexibility and increase sensitivity to interest rates.
- Scope
- Partnership-level capital structure
- Materiality
- high
Environmental, safety and regulatory compliance
Water disposal, pipelines and storage assets face permitting, environmental and safety oversight.
- Scope
- Produced water wells, pipelines, terminals
- Materiality
- high
Revenue recognition for long-term water contracts
Water Solutions revenue and contract assets/liabilities
Variable consideration and volume estimates
Reported revenue and margin volatility
Goodwill impairment
Potential non-cash impairment charges
Asset retirement obligations
Balance sheet liabilities and accretion expense
Discontinued operations accounting
Comparability of revenue, EBITDA and cash flow
: 29.4.2026