NGL Energy Partners LP (NYSE: NGL) is a midstream energy master limited partnership that provides produced water handling, crude oil logistics, and liquids logistics services to oil and gas producers in the United States. The partnership earns the majority of its revenue through fixed-fee, long-term service contracts, including water disposal service fees, crude oil transportation fees, and propane and refined products sales. Water Solutions is the dominant segment, generating $755.7M in total revenues and $311.5M in segment operating income for the year ended March 31, 2025, compared to $879.9M in total revenues and $46.1M in segment operating income from Crude Oil Logistics for the same period. NGL operates 90 water treatment and disposal facilities with 194 injection wells across the Delaware Basin, Eagle Ford Basin, and DJ Basin, processing approximately 2.6 million barrels of produced water per day as of the year ended March 31, 2025. The partnership also holds crude oil storage capacity of 5,232 thousand barrels and transported 22,238 thousand barrels on owned pipelines during the year ended March 31, 2025.

Revenue model

Fixed-fee, long-term service contracts with acreage dedications and minimum volume commitments drive the Water Solutions segment. Water disposal service fees totaled $599.9M for the year ended March 31, 2025. Crude Oil Logistics earns revenue from crude oil sales ($806.7M, year ended March 31, 2025) and crude oil transportation and other sales ($73.2M). Liquids Logistics generates revenue from propane and refined products sales.

Products and services

Produced water disposal and treatment services; recycled water sales; recovered crude oil sales from water processing; crude oil transportation via owned and leased pipelines; crude oil storage at terminals in the DJ Basin and Cushing, Oklahoma; liquids logistics including propane and refined products distribution.

Customers and end markets

Primary customers are crude oil and natural gas exploration and production companies operating in the Delaware Basin (Texas and New Mexico), Eagle Ford Basin (Texas), and DJ Basin (Colorado). Customers also include refiners and marketers for crude oil logistics services.

Value-chain role

Midstream service provider sitting between upstream producers and downstream refiners and marketers. Handles produced water disposal and recycling, crude oil gathering and transportation, and bulk liquids distribution. Does not produce hydrocarbons.

Geographic exposure

United States only. Core operations concentrated in the Delaware Basin (Texas and New Mexico), Eagle Ford Basin (Texas), DJ Basin (Colorado), and Cushing, Oklahoma storage hub. Delaware Basin is the largest geography, processing 2,303,142 barrels per day of produced water for the year ended March 31, 2025.

Source: SEC 10-K, filed 2025-05-29

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