NGL 10-Q Quarterly Report Sept. 30, 2025

NGL ENERGY PARTNERS LP

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ngl-20250930

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File Number: 001-35172

NGL Energy Partners LP

(Exact Name of Registrant as Specified in Its Charter)


Delaware		27-3427920
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

6120 South Yale Avenue, Suite 1300
Tulsa,	Oklahoma	74136
(Address of Principal Executive Offices)		(Zip Code)

(918) 481-1119

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol(s)

Name of Each Exchange on Which Registered

Common units representing Limited Partner Interests

NGL

New York Stock Exchange

Fixed-to-floating rate cumulative redeemable perpetual preferred units

NGL-PB

New York Stock Exchange

Fixed-to-floating rate cumulative redeemable perpetual preferred units

NGL-PC

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

At October 31, 2025, there were 125,722,503 common units issued and outstanding.

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TABLE OF CONTENTS


PART I - FINANCIAL INFORMATION

Item 1.	Financial Statements	3
	Unaudited Condensed Consolidated Balance Sheets at September 30, 2025 and March 31, 2025	3
	Unaudited Condensed Consolidated Statements of Operations for the three months and six months ended September 30, 2025 and 2024	4
	Unaudited Condensed Consolidated Statements of Comprehensive Income for the three months and six months ended September 30, 2025 and 2024	5
	Unaudited Condensed Consolidated Statements of Changes in Equity for the three months and six months ended September 30, 2025 and 2024	6
	Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended September 30, 2025 and 2024	8
	Notes to Unaudited Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	39
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	64
Item 4.	Controls and Procedures	66
PART II - OTHER INFORMATION

Item 1.	Legal Proceedings	67
Item 1A.	Risk Factors	67
Item 2 .	Unregistered Sales of Equity Securities and Use of Proceeds	67
Item 3 .	Defaults Upon Senior Securities	67
Item 4.	Mine Safety Disclosures	67
Item 5.	Other Information	67
Item 6.	Exhibits	68
SIGNATURES		69

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Forward-Looking Statements

This Quarterly Report on Form 10-Q (“Quarterly Report”) contains various forward-looking statements and information that are based on NGL Energy Partners LP’s (“we,” “us,” “our,” or the “Partnership”) beliefs and those of our general partner (“GP”), as well as assumptions made by and information currently available to us. These forward-looking statements are identified as any statement that does not relate strictly to historical or current facts. Certain words in this Quarterly Report such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “plan,” “project,” “will,” and similar expressions and statements regarding our plans and objectives for future operations, identify forward-looking statements. Although we and our GP believe such forward-looking statements are reasonable, neither we nor our GP can assure they will prove to be correct. Forward-looking statements are subject to a variety of risks, uncertainties and assumptions. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, our actual results may vary materially from those expected. Among the key risk factors that may affect our consolidated financial position and results of operations are:

• the prices of crude oil, natural gas liquids, gasoline and energy prices generally;

• the general level of demand, and the availability of supply for crude oil, natural gas liquids and gasoline;

• the level of crude oil and natural gas drilling and production in areas where we have operations and facilities;

• the ability to obtain adequate supplies of products if an interruption in supply or transportation occurs and the availability of capacity to transport products to market areas;

• the effect of weather conditions on supply and demand for crude oil, natural gas liquids and gasoline;

• the effect of natural disasters, earthquakes, hurricanes, tornados, lightning strikes, or other significant weather events;

• the availability of local, intrastate, and interstate transportation infrastructure with respect to our transportation services;

• the availability, price, and marketing of competing fuels;

• the effect of energy conservation efforts on product demand;

• energy efficiencies and technological trends;

• the issuance of executive orders, changes in applicable laws, regulations and policies, including tax, environmental, transportation, and employment regulations, or new interpretations by regulatory agencies concerning such laws and regulations and the effect of such laws, regulations and policies (now existing or in the future) on our business operations;

• the effect of executive orders and legislative and regulatory actions on hydraulic fracturing, water disposal and transportation, the treatment of flowback and produced water, seismic activity, and drilling and right-of-way access on federal and state lands;

• delays or restrictions in obtaining, utilizing or maintaining permits and/or rights-of-way by us or our customers;

• hazards or operating risks related to transporting and distributing petroleum products that may not be fully covered by insurance;

• the maturity of the crude oil and natural gas liquids industries and competition from other markets;

• loss of key personnel;

• the impact of competition on our operations, including our ability to renew contracts with key customers;

• the ability to maintain or increase the margins we realize for our services;

• the ability to renew leases for our leased equipment and storage facilities;

• inflation, interest rates, tariffs and general economic conditions (including recessions and other future disruptions and volatility in the global credit markets, as well as the impact of these events on customers and suppliers);

• the nonpayment, nonperformance or bankruptcy by our counterparties;

• the availability and cost of capital and our ability to access certain capital sources;

• a deterioration of the credit and capital markets;

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• the ability to successfully identify and complete accretive organic growth projects;

• the costs and effects of legal and administrative proceedings;

• changes in general economic conditions, including market and macroeconomic disruptions resulting from global pandemics and related governmental responses, and international military conflicts (such as the war in Ukraine and conflicts in the Middle East);

• political pressure and influence of environmental groups upon policies and decisions related to the production, gathering, refining, processing, fractionation, transportation and sale of crude oil, natural gas and natural gas liquids; and

• information technology risks including the risk from cyberattacks, cybersecurity breaches, and other disruptions to our information systems.

You should not put undue reliance on any forward-looking statements. All forward-looking statements speak only as of the date of this Quarterly Report. Except as may be required by state and federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements as a result of new information, future events, or otherwise. When considering forward-looking statements, please review the risks discussed under Part I, Item 1A–“Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended March 31, 2025.

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PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Unaudited Condensed Consolidated Balance Sheets

(in Thousands, except unit amounts)


	September 30, 2025		March 31, 2025
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	8,659	$	5,649
Accounts receivable, net of allowance for expected credit losses of $ 1,255 and $ 3,689 , respectively	558,368		579,468
Accounts receivable-affiliates	237		730
Inventories	118,003		69,916
Prepaid expenses and other current assets	32,483		63,651
Assets held for sale	—		175,207
Assets of discontinued operations	146		67,432
Total current assets	717,896		962,053
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation of $ 1,185,359 and $ 1,104,582 , respectively	2,034,103		2,066,847
GOODWILL	599,348		599,348
INTANGIBLE ASSETS, net of accumulated amortization of $ 367,383 and $ 340,334 , respectively	824,515		851,347

OPERATING LEASE RIGHT-OF-USE ASSETS	110,229		109,870
OTHER NONCURRENT ASSETS	15,494		19,975
Total assets	$	4,301,585	$	4,609,440
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Accounts payable	$	391,290	$	461,980
Accounts payable-affiliates	1		102
Accrued expenses and other payables	126,614		135,233
Advance payments received from customers	14,178		10,347
Current maturities of long-term debt	8,880		8,805
Operating lease obligations	29,251		27,911
Liabilities held for sale	—		42,103
Liabilities of discontinued operations	40		52,749
Total current liabilities	570,254		739,230
LONG-TERM DEBT, net of debt issuance costs of $ 39,645 and $ 43,144 , respectively, and current maturities	2,903,746		2,961,703
OPERATING LEASE OBLIGATIONS	84,942		85,240
OTHER NONCURRENT LIABILITIES	131,487		125,897
COMMITMENTS AND CONTINGENCIES (NOTE 7)

CLASS D 9.00 % PREFERRED UNITS, 530,000 and 600,000 preferred units issued and outstanding, respectively	486,843		551,097
REDEEMABLE NONCONTROLLING INTERESTS	488		424

EQUITY:
General partner, representing a 0.1 % interest, 125,848 and 132,145 notional units, respectively	( 52,905 )		( 52,913 )
Limited partners, representing a 99.9 % interest, 125,722,503 and 132,012,766 common units issued and outstanding, respectively	( 190,881 )		( 170,275 )
Class B preferred limited partners, 12,585,642 and 12,585,642 preferred units issued and outstanding, respectively	305,468		305,468
Class C preferred limited partners, 1,800,000 and 1,800,000 preferred units issued and outstanding, respectively	42,891		42,891
Accumulated other comprehensive income	—		9
Noncontrolling interests	19,252		20,669
Total equity	123,825		145,849
Total liabilities and equity	$	4,301,585	$	4,609,440

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Operations

(in Thousands, except unit and per unit amounts)


	Three Months Ended September 30,				Six Months Ended September 30,
	2025		2024		2025		2024
REVENUES:
Product	$	484,255	$	575,014	$	920,673	$	1,164,888
Service and other	190,422		181,458		376,160		350,818
Total Revenues	674,677		756,472		1,296,833		1,515,706
COST OF SALES:
Product	415,554		503,854		793,018		1,024,010
Service and other	5,466		19,061		10,814		38,210
Total Cost of Sales	421,020		522,915		803,832		1,062,220
OPERATING COSTS AND EXPENSES:
Operating	74,089		76,565		144,857		147,953
General and administrative	14,729		12,117		28,469		27,081
Depreciation and amortization	63,994		61,875		130,579		124,039
Loss (gain) on disposal or impairment of assets, net	6,594		1,509		( 2,605 )		( 9,157 )

Operating Income	94,251		81,491		191,701		163,570
OTHER INCOME (EXPENSE):
Equity in earnings of unconsolidated entities	—		1,522		201		1,822
Interest expense	( 64,708 )		( 77,180 )		( 130,253 )		( 146,919 )
Gain on early extinguishment of liabilities, net	—		—		1,492		—
Other income (expense), net	208		1,834		( 3,307 )		1,998
Income From Continuing Operations Before Income Taxes	29,751		7,667		59,834		20,471
INCOME TAX BENEFIT (EXPENSE)	61		( 174 )		243		4,625
Income From Continuing Operations	29,812		7,493		60,077		25,096
Income (Loss) From Discontinued Operations, net of Tax	9		( 4,102 )		39,388		( 11,230 )
Net Income	29,821		3,391		99,465		13,866
LESS: NET INCOME FROM CONTINUING OPERATIONS ATTRIBUTABLE TO NONREDEEMABLE NONCONTROLLING INTERESTS	( 490 )		( 932 )		( 1,195 )		( 1,724 )
LESS: NET INCOME FROM CONTINUING OPERATIONS ATTRIBUTABLE TO REDEEMABLE NONCONTROLLING INTERESTS	( 47 )		( 5 )		( 64 )		( 5 )
NET INCOME ATTRIBUTABLE TO NGL ENERGY PARTNERS LP	$	29,284	$	2,454	$	98,206	$	12,137

NET INCOME (LOSS) FROM CONTINUING OPERATIONS ALLOCATED TO COMMON UNITHOLDERS (NOTE 3)	$	3,137	$	( 24,172 )	$	( 30,887 )	$	( 36,163 )
NET INCOME (LOSS) FROM DISCONTINUED OPERATIONS ALLOCATED TO COMMON UNITHOLDERS (NOTE 3)	9		( 4,098 )		39,349		( 11,219 )
NET INCOME (LOSS) ALLOCATED TO COMMON UNITHOLDERS (NOTE 3)	$	3,146	$	( 28,270 )	$	8,462	$	( 47,382 )

BASIC AND DILUTED INCOME (LOSS) PER COMMON UNIT
Income (Loss) From Continuing Operations	$	0.02	$	( 0.18 )	$	( 0.24 )	$	( 0.27 )
(Loss) Income From Discontinued Operations, net of Tax	$	—	$	( 0.03 )	$	0.30	$	( 0.08 )
Net Income (Loss)	$	0.02	$	( 0.21 )	$	0.07	$	( 0.36 )
BASIC AND DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING	127,309,332		132,274,669		129,516,312		132,393,067

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Comprehensive Income

(in Thousands)


	Three Months Ended September 30,				Six Months Ended September 30,
	2025		2024		2025		2024
Net income	$	29,821	$	3,391	$	99,465	$	13,866
Other comprehensive income (loss)	—		424		( 9 )		400
Comprehensive income	$	29,821	$	3,815	$	99,456	$	14,266

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Unaudited Condensed Consolidated Statement of Changes in Equity

Six Months Ended September 30, 2025

(in Thousands, except unit amounts)


			Limited Partners
			Preferred			Common
	General Partner		Units	Amount		Units	Amount		Accumulated Other Comprehensive Income (Loss)		Noncontrolling Interests		Total Equity
BALANCE AT MARCH 31, 2025	$	( 52,913 )	14,385,642	$	348,359	132,012,766	$	( 170,275 )	$	9	$	20,669	$	145,849
Contributions from noncontrolling interest owners	—		—	—		—	—		—		621		621
Distributions to preferred unitholders (Note 8)	—		—	—		—	( 27,844 )		—		—		( 27,844 )
Distributions to noncontrolling interest owners	—		—	—		—	—		—		( 1,977 )		( 1,977 )
Disposition of noncontrolling interest	—		—	—		—	—		—		11		11
Common unit repurchases and cancellations (Note 8)	—		—	—		( 1,873,838 )	( 8,068 )		—		—		( 8,068 )
Class D preferred units redemption - amount paid in excess of carrying value (Note 8)	—		—	—		—	( 35,756 )		—		—		( 35,756 )
Net income	6		—	—		—	68,916		—		705		69,627
Other comprehensive loss	—		—	—		—	—		( 9 )		—		( 9 )
BALANCE AT JUNE 30, 2025	( 52,907 )		14,385,642	348,359		130,138,928	( 173,027 )		—		20,029		142,454
Contributions from noncontrolling interest owners	—		—	—		—	—		—		118		118
Distributions to preferred unitholders (Note 8)	—		—	—		—	( 26,136 )		—		—		( 26,136 )
Distributions to noncontrolling interest owners	—		—	—		—	—		—		( 1,385 )		( 1,385 )
Common unit repurchases and cancellations (Note 8)	—		—	—		( 4,416,425 )	( 21,000 )		—		—		( 21,000 )
Net income	2		—	—		—	29,282		—		490		29,774
BALANCE AT SEPTEMBER 30, 2025	$	( 52,905 )	14,385,642	$	348,359	125,722,503	$	( 190,881 )	$	—	$	19,252	$	123,825

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NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Unaudited Condensed Consolidated Statement of Changes in Equity

Six Months Ended September 30, 2024

(in Thousands, except unit amounts)


			Limited Partners
			Preferred			Common
	General Partner		Units	Amount		Units	Amount		Accumulated Other Comprehensive Income (Loss)		Noncontrolling Interests		Total Equity
BALANCE AT MARCH 31, 2024	$	( 52,834 )	14,385,642	$	348,359	132,512,766	$	134,807	$	( 499 )	$	18,237	$	448,070
Contributions from noncontrolling interest owners	—		—	—		—	—		—		1,619		1,619
Distributions to preferred unitholders	—		—	—		—	( 245,604 )		—		—		( 245,604 )
Distributions to noncontrolling interest owners	—		—	—		—	—		—		( 543 )		( 543 )
Net (loss) income	( 19 )		—	—		—	9,702		—		792		10,475
Other comprehensive loss	—		—	—		—	—		( 24 )		—		( 24 )
BALANCE AT JUNE 30, 2024	( 52,853 )		14,385,642	348,359		132,512,766	( 101,095 )		( 523 )		20,105		213,993
Distributions to preferred unitholders	—		—	—		—	( 30,752 )		—		—		( 30,752 )
Distributions to noncontrolling interest owners	—		—	—		—	—		—		( 930 )		( 930 )
Sale of interest in saltwater disposal assets	—		—	—		—	( 221 )		—		1,561		1,340
Common unit repurchases and cancellations	—		—	—		( 500,000 )	( 2,126 )		—		—		( 2,126 )
Net (loss) income	( 28 )		—	—		—	2,482		—		932		3,386
Other comprehensive income	—		—	—		—	—		424		—		424
BALANCE AT SEPTEMBER 30, 2024	$	( 52,881 )	14,385,642	$	348,359	132,012,766	$	( 131,712 )	$	( 99 )	$	21,668	$	185,335

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Cash Flows

(in Thousands)


	Six Months Ended September 30,
	2025		2024
OPERATING ACTIVITIES:
Net income	$	99,465	$	13,866
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
(Income) loss from discontinued operations, net of tax	( 39,388 )		11,230
Depreciation and amortization, including amortization of debt issuance costs	136,955		129,974
Gain on early extinguishment or revaluation of liabilities, net	( 1,492 )		—
Gain on disposal or impairment of assets, net	( 2,605 )		( 9,157 )
Change in provision for expected credit losses	34		1,409
Net adjustments to fair value of derivatives	( 10,245 )		3,016
Equity in earnings of unconsolidated entities	( 201 )		( 1,822 )
Distributions of earnings from unconsolidated entities	108		1,853
Lower of cost or net realizable value adjustments	2,519		627
Other	1,677		1,938
Changes in operating assets and liabilities:
Accounts receivable and affiliates	15,478		65,126
Inventories	( 52,749 )		( 81,826 )
Other current and noncurrent assets	20,787		160
Accounts payable and affiliates	( 71,139 )		( 97,911 )
Other current and noncurrent liabilities	( 41,044 )		( 73,698 )
Net cash provided by (used in) operating activities-continuing operations	58,160		( 35,215 )
Net cash provided by operating activities-discontinued operations	15,493		23,874
Net cash provided by (used in) operating activities	73,653		( 11,341 )
INVESTING ACTIVITIES:
Capital expenditures	( 53,066 )		( 149,545 )
Net settlements of derivatives	3,847		4,516
Proceeds from sales of assets	72,529		18,556
Proceeds from divestitures of businesses and investments, net	88,639		68,500
Investments in unconsolidated entities	—		( 106 )
Distributions of capital from unconsolidated entities	—		243
Net cash provided by (used in) investing activities-continuing operations	111,949		( 57,836 )
Net cash provided by investing activities-discontinued operations	67,709		8,229
Net cash provided by (used in) investing activities	179,658		( 49,607 )
FINANCING ACTIVITIES:
Proceeds from borrowings under ABL Facility	414,000		837,000
Payments on ABL Facility	( 452,000 )		( 563,000 )
Payments on Term Loan B	( 3,500 )		( 3,500 )
Repayment and repurchase of senior secured notes	( 17,274 )		—
Proceeds from borrowings on other long-term debt	—		6,360
Payments on other long-term debt	( 881 )		( 204 )
Debt issuance costs	( 1,222 )		( 2,480 )
Contributions from noncontrolling interest owners	739		1,793
Distributions to preferred unitholders	( 57,689 )		( 245,604 )
Distributions to noncontrolling interest owners	( 3,362 )		( 1,473 )

Class D preferred unit repurchases	( 100,010 )		—
Common unit repurchases and cancellations	( 29,068 )		( 2,126 )
Payments to settle contingent consideration liabilities	( 103 )		( 481 )
Net settlements of derivatives	499		258
Principal payments of finance leases	( 430 )		( 9 )
Net cash (used in) provided by financing activities	( 250,301 )		26,534
Net increase (decrease) in cash and cash equivalents	3,010		( 34,414 )
Cash and cash equivalents, beginning of period	5,649		38,909
Cash and cash equivalents, end of period	$	8,659	$	4,495
Supplemental cash flow information:
Cash interest paid	$	124,214	$	166,534
Income taxes paid (net of income tax refunds)	$	2,234	$	5,240
Supplemental non-cash investing and financing activities:
Distributions declared but not paid to preferred unitholders	$	26,136	$	30,752
Accrued capital expenditures	$	25,264	$	28,891

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements

Note 1— Organization and Operations

NGL Energy Partners LP (“we,” “us,” “our,” or the “Partnership”) is a Delaware master limited partnership. NGL Energy Holdings LLC serves as our general partner (“GP”). At September 30, 2025, our operations included three segments:

• Our Water Solutions segment transports, treats, recycles and disposes of produced and flowback water generated from crude oil and natural gas production. We also sell produced water for reuse and recycle to our producer customers to be used in their crude oil exploration and production activities. As part of processing water, we aggregate and sell recovered crude oil, also known as skim oil. We also dispose of solids such as tank bottoms, drilling fluids and drilling muds and perform other ancillary services such as truck washouts. Our activities in this segment are underpinned by long-term, fixed fee contracts and acreage dedications, some of which contain minimum volume commitments with leading oil and gas companies including large, investment grade producer customers.

• Our 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 through its owned assets. Our activities in this segment are supported by certain long-term, fixed rate contracts with acreage dedications and which include minimum volume commitments on our storage tanks and owned and leased pipelines.

• Our Liquids Logistics segment conducts supply operations for natural gas liquids to commercial, retail and industrial customers across the United States and Canada. These operations are conducted through our five owned terminals, third-party storage and terminal facilities, access to nine common carrier pipelines and a fleet of leased railcars. We also provide services for marine exports of butane through our facility located in Chesapeake, Virginia and we also own a propane pipeline in Michigan. We attempt to reduce our exposure to price fluctuations by using back-to-back physical contracts and pre-sale agreements that allow us to lock in a margin on a percentage of our winter volumes. We also enter into financially settled derivative contracts as economic hedges of our physical inventory, physical sales and physical purchase contracts.

Discontinued Operations

Sale of Refined Products Business and Exiting Biodiesel Business

As of March 31, 2025, we completed winding down our biodiesel business.

On April 30, 2025, we sold our refined products business, including certain working capital items, to a third-party (see Note 15 for a further discussion).

The sale of our refined products business and winding down of our biodiesel business represent a strategic shift in our operations and will have a significant effect on our operations and financial results going forward. Accordingly, the results of operations and cash flows for our refined products and biodiesel businesses within our Liquids Logistics segment have been classified as discontinued operations for all periods presented and prior periods have been retrospectively adjusted in the unaudited condensed consolidated statements of operations and unaudited condensed consolidated statements of cash flows. In addition, the assets and liabilities related to our refined products and biodiesel businesses were classified as either held for sale or discontinued operations within our September 30, 2025 and March 31, 2025 unaudited condensed consolidated balance sheets (see Note 16 for a further discussion).

Other Dispositions

Sale of Certain Investments in Unconsolidated Entities and Related Assets

On April 14, 2025, we sold certain investments in unconsolidated entities, property, plant and equipment and intangible assets to a third-party, which were classified as held for sale within our March 31, 2025 consolidated balance sheet (see Note 15 for a further discussion).

Sale of Certain Natural Gas Liquids Terminals and Most of Our Wholesale Propane Business

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements

further discussion). The assets and liabilities of this portion of our Liquids Logistics segment were classified as held for sale within our March 31, 2025 consolidated balance sheet (see Note 16 for a further discussion).

Sale of Certain Railcars

As of March 31, 2025, we entered into definitive agreements with third-parties to sell certain railcars, which have been classified as held for sale within our March 31, 2025 unaudited condensed consolidated balance sheet (see Note 15 for a further discussion).

Note 2— Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include our accounts and those of our controlled subsidiaries. Intercompany transactions and account balances have been eliminated in consolidation. Investments we do not control, but can exercise significant influence over, are accounted for using the equity method of accounting. We also own an undivided interest in a crude oil pipeline, and include our proportionate share of assets, liabilities, and expenses related to this pipeline in our unaudited condensed consolidated financial statements.

Our unaudited condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim consolidated financial information in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, the unaudited condensed consolidated financial statements exclude certain information and notes required by GAAP for complete annual consolidated financial statements. However, we believe that the disclosures made are adequate to make the information presented not misleading. The unaudited condensed consolidated financial statements include all adjustments that we consider necessary for a fair presentation of our consolidated financial position, results of operations and cash flows for the interim periods presented. Such adjustments consist only of normal recurring items, unless otherwise disclosed in this Quarterly Report on Form 10-Q. The unaudited condensed consolidated balance sheet at March 31, 2025 was derived from our audited consolidated financial statements for the fiscal year ended March 31, 2025 included in our Annual Report on Form 10-K (“Annual Report”) filed with the SEC on May 29, 2025.

These interim unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and notes thereto included in our Annual Report. Due to the seasonal nature of certain of our operations and other factors, the results of operations for interim periods are not necessarily indicative of the results of operations to be expected for future periods or for the full fiscal year ending March 31, 2026.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amount of assets and liabilities reported at the date of the consolidated financial statements and the amount of revenues and expenses reported during the periods presented.

Critical accounting estimates we make in the preparation of our unaudited condensed consolidated financial statements include, among others, determining the impairment of goodwill and long-lived assets, useful lives and recoverability of property, plant and equipment and amortizable intangible assets, the fair value of derivative instruments, estimating certain revenues, the fair value of asset retirement obligations, the fair value of assets and liabilities acquired in acquisitions, the recoverability of inventories, the collectability of accounts and notes receivable, the valuation of contingent consideration liabilities and accruals for environmental matters. Although we believe these estimates are reasonable, actual results could differ from those estimates.

Significant Accounting Policies

Our significant accounting policies are consistent with those disclosed in Note 2 of our audited consolidated financial statements included in our Annual Report.

Income Taxes

We qualify as a partnership for income tax purposes. As such, we generally do not pay federal income tax. Rather, each owner reports his or her share of our income or loss on his or her individual tax return. The aggregate difference in the

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

basis of our net assets for financial and tax reporting purposes cannot be readily determined, as we do not have access to information regarding each partner’s basis in the Partnership.

We have a corporate subsidiary with a deferred tax liability of $ 29.2 million and $ 29.9 million at September 30, 2025 and March 31, 2025, respectively, in connection with certain of our acquisitions, which is included within other noncurrent liabilities in our unaudited condensed consolidated balance sheets. The deferred tax liability is the tax effected cumulative temporary difference between the GAAP basis and tax basis of the acquired assets within the corporation. For GAAP purposes, certain of the acquired assets will be depreciated and amortized over time which will lower the GAAP basis. The deferred tax benefit recorded during the six months ended September 30, 2025 for the corporate subsidiary was $ 0.7 million with an effective tax rate of 21.0 %. The deferred tax benefit recorded during the six months ended September 30, 2024 for the corporate subsidiaries was $ 6.1 million with an effective tax rate of 21.1 %.

We evaluate uncertain tax positions for recognition and measurement in the unaudited condensed consolidated financial statements. To recognize a tax position, we determine whether it is more likely than not that the tax position will be sustained upon examination, including resolution of any related appeals or litigation, based on the technical merits of the position. A tax position that meets the more likely than not threshold is measured to determine the amount of benefit to be recognized in the unaudited condensed consolidated financial statements. We had no uncertain tax positions that required recognition in our unaudited condensed consolidated financial statements at September 30, 2025 or March 31, 2025.

On July 4, 2025, the One Big Beautiful Bill Act (“Act”) was signed into law by the President of the United States. The Act makes permanent many provisions of the expiring Tax Cuts and Jobs Act of 2017, and enacts new tax laws effective primarily in 2025 or 2026. The new legislation permanently reinstates 100% bonus depreciation for qualifying property acquired after January 19, 2025, and permanently extends the 20% deduction for qualified business income. The new legislation also makes permanent the modified calculation of adjusted taxable income that corresponds with earnings before interest, taxes depreciation, and amortization (EBITDA) for the purpose of calculating the deduction limits for net business interest expense. This change applies to taxable years beginning after December 31, 2024. The provisions of the Act did not have a material impact to our financial statements.

Inventories

Our inventories are valued at the lower of cost or net realizable value, with cost determined using the weighted-average cost method, including the cost of transportation and storage, and with net realizable value defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. In performing this analysis, we consider fixed-price forward commitments.

Inventories consist of the following at the dates indicated:


	September 30, 2025		March 31, 2025
	(in thousands)
Butane	$	52,856	$	22,674
Crude oil	44,538		23,962
Propane	14,137		11,847
Other	6,472		11,433
Total	$	118,003	$	69,916

Amounts in the table above do not include assets classified as either held for sale or discontinued operations within our March 31, 2025 consolidated balance sheet (see Note 16).

Investments in Unconsolidated Entities

Investments we do not control, but can exercise significant influence over, are accounted for using the equity method of accounting. Investments in partnerships and limited liability companies, unless our investment is considered to be minor, and investments in unincorporated joint ventures are also accounted for using the equity method of accounting. All of our equity method investments were classified as held for sale within our March 31, 2025 consolidated balance sheet (see Note 15 and Note 16).

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

Other Noncurrent Assets

Other noncurrent assets consist of the following at the dates indicated:


	September 30, 2025		March 31, 2025
	(in thousands)
Linefill (1)	$	5,240	$	5,240
Loan receivable (2)	—		3,089
Other	10,254		11,646
Total	$	15,494	$	19,975

(1) Represents minimum volumes of product we are required to leave on certain third-party owned pipelines under long-term shipment commitments. At September 30, 2025 and March 31, 2025, linefill consisted of 95,877 and 90,881 barrels of crude oil, respectively. Linefill held in pipelines we own is included within property, plant and equipment (see Note 4).

(2) Represents the noncurrent portion of loan receivables, net of allowances for expected credit losses, primarily related to the sale of certain saltwater disposal assets. At September 30, 2025 and March 31, 2025, the loan receivable balance (which includes interest receivable) was $ 3.6 million and $ 6.1 million, respectively, of which $ 3.6 million and $ 3.0 million, respectively, are recorded within prepaid expenses and other current assets in our unaudited condensed consolidated balance sheets.

Amounts in the table above do not include assets classified as either held for sale or discontinued operations within our March 31, 2025 consolidated balance sheet (see Note 16).

Accrued Expenses and Other Payables

Accrued expenses and other payables consist of the following at the dates indicated:


	September 30, 2025		March 31, 2025
	(in thousands)
Distributions payable	$	26,136	$	29,845
Accrued interest	24,761		25,308
Accrued compensation and benefits	21,400		45,081
Excise and other tax liabilities	15,364		13,100
Derivative liabilities	1,848		6,427
Other	37,105		15,472
Total	$	126,614	$	135,233

Amounts in the table above do not include liabilities classified as either held for sale or discontinued operations within our March 31, 2025 consolidated balance sheet (see Note 16).

Variable Interest Entities

We decide at the inception of each arrangement whether an entity in which an investment is made or in which we have other variable interests is considered a variable interest entity (“VIE”). Generally, an entity is a VIE if: (1) the entity does not have sufficient equity at risk to finance its activities without additional subordinated financial support from other parties, (2) the entity’s investors lack any characteristics of a controlling financial interest or (3) the entity was established with non-substantive voting rights.

We consolidate VIEs when we are deemed to be the primary beneficiary. The primary beneficiary of a VIE is generally the party that both: (1) has the power to make decisions that most significantly affect the economic performance of the VIE and (2) has the obligation to absorb losses or the right to receive benefits that in either case could potentially be significant to the VIE. If we are not deemed to be the primary beneficiary of a VIE, we account for the investment or other variable interests in a VIE in accordance with applicable GAAP.

We have two aviation entities whereby we own a 90 % interest and members of our management own a 10 % interest. We executed guarantees for the benefit of the lender that obligate us for the payment and performance of the aviation entities with respect to the repayment of the loans. Since we guaranteed the payment of the outstanding loans, we have concluded that the aviation entities are VIEs because the equity is not sufficient to fund the aviation entities’ activities without additional subordinated financial support. We have the power to make decisions that most significantly affect the economic performance of the aviation entities and have benefits through our ownership interest. Therefore, we have concluded that we are the primary

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

beneficiary and will consolidate the aviation entities in our unaudited condensed consolidated financial statements and will include the noncontrolling interests as redeemable noncontrolling interests as discussed below.

The following table summarizes the balances related to the VIEs that are consolidated in our unaudited condensed consolidated balance sheets at the dates indicated (excluding intercompany eliminations at the time of consolidation) as well as our equity in the VIEs:


	September 30, 2025		March 31, 2025
	(in thousands)
Cash and cash equivalents	$	101	$	14
Accounts receivable-affiliates	237		135
Prepaid expenses and other current assets	274		108
Property, plant and equipment, net	15,757		15,984
Accounts payable	( 77 )		( 24 )
Accrued expenses and other payables	( 169 )		( 190 )
Current maturities of long-term debt	( 1,880 )		( 1,805 )
Long-term debt, net	( 8,865 )		( 9,818 )
Redeemable noncontrolling interests	( 488 )		( 424 )
Partnership's equity in VIEs	$	4,890	$	3,980

Generally, the assets of the individual consolidated VIEs can be used only to settle liabilities of each respective individual consolidated VIE and the liabilities of the individual consolidated VIEs are liabilities for which creditors or beneficial interest holders do not have recourse to the general credit of the Partnership. In general, our maximum exposure to loss due to involvement with the VIEs is limited to the amount of capital investment in the VIEs, if any, or the potential obligation to perform on the guarantees of the outstanding loans.

Noncontrolling Interests

Noncontrolling interests represent the portion of certain consolidated subsidiaries that are owned by third-parties. Amounts are adjusted by the noncontrolling interest holder’s proportionate share of the subsidiaries’ earnings or losses each period and any distributions that are paid. Noncontrolling interests are reported as a component of equity, unless the noncontrolling interest is considered redeemable, in which case the noncontrolling interest is recorded between liabilities and equity (mezzanine or temporary equity) in our unaudited condensed consolidated balance sheet. The redeemable noncontrolling interest is adjusted at each balance sheet date to its maximum redemption value if the amount is greater than the carrying value. The following table summarizes changes in our redeemable noncontrolling interests in our unaudited condensed consolidated balance sheets (in thousands):


Redeemable noncontrolling interests at March 31, 2025	$	424

Net income from continuing operations attributable to redeemable noncontrolling interests	64

Redeemable noncontrolling interests at September 30, 2025	$	488

Contingent Consideration Liabilities

The following table summarizes changes in our contingent consideration liabilities (in thousands):


Contingent consideration liabilities at March 31, 2025 (1)	$	15,797
Liabilities settled	( 1,137 )

Contingent consideration liabilities at September 30, 2025 (2)	$	14,660

(1) Includes $ 2.0 million which is recorded within accrued expenses and other payables and $ 13.8 million which is recorded within other noncurrent liabilities in our March 31, 2025 consolidated balance sheet.

(2) Includes $ 2.0 million which is recorded within accrued expenses and other payables and $ 12.7 million which is recorded within other noncurrent liabilities in our September 30, 2025 unaudited condensed consolidated balance sheet.

Reclassifications

In addition to the reclassifications related to assets and liabilities held for sale and discontinued operations discussed in Note 1, we have reclassified certain prior period financial statement information to be consistent with the classification methods

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

used in the current fiscal year. For the three months and six months ended September 30, 2024, the income statement was revised to present revenues and cost of sales by product and service and other, compared to presenting revenues and cost of sales by segment in the September 30, 2024 Quarterly Report on Form 10-Q (“September 30, 2024 Quarterly Report”). Also, for the three months and six months ended September 30, 2024, the elimination of intersegment sales is included in “Corporate and Other” as discussed in Note 10. These reclassifications did not impact previously reported amounts of assets, liabilities, equity, net income or cash flows.

It was determined that $ 7.3 million was incorrectly presented as Cost of Sales - Service and other instead of Cost of Sales - Product in the unaudited condensed consolidated statement of operations for the three months ended June 30, 2025. This amount has been properly presented as Cost of Sales - Product in the unaudited condensed consolidated statement of operations for the six months ended September 30, 2025. As the amount is not considered material, it will be corrected when we present the unaudited condensed consolidated statement of operations for the three months ended June 30, 2025 in our June 30, 2026 Quarterly Report on Form 10-Q.

Recent Accounting Pronouncements

In July 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2025-05, Measurement of Credit Losses for Accounts Receivable and Contract Assets, which amends ASC 326-20 to provide a practical expedient for all entities when estimating expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606. The practical expedient assumes that current conditions as of the balance sheet date do not change for the remaining life of the asset. The ASU is effective for fiscal years beginning after December 15, 2025 (which is the Partnership’s fiscal year beginning April 1, 2026), and for interim periods within those fiscal years, with early adoption permitted. The amendments should be applied prospectively. We adopted this ASU beginning with this Quarterly Report. The adoption of this ASU did not impact our financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40), which includes amendments requiring, among other things, disclosure of disaggregated information about specific categories of expenses (purchases of inventory, employee compensation, depreciation, amortization, and depletion) included in certain expense captions on the income statement. Additionally, the amendments require disclosure of the total amount of selling expenses and an annual disclosure of the definition of selling expenses. The ASU is effective for fiscal years beginning after December 15, 2026 (which is the Partnership’s fiscal year beginning April 1, 2027), and for interim periods within fiscal years beginning after December 15, 2027 (which is the Partnership’s fiscal year beginning April 1, 2028), with early adoption permitted. The ASU may be applied either prospectively or retrospectively to all prior periods presented in the financial statements. We are currently evaluating the ASU to determine its impact on our financial statement disclosures.

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The ASU is effective for the Partnership’s fiscal year beginning April 1, 2025, with early adoption permitted. The amendments are required to be applied prospectively with retrospective application permitted. We are currently evaluating the ASU to determine its impact on our financial statement disclosures.

Note 3— Income (Loss) Per Common Unit

The following table presents our calculation of basic and diluted weighted average common units outstanding for the periods indicated:


	Three Months Ended September 30,		Six Months Ended September 30,
	2025	2024	2025	2024
Weighted average common units outstanding during the period:
Common units - Basic	127,309,332	132,274,669	129,516,312	132,393,067



Common units - Diluted	127,309,332	132,274,669	129,516,312	132,393,067

For the three months and six months ended September 30, 2025 and 2024, respectively, all potential common units or convertible units were considered antidilutive.

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

Our income (loss) per common unit is as follows for the periods indicated:


	Three Months Ended September 30,				Six Months Ended September 30,
	2025		2024		2025		2024
	(in thousands, except per unit amounts)
Income from continuing operations	$	29,812	$	7,493	$	60,077	$	25,096
Less: Net income from continuing operations attributable to nonredeemable noncontrolling interests	( 490 )		( 932 )		( 1,195 )		( 1,724 )
Less: Net income from continuing operations attributable to redeemable noncontrolling interests	( 47 )		( 5 )		( 64 )		( 5 )
Net income from continuing operations attributable to NGL Energy Partners LP	29,275		6,556		58,818		23,367
Less: Distributions to preferred unitholders (1)	( 26,136 )		( 30,752 )		( 89,736 )		( 59,566 )
Less: Net (income) loss from continuing operations allocated to the GP (2)	( 2 )		24		31		36
Net income (loss) from continuing operations allocated to common unitholders	$	3,137	$	( 24,172 )	$	( 30,887 )	$	( 36,163 )

Income (loss) from discontinued operations, net of tax	$	9	$	( 4,102 )	39,388		$	( 11,230 )
Less: Net loss (income) from discontinued operations allocated to the GP (2)	—		4		( 39 )		11
Net income (loss) from discontinued operations allocated to common unitholders	$	9	$	( 4,098 )	$	39,349	$	( 11,219 )

Net income (loss) allocated to common unitholders	$	3,146	$	( 28,270 )	$	8,462	$	( 47,382 )
Basic and diluted income (loss) per common unit
Income (loss) from continuing operations	$	0.02	$	( 0.18 )	$	( 0.24 )	$	( 0.27 )
(Loss) income from discontinued operations, net of tax	$	—	$	( 0.03 )	$	0.30	$	( 0.08 )
Net income (loss)	$	0.02	$	( 0.21 )	$	0.07	$	( 0.36 )
Basic and diluted weighted average common units outstanding	127,309,332		132,274,669		129,516,312		132,393,067

(1) Includes distributions earned and declared for the three months and six months ended September 30, 2025 and 2024 and the excess of the Class D Preferred Units (as defined herein) repurchase price over the carrying value of the units, as discussed further in Note 8.

(2) Net (income) loss allocated to the GP includes distributions to which it is entitled as the holder of incentive distribution rights.

Note 4— Property, Plant and Equipment

Our property, plant and equipment consists of the following at the dates indicated:


Description	Estimated Useful Lives			September 30, 2025		March 31, 2025
	(in years)			(in thousands)
Water treatment facilities and equipment (1)	3	-	30	$	2,266,185	$	2,240,919
Pipeline and related facilities	30	-	40	266,324		266,324
Crude oil tanks and related equipment	2	-	30	230,784		230,174
Buildings and leasehold improvements	3	-	40	124,562		124,388
Natural gas liquids terminal and storage assets	2	-	30	100,137		99,805
Land				64,603		64,733
Tank bottoms and linefill (2)				31,555		30,623
Information technology equipment	3	-	7	30,970		31,319
Vehicles and railcars (3)	3	-	25	22,763		33,629
Other	3	-	20	19,269		19,161
Construction in progress				62,310		30,354
Gross property, plant and equipment				3,219,462		3,171,429
Accumulated depreciation				( 1,185,359 )		( 1,104,582 )
Net property, plant and equipment				$	2,034,103	$	2,066,847

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

(1) Includes finance lease right-of-use assets of $ 5.8 million at September 30, 2025. Accumulated amortization related to these finance leases is included within accumulated depreciation.

(2) Tank bottoms, which are product volumes required for the operation of storage tanks, are recorded at historical cost. We recover tank bottoms when the storage tanks are removed from service. Linefill, which represents our portion of the product volume required for the operation of the proportionate share of a pipeline we own, is recorded at historical cost.

(3) Includes finance lease right-of-use assets of $ 0.1 million and $ 0.1 million at September 30, 2025 and March 31, 2025, respectively. Accumulated amortization related to these finance leases is included within accumulated depreciation.

Amounts in the table above do not include assets classified as either held for sale or discontinued operations within our March 31, 2025 consolidated balance sheet (see Note 16).

The following table summarizes depreciation expense and capitalized interest expense for the periods indicated:


	Three Months Ended September 30,				Six Months Ended September 30,
	2025		2024		2025		2024
	(in thousands)
Depreciation expense	$	50,699	$	48,021	$	104,116	$	95,940
Capitalized interest expense	$	146	$	963	$	230	$	1,506

We record (gains) losses from the sales of property, plant and equipment and any write-downs in value due to impairment within loss (gain) on disposal or impairment of assets, net in our unaudited condensed consolidated statements of operations. The following table summarizes (gains) losses on the disposal or impairment of property, plant and equipment by segment for the periods indicated:


	Three Months Ended September 30, 2025		Six Months Ended September 30, 2025
	(in thousands)
Water Solutions (1)	$	6,377	$	7,871
Crude Oil Logistics (2)	( 10 )		( 13 )
Liquids Logistics (3)	—		( 13 )
Corporate and Other	( 1 )		( 2 )
Total	$	6,366	$	7,843

(1) Amount does not include the net loss recognized on the sale of certain investments in unconsolidated entities and related assets during the three months and six months ended September 30, 2025 discussed in Note 15.

(2) Amount does not include the gain recognized on the sale of certain railcars during the three months and six months ended September 30, 2025 discussed in Note 15.

(3) Amount does not include the net gains recognized on the Wholesale Propane Disposition and the sale of our refined products business during the three months and six months ended September 30, 2025 discussed in Note 15.

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

Note 5— Intangible Assets

Our intangible assets consist of the following at the dates indicated:


		September 30, 2025						March 31, 2025
Description	Weighted- Average Remaining Useful Life	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
	(in years)	(in thousands)

Customer relationships	17.6	$	857,903	$	( 284,776 )	$	573,127	$	857,903	$	( 264,675 )	$	593,228
Customer commitments	18.8	192,000		( 48,000 )		144,000		192,000		( 44,160 )		147,840
Rights-of-way and easements	28.2	100,167		( 23,441 )		76,726		99,964		( 21,645 )		78,319
Debt issuance costs (1)	3.4	22,323		( 7,029 )		15,294		21,841		( 4,748 )		17,093
Executory contracts and other agreements	23.0	19,505		( 4,137 )		15,368		19,973		( 5,106 )		14,867
Total		$	1,191,898	$	( 367,383 )	$	824,515	$	1,191,681	$	( 340,334 )	$	851,347

(1) Includes debt issuance costs related to the ABL Facility (as defined herein). Debt issuance costs related to the fixed-rate notes and Term Loan B (as defined herein) are reported as a reduction of the carrying amount of long-term debt.

Amounts in the table above do not include assets classified as either held for sale or discontinued operations within our March 31, 2025 consolidated balance sheet (see Note 16).

Amortization expense is as follows for the periods indicated:


	Three Months Ended September 30,				Six Months Ended September 30,
Recorded In	2025		2024		2025		2024
	(in thousands)
Depreciation and amortization	$	13,295	$	13,854	$	26,463	$	28,099
Cost of sales - product	—		37		—		37
Interest expense	1,146		990		2,281		1,936
Operating expenses	61		61		123		123
Total	$	14,502	$	14,942	$	28,867	$	30,195

Amounts in the table above do not include amortization expense related to our refined products and biodiesel businesses, as these amounts have been classified within discontinued operations within our unaudited condensed consolidated statements of operations (see Note 16).

The following table summarizes expected amortization of our intangible assets at September 30, 2025 (in thousands):


Year Ending March 31,
2026 (six months)	$	28,663
2027	56,879
2028	54,552
2029	51,708
2030	44,337
2031	43,608
Thereafter	544,768
Total	$	824,515

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

Note 6— Long-Term Debt

Our long-term debt consists of the following at the dates indicated:


	September 30, 2025						March 31, 2025
	Face Amount		Unamortized Debt Issuance Costs (1)		Book Value		Face Amount		Unamortized Debt Issuance Costs (1)		Book Value
	(in thousands)
Asset-based revolving credit facility (“ABL Facility”)	$	71,000			$	71,000	$	109,000			$	109,000
Senior secured term loan "B" credit facility (“Term Loan B”)	689,500		$	( 15,719 )	673,781		693,000		$	( 16,479 )	676,521
Senior secured notes:
8.125 % Notes due 2029 (“2029 Senior Secured Notes”)	900,000		( 8,900 )		891,100		900,000		( 10,219 )		889,781
8.375 % Notes due 2032 (“2032 Senior Secured Notes”)	1,281,000		( 14,999 )		1,266,001		1,300,000		( 16,416 )		1,283,584
Other long-term debt	10,771		( 27 )		10,744		11,652		( 30 )		11,622
Total long-term debt	2,952,271		( 39,645 )		2,912,626		3,013,652		( 43,144 )		2,970,508
Less: Current maturities	8,880		—		8,880		8,805		—		8,805
Long-term debt	$	2,943,391	$	( 39,645 )	$	2,903,746	$	3,004,847	$	( 43,144 )	$	2,961,703

(1) Debt issuance costs related to the ABL Facility are reported within intangible assets, rather than as a reduction of the carrying amount of long-term debt. The unamortized debt issuance costs for the Term Loan B include a $ 4.0 million discount.

ABL Facility

Total commitments under the ABL Facility are $ 475.0 million, which we reduced from $ 550.0 million effective June 12, 2025. The ABL Facility includes a $ 200.0 million sub-limit for letters of credit. Availability under the ABL Facility is subject to a borrowing base that is determined by calculating the amount equal to the sum of our eligible cash, outstanding accounts receivable balances with investment and non-investment grade counterparties, certain inventory, including inventory on railcars and unsettled derivative contracts. These amounts are subject to certain percentage and dollar amount caps, as described within the ABL Facility. The borrowing base is calculated monthly pursuant to a borrowing base certificate we deliver to the administrative agent. Availability under the ABL Facility is based on the lower of the current borrowing base and the total commitments, less borrowings and outstanding letters of credit. At September 30, 2025, $ 71.0 million was outstanding under the ABL Facility, letters of credit outstanding were $ 53.6 million, and we had a borrowing base of $ 399.6 million. The ABL Facility is scheduled to mature at the earliest of (a) February 2, 2029 or (b) 91 days prior to the earliest maturity date in respect to any of our indebtedness in an aggregate principal amount of $50.0 million or greater, subject to certain exceptions.

The ABL Facility is secured by a lien on substantially all of our assets, including among other things, a first priority lien on our accounts receivable, inventory, pledged deposit accounts, cash and cash equivalents and related assets and a second priority lien on all of our other assets.

All borrowings under the ABL Facility bear interest at a secured overnight financing rate (“SOFR”) or the alternative base rate to provide for a 0.25% decrease based on our consolidated net leverage ratio. The applicable margin for alternate base rate loans varies from 1.50% to 2.00% and the applicable margin for SOFR varies from 2.50% to 3.00%. In addition, a commitment fee will be charged and payable quarterly in arrears based on the average daily unused portion of the revolving commitments under the ABL Facility. Such commitment fee will be 0.50% per year, subject to a reduction to 0.375% in the event our fixed charge coverage ratio is greater than or equal to 1.75 to 1.00.

At September 30, 2025, the borrowings under the ABL Facility had a weighted average interest rate of 8.12 % calculated as a SOFR rate of 4.14 % plus a margin of 3.10 % for SOFR borrowings and the prime rate of 7.25 % plus a margin of 2.00 % on the alternate base borrowings. On September 30, 2025, the interest rate in effect on letters of credit was 2.75 %.

The ABL Facility contains various affirmative and negative covenants, including financial reporting requirements and limitations on indebtedness, liens, mergers, consolidations, liquidations and dissolutions, sales of assets, distributions and other restricted payments, investments (including acquisitions) and transactions with affiliates. The ABL Facility contains, as the only financial covenant, a fixed charge coverage ratio that is tested based on the financial statements for the most recently ended

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

fiscal quarter upon the occurrence and during the continuation of a Cash Dominion Event (as defined in the ABL Facility). At September 30, 2025, no Cash Dominion Event had occurred.

Compliance

At September 30, 2025, we were in compliance with the covenants under the ABL Facility.

Term Loan B

The Term Loan B was issued at 99.25 % of par for gross proceeds of $ 694.8 million. The Term Loan B was issued pursuant to a credit agreement dated February 2, 2024 (“Term Loan Credit Agreement”). The Term Loan B matures on February 2, 2031 and will amortize in equal quarterly installments in aggregate annual amounts equal to 1.0% of the original principal amount beginning with the fiscal quarter ended June 30, 2024, with the balance payable on maturity.

The Term Loan B is secured by first priority liens on substantially all of our assets other than our accounts receivable, inventory, pledged deposit accounts, cash and cash equivalents and related assets and second priority liens on our accounts receivable, inventory, pledged deposit accounts, cash and cash equivalents and related assets.

The Term Loan B bears interest at a SOFR-based rate or an alternate base rate, in each case plus an applicable margin. The applicable margins vary depending on our consolidated first lien net leverage ratio (as defined in the Term Loan Credit Agreement). On September 18, 2025, we amended the Term Loan B agreement to reduce the SOFR applicable margin range to 3.50% to 3.25% from 3.75% to 3.50% and to reduce the alternate base applicable margin range to 2.50% to 2.25% from 2.75% to 2.50%.

At September 30, 2025, the borrowings under the Term Loan B had an interest rate of SOFR of 4.16 % plus a margin of 3.50 %.

The Term Loan Credit Agreement contains various affirmative and negative covenants, including financial reporting requirements and limitations on indebtedness, liens, mergers, consolidations, liquidations and dissolutions, sales of assets, distributions and other restricted payments, investments (including acquisitions) and transactions with affiliates. The Term Loan Credit Agreement requires that we maintain, on a quarterly basis, beginning with the quarter ended June 30, 2024, a debt service coverage rate (as defined in the Term Loan Credit Agreement) of no less than 1.1 to 1.0. At September 30, 2025, our debt service coverage rate was approximately 2.26 to 1.0.

The Term Loan Credit Agreement contains other customary terms, events of default and covenants.

Compliance

At September 30, 2025, we were in compliance with the covenants under Term Loan B.

Senior Secured Notes

The 2029 Senior Secured Notes bear interest at 8.125 % and the 2032 Senior Secured Notes bear interest at 8.375 %. Interest on the 2029 Senior Secured Notes and 2032 Senior Secured Notes is payable on February 15, May 15, August 15 and November 15 of each year, which started on May 15, 2024. The 2029 Senior Secured Notes mature on February 15, 2029 and the 2032 Senior Secured Notes mature on February 15, 2032. The 2029 Senior Secured Notes and 2032 Senior Secured Notes were issued pursuant to an indenture dated February 2, 2024 (“Indenture”).

The 2029 Senior Secured Notes and 2032 Senior Secured Notes are secured by first priority liens on substantially all of our assets other than our accounts receivable, inventory, pledged deposit accounts, cash and cash equivalents and related assets and second priority liens on our accounts receivable, inventory, pledged deposit accounts, cash and cash equivalents and related assets.

The Indenture contains covenants that, among other things, limit our ability to: pay distributions or make other restricted payments or repurchase stock; incur or guarantee additional indebtedness or issue disqualified stock or certain preferred stock; make certain investments; create or incur liens; sell assets; enter into restrictions affecting the ability of restricted subsidiaries to make distributions, make loans or advances or transfer assets to the guarantors (including the Partnership); enter into certain transactions with our affiliates; designate restricted subsidiaries as unrestricted subsidiaries; and

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

consolidate, merge or transfer or sell all or substantially all of our assets. These covenants are subject to a number of important exceptions and qualifications.

The Indenture contains other customary terms, events of default and covenants.

We have the option to redeem all or part of the 2029 Senior Secured Notes, at any time on or after February 15, 2026, at the redemption prices specified in the Indenture. We have the option to redeem all or part of the 2032 Senior Secured Notes, at any time on or after February 15, 2027, at the redemption prices specified in the Indenture.

Senior Secured Notes Repurchases

The following table summarizes repurchases of Senior Secured Notes for the six months ended September 30, 2025 (in thousands):




2032 Senior Secured Notes
Notes repurchased (1)	$	19,000
Cash paid (excluding payments of accrued interest)	$	17,274
Gain on early extinguishment of debt (2)	$	1,492

(1) We did not repurchase any notes during the three months ended September 30, 2025.

(2) Gain on early extinguishment of debt for the 2032 Senior Secured Notes during the six months ended September 30, 2025 is inclusive of the write off of debt issuance costs of $ 0.2 million. The gain is reported within gain on early extinguishment of liabilities, net within our unaudited condensed consolidated statement of operations.

Compliance

At September 30, 2025, we were in compliance with the covenants under the Indenture.

Other Long-Term Debt

On June 24, 2024, we entered into an equipment loan for $ 6.4 million with American Bank and Trust Company which bears interest at a rate of 8.50 % and is secured by an airplane. On September 24, 2024, we refinanced the loan and lowered the interest rate to 8.00 %. We have an aggregate principal balance of $ 5.3 million at September 30, 2025. This loan matures on June 24, 2030.

On October 1, 2024, we entered into a second equipment loan for $ 6.4 million with American Bank and Trust Company which bears interest at a rate of 8.00 % and is secured by an airplane. We have an aggregate principal balance of $ 5.5 million at September 30, 2025. This loan matures on September 24, 2030.

Debt Maturity Schedule

The scheduled maturities of our long-term debt are as follows at September 30, 2025:


Year Ending March 31,	ABL Facility		Term Loan B		Senior Secured Notes		Other Long-Term Debt		Total
	(in thousands)
2026 (six months)	$	—	$	3,500	$	—	$	924	$	4,424
2027	—		7,000		—		1,957		8,957
2028	—		7,000		—		2,120		9,120
2029	71,000		7,000		900,000		2,300		980,300
2030	—		7,000		—		2,494		9,494
2031	—		658,000		—		976		658,976
Thereafter	—		—		1,281,000		—		1,281,000
Total	$	71,000	$	689,500	$	2,181,000	$	10,771	$	2,952,271

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

Amortization of Debt Issuance Costs

Amortization expense for debt issuance costs related to long-term debt was $ 2.0 million and $ 1.9 million during the three months ended September 30, 2025 and 2024, respectively, and $ 4.0 million and $ 3.8 million during the six months ended September 30, 2025 and 2024, respectively.

The following table summarizes expected amortization of debt issuance costs at September 30, 2025 (in thousands):


Year Ending March 31,
2026 (six months)	$	4,003
2027	7,938
2028	7,938
2029	7,601
2030	5,299
2031	4,814
Thereafter	2,052
Total	$	39,645

Note 7— Commitments and Contingencies

Legal Contingencies

We are party to various claims, legal actions, and complaints arising in the ordinary course of business. In the opinion of our management, the ultimate resolution of these claims, legal actions, and complaints, after consideration of amounts accrued, insurance coverage, and other arrangements, is not expected to have a material adverse effect on our consolidated financial position, results of operations or cash flows. However, the outcome of such matters is inherently uncertain, and estimates of our liabilities may change materially as circumstances develop.

Environmental Matters

At September 30, 2025, we have an environmental liability, measured on an undiscounted basis, of $ 1.1 million, which is recorded within accrued expenses and other payables in our unaudited condensed consolidated balance sheet. Our operations are subject to extensive federal, state, and local environmental laws and regulations. Although we believe our operations are in substantial compliance with applicable environmental laws and regulations, risks of additional costs and liabilities are inherent in our businesses, and there can be no assurance that we will not incur significant costs. Moreover, it is possible that other developments, such as increasingly stringent environmental laws, regulations and enforcement policies thereunder, and claims for damages to property or persons resulting from the operations, could result in substantial costs. Accordingly, we have adopted policies, practices, and procedures in the areas of pollution control, product safety, occupational health, and the handling, storage, use, and disposal of hazardous materials designed to prevent material environmental or other damage, and to limit the financial liability that could result from such events. However, some risk of environmental or other damage is inherent in our businesses.

Asset Retirement Obligations

We have contractual and regulatory obligations at certain facilities for which we have to perform remediation, dismantlement, or removal activities when the assets are retired. Our liability for asset retirement obligations is discounted to present value. To calculate the liability, we make estimates and assumptions about the retirement cost and the timing of retirement. Changes in our assumptions and estimates may occur as a result of the passage of time and the occurrence of future events.

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

The following table summarizes changes in our asset retirement obligations, which is reported within other noncurrent liabilities in our unaudited condensed consolidated balance sheets (in thousands):


Asset retirement obligations at March 31, 2025	$	69,572
Liabilities incurred	6,172
Liabilities associated with disposed assets (1)	( 402 )
Liabilities settled	( 4,628 )
Accretion expense	2,541
Asset retirement obligations at September 30, 2025	$	73,255

(1) Relates to the sale of a certain saltwater disposal well within our Water Solutions segment.

In addition to the obligations described above, we may be obligated to remove facilities or perform other remediation upon retirement of certain other assets. However, the fair value of the asset retirement obligation cannot currently be reasonably estimated because the settlement dates are indeterminable. We will record an asset retirement obligation for these assets in the periods in which settlement dates are reasonably determinable.

Sales and Purchase Contracts

We have entered into product sales and purchase contracts for which we expect the parties to physically settle and deliver the inventory in future periods.

At September 30, 2025, we had the following commodity purchase commitments:


	Crude Oil (1)			Natural Gas Liquids
	Value		Volume (in barrels)	Value		Volume (in gallons)
	(in thousands)
Fixed-Price Commodity Purchase Commitments:
Year ending March 31,
2026 (six months)	$	53,402	854	$	18,547	24,453
2027	—		—	4,075		5,796
2028	—		—	1,042		1,512

Total	$	53,402	854	$	23,664	31,761

Index-Price Commodity Purchase Commitments:
Year ending March 31,
2026 (six months)	$	1,179,505	20,371	$	352,082	392,023
2027	198,053		4,687	9,008		9,960
2028	198,809		4,680	8,239		9,750
2029	30,540		1,820	—		—
2030	30,942		1,820	—		—
2031	33,243		557	—		—
Thereafter	122,150		2,045	—		—
Total	$	1,793,242	35,980	$	369,329	411,733

(1) Our crude oil index-price purchase commitments exceed our crude oil index-price sales commitments (presented above) due primarily to our long-term purchase commitments for crude oil that we purchase and ship on the Grand Mesa Pipeline.

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

At September 30, 2025, we had the following commodity sale commitments:


	Crude Oil			Natural Gas Liquids
	Value		Volume (in barrels)	Value		Volume (in gallons)
	(in thousands)
Fixed-Price Commodity Sale Commitments:
Year ending March 31,
2026 (six months)	$	52,577	836	$	50,163	50,759
2027	—		—	7,165		8,829
2028	—		—	639		875
2029	—		—	19		19
2030	—		—	19		19
Total	$	52,577	836	$	58,005	60,501

Index-Price Commodity Sale Commitments:
Year ending March 31,
2026 (six months)	$	980,787	15,669	$	323,421	279,899
2027	77,116		1,263	76,940		71,370
2028	77,604		1,266	—		—
2029	75,146		1,263	—		—
2030	73,638		1,263	—		—
Total	$	1,284,291	20,724	$	400,361	351,269

We account for the contracts shown in the tables above using the normal purchase and normal sale election. Under this accounting policy election, we do not record the physical contracts at fair value at each balance sheet date; instead, we record the purchase or sale at the contracted value once the delivery occurs. Contracts in the tables above may have offsetting derivative contracts (described in Note 9) or inventory positions (described in Note 2).

Other Commitments

We have noncancelable agreements for product storage, railcar spurs, capital projects and real estate. The following table summarizes future minimum payments under these agreements at September 30, 2025 (in thousands):


Year Ending March 31,
2026 (six months)	$	3,139
2027	5,493
2028	4,647
2029	2,653
2030	1,660
2031	1,408
Thereafter	1,155
Total	$	20,155

Note 8— Equity

Partnership Equity

The Partnership’s equity consists of a 0.1 % GP interest and a 99.9 % limited partner interest, which consists of common units. Our GP has the right, but not the obligation, to contribute a proportionate amount of capital to the Partnership to maintain its 0.1 % GP interest. Our GP is not required to guarantee or pay any of our debts and obligations. At September 30, 2025, we owned 8.69 % of our GP.

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

General Partner Equity

In connection with the repurchase of common units (see below for further discussion), we repurchased 1,876 notional units during the three months ended June 30, 2025 from our GP for less than $ 0.1 million. We repurchased 4,421 notional units during the three months ended September 30, 2025 from our GP for less than $ 0.1 million.

Common Unit Repurchase Program

On June 5, 2024, the board of directors of our GP authorized a common unit repurchase program, under which we may repurchase up to $ 50.0 million of our outstanding common units from time to time in the open market, including pursuant to a repurchase plan administrated in accordance with Rule 10b5-1 under the Exchange Act, or in other privately negotiated transactions. This program does not have a fixed expiration date. The common unit repurchase program authorization does not obligate us to repurchase any dollar amount or number of our common units.

The following table summarizes our common unit repurchases during our current fiscal year:


	Total Number of	Average Price
	Common Units	Paid Per		Aggregate Purchase
Period	Repurchased	Common Unit		Price with Commissions
				(in thousands)
April 1, 2025 - June 30, 2025	1,873,838	$	4.2854	$	8,068
July 1, 2025 - September 30, 2025	4,416,425	$	4.7349	$	21,000

Since the inception of the program, we have repurchased 6,790,263 units for an aggregate price of $ 31.2 million, including commissions.

Class B Preferred Units

As of September 30, 2025, there were 12,585,642 of our Class B Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units (“Class B Preferred Units”) outstanding.

The current distribution rate for the Class B Preferred Units is the three-month CME Term SOFR interest rate, which is calculated and published by CME Group Benchmark Administration, Ltd., plus a spread of 7.213%. The Class B Preferred Units also have an additional tenor spread adjustment of 0.26161%, in accordance with the Adjustable Interest Rate (LIBOR) Act.

The following table summarizes the distributions declared on our Class B Preferred Units during the last three quarters:


			Three-Month		Distribution	Amount Paid to Class B
Date Declared	Record Date	Payment Date	SOFR		Rate	Preferred Unitholders
						(in thousands)
March 19, 2025	April 1, 2025	April 15, 2025	4.329	%	0.7377	$	9,284
June 18, 2025	July 1, 2025	July 15, 2025	4.298	%	0.7358	$	9,261
September 18, 2025	October 1, 2025	October 15, 2025	4.291	%	0.7353	$	9,255

The distribution amount paid on October 15, 2025 is included in accrued expenses and other payables in our unaudited condensed consolidated balance sheet at September 30, 2025.

Class C Preferred Units

As of September 30, 2025, there were 1,800,000 of our Class C Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units (“Class C Preferred Units”) outstanding.

The current distribution rate for the Class C Preferred Units is the three-month CME Term SOFR interest rate plus a spread of 7.384%.

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

The following table summarizes the distributions declared on our Class C Preferred Units during the last three quarters:


			Three-Month		Distribution		Amount Paid to Class C
Date Declared	Record Date	Payment Date	SOFR		Rate		Preferred Unitholders
							(in thousands)
March 19, 2025	April 1, 2025	April 15, 2025	4.329	%	$	0.7320	$	1,318
June 18, 2025	July 1 2025	July 15, 2025	4.298	%	$	0.7301	$	1,314
September 18, 2025	October 1, 2025	October 15, 2025	4.291	%	$	0.7297	$	1,313

The distribution amount paid on October 15, 2025 is included in accrued expenses and other payables in our unaudited condensed consolidated balance sheet at September 30, 2025.

Class D Preferred Units

On May 19, 2025, we redeemed 20,000 of the Class D Preferred Units. The applicable Class D Preferred Unit redemption premium on the date of redemption was $ 1,394.04 , calculated at 134.30 % of $ 1,037.98 (the Class D Preferred Unit price), and distributions of $ 15.96 . The amount per Class D Preferred Unit paid to each Class D preferred unitholder was $ 1,410.00 for a total payment of $ 28.2 million.

On June 23, 2025, we redeemed 50,000 of the Class D Preferred Units. The applicable Class D Preferred Unit redemption premium on the date of redemption was $ 1,442.57 , calculated at 138.98 % of $ 1,037.98 (the Class D Preferred Unit price), and distributions of $ 27.43 . The amount per Class D Preferred Unit paid to each Class D preferred unitholder was $ 1,470.00 for a total payment of $ 73.5 million.

As of September 30, 2025, there were 530,000 preferred units (“Class D Preferred Units”) and warrant exercisable to purchase an aggregate of 2,125,000 common units outstanding.

The following table summarizes the outstanding warrants at September 30, 2025:


Issuance Date and Description	Number of Warrants	Exercise Price
October 31, 2019
Premium warrants	1,250,000	$	16.28
Par warrants	875,000	$	13.56

All outstanding warrants are currently exercisable and any unexercised warrants will expire on the tenth anniversary of the date of issuance. The warrants will not participate in cash distributions.

The holders of our Class D Preferred Units have elected, which they are allowed to do so from time to time, for the distributions to be calculated based on the three-month CME Term SOFR interest rate in accordance with our amended and restated limited partnership agreement plus a spread of 7.00%. Each variable rate election shall be effective for at least four quarters following such election. This variable rate election is effective until September 30, 2025. The distribution rate for the Class D Preferred Units is 11.291% for the quarter ended September 30, 2025.

The following table summarizes the distributions declared on our Class D Preferred Units during the last three quarters:


			Three-Month		Distribution		Amount Paid to Class D
Date Declared	Record Date	Payment Date	SOFR		Rate		Preferred Unitholders
							(in thousands)
March 19, 2025	April 1, 2025	April 15, 2025	4.329	%	$	32.07	$	19,243
June 18, 2025	July 1, 2025	July 15, 2025	4.298	%	$	29.39	$	15,578
September 18, 2025	October 1, 2025	October 15, 2025	4.291	%	$	29.37	$	15,568

The distribution amount paid on October 15, 2025 is included in accrued expenses and other payables in our unaudited condensed consolidated balance sheet at September 30, 2025.

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

Note 9— Fair Value of Financial Instruments

The carrying values of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, and other current assets and liabilities (excluding derivative instruments) approximate fair value because of the short-term nature of these instruments. Therefore, these assets and liabilities are not presented in the following table.

Derivatives

The following table summarizes, by level within the fair value hierarchy, the estimated fair values of our derivative assets and liabilities reported in our unaudited condensed consolidated balance sheets at the dates indicated:


	September 30, 2025				March 31, 2025
	Derivative Assets		Derivative Liabilities		Derivative Assets		Derivative Liabilities
	(in thousands)
Level 1 measurements	$	577	$	( 721 )	$	67	$	( 1,644 )
Level 2 measurements	538		( 4,178 )		22		( 8,133 )
	1,115		( 4,899 )		89		( 9,777 )

Netting of counterparty contracts (1)	( 741 )		741		( 67 )		67
Net cash collateral provided	—		143		1,527		1,577
Derivatives	$	374	$	( 4,015 )	$	1,549	$	( 8,133 )

(1) Relates to commodity derivative assets and liabilities that are expected to be net settled on an exchange or through a master netting arrangement with the counterparty. Our physical contracts that do not qualify as normal purchase normal sale transactions are not subject to such master netting arrangements.

The following table summarizes the accounts that include our derivative assets and liabilities in our unaudited condensed consolidated balance sheets at the dates indicated:


	September 30, 2025		March 31, 2025
	(in thousands)
Prepaid expenses and other current assets	$	—	$	1,549
Other noncurrent assets	374		—
Accrued expenses and other payables	( 1,848 )		( 6,427 )
Other noncurrent liabilities	( 2,167 )		( 1,706 )
Net derivative liability	$	( 3,641 )	$	( 6,584 )

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

The following table summarizes our open derivative contract positions at the dates indicated. We do not account for these derivatives as hedges.


Contracts	Settlement Period	Net Long (Short) Notional Units (in barrels)	Fair Value of Net Assets (Liabilities)
		(in thousands)
At September 30, 2025:
Crude oil fixed-price (1)	October 2025–March 2027	( 531 )	$	( 524 )
Propane fixed-price (1)	October 2025–February 2026	373	( 74 )
Butane fixed-price (1)	October 2025–March 2026	( 747 )	170
Variable-to-fixed interest rate swaps (2)	October 2025–April 2028		( 3,320 )
Other	October 2025–March 2026		( 36 )
			( 3,784 )
Net cash collateral provided			143
Net derivative liability			$	( 3,641 )

At March 31, 2025:
Crude oil fixed-price (1)	April 2025–March 2026	59	$	( 6,492 )
Butane fixed-price (1)	April 2025–March 2026	( 1,148 )	( 482 )
Variable-to-fixed interest rate swap (2)	April 2025–April 2028		( 2,539 )
Other	April 2025–March 2026		( 175 )
			( 9,688 )
Net cash collateral provided			3,104
Net derivative liability			$	( 6,584 )

(1) We may have fixed price physical purchases, including inventory, offset by floating price physical sales or floating price physical purchases offset by fixed price physical sales. These contracts are derivatives we have entered into as an economic hedge against the risk of mismatches between fixed and floating price physical obligations.

(2) See further discussion of these instruments in “Interest Rate Risk” below.

Amounts in the tables above do not include assets and liabilities classified as either held for sale or discontinued operations within our March 31, 2025 consolidated balance sheet (see Note 16).

During the three months ended September 30, 2025 and 2024, we recorded net gains of $ 1.1 million and $ 2.8 million, respectively, from our commodity derivatives to revenues and cost of sales-product in our unaudited condensed consolidated statements of operations. During the six months ended September 30, 2025 and 2024, we recorded net gains of $ 10.6 million and $ 2.6 million, respectively, from our commodity derivatives to revenues and cost of sales-product in our unaudited condensed consolidated statements of operations. These amounts do not include net gains and losses from our commodity derivatives related to our refined products and biodiesel businesses, as these amounts have been classified within discontinued operations within our unaudited condensed consolidated statements of operations (see Note 16).

During the three months ended September 30, 2025 and 2024, we recorded net gains of $ 0.3 million and net losses of $ 6.0 million, respectively, from our interest rate swaps to interest expense in our unaudited condensed consolidated statements of operations. During the six months ended September 30, 2025 and 2024, we recorded net losses of $ 0.3 million and $ 5.6 million from our interest rate swaps to interest expense in our unaudited condensed consolidated statement of operations.

Credit Risk

We have credit policies that we believe minimize our overall credit risk, including an evaluation of potential counterparties’ financial condition (including credit ratings), collateral requirements under certain circumstances, and the use of industry standard master netting agreements, which allow for offsetting counterparty receivable and payable balances for certain transactions. At September 30, 2025, our primary counterparties were retailers, resellers, energy marketers, producers, refiners, and dealers. This concentration of counterparties may impact our overall exposure to credit risk, either positively or negatively, as the counterparties may be similarly affected by changes in economic, regulatory or other conditions. If a counterparty does not perform on a contract, we may not realize amounts that have been recorded in our unaudited condensed consolidated balance sheets and recognized in our net income.

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

Interest Rate Risk

Long-Term Debt

The ABL Facility is variable-rate debt with interest rates that are generally indexed to the prime rate or SOFR plus an applicable margin (see Note 6 for the current rates on the ABL Facility).

The Term Loan B is variable-rate debt with interest rates that are generally indexed to SOFR plus an applicable margin (see Note 6 for the current rates on the Term Loan B).

Interest Rate Swaps

In March and April 2024, we entered into two $ 200.0 million interest rate swaps to reduce the variability of cash outflows associated with our floating-rate, SOFR-based borrowings, including borrowings on the Term Loan B. Under these arrangements, we pay fixed interest rates of 4.32 % and 3.842 %, respectively, in exchange for SOFR-based variable interest through April 2026 and April 2028, respectively.

Preferred Unit Distributions

The current distribution rate for the Class B, Class C and Class D Preferred Units is a floating rate of the three-month CME Term SOFR plus a fixed spread (see Note 8 for the current distribution rates).

Fair Value of Fixed-Rate Notes

The following table provides fair value estimates of our fixed-rate notes at September 30, 2025 (in thousands):


2029 Senior Secured Notes	$	922,500
2032 Senior Secured Notes	$	1,313,559

For the 2029 Senior Secured Notes and 2032 Senior Secured Notes, the fair value estimates were developed based on publicly traded quotes and would be classified as Level 2 in the fair value hierarchy.

Note 10— Segments

Our operations are organized into three reportable segments: (i) Water Solutions, (ii) Crude Oil Logistics and (iii) Liquids Logistics. These segments have been identified based on the differing products and services, regulatory environment and the expertise required for these operations. Our Liquids Logistics reportable segment includes operating segments that have been aggregated based on the nature of the products and services provided. Our chief operating decision maker (“CODM”) is our chief executive officer. Adjusted EBITDA is reviewed by the CODM to evaluate performance and make business decisions. We define Adjusted EBITDA for Water Solutions as revenue minus operating and general and administrative expense, which excludes, accretion expense for asset retirement obligations (“Accretion Expense”) and legal and advisory costs associated with acquisitions and dispositions (“Acquisition Expense”), and plus or minus other reconciling items. We define Adjusted EBITDA for Crude Oil Logistics and Liquid Logistics as revenue minus cost of sales, which excludes unrealized gains and losses on derivatives, lower of cost or realizable value adjustments and plus or minus other reconciling segment items. The calculation of Adjusted EBITDA for our three reportable segments is presented in the Reportable Segment Information tables below.

See Note 1 for a discussion of the products and services of our reportable segments. The remainder of our business operations is presented as “Corporate and Other” and consists of certain corporate expenses that are not allocated to the reportable segments and the amounts to eliminate intercompany or intersegment transactions. Intercompany or intersegment transactions are recorded based on prices negotiated between the segments. Intrasegment transaction eliminations are recorded within each reportable segment. All of the tables below do not include amounts related to our refined products and biodiesel businesses, as those amounts have been classified as discontinued operations within our unaudited condensed consolidated statements of operations for all periods presented (see Note 1).

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

Disaggregation of Revenue

The following table summarizes revenues related to our segments for the periods indicated:


	Three Months Ended September 30,				Six Months Ended September 30,
	2025		2024		2025		2024
	(in thousands)
Revenues:
Water Solutions:
Topic 606 revenues
Disposal service fees	$	179,827	$	155,715	$	354,462	$	303,688
Sale of recovered crude oil	28,066		24,708		52,874		55,484
Sale of water	1,362		700		2,781		2,985
Other service revenues	473		729		876		1,090
Non-Topic 606 revenues	15		15		30		30
Total Water Solutions revenues	209,743		181,867		411,023		363,277
Crude Oil Logistics:
Topic 606 revenues
Crude oil sales	211,824		225,013		370,352		487,622
Crude oil transportation and other sales	6,987		17,048		14,717		32,864
Non-Topic 606 revenues	1,220		1,780		2,593		3,570
Total Crude Oil Logistics revenues	220,031		243,841		387,662		524,056
Liquids Logistics:
Topic 606 revenues
Butane sales	113,992		123,494		213,634		221,524
Propane sales	31,706		89,716		93,186		187,074
Other products sales	96,481		109,719		186,246		206,916
Service revenues	462		4,959		900		7,286
Non-Topic 606 revenues	2,011		2,886		3,771		5,695

Total Liquids Logistics revenues (1)	244,652		330,774		497,737		628,495
Corporate and Other:
Topic 606 revenues
Service revenues	251		74		415		74
Elimination of intersegment sales (2)	—		( 84 )		( 4 )		( 196 )
Total Corporate and Other revenues	251		( 10 )		411		( 122 )
Total revenues	$	674,677	$	756,472	$	1,296,833	$	1,515,706

(1) During the three months ended September 30, 2025 and 2024, our Liquids Logistics revenues included $ 21.0 million and $ 27.4 million of non-US revenues, respectively, and during the six months ended September 30, 2025 and 2024, our Liquids Logistics revenues included $ 36.0 million and $ 51.5 million of non-US revenues, respectively.

(2) For the three months and six months ended September 30, 2024, the elimination of intersegment sales, which was included in the Crude Oil Logistics segment in our September 30, 2024 Quarterly Report, is now included in “Corporate and Other.”

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

Reportable Segment Information

The following tables set forth certain selected financial information for our segments for the periods indicated:


	Three Months Ended September 30, 2025
	Water		Crude Oil		Liquids		Total
	Solutions		Logistics		Logistics		Segments
	(in thousands)
Revenues	$	209,743	$	220,031	$	244,652	$	674,426
Cost of sales (1)	1,081		193,076		224,663		418,820
Operating, general and administrative expenses (2)	55,601		10,402		9,468		75,471
Other (3)	( 1,159 )		—		—		( 1,159 )
Adjusted EBITDA	$	151,902	$	16,553	$	10,521	$	178,976
Reconciling items:
Plus - all other Adjusted EBITDA							( 11,643 )
Less:
Depreciation and amortization							63,994
Interest expense							64,708
Loss on disposal or impairment of assets, net							6,594
Net unrealized gains on derivatives							( 317 )
Lower of cost or net realizable value adjustments							2,519

Asset retirement obligation accretion							1,281

Other (4)							( 1,197 )
Income from continuing operations before income taxes							$	29,751

Segment capital expenditures	$	47,261	$	1,387	$	1,627	$	50,275
All other capital expenditures							818
Total capital expenditures (5)							$	51,093

Total segment assets (6)	$	2,714,235	$	1,138,420	$	396,462	$	4,249,117
All other assets (6)							52,468
Total assets (6) (7)							$	4,301,585

(1) Amount excludes net unrealized gains and losses on derivatives and lower of cost or net realizable value adjustments.

(2) Amount excludes Accretion Expense and Acquisition Expense.

(3) Amount includes Adjusted EBITDA related to our unconsolidated entities, interest income and certain other non-operating income and expense items less Adjusted EBITDA related to our noncontrolling interests.

(4) Amount includes the net of Adjusted EBITDA related to our noncontrolling interests, unrealized gains and losses on investments and marketable securities and certain other non-operating income and expense items.

(5) Amount includes additions to property, plant and equipment and intangible assets, including the acquisition of assets.

(6) Information is presented as of September 30, 2025.

(7) Total assets includes $ 21.4 million of non-US total assets.

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)


	Three Months Ended September 30, 2024
	Water		Crude Oil		Liquids		Total
	Solutions		Logistics		Logistics		Segments
	(in thousands)
Revenues	$	181,867	$	243,841	$	330,774	$	756,482
Cost of sales (1)	( 953 )		215,704		304,991		519,742
Operating, general and administrative expenses (2)	54,238		10,873		14,384		79,495
Other (3)	280		( 1 )		( 20 )		259
Adjusted EBITDA	$	128,862	$	17,263	$	11,379	$	157,504
Reconciling items:
Plus - all other Adjusted EBITDA							( 8,090 )
Less:
Depreciation and amortization							61,875
Amortization in cost of sales - product							37
Interest expense							77,180
Loss on disposal or impairment of assets, net							1,509
Net unrealized losses on derivatives							2,610
Lower of cost or net realizable value adjustments							612
Asset retirement obligation accretion							1,025
Adjustments related to unconsolidated entities (4)							108
Other (5)							( 3,209 )
Income from continuing operations before income taxes							$	7,667

Segment capital expenditures	$	87,596	$	1,743	$	3,967	$	93,306
All other capital expenditures							909
Total capital expenditures (6)							$	94,215

Segment assets (7)	$	2,855,015	$	1,282,369	$	706,900	$	4,844,284
All other assets (7)							45,895
Total assets (7) (8)							$	4,890,179

(1) Amount excludes net unrealized gains and losses on derivatives and lower of cost or net realizable value adjustments.

(2) Amount excludes Accretion Expense and Acquisition Expense.

(4) Amount represents the sum of the amount excluded from our equity in earnings of unconsolidated entities, including, depreciation and amortization, interest expense, and gains and losses on disposal or impairment of assets.

(5) Amount includes the net of Adjusted EBITDA related to our noncontrolling interests, unrealized gains and losses on investments and marketable securities and certain other non-operating income and expense items.

(6) Amount includes additions to property, plant and equipment and intangible assets, including the acquisition of assets.

(7) Information is presented as of September 30, 2024.

(8) Total assets includes $ 29.7 million of non-US total assets.

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)


	Six Months Ended September 30, 2025
	Water		Crude Oil		Liquids		Total
	Solutions		Logistics		Logistics		Segments
	(in thousands)
Revenues	$	411,023	$	387,662	$	497,737	$	1,296,422
Cost of sales (1)	2,739		341,325		468,039		812,103
Operating, general and administrative expenses (2)	111,206		20,201		16,311		147,718
Other (3)	( 2,307 )		—		5		( 2,302 )
Adjusted EBITDA	$	294,771	$	26,136	$	13,392	$	334,299
Reconciling items:
Plus - all other Adjusted EBITDA							( 22,994 )
Less:
Depreciation and amortization							130,579
Interest expense							130,253
Gain on disposal or impairment of assets, net							( 2,605 )
Net unrealized gains on derivatives							( 7,842 )
Lower of cost or net realizable value adjustments							( 425 )
Gain on early extinguishment of liabilities, net							( 1,492 )
Asset retirement obligation accretion							2,541
Adjustments related to unconsolidated entities (4)							24
Other (5)							438
Income from continuing operations before income taxes							$	59,834

Segment capital expenditures	$	66,235	$	1,790	$	3,277	$	71,302
All other capital expenditures							843
Total capital expenditures (6)							$	72,145

(1) Amount excludes net unrealized gains and losses on derivatives and lower of cost or net realizable value adjustments.

(2) Amount excludes Accretion Expense and Acquisition Expense.

(6) Amount includes additions to property, plant and equipment and intangible assets, including the acquisition of assets.

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)


	Six Months Ended September 30, 2024
	Water		Crude Oil		Liquids		Total
	Solutions		Logistics		Logistics		Segments
	(in thousands)
Revenues	$	363,277	$	524,056	$	628,495	$	1,515,828
Cost of sales (1)	907		467,293		586,058		1,054,258
Operating, general and administrative expenses (2)	107,412		20,866		25,304		153,582
Other (3)	( 493 )		1		( 18 )		( 510 )
Adjusted EBITDA	$	254,465	$	35,898	$	17,115	$	307,478
Reconciling items:
Plus: all other Adjusted EBITDA							( 19,444 )
Less:
Depreciation and amortization							124,039
Amortization in cost of sales							37
Interest expense							146,919
Gain on disposal or impairment of assets, net							( 9,157 )
Net unrealized losses on derivatives							7,522
Lower of cost or net realizable value adjustments							599
Asset retirement obligation accretion							2,028
Adjustments related to unconsolidated entities (4)							179
Other (5)							( 4,603 )
Income from continuing operations before income taxes							$	20,471

Segment capital expenditures	$	152,280	$	2,839	$	7,523	$	162,642
All other capital expenditures							9,104
Total capital expenditures (6)							$	171,746

(1) Amount excludes net unrealized gains and losses on derivatives and lower of cost or net realizable value adjustments.

(2) Amount excludes Accretion Expense and Acquisition Expense.

(6) Amount includes additions to property, plant and equipment and intangible assets, including the acquisition of assets.

Note 11— Transactions with Affiliates

The following table summarizes our related party transactions for the periods indicated:


	Three Months Ended September 30,				Six Months Ended September 30,
	2025		2024		2025		2024
	(in thousands)
Sales to entities affiliated with management	$	251	$	74	$	415	$	74
Purchases from equity method investees	$	—	$	122	$	—	$	141

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

Affiliate balances consist of the following at the dates indicated:


	September 30, 2025		March 31, 2025
	(in thousands)
Accounts receivable-affiliates
Entities affiliated with management	$	237	$	135
Equity method investees	—		595
Total	$	237	$	730

Accounts payable-affiliates
Entities affiliated with management	$	1	$	1
Equity method investees	—		101
Total	$	1	$	102

Note 12— Revenue from Contracts with Customers

We recognize revenue for services and products under revenue contracts as our obligations to either perform services or deliver or sell products under the contracts are satisfied. Our revenue contracts in scope under ASC 606 primarily have a single performance obligation and we do not receive material amounts of non-cash consideration. Our costs to obtain or fulfill our revenue contracts were not material as of September 30, 2025.

The majority of our revenue agreements are in scope under ASC 606 and the remainder of our revenue comes from contracts that contain nonmonetary exchanges or leases in the scope of ASC 845 and ASC 842, respectively. See Note 10 for a detail of disaggregated revenue.

Remaining Performance Obligations

Most of our service contracts are such that we have the right to consideration from a customer in an amount that corresponds directly with the value to the customer of our performance completed to date. Therefore, we utilized the practical expedient in ASC 606-10-55-18 under which we recognize revenue in the amount to which we have the right to invoice. Applying this practical expedient, we are not required to disclose the transaction price allocated to remaining performance obligations under these contracts. The following table summarizes the amount and timing of revenue recognition for such contracts at September 30, 2025 (in thousands):


Year Ending March 31,
2026 (six months)	$	61,964
2027	110,385
2028	90,188
2029	88,008
2030	76,637
2031	62,362
Thereafter	75,899
Total	$	565,443

Contract Assets and Liabilities

The following tables summarize the balances of our contract assets and liabilities at the dates indicated:


	September 30, 2025		March 31, 2025
	(in thousands)
Accounts receivable from contracts with customers (1)	$	352,597	$	294,378
Contract assets (current)	$	2,493	$	512

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)


Contract liabilities at March 31, 2025	$	9,168
Payment received and deferred	7,251
Payment recognized in revenue	( 3,471 )
Contract liabilities at September 30, 2025	$	12,948

(1) Amounts do not include assets classified as either held for sale or discontinued operations within our March 31, 2025 consolidated balance sheet (See Note 16).

Note 13— Leases

Lessee Accounting

Our leasing activity primarily consists of product storage, office space, real estate, railcars, and equipment.

The following table summarizes the components of our lease cost for the periods indicated:


	Three Months Ended September 30,				Six Months Ended September 30,
	2025		2024		2025		2024
	(in thousands)
Operating lease cost (1)	$	9,697	$	10,190	$	19,737	$	20,689
Variable lease cost (1)	9,728		11,976		18,663		19,562
Short-term lease cost (1)	62		670		283		1,293
Finance lease cost
Amortization of right-of-use asset (2)	211		2		280		3
Interest on lease obligation (3)	142		2		189		5
Total lease cost	$	19,840	$	22,840	$	39,152	$	41,552

(1) Included in operating expenses in our unaudited condensed consolidated statements of operations.

(2) Included in depreciation and amortization expense in our unaudited condensed consolidated statements of operations.

(3) Included in interest expense in our unaudited condensed consolidated statements of operations.

Amounts in the table above do not include lease costs related to our refined products and biodiesel businesses, as these amounts have been classified within discontinued operations within our consolidated statements of operations (see Note 16).

The following table summarizes maturities of our lease obligations at September 30, 2025 (in thousands):


	Operating		Finance
Year Ending March 31,	Leases		Leases (1)
2026 (six months)	$	19,281	$	1,103
2027	34,712		2,206
2028	31,651		2,206
2029	22,144		809
2030	12,733		12
2031	3,966		—
Thereafter	17,665		—
Total lease payments	142,152		6,336
Less imputed interest	( 27,959 )		( 810 )
Total lease obligations	$	114,193	$	5,526

(1) At September 30, 2025, the short-term finance lease obligation of $ 1.7 million is included in accrued expenses and other payables and the long-term finance lease obligation of $ 3.8 million is included in other noncurrent liabilities in our unaudited condensed consolidated balance sheet.

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

The following table summarizes supplemental cash flow information related to our leases for the periods indicated:


	Six Months Ended September 30,
	2025		2024
	(in thousands)
Supplemental Cash Flow Information
Cash paid for amounts included in the measurement of lease obligations
Operating cash outflows from operating leases	$	20,391	$	21,039
Operating cash outflows from finance leases	$	142	$	5
Financing cash outflows from finance leases	$	430	$	9

Right-of-use assets obtained in exchange for lease obligations
Operating leases	$	16,817	$	18,321
Finance leases	$	5,910	$	—

Amounts in the table above do not include operating cash outflows from operating leases related to our refined products and biodiesel businesses, as these amounts have been classified within discontinued operations within our unaudited condensed consolidated statements of operations (see Note 16).

Lessor Accounting and Subleases

Our lessor arrangements include storage and railcar contracts. We also, from time to time, sublease certain of our storage capacity and railcars to third-parties. Fixed rental revenue is recognized on a straight-line basis over the lease term. During the three months ended September 30, 2025 and 2024, fixed rental revenue was $ 3.3 million , including $ 1.1 million of sublease revenue, and $ 3.8 million , including $ 1.1 million of sublease revenue, respectively. During the six months ended September 30, 2025 and 2024, fixed rental revenue was $ 6.3 million , including $ 1.9 million of sublease revenue, and $ 7.7 million , including $ 1.5 million of sublease revenue, respectively.

The following table summarizes future minimum lease payments to be received under various noncancelable operating lease agreements at September 30, 2025 (in thousands):


Year Ending March 31,
2026 (six months)	$	5,089
2027	8,696
2028	5,706
2029	1,337
2030	1,063
2031	1,078
Thereafter	726
Total	$	23,695

Note 14— Allowance for Current Expected Credit Losses

ASU 2016-13 requires that an allowance for expected credit losses be recognized for certain financial assets that reflects the current expected credit loss over the financial asset’s contractual life. The valuation allowance considers the risk of loss, even if remote, and considers past events, current conditions and reasonable and supportable forecasts. We adopted the practical expedient under ASU 2025-05 (see Note 2) that allows us to assume that the current conditions as of the balance sheet date do not change for the remaining life of our current accounts receivable and contract assets.

We are exposed to credit losses primarily through the sale of products and services and notes receivable from third-parties. A counterparty’s ability to pay is assessed through a credit process that considers the payment terms, the counterparty’s established credit rating or our assessment of the counterparty’s credit worthiness and other risks. We can require prepayment or collateral to mitigate credit risks.

We group our financial assets into pools of counterparties with similar risk characteristics for the purpose of determining the allowance for expected credit losses. Each reporting period, we assess whether a significant change in the risk of expected credit loss has occurred. Among the quantitative and qualitative factors considered in calculating our allowance for

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

expected credit losses are historical financial data, including write-offs and allowances, current conditions, industry risk and current credit ratings. Financial assets will be written off in whole, or in part, when practical recovery efforts have been exhausted and no reasonable expectation of recovery exists. Subsequent recoveries of amounts previously written off are recorded as an increase to the allowance for expected credit losses. We manage receivable pools using past due balances as a key credit quality indicator.

The following table summarizes changes in our allowance for expected credit losses for the period indicated:


	Accounts Receivable		Notes Receivable and Other
	(in thousands)
Allowance for expected credit losses at March 31, 2025	$	3,689	$	33
Change in provision for expected credit losses	34		—
Dispositions (see Note 15)	18		—
Write-offs charged against the provision	( 2,486 )		—
Allowance for expected credit losses at September 30, 2025	$	1,255	$	33

Amounts in the table above do not include allowance for expected credit losses related to assets classified as either held for sale or discontinued operations within our March 31, 2025 consolidated balance sheet (see Note 16).

Note 15— Other Matters

Sale of Marketable Equity Securities

As of March 31, 2025, we owned 1,468,337 shares of Prairie Operating Co. (“Prairie”), which were sold during the six months ended September 30, 2025 for $ 6.0 million. We recognized a loss on sale of $ 0.6 million within other (expense) income, net in our unaudited condensed consolidated statement of operations for the six months ended September 30, 2025. This loss, combined with the $ 0.8 million gain on sale recognized during the three months ended March 31, 2025, resulted in an overall gain of $ 0.2 million on the sale of all Prairie shares we owned.

Dispositions

Water Solutions

Sale of Certain Investments in Unconsolidated Entities and Related Assets

On April 14, 2025, we sold certain investments in unconsolidated entities, property, plant and equipment and intangible assets to a third-party for total consideration of $ 40.3 million in cash, plus working capital. As discussed below, we recorded a loss of $ 8.0 million to write down certain investments in unconsolidated entities and related assets to fair value less cost to sell within loss on disposal or impairment of assets, net in our consolidated statement of operations for the year ended March 31, 2025. We also recorded a loss of $ 1.0 million on the sale within loss (gain) on disposal or impairment of assets, net in our unaudited condensed consolidated statement of operations for the six months ended September 30, 2025. We classified the assets and liabilities as held for sale as of March 31, 2025 (see Note 16) .

Liquids Logistics

Wholesale Propane Disposition and Sale of Refined Products Business

On April 30, 2025, we completed the Wholesale Propane Disposition and the sale of our refined products business for total consideration of approximately $ 156.3 million in cash, plus working capital. We recorded a gain on each transaction totaling a combined $ 55.7 million, of which $ 17.3 million is recorded within loss (gain) on disposal or impairment of assets, net in our unaudited condensed consolidated statement of operations for the six months ended September 30, 2025 and $ 38.4 million is recorded within discontinued operations (see Note 16).

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

Crude Oil Logistics

Sale of Certain Railcars

As of March 31, 2025, we entered into definitive agreements with third-parties to sell 135 railcars, which have been classified as held for sale (see Note 16). During the six months ended September 30, 2025, we sold all of these railcars for total consideration of $ 6.7 million in cash and recognized a gain of $ 2.1 million within loss (gain) on disposal or impairment of assets, net in our unaudited condensed consolidated statement of operations.

In a separate transaction, on May 16, 2025, we sold 68 railcars to a third-party for total consideration of $ 2.1 million in cash and we recorded a gain of $ 0.1 million within loss (gain) on disposal or impairment of assets, net in our unaudited condensed consolidated statement of operations for the six months ended September 30, 2025.

Note 16— Assets and Liabilities Held for Sale and Discontinued Operations

As discussed in Note 1, at March 31, 2025, we met the criteria for classifying the assets and liabilities of our refined products business and biodiesel business as either held for sale or discontinued operations and the operations of these businesses as discontinued. Also, as discussed in Note 1 and Note 15, at March 31, 2025, we met the criteria for classifying a portion of our Liquids Logistics segment, certain railcars and certain investments in unconsolidated entities and related assets as held for sale. Upon classification as held for sale, we recorded a loss of $ 8.0 million to write down certain investments in unconsolidated entities and related assets to fair value less cost to sell within loss on disposal or impairment of assets, net in our consolidated statement of operations for the year ended March 31, 2025, and a valuation allowance included in assets held for sale in our March 31, 2025 consolidated balance sheet.

The following table summarizes the major classes of assets and liabilities classified as held for sale by segment at the date indicated:


	March 31, 2025
	Water Solutions		Crude Oil Logistics		Liquids Logistics		Total
	(in thousands)
Assets Held for Sale
Cash and cash equivalents	$	—	$	—	$	114	$	114
Accounts receivable, net	—		—		21,204		21,204
Inventories	—		—		20,715		20,715
Prepaid expenses and other current assets	—		—		5,098		5,098
Property, plant and equipment, net	412		1,350		51,349		53,111
Goodwill	—		—		17,051		17,051
Intangible assets, net	29,557		—		9,718		39,275
Investments in unconsolidated entities	18,221		—		51		18,272
Operating lease right-of-use assets	—		—		3,962		3,962
Other noncurrent assets	—		1,237		3,142		4,379
Valuation allowance on assets held for sale	( 7,974 )		—		—		( 7,974 )
Total assets held for sale	$	40,216	$	2,587	$	132,404	$	175,207

Liabilities Held for Sale
Accounts payable	$	—	$	—	$	32,072	$	32,072
Accrued expenses and other payables	—		—		4,650		4,650
Advance payments received from customers	—		—		259		259
Operating lease obligations-current	—		—		1,705		1,705
Operating lease obligations-noncurrent	—		—		2,233		2,233
Other noncurrent liabilities	94		—		1,090		1,184
Total liabilities held for sale	$	94	$	—	$	42,009	$	42,103

NGL ENERGY PARTNERS LP AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements (Continued)

The following table summarizes the major classes of assets and liabilities classified as discontinued operations in our Liquids Logistics segment at the dates indicated:


	September 30, 2025		March 31, 2025
	(in thousands)
Assets of Discontinued Operations
Accounts receivable, net	$	—	$	67,350
Prepaid expenses and other current assets	146		82
Total assets of discontinued operations	$	146	$	67,432

Liabilities of Discontinued Operations
Accounts payable	$	40	$	48,454
Accrued expenses and other payables	—		4,295
Total liabilities of discontinued operations	$	40	$	52,749

The following table summarizes the results of operations from discontinued operations related to our refined products and biodiesel businesses for the periods indicated:


	Three Months Ended September 30,				Six Months Ended September 30,
	2025		2024		2025		2024
	(in thousands)
Revenues (1)	$	( 12 )	$	596,203	$	148,074	$	1,224,228
Cost of sales (1)	( 77 )		598,280		146,520		1,232,183
Operating expenses	39		1,567		501		2,712
General and administrative expenses (1)	( 22 )		62		( 6 )		112
Depreciation and amortization	—		56		—		111
Loss (gain) on disposal or impairment of assets, net	3		—		( 38,370 )		—
Operating income (loss) from discontinued operations	45		( 3,762 )		39,429		( 10,890 )
Interest expense	—		( 224 )		( 5 )		( 224 )
Other expense, net	( 20 )		( 12 )		( 20 )		( 9 )
Income (loss) from discontinued operations before taxes	25		( 3,998 )		39,404		( 11,123 )
Income tax expense	( 16 )		( 104 )		( 16 )		( 107 )
Income (loss) from discontinued operations, net of tax	$	9	$	( 4,102 )	$	39,388	$	( 11,230 )

(1) Negative amounts relate to prior period adjustments.

Note 17— Subsequent Events

On October 17, 2025, we redeemed 18,506 of the Class D Preferred Units for a total payment of $ 27.3 million.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following is a discussion of NGL Energy Partners LP’s (“we,” “us,” “our,” or the “Partnership”) financial condition and results of operations as of and for the three months and six months ended September 30, 2025. The discussion should be read in conjunction with the unaudited condensed consolidated financial statements and notes thereto included in this Quarterly Report on Form 10-Q (“Quarterly Report”), as well as Part II, Item 7–“Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2025 (“Annual Report”) filed with the Securities and Exchange Commission on May 29, 2025.

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Recent Developments

Discontinued Operations

Sale of Refined Products Business and Exiting Biodiesel Business

As of March 31, 2025, we completed winding down our biodiesel business (see Note 1 to our unaudited condensed consolidated financial statements included in this Quarterly Report for a further discussion).

On April 30, 2025, we sold our refined products business, including certain working capital items, to a third-party (see Note 1 to our unaudited condensed consolidated financial statements included in this Quarterly Report for a further discussion).

The sale of our refined products business and winding down of our biodiesel business represent a strategic shift in our operations and will have a significant effect on our operations and financial results going forward. Accordingly, the results of operations and cash flows for our refined products and biodiesel businesses within our Liquids Logistics segment have been classified as discontinued operations for all periods presented and prior periods have been retrospectively adjusted in the unaudited condensed consolidated statements of operations and unaudited condensed consolidated statements of cash flows (see Note 16 to our unaudited condensed consolidated financial statements included in this Quarterly Report for a further discussion).

Other Dispositions

Sale of Certain Investments in Unconsolidated Entities and Related Assets

On April 14, 2025, we sold certain investments in unconsolidated entities, property, plant and equipment and intangible assets to a third-party (see Note 1 to our unaudited condensed consolidated financial statements included in this Quarterly Report for a further discussion).

Sale of Certain Natural Gas Liquids Terminals and Most of Our Wholesale Propane Business

On April 30, 2025, we sold most of our wholesale propane business, 17 of our natural gas liquids terminals, our interest in an unconsolidated entity and working capital (“Wholesale Propane Disposition”) to a third-party (see Note 1 to our unaudited condensed consolidated financial statements included in this Quarterly Report for a further discussion).

Sale of Certain Railcars

During the six months ended September 30, 2025, we sold the remaining 203 railcars of our Crude Oil Logistics segment (see Note 15 to our unaudited condensed consolidated financial statements included in this Quarterly Report for a further discussion).

Consolidated Results of Operations

How We Evaluate Our Operations

We use a variety of financial and operating metrics to analyze our performance. Our consolidated financial metrics include operating income, income from continuing operations and Adjusted EBITDA. We evaluate segment operating results using operating income, Adjusted EBITDA and our operating metrics, which include various volume and rate statistics that are relevant for the respective segment. These operating metrics allow investors to analyze the various components of segment financial results in terms of volumes and rate/price. We use these metrics to analyze historical segment financial results and as the key inputs for forecasting and budgeting segment financial results. For additional information on our operating metrics, see the respective segment discussions below.

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The following table summarizes our unaudited condensed consolidated statements of operations for the periods indicated:


	Three Months Ended September 30,				Six Months Ended September 30,
	2025		2024		2025		2024
	(in thousands)
Revenues	$	674,677	$	756,472	$	1,296,833	$	1,515,706
Cost of sales	421,020		522,915		803,832		1,062,220
Operating expenses	74,089		76,565		144,857		147,953
General and administrative expense	14,729		12,117		28,469		27,081
Depreciation and amortization	63,994		61,875		130,579		124,039
Loss (gain) on disposal or impairment of assets, net	6,594		1,509		(2,605)		(9,157)

Operating income	94,251		81,491		191,701		163,570
Equity in earnings of unconsolidated entities	—		1,522		201		1,822
Interest expense	(64,708)		(77,180)		(130,253)		(146,919)
Gain on early extinguishment of liabilities, net	—		—		1,492		—
Other income (expense), net	208		1,834		(3,307)		1,998
Income from continuing operations before income taxes	29,751		7,667		59,834		20,471
Income tax benefit (expense)	61		(174)		243		4,625
Income from continuing operations	29,812		7,493		60,077		25,096
Income (loss) from discontinued operations, net of tax	9		(4,102)		39,388		(11,230)
Net income	29,821		3,391		99,465		13,866
Less: Net income from continuing operations attributable to nonredeemable noncontrolling interests	(490)		(932)		(1,195)		(1,724)
Less: Net income from continuing operations attributable to redeemable noncontrolling interests	(47)		(5)		(64)		(5)
Net income attributable to NGL Energy Partners LP	$	29,284	$	2,454	$	98,206	$	12,137
Adjusted EBITDA - Continuing Operations (1)	$	167,333	$	149,414	$	311,305	$	288,034

(1) See Adjusted EBITDA definition and reconciliation in “Non-GAAP Financial Measures” section below.

Changes in commodity prices and sales volumes affect both revenues and cost of sales in our unaudited condensed consolidated statements of operations and, therefore, the impact is largely offset between these line items.

Operating income increased $12.8 million for the three months ended September 30, 2025, compared with the same period in 2024, primarily as a result of the following:

• Water Solutions – an increase of $19.5 million due primarily to higher water disposal revenues from an increase in produced water volumes processed, partially offset by increased expenses mainly due to losses on disposal or impairment of assets and higher depreciation and amortization expense;

• Crude Oil Logistics – a decrease of $6.6 million due primarily to lower transportation revenue and lower gains on derivatives, partially offset by higher price and quality differentials realized;

• Liquids Logistics – an increase of $3.7 million due primarily to lower expenses related to the Wholesale Propane Disposition and increased product margins due to lower derivative losses; and

• Corporate and Other – a decrease of $3.9 million due to increased legal expenses and business insurance.

In addition to the items discussed above, interest expense was lower (as discussed below).

Operating income increased $28.1 million for the six months ended September 30, 2025, compared with the same period in 2024, primarily as a result of the following:

• Water Solutions – an increase of $20.1 million due primarily to higher water disposal revenues from an increase in produced water volumes processed, partially offset by increased expenses mainly due to losses on disposal or impairment of assets and higher depreciation and amortization expense;

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• Crude Oil Logistics – a decrease of $20.0 million due primarily to lower transportation revenue and increased expenses due to a net loss on the sale of assets;

• Liquids Logistics – an increase of $31.9 million due primarily to lower expenses related to the Wholesale Propane Disposition, including a gain on the sale, and increased margins from the sale of products; and

• Corporate and Other – a decrease of $3.8 million due primarily to increased legal expenses and business insurance.

In addition to the items discussed above, interest expense was lower (as discussed below) which was partially offset by a lower income tax benefit (see Note 2 to our unaudited condensed consolidated financial statements included in this Quarterly Report), losses on marketable securities and a loss from a legal dispute.

Other Items

Seismic Activity

The subsurface injection of produced water for disposal has been associated with induced seismic events in Texas and New Mexico. While these events have been of relatively low magnitude, industry and relevant state regulators are, nevertheless, taking proactive measures to attempt to prevent similar induced seismic events. More specifically, we are engaged in various collaborative industry efforts with other disposal operators and relevant state regulatory agencies, working to collect and review data, enhance understanding of regional fault systems, and ultimately develop and implement appropriate longer-term mitigation strategies. As part of this effort, we have implemented reductions in injected volumes at certain facilities, and where appropriate have temporarily shut-in facilities. To date, due to the capacity of our integrated system in the affected areas, the diverse locations of our disposal facilities, and the connectivity of our system, our ability to dispose of produced water has not been materially impacted by these actions, and with our unique positioning outside of the affected areas, we have the ability to grow our asset base.

Subsequent Events

See Note 17 to our unaudited condensed consolidated financial statements included in this Quarterly Report for a discussion of transactions that occurred subsequent to September 30, 2025.

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Segment Operating Results for the Three Months Ended September 30, 2025 and 2024

Water Solutions

The following table summarizes the operating results of our Water Solutions segment for the periods indicated:


	Three Months Ended September 30,
	2025		2024		Change
	(in thousands, except per barrel and per day amounts)
Revenues:
Water disposal service fees (1)	$	167,127	$	148,241	$	18,886
Sale of recovered crude oil	28,066		24,708		3,358
Recycled water (2)	1,323		679		644
Other revenues (1)(2)	13,227		8,239		4,988
Total revenues	209,743		181,867		27,876
Expenses:
Cost of sales-excluding impact of derivatives	1,083		1,752		(669)
Cost of sales-derivative (gain) loss-unrealized	(1,760)		388		(2,148)
Cost of sales-derivative gain-realized	—		(2,707)		2,707
Operating expenses	55,677		53,611		2,066
General and administrative expenses	1,079		1,520		(441)
Depreciation and amortization expense	55,550		52,523		3,027
Loss on disposal or impairment of assets, net	5,760		1,951		3,809

Total expenses	117,389		109,038		8,351
Segment operating income	$	92,354	$	72,829	$	19,525
Adjusted EBITDA - Continuing Operations (3)	$	151,902	$	128,862	$	23,040

Produced water processed (barrels per day)
Delaware Basin	2,442,972		2,349,333		93,639
Eagle Ford Basin	185,608		188,250		(2,642)
DJ Basin	174,824		143,947		30,877
Total	2,803,404		2,681,530		121,874
Recycled water (barrels per day)	140,936		92,301		48,635
Total (barrels per day)	2,944,340		2,773,831		170,509
Skim oil sold (barrels per day)	5,002		3,776		1,226
Service fees for produced water processed ($/barrel) (4)(5)	$	0.65	$	0.60	$	0.05
Recovered crude oil for produced water processed ($/barrel) (4)	$	0.11	$	0.10	$	0.01
Operating expenses for produced water processed ($/barrel) (4)	$	0.22	$	0.22	$	—

(1) Water disposal service fees and Other revenues in the table above differ from the amounts reported in Note 10 to our unaudited consolidated financial statements, as the amounts in Note 10 are disaggregated by the performance obligations with type of contract and service provided and the timing of the transfer of goods and services, while the amount above is presented based on how management reviews performance. In the table above, revenues from reimbursements from construction projects, booster operating fees and generator rentals and pipeline revenue are included in Other revenues, while in Note 10 the amounts are included in Water disposal service fees.

(2) Recycled water in the table above differs from the amount of Sale of Water reported in Note 10 to our unaudited consolidated financial statements, as the amounts in Note 10 are disaggregated by the performance obligations with type of contract and service provided and the timing of the transfer of goods and services, while the amount above is presented based on how management reviews performance. In Note 10, Sale of Water includes the sale of produced water, recycled water and brackish non-potable water, which in the table above, brackish non-potable water is included in Other revenues.

(3) See Adjusted EBITDA definition and reconciliation in “Non-GAAP Financial Measures” section below.

(4) Total produced water barrels processed during the three months ended September 30, 2025 and 2024 were 257,913,208 and 246,700,755, respectively. These amounts do not include 23,670,072 barrels and 7,693,542 barrels for the three months ended September 30, 2025 and 2024, respectively, related to payments made by certain producers for committed volumes not delivered, as discussed further below. In addition, water pipeline revenue, which is included in Other Revenues, includes payments from a producer for 8,160,115 committed barrels not delivered during the three months ended September 30, 2025.

(5) Excluding payments made by certain producers for committed volumes not delivered, service fees for produced water processed ($/barrel) would have been $0.61/barrel and $0.59/barrel during the three months ended September 30, 2025 and 2024, respectively.

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Water Disposal Service Fee Revenues. The increase was due primarily to an increase in produced water volumes processed from contracted customers. There was also an increase in payments made by certain producers for committed volumes not delivered.

Recovered Crude Oil Revenues. The increase was due primarily to an increase in skim oil barrels sold due to more skim oil recovered from receiving more produced water, partially offset by lower realized crude oil prices received from the sale of skim oil barrels.

Recycled Water Revenues. Revenue from recycled water includes the sale of produced water and recycled water for use in our customers’ completion activities. The increase was due primarily to higher pricing for recycled water and higher recycled water volumes related to timing of water to be used in completions.

Other Revenues. Other revenues primarily include reimbursements from construction projects, booster operating fees and generator rentals, water pipeline revenues, solids disposal revenues and brackish non-potable water revenues. The increase was due primarily to higher water pipeline revenue, including payments from a producer for committed volumes not delivered, due to our expanded Lea County Express Pipeline system (“LEX II”) commencing operations during the three months ended December 31, 2024. This increase was partially offset by lower reimbursements from construction projects, booster operating fees and generator rentals.

Cost of Sales-Excluding Impact of Derivatives . The decrease was due primarily to lower costs incurred that will be reimbursed by producers for generator and fuel costs at various booster stations.

Operating and General and Administrative Expenses . The increase was due primarily to higher royalty expense due to volumes related to the LEX II pipeline commencing operations and increased volumes at certain other saltwater disposal wells, higher repairs and maintenance expense due to timing of repairs, higher utilities expense due to increased produced water volumes processed and higher severance taxes due to an increase in revenue from recovered crude oil, partially offset by lower chemical expense due to purchasing fewer chemicals and using chemicals more efficiently, lower bad debt expense and lower legal expense.

Depreciation and Amortization Expense . The increase was due primarily to depreciation of newly developed facilities and infrastructure, partially offset by certain long-term assets being fully amortized, impaired or sold during the fiscal year ended March 31, 2025 and six months ended September 30, 2025.

Loss on Disposal or Impairment of Assets, Net. During the three months ended September 30, 2025, we recorded:

• a net loss of $7.8 million primarily related to writing down the net book value of certain saltwater disposal wells and capital projects due to abandonment and the retirement of certain other assets;

• a gain of $1.4 million from insurance recoveries for certain saltwater disposal facilities and boosters damaged in a prior period; and

• a net gain of $0.6 million primarily related to the sale of certain assets.

During the three months ended September 30, 2024, we recorded:

• a net loss of $3.5 million primarily related to writing down the net book value of certain saltwater disposal wells and capital projects due to abandonment and the retirement of certain other assets; and

• a gain of $1.5 million from insurance recoveries for certain saltwater disposal facilities and boosters damaged in a prior period.

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Crude Oil Logistics

The following table summarizes the operating results of our Crude Oil Logistics segment for the periods indicated:


	Three Months Ended September 30,
	2025		2024		Change
	(in thousands, except per barrel amounts)
Revenues:
Crude oil sales	$	211,824	$	225,013	$	(13,189)
Crude oil transportation and other sales	8,207		18,828		(10,621)
Total revenues	220,031		243,841		(23,810)
Expenses:
Cost of sales-excluding impact of derivatives	195,665		216,593		(20,928)
Cost of sales-derivative gain-unrealized	(313)		(4,012)		3,699
Cost of sales-derivative gain-realized	(71)		(349)		278
Operating expenses	9,745		10,249		(504)
General and administrative expenses	715		677		38
Depreciation and amortization expense	6,063		6,285		(222)
Loss (gain) on disposal or impairment of assets, net	3		(442)		445
Total expenses	211,807		229,001		(17,194)
Segment operating income	$	8,224	$	14,840	$	(6,616)
Adjusted EBITDA - Continuing Operations (1)	$	16,553	$	17,263	$	(710)

Crude oil sold (barrels)	3,173		2,868		305
Crude oil transported on owned pipelines (barrels)	6,633		5,807		826
Crude oil storage capacity - owned and leased (barrels) (2)	5,232		5,232		—
Crude oil storage capacity leased to third-parties (barrels) (2)	1,650		1,650		—
Crude oil inventory (barrels) (2)	712		450		262
Crude oil sold ($/barrel)	$	66.758	$	78.456	$	(11.698)
Cost per crude oil sold ($/barrel) (3)	$	61.666	$	75.521	$	(13.855)
Crude oil product margin ($/barrel) (3)	$	5.092	$	2.935	$	2.157

(1) See Adjusted EBITDA definition and reconciliation in “Non-GAAP Financial Measures” section below.

(2) Information is presented as of September 30, 2025 and September 30, 2024, respectively.

(3) Cost and product margin per barrel excludes the impact of derivatives.

Crude Oil Sales and Cost of Sales-Excluding Impact of Derivatives. The decreases in sales and cost of sales, excluding the impact of derivatives, were primarily due to lower commodity prices partially offset by higher production on acreage dedicated to us in the DJ Basin during the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

During the three months ended September 30, 2025, the crude oil product margin and margin per barrel increased primarily due to higher price and quality differentials realized during the three months ended September 30, 2025, compared to the three months ended September 30, 2024. Additionally, there was a more significant decrease in market prices during the three months ended September 30, 2024, thus also contributing to a smaller margin per barrel for that period. Crude oil product margin calculations do not include gains and losses from derivatives that may offset the movement in the physical margin.

Crude Oil Transportation and Other Sales. The decrease was primarily due to lower pipeline revenue because of the expiration of certain transportation services contracts on third-party pipelines and lower rental revenue due to the sale of our railcars.

During the three months ended September 30, 2025, physical volumes on the Grand Mesa Pipeline averaged approximately 72,000 barrels per day, compared to approximately 63,000 barrels per day during the three months ended September 30, 2024. Higher contracted volumes were shipped on the Grand Mesa Pipeline due to higher production on acreage dedicated to us in the DJ Basin.

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Operating and General and Administrative Expenses . The decrease was primarily due to lower incentive compensation expense accrued during the three months ended September 30, 2025, and lower ad valorem taxes due to lower assessed values on our Grand Mesa Pipeline assets in the State of Colorado, which were partially offset by higher utilities expense on the Grand Mesa Pipeline from higher volumes flowing through the system during the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

Depreciation and Amortization Expense. The decrease was primarily due to the sale of railcars during the year ended March 31, 2025 and the six months ended September 30, 2025.

Loss (Gain) on Disposal or Impairment of Assets, Net . During the three months ended September 30, 2025, we recorded a loss of $0.5 million from the sale of linefill and other assets and a gain of $0.5 million from the sale of railcars. During the three months ended September 30, 2024, we recorded a net gain of $0.4 million primarily due to a gain on the sale of certain assets.

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Liquids Logistics

The following table summarizes the operating results of our Liquids Logistics segment for the periods indicated. As discussed above, the operating results of our refined products and biodiesel businesses have been classified as discontinued operations and prior periods have been retrospectively adjusted.


	Three Months Ended September 30,
	2025		2024		Change
	(in thousands, except per gallon amounts)
Butane:
Sales	$	113,992	$	123,664	$	(9,672)
Cost of sales-excluding impact of derivatives	104,821		115,280		(10,459)
Cost of sales-derivative loss-unrealized	1,450		5,143		(3,693)
Cost of sales-derivative (gain) loss-realized	(431)		303		(734)
Product margin	8,152		2,938		5,214

Propane:
Sales	31,706		90,378		(58,672)
Cost of sales-excluding impact of derivatives	29,882		88,851		(58,969)
Cost of sales-derivative loss-unrealized	265		1,147		(882)
Cost of sales-derivative gain-realized	(256)		(2,622)		2,366
Product margin	1,815		3,002		(1,187)

Other products:
Sales	97,304		110,637		(13,333)
Cost of sales-excluding impact of derivatives	90,320		102,965		(12,645)
Cost of sales-derivative loss (gain)-unrealized	39		(55)		94
Cost of sales-derivative (gain) loss-realized	(72)		13		(85)
Product margin	7,017		7,714		(697)

Service:
Sales	1,650		6,095		(4,445)
Cost of sales	398		309		89
Product margin	1,252		5,786		(4,534)

Expenses:
Operating expenses	8,667		12,705		(4,038)
General and administrative expenses	851		1,741		(890)
Depreciation and amortization expense	1,540		2,365		(825)
Loss on disposal or impairment of assets, net	832		—		832
Total expenses	11,890		16,811		(4,921)
Segment operating income	$	6,346	$	2,629	$	3,717
Adjusted EBITDA - Continuing Operations (1)	$	10,521	$	11,379	$	(858)

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	Three Months Ended September 30,
	2025		2024		Change
	(in thousands, except per gallon amounts)
Natural gas liquids storage capacity - owned and leased (gallons) (2)	49,571		116,531		(66,960)

Butane sold (gallons)	111,442		109,783		1,659
Butane sold ($/gallon)	$	1.023	$	1.126	$	(0.103)
Cost per butane sold ($/gallon) (3)	$	0.941	$	1.050	$	(0.109)
Butane product margin ($/gallon) (3)	$	0.082	$	0.076	$	0.006
Butane inventory (gallons) (2)	54,976		81,441		(26,465)

Propane sold (gallons)	37,305		108,589		(71,284)
Propane sold ($/gallon)	$	0.850	$	0.832	$	0.018
Cost per propane sold ($/gallon) (3)	$	0.801	$	0.818	$	(0.017)
Propane product margin ($/gallon) (3)	$	0.049	$	0.014	$	0.035
Propane inventory (gallons) (2)	18,071		80,323		(62,252)

Other products sold (gallons)	74,158		74,491		(333)
Other products sold ($/gallon)	$	1.312	$	1.485	$	(0.173)
Cost per other products sold ($/gallon) (3)	$	1.218	$	1.382	$	(0.164)
Other products product margin ($/gallon) (3)	$	0.094	$	0.103	$	(0.009)
Other products inventory (gallons) (2)	4,849		5,254		(405)

(1) See Adjusted EBITDA definition and reconciliation in “Non-GAAP Financial Measures” section below.

(2) Information is presented as of September 30, 2025 and September 30, 2024, respectively.

(3) Cost and product margin per gallon excludes the impact of derivatives.

Butane Sales and Cost of Sales-Excluding Impact of Derivatives. The decreases in sales and cost of sales, excluding the impact of derivatives, during the three months ended September 30, 2025, compared to the three months ended September 30, 2024 were primarily due to lower butane prices during the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

Butane product margins, excluding the impact of derivatives, increased during the three months ended September 30, 2025, compared to the three months ended September 30, 2024 due to improved rail utilization and supply optimization.

Propane Sales and Cost of Sales-Excluding Impact of Derivatives. The decreases in sales and cost of sales, excluding the impact of derivatives, were due primarily to the Wholesale Propane Disposition.

Propane product margins, excluding the impact of derivatives, increased during the three months ended September 30, 2025 primarily due to selling lower-priced inventory into a market of rising prices.

Other Products Sales and Cost of Sales-Excluding Impact of Derivatives. The decreases in sales and cost of sales, excluding the impact of derivatives, were primarily due to decreased commodity prices during the three months ended September 30, 2025, compared to the three months ended September 30, 2024.

Other products sales product margins, excluding the impact of derivatives, decreased during the three months ended September 30, 2025 primarily due to lower asphalt margins due to an increase in product costs.

Service Sales and Cost of Sales. The sales include storage, terminaling and transportation services income. Sales during the three months ended September 30, 2025 decreased due to the Wholesale Propane Disposition and the expiration of a throughput contract during the prior fiscal year. Cost of sales increased due to increased hauling activities.

Operating and General and Administrative Expenses . The decrease during the three months ended September 30, 2025 compared to the three months ended September 30, 2024 was due to the Wholesale Propane Disposition.

Depreciation and Amortization Expense . The decrease during the three months ended September 30, 2025 compared to the three months ended September 30, 2024 was due to the Wholesale Propane Disposition.

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Loss on Disposal or Impairment of Assets, Net . During the three months ended September 30, 2025, we recorded a net loss of $0.8 million due to the Wholesale Propane Disposition.

Corporate and Other

The operating loss within “Corporate and Other” includes the following components for the periods indicated:


	Three Months Ended September 30,
	2025		2024		Change
	(in thousands)
Other revenues:
Service revenues	$	251	$	74	$	177
Expenses:

General and administrative expenses	12,084		8,179		3,905
Depreciation and amortization expense	841		702		139
Gain on disposal or impairment of assets, net	(1)		—		(1)
Total expenses	12,924		8,881		4,043
Operating loss	$	(12,673)	$	(8,807)	$	(3,866)
Adjusted EBITDA - Continuing Operations (1)	$	(11,643)	$	(8,090)	$	(3,553)

(1) See Adjusted EBITDA definition and reconciliation in “Non-GAAP Financial Measures” section below.

Service Revenues. These revenues relate to billings to the noncontrolling interest holders for usage of the airplanes acquired in June and October 2024.

General and Administrative Expenses. The expenses during the three months ended September 30, 2025 increased by $3.9 million due to lower legal expenses in the prior year period due to a reimbursement of legal expenses related to a dispute associated with commercial activities and lower business insurance expense in the prior year period due to the receipt of credits.

Depreciation and Amortization Expense. The increase during the three months ended September 30, 2025 was due to depreciation of the airplane put into service in October 2024.

Interest Expense

The following table summarizes the components of our consolidated interest expense for the periods indicated:


	Three Months Ended September 30,
	2025		2024		Change
	(in thousands)
Senior secured notes	$	45,102	$	45,500	$	(398)
Senior secured term loan “B” credit facility (“Term Loan B”)	14,212		16,668		(2,456)
Asset-based revolving credit facility (“ABL Facility”)	2,013		6,401		(4,388)
Other indebtedness	553		(294)		847
Total debt interest expense	61,880		68,275		(6,395)
Amortization of debt issuance costs	3,133		2,929		204
Unrealized (gain) loss on interest rate swaps	(86)		7,027		(7,113)
Realized gain on interest rate swaps	(219)		(1,051)		832
Total interest expense	$	64,708	$	77,180	$	(12,472)

The debt interest expense decreased $6.4 million during the three months ended September 30, 2025 primarily due to lower interest rates on the Term Loan B and a lower weighted average daily balance on the ABL Facility for the three months ended September 30, 2025 compared to our outstanding debt instruments in the prior year period.

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Segment Operating Results for the Six Months Ended September 30, 2025 and 2024

Water Solutions

The following table summarizes the operating results of our Water Solutions segment for the periods indicated:


	Six Months Ended September 30,
	2025		2024		Change
	(in thousands, except per barrel and per day amounts)
Revenues:
Water disposal service fees (1)	$	329,202	$	289,239	$	39,963
Sale of recovered crude oil	52,874		55,484		(2,610)
Recycled water (2)	2,699		2,939		(240)
Other revenues (1)(2)	26,248		15,615		10,633
Total revenues	411,023		363,277		47,746
Expenses:
Cost of sales-excluding impact of derivatives	2,740		3,577		(837)
Cost of sales-derivative gain-unrealized	(5,274)		(473)		(4,801)
Cost of sales-derivative gain-realized	—		(2,671)		2,671
Operating expenses	111,010		106,436		4,574
General and administrative expenses	2,324		2,731		(407)
Depreciation and amortization expense	113,626		105,235		8,391
Loss (gain) on disposal or impairment of assets, net	9,296		(8,745)		18,041

Total expenses	233,722		206,090		27,632
Segment operating income	$	177,301	$	157,187	$	20,114
Adjusted EBITDA - Continuing Operations (3)	$	294,771	$	254,465	$	40,306

Produced water processed (barrels per day)
Delaware Basin	2,427,382		2,255,861		171,521
Eagle Ford Basin	193,149		182,311		10,838
DJ Basin	167,064		135,867		31,197
Total	2,787,595		2,574,039		213,556
Recycled water (barrels per day)	189,917		98,334		91,583
Total (barrels per day)	2,977,512		2,672,373		305,139
Skim oil sold (barrels per day)	4,803		4,099		704
Service fees for produced water processed ($/barrel) (4)(5)	$	0.65	$	0.61	$	0.04
Recovered crude oil for produced water processed ($/barrel) (4)	$	0.10	$	0.12	$	(0.02)
Operating expenses for produced water processed ($/barrel) (4)	$	0.22	$	0.23	$	(0.01)

(3) See Adjusted EBITDA definition and reconciliation in “Non-GAAP Financial Measures” section below.

(4) Total produced water barrels processed during the six months ended September 30, 2025 and 2024 were 510,130,061 and 471,049,065, respectively. These amounts do not include 40,037,812 barrels and 19,393,348 barrels for the six months ended September 30, 2025 and 2024, respectively, related to payments made by certain producers for committed volumes not delivered, as discussed further below. In addition, water pipeline revenue, which is included in Other Revenues, includes payments from a producer for 17,606,145 committed barrels not delivered during the six months ended September 30, 2025.

(5) Excluding payments made by certain producers for committed volumes not delivered, service fees for produced water processed ($/barrel) would have been $0.62/barrel and $0.59/barrel during the six months ended September 30, 2025 and 2024, respectively.

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Recovered Crude Oil Revenues. The decrease was due primarily to lower realized crude oil prices received from the sale of skim oil barrels, partially offset by an increase in skim oil barrels sold due to more skim oil recovered from receiving more produced water.

Recycled Water Revenues. The decrease was due primarily to lower pricing for recycled water, partially offset by higher recycled water volumes related to timing of water to be used in completions.

Other Revenues. The increase was due primarily to higher water pipeline revenue, including payments from a producer for committed volumes not delivered, due to our LEX II commencing operations during the three months ended December 31, 2024. This increase was partially offset by lower reimbursements from construction projects, booster operating fees and generator rentals.

Cost of Sales-Excluding Impact of Derivatives . The decrease was due primarily to lower costs incurred that will be reimbursed by producers for generator and fuel costs at various booster stations.

Operating and General and Administrative Expenses . The increase was due primarily to higher royalty expense due to volumes related to the LEX II pipeline commencing operations and increased volumes at certain other saltwater disposal wells, higher utilities expense due to increased produced water volumes processed and higher repairs and maintenance expense due to timing of repairs, partially offset by lower bad debt expense and lower legal expense.

Loss (Gain) on Disposal or Impairment of Assets, Net . During the six months ended September 30, 2025, we recorded:

• a net loss of $10.8 million primarily related to writing down the net book value of certain saltwater disposal wells and capital projects due to abandonment and the retirement of certain other assets;

• a gain of $2.2 million from insurance recoveries for certain saltwater disposal facilities and boosters damaged in a prior period; and

• a net loss of $0.6 million primarily related to the sale of certain assets.

During the six months ended September 30, 2024, we recorded:

• a net gain of $10.5 million primarily related to the sale of certain assets;

• a net loss of $3.6 million primarily related to writing down the net book value of certain saltwater disposal wells and capital projects due to abandonment and the retirement of certain other assets; and

• a gain of $1.8 million from insurance recoveries for certain saltwater disposal facilities and boosters damaged in a prior period.

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Crude Oil Logistics

The following table summarizes the operating results of our Crude Oil Logistics segment for the periods indicated:


	Six Months Ended September 30,
	2025		2024		Change
	(in thousands, except per barrel amounts)
Revenues:
Crude oil sales	$	370,352	$	487,622	$	(117,270)
Crude oil transportation and other sales	17,310		36,434		(19,124)
Total revenues	387,662		524,056		(136,394)
Expenses:
Cost of sales-excluding impact of derivatives	344,075		467,044		(122,969)
Cost of sales-derivative gain-unrealized	(1,444)		(5,992)		4,548
Cost of sales-derivative (gain) loss-realized	(232)		789		(1,021)
Operating expenses	18,953		19,590		(637)
General and administrative expenses	1,362		1,382		(20)
Depreciation and amortization expense	12,128		12,726		(598)
Loss (gain) on disposal or impairment of assets, net	3,924		(412)		4,336
Total expenses	378,766		495,127		(116,361)
Segment operating income	$	8,896	$	28,929	$	(20,033)
Adjusted EBITDA - Continuing Operations (1)	$	26,136	$	35,898	$	(9,762)

Crude oil sold (barrels)	5,597		6,042		(445)
Crude oil transported on owned pipelines (barrels)	11,623		11,520		103
Crude oil storage capacity - owned and leased (barrels) (2)	5,232		5,232		—
Crude oil storage capacity leased to third-parties (barrels) (2)	1,650		1,650		—
Crude oil inventory (barrels) (2)	712		450		262
Crude oil sold ($/barrel)	$	66.170	$	80.705	$	(14.535)
Cost per crude oil sold ($/barrel) (3)	$	61.475	$	77.300	$	(15.825)
Crude oil product margin ($/barrel) (3)	$	4.695	$	3.405	$	1.290

(1) See Adjusted EBITDA definition and reconciliation in “Non-GAAP Financial Measures” section below.

(2) Information is presented as of September 30, 2025 and September 30, 2024, respectively.

(3) Cost and product margin per barrel excludes the impact of derivatives.

Crude Oil Sales and Cost of Sales-Excluding Impact of Derivatives. The decreases in sales and cost of sales, excluding the impact of derivatives, were primarily due to lower commodity prices partially offset by higher production on acreage dedicated to us in the DJ Basin during the six months ended September 30, 2025, compared to the six months ended September 30, 2024.

During the six months ended September 30, 2025, the crude oil product margin and margin per barrel increased compared to the six months ended September 30, 2024 due to lower transportation costs. In addition, there was a more significant decrease in market prices during the six months ended September 30, 2024, thus also contributing to a smaller margin per barrel for that period. Crude oil product margin calculations do not include gains and losses from derivatives that may offset the movement in the physical margin.

During the six months ended September 30, 2025, physical volumes on the Grand Mesa Pipeline averaged approximately 64,000 barrels per day, compared to approximately 63,000 barrels per day during the six months ended September 30, 2024. Higher contracted volumes were shipped on the Grand Mesa Pipeline due to higher production on acreage dedicated to us in the DJ Basin.

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Operating and General and Administrative Expenses . The decrease was primarily due to lower incentive compensation expense accrued during the six months ended September 30, 2025, and lower ad valorem taxes due to lower assessed values on our Grand Mesa Pipeline assets in the State of Colorado, which were partially offset by higher utilities expense on the Grand Mesa Pipeline from higher volumes flowing through the system during the six months ended September 30, 2025, compared to the six months ended September 30, 2024.

Depreciation and Amortization Expense. The decrease was primarily due to the sale of railcars during the year ended March 31, 2025 and the six months ended September 30, 2025.

Loss (Gain) on Disposal or Impairment of Assets, Net . During the six months ended September 30, 2025, we recorded a loss from the sale of linefill held on third-party pipelines of $5.9 million, which includes a loss from derivatives of $1.8 million from hedging transactions relating to the sale of linefill barrels. We also recorded of loss of $0.3 million related to the retirement of certain assets. In addition, we recorded a gain of $2.2 million from the sale of railcars during the six months ended September 30, 2025. During the six months ended September 30, 2024, we recorded a net gain of $0.4 million primarily due to a gain on the sale of certain assets.

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Liquids Logistics


	Six Months Ended September 30,
	2025		2024		Change
	(in thousands, except per gallon amounts)
Butane:
Sales	$	213,737	$	221,720	$	(7,983)
Cost of sales-excluding impact of derivatives	199,131		209,404		(10,273)
Cost of sales-derivative (gain) loss-unrealized	(36)		7,649		(7,685)
Cost of sales-derivative gain-realized	(1,332)		(67)		(1,265)
Product margin	15,974		4,734		11,240

Propane:
Sales	93,399		188,436		(95,037)
Cost of sales-excluding impact of derivatives	91,250		185,501		(94,251)
Cost of sales-derivative (gain) loss-unrealized	(1,104)		6,354		(7,458)
Cost of sales-derivative gain-realized	(1,074)		(8,107)		7,033
Product margin	4,327		4,688		(361)

Other products:
Sales	187,534		208,837		(21,303)
Cost of sales-excluding impact of derivatives	176,471		198,522		(22,051)
Cost of sales-derivative loss (gain)-unrealized	16		(14)		30
Cost of sales-derivative gain-realized	(84)		(96)		12
Product margin	11,131		10,425		706

Service:
Sales	3,067		9,502		(6,435)
Cost of sales	733		996		(263)
Product margin	2,334		8,506		(6,172)

Expenses:
Operating expenses	14,894		21,927		(7,033)
General and administrative expenses	1,510		3,498		(1,988)
Depreciation and amortization expense	3,107		4,721		(1,614)
Gain on disposal or impairment of assets, net	(15,823)		—		(15,823)
Total expenses	3,688		30,146		(26,458)
Segment operating income (loss)	$	30,078	$	(1,793)	$	31,871
Adjusted EBITDA - Continuing Operations (1)	$	13,392	$	17,115	$	(3,723)

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	Six Months Ended September 30,
	2025		2024		Change
	(in thousands, except per gallon amounts)
Natural gas liquids storage capacity - owned and leased (gallons) (2)	49,571		116,531		(66,960)

Butane sold (gallons)	208,380		204,972		3,408
Butane sold ($/gallon)	$	1.026	$	1.082	$	(0.056)
Cost per butane sold ($/gallon) (3)	$	0.956	$	1.022	$	(0.066)
Butane product margin ($/gallon) (3)	$	0.070	$	0.060	$	0.010
Butane inventory (gallons) (2)	54,976		81,441		(26,465)

Propane sold (gallons)	104,080		221,093		(117,013)
Propane sold ($/gallon)	$	0.897	$	0.852	$	0.045
Cost per propane sold ($/gallon) (3)	$	0.877	$	0.839	$	0.038
Propane product margin ($/gallon) (3)	$	0.020	$	0.013	$	0.007
Propane inventory (gallons) (2)	18,071		80,323		(62,252)

Other products sold (gallons)	145,774		136,663		9,111
Other products sold ($/gallon)	$	1.286	$	1.528	$	(0.242)
Cost per other products sold ($/gallon) (3)	$	1.211	$	1.453	$	(0.242)
Other products product margin (loss) ($/gallon) (3)	$	0.075	$	0.075	$	—
Other products inventory (gallons) (2)	4,849		5,254		(405)

(1) See Adjusted EBITDA definition and reconciliation in “Non-GAAP Financial Measures” section below.

(2) Information is presented as of September 30, 2025 and September 30, 2024, respectively.

(3) Cost and product margin per gallon excludes the impact of derivatives.

Butane Sales and Cost of Sales-Excluding Impact of Derivatives. The decreases in sales and cost of sales, excluding the impact of derivatives, during the six months ended September 30, 2025, compared to the six months ended September 30, 2024 were primarily due to lower butane prices during the six months ended September 30, 2025, compared to the six months ended September 30, 2024.

Butane product margins, excluding the impact of derivatives, increased during the six months ended September 30, 2025, compared to the six months ended September 30, 2024 due to improved rail utilization and supply optimization.

Propane product margins, excluding the impact of derivatives, decreased during the six months ended September 30, 2025 primarily due to the negative margin from our wholesale propane business prior to the Wholesale Propane Disposition on April 30, 2025, as higher-priced inventory was sold into a declining market.

Other Products Sales and Cost of Sales-Excluding Impact of Derivatives. The decreases in sales and cost of sales, excluding the impact of derivatives, were primarily due to decreased commodity prices during the six months ended September 30, 2025, compared to the six months ended September 30, 2024.

Other products sales product margins, excluding the impact of derivatives, increased during the six months ended September 30, 2025 primarily due to increased sales volumes for asphalt and isobutane in the current year which was partially offset by lower commodity prices.

Service Sales and Cost of Sales. The sales include storage, terminaling and transportation services income. Sales and cost of sales decreased during the six months ended September 30, 2025 due to the Wholesale Propane Disposition and the expiration of a throughput agreement in the prior fiscal year.

Operating and General and Administrative Expenses . The decrease during the six months ended September 30, 2025 compared to the six months ended September 30, 2024 was due to the Wholesale Propane Disposition.

Depreciation and Amortization Expense . The decrease during the six months ended September 30, 2025 compared to

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the six months ended September 30, 2024 was due to the Wholesale Propane Disposition.

Gain on Disposal or Impairment of Assets, Net. During the six months ended September 30, 2025, we recorded a net gain of $17.3 million due to the Wholesale Propane Disposition. We also recorded a net loss of $1.6 million related to the impairment of certain right-of-use assets.

Corporate and Other

The operating loss within “Corporate and Other” includes the following components for the periods indicated:


	Six Months Ended September 30,
	2025		2024		Change
	(in thousands)
Other revenues:
Service revenues	$	415	$	74	$	341
Expenses:
General and administrative expenses	23,273		19,470		3,803
Depreciation and amortization expense	1,718		1,357		361
Gain on disposal or impairment of assets, net	(2)		—		(2)
Total expenses	24,989		20,827		4,162
Operating loss	$	(24,574)	$	(20,753)	$	(3,821)
Adjusted EBITDA - Continuing Operations (1)	$	(22,994)	$	(19,444)	$	(3,550)

(1) See Adjusted EBITDA definition and reconciliation in “Non-GAAP Financial Measures” section below.

Service Revenues. These revenues relate to billings to the noncontrolling interest holders for usage of the airplanes acquired in June and October 2024.

General and Administrative Expenses. The expenses during the six months ended September 30, 2025 increased by $3.8 million due to lower legal expenses in the prior year due to a reimbursement of legal expenses related to a dispute associated with commercial activities and lower business expense in the prior year period due to the receipt of credits.

Depreciation and Amortization Expense . The increase during the six months ended September 30, 2025 was due to depreciation of the two airplanes put into service during the year ended March 31, 2025.

Interest Expense

The following table summarizes the components of our consolidated interest expense for the periods indicated:


	Six Months Ended September 30,
	2025		2024		Change
	(in thousands)
Senior secured notes	$	90,363	$	91,000	$	(637)
Term Loan B	28,356		34,052		(5,696)
ABL Facility	3,899		9,545		(5,646)
Other indebtedness	1,063		904		159
Total debt interest expense	123,681		135,501		(11,820)
Amortization of debt issuance costs	6,253		5,775		478
Unrealized loss on interest rate swaps	782		7,473		(6,691)
Realized gain on interest rate swaps	(463)		(1,830)		1,367
Total interest expense	$	130,253	$	146,919	$	(16,666)

The debt interest expense decreased $11.8 million during the six months ended September 30, 2025 primarily due to lower interest rates on the Term Loan B and a lower weighted average daily balance on the ABL Facility for the six months ended September 30, 2025 compared to our outstanding debt instruments in the prior year period.

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Non-GAAP Financial Measures

In addition to financial results reported in accordance with accounting principles generally accepted in the United States (“GAAP”), we have provided the non-GAAP financial measures of EBITDA and Adjusted EBITDA. These non-GAAP financial measures are not intended to be a substitute for those reported in accordance with GAAP. These measures may be different from non-GAAP financial measures used by other entities, even when similar terms are used to identify such measures.

We define EBITDA as net income (loss) attributable to NGL Energy Partners LP, plus interest expense, income tax expense (benefit), and depreciation and amortization expense. We define Adjusted EBITDA as EBITDA excluding net unrealized gains and losses on derivatives, lower of cost or net realizable value adjustments, gains and losses on disposal or impairment of assets, gains and losses on early extinguishment of liabilities, revaluation of liabilities and other. EBITDA and Adjusted EBITDA should not be considered as alternatives to net income, income from continuing operations before income taxes, cash flows from operating activities, or any other measure of financial performance calculated in accordance with GAAP, as those items are used to measure operating performance, liquidity or the ability to service debt obligations. We believe that EBITDA provides additional information to investors for evaluating our ability to make quarterly distributions to our unitholders and is presented solely as a supplemental measure. We believe that Adjusted EBITDA provides additional information to investors for evaluating our financial performance without regard to our financing methods, capital structure and historical cost basis. Further, EBITDA and Adjusted EBITDA, as we define them, may not be comparable to EBITDA, Adjusted EBITDA, or similarly titled measures used by other entities.

For purposes of our Adjusted EBITDA calculation, we make a distinction between realized and unrealized gains and losses on derivatives. During the period when a derivative contract is open, we record changes in the fair value of the derivative as an unrealized gain or loss. When a derivative contract matures or is settled, we reverse the previously recorded unrealized gain or loss and record a realized gain or loss.

The following table reconciles net income to EBITDA and Adjusted EBITDA for the periods indicated:


	Three Months Ended September 30,				Six Months Ended September 30,
	2025		2024		2025		2024
	(in thousands)
Net income	$	29,821	$	3,391	$	99,465	$	13,866
Less: Net income from continuing operations attributable to nonredeemable noncontrolling interests	(490)		(932)		(1,195)		(1,724)
Less: Net income from continuing operations attributable to redeemable noncontrolling interests	(47)		(5)		(64)		(5)
Net income attributable to NGL Energy Partners LP	29,284		2,454		98,206		12,137
Interest expense	64,687		77,391		130,212		147,129
Income tax (benefit) expense	(45)		278		(227)		(4,518)
Depreciation and amortization	63,222		61,546		129,048		123,395
EBITDA	157,148		141,669		357,239		278,143
Net unrealized (gains) losses on derivatives	(317)		5,632		(7,857)		23,588
Lower of cost or net realizable value adjustments (1)	2,519		(901)		(425)		(1,231)
Loss (gain) on disposal or impairment of assets, net (2)	6,595		1,515		(40,984)		(9,151)
Gain on early extinguishment of liabilities, net	—		—		(1,492)		—

Other (3)	1,436		(645)		5,867		263
Adjusted EBITDA	$	167,381	$	147,270	$	312,348	$	291,612
Adjusted EBITDA - Discontinued Operations (4)	$	48	$	(2,144)	$	1,043	$	3,578
Adjusted EBITDA - Continuing Operations	$	167,333	$	149,414	$	311,305	$	288,034

(1) Lower of cost or net realizable value adjustments in the table above differ from lower of cost or net realizable value adjustments reported in our unaudited condensed consolidated statements of cash flows, as the amounts reported in the table above represent the change in lower of cost or net realizable value adjustments recorded in the unaudited condensed consolidated statements of operations, which includes reversals, whereas the amounts reported in our unaudited condensed consolidated statements of cash flows represent the lower of cost or net realizable value adjustments recorded at the balance sheet date.

(2) Excludes amounts related to unconsolidated entities and noncontrolling interests.

(3) Amounts represent accretion expense for asset retirement obligations, expenses incurred related to legal and advisory costs associated with acquisitions and dispositions, unrealized gains and losses on investments and marketable securities and a loss from a legal dispute.

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(4) Amounts include our refined products and biodiesel businesses.

The following tables reconcile depreciation and amortization amounts per the EBITDA table above to depreciation and amortization amounts in our unaudited condensed consolidated statements of operations and unaudited condensed consolidated statements of cash flows for the periods indicated:


	Three Months Ended September 30,				Six Months Ended September 30,
	2025		2024		2025		2024
	(in thousands)
Depreciation and amortization per EBITDA table	$	63,222	$	61,546	$	129,048	$	123,395
Intangible asset amortization recorded to cost of sales	—		(37)		—		(37)
Depreciation and amortization attributable to unconsolidated entities	—		(108)		(24)		(179)
Depreciation and amortization attributable to noncontrolling interests	772		595		1,555		1,101
Depreciation and amortization attributable to discontinued operations	—		(121)		—		(241)
Depreciation and amortization per unaudited condensed consolidated statements of operations	$	63,994	$	61,875	$	130,579	$	124,039


	Six Months Ended September 30,
	2025		2024
	(in thousands)
Depreciation and amortization per EBITDA table	$	129,048	$	123,395
Amortization of debt issuance costs recorded to interest expense	6,253		5,775
Amortization of royalty expense recorded to operating expense	123		123
Depreciation and amortization attributable to unconsolidated entities	(24)		(179)
Depreciation and amortization attributable to noncontrolling interests	1,555		1,101
Depreciation and amortization attributable to discontinued operations	—		(241)
Depreciation and amortization per unaudited condensed consolidated statements of cash flows	$	136,955	$	129,974

The following table summarizes additional amounts attributable to discontinued operations in the EBITDA and Adjusted EBITDA table above for the periods indicated:


	Three Months Ended September 30,				Six Months Ended September 30,
	2025		2024		2025		2024
	(in thousands)
Income tax expense	$	16	$	104	$	16	$	107
Net unrealized losses (gains) on derivatives	$	—	$	3,022	$	(15)	$	16,066
Lower of cost or realizable value adjustments	$	—	$	(1,513)	$	—	$	(1,830)
Loss (gain) on disposal or impairment of assets, net	$	3	$	—	$	(38,370)	$	—

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The following tables reconcile operating income (loss) to Adjusted EBITDA by segment for the periods indicated:


	Three Months Ended September 30, 2025
	Water Solutions		Crude Oil Logistics		Liquids Logistics		Corporate and Other		Continuing Operations		Discontinued Operations		Consolidated
	(in thousands)
Operating income (loss)	$	92,354	$	8,224	$	6,346	$	(12,673)	$	94,251	$	—	$	94,251
Depreciation and amortization	55,550		6,063		1,540		841		63,994		—		63,994

Net unrealized (gains) losses on derivatives	(1,760)		(312)		1,755		—		(317)		—		(317)
Lower of cost or net realizable value adjustments	—		2,519		—		—		2,519		—		2,519
Loss (gain) on disposal or impairment of assets, net	5,760		3		832		(1)		6,594		—		6,594
Other income (expense), net	33		—		(18)		193		208		—		208

Adjusted EBITDA attributable to noncontrolling interests	(1,259)		—		—		(98)		(1,357)		—		(1,357)

Other	1,224		56		66		95		1,441		—		1,441
Discontinued operations	—		—		—		—		—		48		48
Adjusted EBITDA	$	151,902	$	16,553	$	10,521	$	(11,643)	$	167,333	$	48	$	167,381


	Three Months Ended September 30, 2024
	Water Solutions		Crude Oil Logistics		Liquids Logistics		Corporate and Other		Continuing Operations		Discontinued Operations		Consolidated
	(in thousands)
Operating income (loss)	$	72,829	$	14,840	$	2,629	$	(8,807)	$	81,491	$	—	$	81,491
Depreciation and amortization	52,523		6,285		2,365		702		61,875		—		61,875
Amortization in cost of sales-product	—		—		37		—		37		—		37
Net unrealized losses (gains) on derivatives	388		(4,012)		6,234		—		2,610		—		2,610
Lower of cost or net realizable value adjustments	—		540		72		—		612		—		612
Loss (gain) on disposal or impairment of assets, net	1,951		(442)		—		—		1,509		—		1,509
Other income (expense), net	1,805		(1)		—		30		1,834		—		1,834
Adjusted EBITDA attributable to unconsolidated entities	1,649		—		(19)		—		1,630		—		1,630
Adjusted EBITDA attributable to noncontrolling interests	(1,522)		—		—		(34)		(1,556)		—		(1,556)

Other	(761)		53		61		19		(628)		—		(628)
Discontinued operations	—		—		—		—		—		(2,144)		(2,144)
Adjusted EBITDA	$	128,862	$	17,263	$	11,379	$	(8,090)	$	149,414	$	(2,144)	$	147,270

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	Six Months Ended September 30, 2025
	Water Solutions		Crude Oil Logistics		Liquids Logistics		Corporate and Other		Continuing Operations		Discontinued Operations		Consolidated
	(in thousands)
Operating income (loss)	$	177,301	$	8,896	$	30,078	$	(24,574)	$	191,701	$	—	$	191,701
Depreciation and amortization	113,626		12,128		3,107		1,718		130,579		—		130,579

Net unrealized gains on derivatives	(5,274)		(1,444)		(1,124)		—		(7,842)		—		(7,842)
Lower of cost or net realizable value adjustments	—		2,519		(2,944)		—		(425)		—		(425)
Loss (gain) on disposal or impairment of assets, net	9,296		3,924		(15,823)		(2)		(2,605)		—		(2,605)
Other (expense) income, net	(100)		1		(346)		(2,862)		(3,307)		—		(3,307)
Adjusted EBITDA attributable to unconsolidated entities	221		—		4		—		225		—		225
Adjusted EBITDA attributable to noncontrolling interests	(2,744)		—		—		(166)		(2,910)		—		(2,910)

Other	2,445		112		440		2,892		5,889		—		5,889
Discontinued operations	—		—		—		—		—		1,043		1,043
Adjusted EBITDA	$	294,771	$	26,136	$	13,392	$	(22,994)	$	311,305	$	1,043	$	312,348


	Six Months Ended September 30, 2024
	Water Solutions		Crude Oil Logistics		Liquids Logistics		Corporate and Other		Continuing Operations		Discontinued Operations		Consolidated
	(in thousands)
Operating income (loss)	$	157,187	$	28,929	$	(1,793)	$	(20,753)	$	163,570	$	—	$	163,570
Depreciation and amortization	105,235		12,726		4,721		1,357		124,039		—		124,039
Amortization in cost of sales-product	—		—		37		—		37		—		37
Net unrealized (gains) losses on derivatives	(473)		(5,992)		13,987		—		7,522		—		7,522
Lower of cost or net realizable value adjustments	—		540		59		—		599		—		599
Gain on disposal or impairment of assets, net	(8,745)		(412)		—		—		(9,157)		—		(9,157)
Other income, net	1,911		1		19		67		1,998		—		1,998
Adjusted EBITDA attributable to unconsolidated entities	2,036		—		(35)		—		2,001		—		2,001
Adjusted EBITDA attributable to noncontrolling interests	(2,836)		—		—		(34)		(2,870)		—		(2,870)

Other	150		106		120		(81)		295		—		295
Discontinued operations	—		—		—		—		—		3,578		3,578
Adjusted EBITDA	$	254,465	$	35,898	$	17,115	$	(19,444)	$	288,034	$	3,578	$	291,612

Liquidity, Sources of Capital and Capital Resource Activities

General

Our principal sources of liquidity and capital resource requirements are cash flows from our operations, borrowings under our asset-based revolving credit facility (“ABL Facility”), issuing long-term notes, common and/or preferred units, loans from financial institutions, asset securitizations or asset sales. We expect our primary cash outflows to be related to capital expenditures, interest, repayment of debt maturities and distributions.

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We believe that our anticipated cash flows from operations and the borrowing capacity under the ABL Facility will be sufficient to meet our liquidity needs. Our borrowing needs vary during the year due in part to the seasonal nature of certain businesses within our Liquids Logistics segment. Our greatest working capital borrowing needs generally occur during the period of June through December, when we are building our natural gas liquids inventories in anticipation of the butane blending and propane heating seasons. Our working capital borrowing needs generally decline during the period of January through March, when the cash inflows from our Liquids Logistics segment are the greatest. In addition, our working capital borrowing needs vary with changes in commodity prices. A significant increase in commodity prices could drive up our working capital demands and limit our ability to continue to delever our balance sheet and restrict our financial flexibility. To protect our liquidity and leverage, we have in the past and may in the future enter into economic hedges that mitigate this exposure when we are building inventory. There were no open hedge positions as of September 30, 2025.

Cash Management

We manage cash by utilizing a centralized cash management program that concentrates the cash assets of our operating subsidiaries in joint accounts for the purposes of providing financial flexibility and lowering the cost of borrowing, transaction costs and bank fees. Our centralized cash management program provides that funds in excess of the daily needs of our operating subsidiaries are concentrated, consolidated or otherwise made available for use within our consolidated group. All of our wholly-owned operating subsidiaries participate in this program. Under the cash management program, depending on whether a participating subsidiary has short-term cash surpluses or cash requirements, we provide cash to the subsidiary or the subsidiary provides cash to us.

Short-Term Liquidity

Our principal sources of short-term liquidity consist of cash flows from our operations and borrowings under the ABL Facility, which we believe will provide liquidity to operate our business, manage our working capital requirements and repay current maturities.

Total commitments under the ABL Facility are $475.0 million, subject to a borrowing base, and includes a sub-limit for letters of credit of $200.0 million. At September 30, 2025, $71.0 million was outstanding under the ABL Facility, letters of credit outstanding were $53.6 million and we had a borrowing base of $399.6 million. The ABL Facility is scheduled to mature at the earliest of (a) February 2, 2029 or (b) 91 days prior to the earliest maturity date in respect to any of our indebtedness in an aggregate principal amount of $50.0 million or greater, subject to certain exceptions.

For additional information related to the ABL Facility, see Note 6 to our unaudited condensed consolidated financial statements included in this Quarterly Report.

As of September 30, 2025, our current assets exceeded our current liabilities by approximately $147.6 million.

Long-Term Financing

We expect to fund our long-term financing requirements by issuing long-term notes, common units and/or preferred units, loans from financial institutions, asset securitizations or asset sales.

Senior Secured Notes

On February 2, 2024, we closed on our private offering of $900.0 million of 8.125% senior secured notes due 2029 (“2029 Senior Secured Notes”) that mature on February 15, 2029 and $1.3 billion of 8.375% senior secured notes due 2032 (“2032 Senior Secured Notes”) that mature on February 15, 2032. Interest on the 2029 Senior Secured Notes and 2032 Senior Secured Notes is payable on February 15, May 15, August 15 and November 15 of each year.

Term Loan B

On February 2, 2024, we entered into a new seven-year $700.0 million Term Loan B. The Term Loan B matures on February 2, 2031 and will amortize in equal quarterly installments in aggregate annual amounts equal to 1.0% of the original principal amount, with the balance payable on maturity. The amount outstanding at September 30, 2025 is $689.5 million.

For additional information related to our long-term debt, see Note 6 to our unaudited condensed consolidated financial statements included in this Quarterly Report.

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Capital Expenditures, Acquisitions and Other Investments

The following table summarizes expansion, maintenance and other non-cash capital expenditures (which excludes additions for tank bottoms and linefill and has been prepared on the accrual basis), acquisitions and other investments for the periods indicated.


	Capital Expenditures						Other
	Expansion		Maintenance		Other (1)		Investments (2)
	(in thousands)
Three Months Ended September 30,
2025	$	39,570	$	11,523	$	—	$	—
2024	$	77,643	$	16,572	$	—	$	106

Six Months Ended September 30,
2025	$	49,523	$	22,622	$	—	$	—
2024	$	132,320	$	39,376	$	50	$	106

(1) Amount for the six months ended September 30, 2024 is related to a transaction classified as an acquisition of assets in a prior period.

(2) Amounts for the three months and six months ended September 30, 2024 relate to contributions made to unconsolidated entities. There were no other investments during the three months and six months ended September 30, 2025.

There were no acquisitions during the three months or six months ended September 30, 2025 or 2024.

Capital expenditures for the fiscal year ending March 31, 2026 are expected to be approximately $205 million.

Distributions Declared

On September 18, 2025, the board of directors of our GP declared a cash distribution for the quarter ended September 30, 2025 to the holders of the Class B Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units (“Class B Preferred Units”), the Class C Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units (“Class C Preferred Units”) and the 9.00% Class D Preferred Units (“Class D Preferred Units”). The total distribution of $26.1 million was made on October 15, 2025 to the holders of record at the close of trading on October 1, 2025.

The board of directors of our GP expects to evaluate the reinstatement of the common unit distributions in due course, taking into account a number of important factors, including our leverage, liquidity, the sustainability of cash flows, upcoming debt maturities, capital expenditures and the overall performance of our businesses.

For additional information related to the payment of distributions, see Note 8 to our unaudited condensed consolidated financial statements included in this Quarterly Report.

Contractual Obligations

Our contractual obligations primarily consist of purchase commitments, outstanding debt principal and interest obligations, lease obligations, asset retirement obligations and other commitments.

For a discussion of contractual obligations, see Note 6, Note 7 and Note 13 to our unaudited condensed consolidated financial statements included in this Quarterly Report.

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Sources (Uses) of Cash

The following table summarizes the sources (uses) of cash and cash equivalents for the periods indicated related to continuing operations (see the footnotes to our unaudited condensed consolidated financial statements included in this Quarterly Report for the footnotes referenced in the table):


	Cash Flow	Six Months Ended September 30,
	Category	2025		2024
		(in thousands)
Sources of cash and cash equivalents:
Net cash provided by operating activities-continuing operations	Operating	$	58,160	$	—
Proceeds from divestitures of businesses and investments, net (see Note 15)	Investing	88,639		68,500
Proceeds from sales of assets (see Note 15)	Investing	72,529		18,556
Net settlements of derivatives (see Note 9)	Investing	3,847		4,516
Net proceeds from borrowings under ABL Facility (see Note 6)	Financing	—		274,000
Proceeds from borrowings on other long-term debt (see Note 6)	Financing	—		6,360

Uses of cash and cash equivalents:
Net cash used in operating activities-continuing operations	Operating	—		(35,215)
Class D preferred unit repurchases (see Note 8)	Financing	(100,010)		—
Distributions to preferred unitholders (see Note 8)	Financing	(57,689)		(245,604)
Capital expenditures (see Note 10)	Investing	(53,066)		(149,545)
Net payments on borrowings under ABL Facility (see Note 6)	Financing	(38,000)		—

Common unit repurchases and cancellations (see Note 8)	Financing	(29,068)		(2,126)
Repayment and repurchase of senior secured notes (see Note 6)	Financing	(17,274)		—
Payments on Term Loan B (see Note 6)	Financing	(3,500)		(3,500)


Other sources / (uses) – net	Investing and Financing	(4,760)		(2,459)
Net decrease in cash and cash equivalents-continuing operations		$	(80,192)	$	(66,517)

Operating Activities-Continuing Operations. The increase in net cash provided by operating activities during the six months ended September 30, 2025 was due primarily to higher earnings from operations as well as fluctuations in working capital, particularly accounts receivable and accounts payable, due to lower crude oil volumes and lower crude oil prices, lower purchases and sales of natural gas liquids due to the Wholesale Propane Disposition and the timing of invoices and payments on construction projects as well as fluctuations in inventory due to building our natural gas liquids inventories in anticipation of the butane blending and heating seasons. Also, on June 13, 2024, we paid LCT Capital, LLC (“LCT”) $63.3 million related to the legal judgment against us, of which $27.2 million represented interest and $0.1 million of costs awarded to LCT.

Environmental Legislation

See our Annual Report for a discussion of proposed environmental legislation and regulations that, if enacted, could result in increased compliance and operating costs. However, at this time we cannot predict the structure or outcome of any future legislation or regulations or the eventual cost we could incur in compliance.

Recent Accounting Pronouncements

For a discussion of recent accounting pronouncements that are applicable to us, see Note 2 to our unaudited condensed consolidated financial statements included in this Quarterly Report.

Critical Accounting Estimates

The preparation of financial statements and related disclosures in conformity with GAAP requires the selection and application of appropriate accounting principles to the relevant facts and circumstances of our operations and the use of estimates made by management. We have identified certain more critical judgment areas in the application of our accounting policies that are most important to the portrayal of our consolidated financial position and results of operations. The application of these accounting policies, which requires subjective or complex judgments regarding estimates and projected outcomes of

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future events, and changes in these accounting policies, could have a material effect on our consolidated financial statements. There have been no material changes in the critical accounting estimates previously disclosed in our Annual Report.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Interest Rate Risk

Long-Term Debt

A portion of our long-term debt is variable-rate debt. Changes in interest rates impact the interest payments of our variable-rate debt but generally do not impact the fair value of the liability. Conversely, changes in interest rates impact the fair value of our fixed-rate debt but do not impact its cash flows.

The ABL Facility is variable-rate debt with interest rates that are generally indexed to a secured overnight financing rate (“SOFR”) or an alternate base rate plus an applicable margin. At September 30, 2025, $71.0 million was outstanding under the ABL Facility at a weighted average interest rate of 8.12%. A change in interest rates of 0.125% would result in an increase or decrease of our annual interest expense of $0.1 million, based on borrowings outstanding at September 30, 2025.

The Term Loan B is variable-rate debt with interest rates that are generally indexed to SOFR or an alternate base rate plus an applicable margin. At September 30, 2025, $689.5 million was outstanding under the Term Loan B with an interest rate of SOFR of 4.16% plus a margin of 3.50%. A change in interest rates of 0.125% would result in an increase or decrease of our annual interest expense of $0.9 million, based on borrowings outstanding at September 30, 2025.

Interest Rate Swaps

In March and April 2024, we entered into two $200.0 million interest rate swaps to reduce the variability of cash outflows associated with our floating-rate, SOFR-based borrowings, including borrowings on the Term Loan B. An increase of 10% in the value of the underlying interest rate swaps would result in a net change in the fair value of our interest rate swaps of $0.3 million at September 30, 2025.

Preferred Unit Distributions

The current distribution rate for the Class B Preferred Units is the three-month CME Term SOFR interest rate plus a tenor spread adjustment of 0.26161% plus a spread of 7.213% (see Note 8 to our unaudited condensed consolidated financial statements included in this Quarterly Report for a further discussion). A change in interest rates of 0.125% would result in an increase or decrease of our quarterly Class B Preferred Unit distribution of $0.1 million, based on the Class B Preferred Units outstanding at September 30, 2025.

The current distribution rate for the Class C Preferred Units is the three-month CME Term SOFR interest rate plus a spread of 7.384% (see Note 8 to our unaudited condensed consolidated financial statements included in this Quarterly Report for a further discussion). A change in interest rates of 0.125% would result in an increase or decrease of our quarterly Class C Preferred Unit distribution of less than $0.1 million, based on the Class C Preferred Units outstanding at September 30, 2025.

The current distribution rate for the Class D Preferred Units is the three-month CME Term SOFR interest rate plus a spread of 7.00% (see Note 8 to our unaudited condensed consolidated financial statements included in this Quarterly Report for a further discussion). A change in interest rates of 0.125% would result in an increase or decrease of our quarterly Class D Preferred Unit distribution of $0.2 million, based on the Class D Preferred Units outstanding at September 30, 2025.

Commodity Price Risk

Our operations are subject to certain business risks, including commodity price risk. Commodity price risk is the risk that the market value of crude oil or natural gas liquids will change, either favorably or unfavorably, in response to changing market conditions. Procedures and limits for managing commodity price risks are specified in our market risk policy. Open commodity positions and market price changes are monitored daily and are reported to senior management and to marketing operations personnel.

The crude oil and natural gas liquids industries are “margin-based” and “cost-plus” businesses in which our realized margins depend on the differential of sales prices over our supply costs. We have no control over market conditions. As a result, our profitability may be impacted by sudden and significant changes in the price of crude oil and natural gas liquids.

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We engage in various types of forward contracts and financial derivative transactions to reduce the effect of price volatility on our product costs, to protect the value of our inventory positions, and to help ensure the availability of product during periods of short supply. We attempt to balance our contractual portfolio by purchasing volumes when we have a matching purchase commitment from our commercial, retail and industrial customers. We may experience net unbalanced positions from time to time. In addition to our ongoing policy to maintain a balanced position, for accounting purposes we are required, on an ongoing basis, to track and report the market value of our derivative portfolio.

Although we use financial derivative instruments to reduce the market price risk associated with forecasted transactions, we do not account for financial derivative transactions as hedges. All changes in the fair value of our physical contracts that do not qualify as normal purchases and normal sales and settlements (whether cash transactions or non-cash mark-to-market adjustments) are reported either within revenue (for sales contracts) or cost of sales (for purchase contracts) in our unaudited condensed consolidated statements of operations, regardless of whether the contract is physically or financially settled, and within cash flows from operations in our unaudited condensed consolidated statements of cash flows.

The following table summarizes the hypothetical impact on the September 30, 2025 fair value of our commodity derivatives of an increase of 10% in the value of the underlying commodity.


	Increase (Decrease) To Fair Value
	(in thousands)
Crude oil (Water Solutions segment)	$	(54)
Crude oil (Crude Oil Logistics segment)	$	(3,323)

Butane (Liquids Logistics segment)	$	(4,081)
Other (Liquids Logistics segment)	$	(43)

Changes in commodity prices may also impact the volumes that we are able to transport, dispose, store and market, which also impact our cash flows.

Credit Risk

Our operations are also subject to credit risk, which is the risk of loss from nonperformance by suppliers, customers or financial counterparties to a contract. Procedures and limits for managing credit risk are specified in our credit policy. Credit risk is monitored daily and we believe we minimize exposure through the following:

• requiring certain customers to prepay or place deposits for our products and services;

• requiring certain customers to post letters of credit or other forms of surety;

• monitoring individual customer receivables relative to previously-approved credit limits;

• requiring certain customers to take delivery of their contracted volume ratably rather than allow them to take delivery at their discretion;

• entering into master netting agreements that allow for offsetting counterparty receivable and payable balances for certain transactions;

• reviewing the receivable aging regularly to identify issues or trends that may develop; and

• requiring marketing personnel to manage their customers’ receivable position and suspend sales to customers that have not timely paid outstanding invoices.

At September 30, 2025, our primary counterparties were retailers, resellers, energy marketers, producers, refiners, and dealers.

Fair Value

We determine the fair value of our exchange traded derivative financial instruments utilizing publicly available prices, and for non-exchange traded derivative financial instruments, we utilize pricing models for similar instruments including publicly available prices and forward curves generated from a compilation of data gathered from third-parties.

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Item 4. Controls and Procedures

We maintain disclosure controls and procedures, as defined in Rule 13(a)-15(e) and 15(d)-15(e) of the Securities Exchange Act of 1934, as amended (“Exchange Act”), that are designed to ensure the information required to be disclosed in our filings and submissions under the Exchange Act is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission and that such information is accumulated and communicated to our management, including the principal executive officer and principal financial officer of our GP, as appropriate, to allow timely decisions regarding required disclosure.

We completed an evaluation under the supervision and with participation of our management, including the principal executive officer and principal financial officer of our GP, of the effectiveness of the design and operation of our disclosure controls and procedures at September 30, 2025. Based on this evaluation, the principal executive officer and principal financial officer of our GP have concluded that as of September 30, 2025, such disclosure controls and procedures were effective.

There have been no changes in our internal controls over financial reporting (as defined in Rule 13(a)-15(f) of the Exchange Act) during the three months ended September 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

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PART II - OTHER INFORMATION

Item 1. Legal Proceedings

We are involved from time to time in various legal proceedings and claims arising in the ordinary course of business. For information related to legal proceedings, see the discussion under the caption “ Legal Contingencies ” in Note 7 to our unaudited condensed consolidated financial statements included in this Quarterly Report, which is incorporated by reference into this Item 1.

Item 1A. Risk Factors

There have been no material changes in the risk factors previously disclosed in Part I, Item 1A–“Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended March 31, 2025.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

On June 5, 2024, the board of directors of our GP authorized a common unit repurchase program, under which we may repurchase up to $50.0 million of our outstanding common units from time to time in the open market, including pursuant to a repurchase plan administrated in accordance with Rule 10b5-1 under the Exchange Act, or in other privately negotiated transactions. This program does not have a fixed expiration date. The common unit repurchase program authorization does not obligate us to repurchase any dollar amount or number of our common units.

The following table summarizes our common unit repurchases during the three months ended September 30, 2025:


				Total Number of
				Common Units	Approximate Dollar Value
	Total Number of	Average Price		Purchased as Part	of Common Units
	Common Units	Paid Per		of Publicly Announced	that May Yet be Purchased
Period	Purchased	Common Unit		Program	under the Program
July 1-31, 2025	2,291,505	$	4.3240	2,291,505	$	29,851,628
August 1-31, 2025	1,617,800	$	5.0552	1,617,800	$	21,673,393
September 1-30, 2025	507,120	$	5.6340	507,120	$	18,806,134
Total	4,416,425			4,416,425

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

During the three months ended September 30, 2025, no director or officer of the Partnership adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

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Item 6. Exhibits


Exhibit Number						Description
10.1*						Second Amendment to Term Loan Credit Agreement, dated as of September 18, 2025, by and among NGL Energy Operating LLC, NGL Energy Partners LP, Toronto Dominion (Texas) LLC, as administrative agent, collateral agent and a lender, and certain financial institutions party thereto
31.1*						Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*						Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1*						Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2*						Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS**						XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH**						Inline XBRL Schema Document
101.CAL**						Inline XBRL Calculation Linkbase Document
101.DEF**						Inline XBRL Definition Linkbase Document
101.LAB**						Inline XBRL Label Linkbase Document
101.PRE**						Inline XBRL Presentation Linkbase Document
104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

* Exhibits filed with this report.

** The following documents are formatted in Inline XBRL (Extensible Business Reporting Language): (i) Unaudited Condensed Consolidated Balance Sheets at September 30, 2025 and March 31, 2025, (ii) Unaudited Condensed Consolidated Statements of Operations for the three months and six months ended September 30, 2025 and 2024, (iii) Unaudited Condensed Consolidated Statements of Comprehensive Income for the three months and six months ended September 30, 2025 and 2024, (iv) Unaudited Condensed Consolidated Statements of Changes in Equity for the three months and six months ended September 30, 2025 and 2024, (v) Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended September 30, 2025 and 2024, and (vi) Notes to Unaudited Condensed Consolidated Financial Statements.

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	NGL Energy Partners LP

	By:	NGL Energy Holdings LLC, its general partner

Date: November 4, 2025		By:	/s/ H. Michael Krimbill
			H. Michael Krimbill
			Chief Executive Officer

Date: November 4, 2025		By:	/s/ Bradley P. Cooper
			Bradley P. Cooper
			Chief Financial Officer

TABLE OF CONTENTS

Part I - Financial Information Item 1. Financial Statements Note 1 Organization and Operations Note 2 Significant Accounting Policies Note 3 Income (loss) Per Common Unit Note 4 Property, Plant and Equipment Note 5 Intangible Assets Note 6 Long-term Debt Note 7 Commitments and Contingencies Note 8 Equity Note 9 Fair Value Of Financial Instruments Note 10 Segments Note 11 Transactions with Affiliates Note 12 Revenue From Contracts with Customers Note 13 Leases Note 14 Allowance For Current Expected Credit Losses Note 15 Other Matters Note 16 Assets and Liabilities Held For Sale and Discontinued Operations Note 17 Subsequent Events Item 2. Management S Discussion and Analysis Of Financial Condition and Results Of Operations Item 3. Quantitative and Qualitative Disclosures About Market Risk Item 4. Controls and Procedures Part II - Other Information Item 1. Legal Proceedings Item 1A. Risk Factors Item 2. Unregistered Sales Of Equity Securities and Use Of Proceeds Item 3. Defaults Upon Senior Securities Item 4. Mine Safety Disclosures Item 5. Other Information Item 6. Exhibits

Exhibits

10.1* Second Amendment to Term Loan Credit Agreement, dated as of September 18, 2025, by and among NGL Energy Operating LLC, NGL Energy Partners LP, Toronto Dominion (Texas) LLC, as administrative agent, collateral agent and a lender, and certain financial institutions party thereto 31.1* Certification of Chief Executive Officer pursuant to Section302 of the Sarbanes-Oxley Act of 2002 31.2* Certification of Chief Financial Officer pursuant to Section302 of the Sarbanes-Oxley Act of 2002 32.1* Certification of Chief Executive Officer pursuant to 18 U.S.C. Section1350, as adopted pursuant to Section906 of the Sarbanes-Oxley Act of 2002 32.2* Certification of Chief Financial Officer pursuant to 18 U.S.C. Section1350, as adopted pursuant to Section906 of the Sarbanes-Oxley Act of 2002

NGL 10-Q Quarter ended Sept. 30, 2025

Exhibits