Page 1

8/4/25 , 2:12 PM August 9 , 2021 10:28 PM News Release NGL Energy Partners LP Announces First Quarter Fiscal 2022 Financial Results NGL Energy Partners LP ( NYSE : NGL ) ( " NGL , " " our , " " we , " or the " Partnership " ) today reported its first quarter Fiscal 2022 results . Highlights for the quarter include : • Loss from continuing operations for the first quarter of Fiscal 2022 of $ 134.5 million , compared to a loss from continuing operations of $ 33.8 million for the first quarter of Fiscal 2021 • Adjusted EBITDA 1 from continuing operations for the first quarter of Fiscal 2022 of $ 91.1 million , compared to $ 91.0 million for the first quarter of Fiscal 2021 ; Record quarterly Adjusted EBITDA of $ 81.5 million in the Water Solutions segment as produced water volumes approach pre- pandemic levels • Sale of the Partnership's approximately 71.5 % interest in Sawtooth Caverns , LLC for gross consideration of $ 70.0 million • Publication of the Partnership's inaugural Sustainability Report , which can be found on the Partnership's website ( www.nglenergy.partners.com ) • Reaffirms Fiscal 2022 Adjusted EBITDA guidance of $ 570 million - $ 600 million and capital expenditure guidance of $ 100 million - $ 125 million 2 " Our Water Solutions segment continues to drive the growth of the Partnership and performed very well during the first quarter . Adjusted EBITDA for the segment grew significantly quarter over quarter with both produced water volumes processed and Adjusted EBITDA achieving expectations . Results in our Crude Oil Logistics and Liquids Logistics segments were impacted by increases in our inventories and timing of recognizing hedge gains ( losses ) . We expect to see improved results going forward due to embedded , unrealized gains in our inventory , with the annual result being in line with the low end of our original expectations for the fiscal year , " stated Mike Krimbill , NGL's CEO . " Overall , the Partnership is pleased with the outlook for the future as both the macroeconomic environment and our Water Solutions business continue to improve , " Krimbill concluded . Quarterly Results of Operations The following table summarizes operating income ( loss ) and Adjusted EBITDA from continuing operations by reportable segment for the periods indicated : Quarter Ended June 30 , 2021 June 30 , 2020 Operating Adjusted Operating Adjusted Income ( Loss ) EBITDA Income ( Loss ) EBITDA ( in thousands ) Water Solutions $ Crude Oil Logistics 7.583 $ 81,511 $ ( 11,581 ) 13,148 ( 16,047 ) $ 56,926 23.320 30,854 Liquids Logistics Corporate and Other Total $ ( 53.409 ) 5.574 ( 11,927 ) ( 9.132 ) ( 69.334 ) $ 91,101 $ 4.562 12,232 ( 22,620 ) ( 9,030 ) ( 10,785 ) $ 90,982 Water Solutions The Partnership processed approximately 1.7 million barrels of water per day during the quarter ended June 30 , 2021 , a 22.0 % increase when compared to approximately 1.4 million barrels of water per day processed during the quarter ended June 30 , 2020 , due to higher production volumes in the Delaware Basin driven by the recovery in crude oil prices from the prior year . Additionally , brackish non - potable water , resale of raw produced water and recycled water revenue all increased driven by the demand for these services . Revenues from recovered crude oil , including the impact from realized skim oil hedges , totaled $ 16.0 million for the quarter ended June 30 , 2021 , an increase of $ 5.9 million from the prior year period . This increase was due to an increase in the number of wells completed in our area of operations during the current period and higher crude oil prices , as well as a strategic decision made by the Partnership to store the majority of its recovered barrels due to low prices during the quarter ended June 30 , 2020 . Operating expenses in the Water Solutions segment decreased to $ 0.26 per barrel compared to $ 0.32 per barrel in the comparative quarter last year primarily due to significant steps taken to reduce operating costs per barrel along with higher produced water volumes processed . The Water Solutions segment continues to evaluate additional cost saving initiatives . Crude Oil Logistics Operating income for the first quarter of Fiscal 2022 decreased compared to the first quarter of Fiscal 2021 primarily due to an increase in net derivative losses on our inventory position as a result of increasing crude oil prices as well as lower activity and the reduction of minimum volume commitments on our Grand Mesa Pipeline . Revenues from third parties for Grand Mesa Pipeline decreased by $ 27.3 million , compared to the quarter ended June 30 , 2020 due to lower third - party volumes transported on the pipeline . During the three months ended June 30 , 2021 , financial volumes on the Grand Mesa Pipeline averaged approximately 77,000 barrels per day , compared to approximately 119,000 barrels per day for the three months ended June 30 , 2020 . Liquids Logistics Operating loss for the Liquids Logistics segment totaled $ 53.4 million for the quarter ended June 30 , 2021 , including the $ 60.1 million loss on the sale of the Partnership's membership interest in Sawtooth Caverns , LLC , which impacts comparability to the prior year period . Total product margin per gallon , excluding the impact of derivatives , was $ 0.066 for the quarter ended June 30 , 2021 , compared to $ 0.024 for the quarter ended June 30 , 2020. This increase in margin was primarily due to increased biodiesel and RIN prices and was offset by lower demand for other products . Refined products volumes decreased by approximately 26.7 million gallons , or 12.6 % , during the quarter ended June 30 , 2021 compared to the quarter ended June 30 , 2020 due to tighter supply and continued weakness in demand in certain parts of the country due to the https://feeds.issuerdirect.com/news-release.html?newsid=7887990201072212&symbol=NGL 1/6