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8/4/25 , 2:11 PM November 9 , 2021 10:41 PM News Release NGL Energy Partners LP Announces Second Quarter Fiscal 2022 Financial Results NGL Energy Partners LP ( NYSE : NGL ) ( " NGL , " " our , " " we , " or the " Partnership " ) today reported its second quarter Fiscal 2022 results . Highlights for the quarter include : • Loss from continuing operations for the second quarter of Fiscal 2022 of $ 1.2 million , compared to income from continuing operations of $ 6.0 . • • million for the second quarter of Fiscal 2021. Excluding losses on the disposal or impairment of assets , income from continuing operations for the second quarter of Fiscal 2022 was $ 12.5 million , compared to $ 11.9 million for the second quarter of Fiscal 2021 Adjusted EBITDA 1 from continuing operations for the second quarter of Fiscal 2022 of $ 146.3 million , compared to $ 138.0 million for the second quarter of Fiscal 2021 Record quarterly Adjusted EBITDA of $ 87.4 million in the Water Solutions segment , a 43 % increase versus the second quarter of Fiscal 2021 Produced water volumes processed increased approximately 37 % versus the same period in the prior year , with volumes growing approximately 94,000 barrels per day , or 5.6 % , versus the preceding quarter Fiscal 2022 Adjusted EBITDA guidance of $ 570 million - $ 600 million and expected full year capital expenditures of approximately $ 115 million 2 " Our Water Solutions segment achieved strong growth due to increased customer activities in the Delaware basin . Produced water volumes have grown meaningfully year - over - year and sequentially quarter - over - quarter . We expect water volumes to continue to grow for the foreseeable future . Operational free cash flow , reduction in working capital requirements and asset sale proceeds will be deployed to the balance sheet to reduce leverage , " stated Mike Krimbill , NGL's CEO . " Our top priority is to reduce absolute debt and drive leverage below 4.75 times , " 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 : Water Solutions Crude Oil Logistics Liquids Logistics Corporate and Other Total Water Solutions Quarter Ended September 30 , 2021 Operating Income ( Loss ) Adjusted EBITDA September 30 , 2020 Operating Income ( Loss ) Adjusted EBITDA ( in thousands ) $ 32,772 $ 87.424 $ 28,231 48,776 ( 13,277 ) $ 48,239 61,047 65,181 11,461 18,465 14,338 21,257 ( 7,646 ) ( 8,404 ) ( 12,984 ) ( 9.514 ) $ 64,818 $ 146,261 $ 36,316 $ 137.971 The Partnership processed approximately 1.8 million barrels of water per day during the quarter ended September 30 , 2021 , a 37.3 % increase when compared to approximately 1.3 million barrels of water per day processed during the quarter ended September 30 , 2020 , due to higher production volumes primarily in the Delaware Basin driven by the recovery in crude oil prices from the prior year . Revenues from recovered crude oil , including the impact from realized skim oil hedges , totaled $ 19.3 million for the quarter ended September 30 , 2021 , an increase of $ 6.8 million from the prior year period . This was due to higher crude oil prices , larger amounts of skim oil recovered per barrel of water processed and increasing producer activity . Operating expenses in the Water Solutions segment decreased to $ 0.26 per barrel compared to $ 0.27 per barrel in the comparative quarter last year primarily due to continued efforts to reduce operating costs per barrel along with higher produced water volumes processed . Crude Oil Logistics Operating income for the second quarter of Fiscal 2022 decreased compared to the second quarter of Fiscal 2021 primarily due to lower revenues related to the Grand Mesa Pipeline , which was primarily the result of the court - approved rejection of the Extraction transportation agreement ( as part of its bankruptcy ) as well as decreased production in the DJ Basin . During the three months ended September 30 , 2021 , financial volumes on the Grand Mesa Pipeline averaged approximately 80,000 barrels per day , compared to approximately 123,000 barrels per day for the three months ended September 30 , 2020. For the quarter , our margins , excluding the impact of derivatives , benefited from higher crude oil prices which increased contracted rates with some producers . Liquids Logistics Operating income for the Liquids Logistics segment totaled $ 11.5 million , including a loss on the sale of a facility of $ 11.7 million , for the quarter ended September 30 , 2021. Excluding the loss on the sale of the facility , operating income increased by $ 8.9 million compared to the quarter ended September 30 , 2020 , due to higher product margins , including the impact of derivatives . Propane volumes decreased by approximately 72.4 million gallons , or 28.6 % , compared to the quarter ended September 30 , 2020 , due to backwardation in the propane market and deferred purchases from customers . Butane volumes decreased by approximately 18.5 million gallons , or 12.9 % , compared to the quarter ended September 30 , 2020 , due to the tight supply market as a result of decreased refinery runs and an increase in demand for exports . Corporate and Other Corporate and Other expenses decreased from the comparable prior year period primarily due to lower legal expenses . https://feeds.issuerdirect.com/news-release.html?newsid=8120290247477161&symbol=NGL 1/7