NGL Energy Partners LP reported significant declines in revenue and profitability for the three and six months ended September 30, 2024, compared to the same periods in 2023. Total revenues for the three months were $1,352.7 million, down from $1,841.1 million, while revenues for the six months decreased from $3,457.2 million to $2,739.9 million. The decline was attributed to lower sales across all segments, particularly in Crude Oil Logistics, which saw revenues drop from $489.7 million to $243.8 million in the latest quarter.

Net income for the three months ended September 30, 2024, was $3.4 million, a sharp decrease from $28.3 million in the prior year. For the six-month period, net income fell from $47.8 million to $13.9 million. The net loss allocated to common unitholders also increased, with losses of $28.3 million for the latest quarter compared to $6.7 million in 2023.

The company's operating income for the three months was $77.7 million, down from $86.0 million, while for the six months, it decreased from $158.1 million to $152.7 million. The Water Solutions segment performed relatively better, with operating income rising to $72.8 million for the latest quarter, up from $59.1 million, driven by increased volumes processed despite lower skim oil sales.

NGL Energy Partners LP's total assets decreased to $4.89 billion as of September 30, 2024, from $5.02 billion at the end of the previous fiscal year. Current liabilities also fell, but long-term debt increased significantly to $3.12 billion from $2.84 billion, reflecting ongoing financing activities. The company reported a net cash used in operating activities of $(11.3) million for the six months, a stark contrast to the $131.1 million generated in the same period last year.

Strategically, the company has been active in managing its capital structure, including a common unit repurchase program authorized in June 2024 for up to $50 million, although no units were repurchased in the latest quarter. Additionally, NGL Energy Partners LP has engaged in various asset sales, including a $68.5 million transaction involving real estate and saltwater disposal assets, which contributed to cash flow.

The company continues to navigate a challenging market environment characterized by volatile commodity prices and rising operational costs, influenced by inflation and interest rate hikes. As of September 30, 2024, NGL Energy Partners LP had $274 million in outstanding borrowings under its asset-based revolving credit facility, with a weighted average interest rate of 7.83%.