NGL Energy Partners (NYSE: NGL) reported Q1 EPS of ($0.43), $0.32 worse than the analyst estimate of ($0.11). Revenue for the quarter came in at $844.42 million versus the consensus estimate of $1.25 billion.

• Loss from continuing operations for the first quarter of Fiscal 2021 of $33.8 million, compared to income from continuing operations of $9.0 million for the first quarter of Fiscal 2020
• Adjusted EBITDA from continuing operations for the first quarter of Fiscal 2021 of $91.0 million, compared to $103.7 million for the first quarter of Fiscal 2020
• Results impacted by the COVID-19 pandemic and significant commodity price volatility, which resulted in lower demand for crude oil, liquids and refined products as well as lower crude oil prices, production volumes and drilling activity
• Fiscal Year 2021 Adjusted EBITDA expected to range between $560 million and $600 million

“Our first quarter results do not fully reflect the actions the Partnership has taken to maximize earnings through this unique environment,” stated Mike Krimbill, NGL’s CEO. “We benefited significantly from our crude oil storage assets during the period; however, these benefits are not immediately evident as we have recognized hedge losses on inventory this quarter on product that will be sold with profits recognized in the second quarter. We also held most of the skim oil barrels recovered in inventory during the quarter due to the low crude prices and have been selling those barrels in the second quarter at much higher price levels. We believe May and June to be the low point in our water volumes as we have seen producers bring production back online and increase activity with crude prices now exceeding $40.00 per barrel. We accomplished the following during the quarter in our Water Solutions segment:

• Reduced operating expenses by approximately $2.0 million per month beginning in June;
• Increased our market share in the Delaware Basin and DJ Basin through long-term contract extensions and incremental acreage dedications; and
• Lowered both growth and maintenance capital expenditures by leveraging the scale of our newly installed, fully integrated system to capture, process and dispose of produced water.”

“We continue to focus on the future to create value for our unitholders,” Krimbill concluded.

For earnings history and earnings-related data on NGL Energy Partners (NGL) click here.