NGL Energy Partners LP (NYSE:NGL) Q4 2022 Earnings Conference Call June 6, 2022 5:00 PM ET
Company Participants
Linda Bridges - Executive Vice President & Chief Financial Officer
Mike Krimbill - Chief Executive Officer, President & Director
Jeff Pinter - Executive Vice President, Liquids Logistics
Doug White - Executive Vice President-Water Solutions
Conference Call Participants
Tarek Hamid - JPMorgan
Jason Mandel - RBC Capital Markets
Robert Kane - Kane LLC
John Horton - BMR
James Yoon - Nomura
Edward Campana - Countryside Ventures
Craig Thomas - CWT Capital
Operator
Good afternoon, ladies and gentlemen, and welcome to the NGL Energy Partners LP 4Q and Year-End 2022 Earnings Call. At this time, all participants have been placed on a listen-only mode and we will open the floor for your questions and comments after the presentation.
It’s now my pleasure to turn the floor over to your host Linda J. Bridges, CFO. The floor is yours.
Linda Bridges
Hi, and welcome to NGLs fourth quarter and year-end fiscal 2022 earnings call. To start, I'd like to call your attention to our Safe Harbor language, which can be found towards the end of the partnership's earnings release, which was filed after market closed this afternoon. Today's remarks may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In accordance with the act, I would also like to direct your attention to the Management's Discussion and Analysis section and the risk factors discussed in the partnership's annual report on Form 10-K for the year ended March 31, 2022 and in other SEC filings made by the partnership, which are available on our website and on the SEC's website. These, together with the Safe Harbor statement in the earnings release set forth important factors that could cause actual results to differ materially from those contained in any such forward-looking statements.
Looking back at fiscal 2022, our financial performance has started to produce results that reflect the quality of our asset base and validation of our strategy. Our Water Solutions segment saw tremendous growth in fiscal ‘22 with adjusted EBITDA of $342 million, growing 42% or more than $100 million year-over-year as underlying volumes grew over 30% on a volume basis, and as our skim oil sales benefited from higher realized crude oil prices.
Fourth quarter volumes grew nearly 5% over the preceding fiscal quarter, and as expected, we exited the year at approximately 2 million barrels of processed volumes per day. Additionally, the Partnership reported total recycled volumes of approximately 34 million barrels for fiscal 2022. We expect processed water volumes for fiscal 2023 to average 2.2 million barrels per day, a level that we have already seen in May. Margin for fiscal 2022 totaled $0.46 per barrel, which includes disposal and skim oil revenue, offset by OpEx per barrel. We believe this is a reasonable estimate for margin going forward.