NGL Energy Partners LP (NYSE: NGL) experienced a significant pre-market plunge of 7.82% on Tuesday, following the release of its third-quarter earnings report for fiscal year 2025. While the company's Water Solutions segment reported strong performance, with a 12% year-over-year increase in physical water disposal volumes and higher adjusted EBITDA of $132.7 million, other segments faced challenges.
The Biodiesel segment recorded a negative adjusted EBITDA of $12.1 million during the quarter, significantly impacting NGL's overall performance. The company has initiated the process of winding down its Biodiesel marketing business, allowing storage and railcar leases to expire and closing out open purchase and sale contracts.
Additionally, the Liquid Logistics segment saw a substantial drop in adjusted EBITDA, falling to $8.2 million from $26.3 million in the prior year, primarily due to the winding down of the Biodiesel business. However, the company remains optimistic about its wholesale propane division's performance in the fourth quarter, given the cold weather conditions experienced across the country.
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