3 unchanged sentences
At March 31, 2025, our operations included three segments as discussed below.
+Added: Sale of Refined Products Business and Exiting Biodiesel Business
+Added: As of March 31, 2025, we completed winding down our biodiesel business (see Note 1 to our consolidated financial statements included in this Annual Report for a further discussion).
+Added: On March 17, 2025, we signed a purchase and sale agreement to sell our refined products business, including certain working capital items, to a third-party (see Note 1 to our consolidated financial statements included in this Annual Report for a further discussion).
+Added: This sale closed on April 30, 2025.
+Added: The sale of our refined products business and winding down of our biodiesel business represent a strategic shift in our operations and will have a significant effect on our operations and financial results going forward.
+Added: Accordingly, the results of operations and cash flows for our refined products and biodiesel businesses within our Liquids Logistics segment have been classified as discontinued operations for all periods presented and prior periods have been retrospectively adjusted in the consolidated statements of operations and consolidated statements of cash flows (see Note 18 to our consolidated financial statements included in this Annual Report for a further discussion).
+Added: Sale of Certain Natural Gas Liquids Terminals and Most of Our Wholesale Propane Business
+Added: On February 5, 2025, we signed a purchase and sale agreement to sell 17 of our natural gas liquids terminals, most of our wholesale propane business, our interest in an unconsolidated entity and working capital to a third-party (see Note 1 to our consolidated financial statements included in this Annual Report for a further discussion).
+Added: This sale closed on April 30, 2025.
+Added: As this sale transaction did not represent a strategic shift that will have a major effect on our operations or financial results, operations related to this portion of our Liquids Logistics segment have not been classified as discontinued operations.
Water Solutions
7 unchanged sentences
The opportunity to generate revenue in our Water Solutions segment is driven in large part by the level of crude oil production in the areas where our facilities are located.
−Removed: Recently, our disposal volumes have been positively impacted by the increase in the level of crude oil production, particularly in the Delaware and Eagle Ford Basins, due to increasing or stable crude oil prices.
+Added: Recently, our disposal volumes have been positively impacted by the increase in the level of crude oil production, particularly in the Delaware and Eagle Ford Basins, due to stable crude oil prices.
Lower crude oil prices provide producers with less incentive to drill and complete new wells, which results in lower production and negatively impacts our disposal volumes.
1 unchanged sentence
Crude Oil Logistics
−Removed: Our Crude Oil Logistics segment purchases crude oil from producers and marketers and transports it to refineries or for resale at pipeline injection stations, storage terminals, barge loading facilities, rail facilities, refineries, and other trade hubs, and provides storage, terminaling and transportation services through its owned assets.
−Removed: Our activities in this segment are supported by certain long-term, fixed rate contracts which include minimum volume commitments on our owned and leased pipelines and storage tanks.
+Added: Our Crude Oil Logistics segment purchases crude oil from producers and marketers and transports it to refineries or for resale at pipeline injection stations, storage terminals, barge loading facilities, rail facilities and other trade hubs, and provides storage, terminaling and transportation services through its owned assets.
+Added: Our activities in this segment are supported by certain long-term, fixed rate contracts with acreage dedications and which include minimum volume commitments on our storage tanks and owned and leased pipelines.
Most of our contracts to purchase or sell crude oil are at floating prices that are indexed to published rates in active markets such as Cushing, Oklahoma, St.
13 unchanged sentences
Liquids Logistics
−Removed: Our Liquids Logistics segment conducts supply operations for natural gas liquids, refined petroleum products and biodiesel to a broad range of commercial, retail and industrial customers across the United States and Canada.
−Removed: These operations are conducted through our 23 owned terminals, third-party storage and terminal facilities, nine common carrier pipelines and a fleet of leased railcars.
+Added: Our Liquids Logistics segment conducts supply operations for natural gas liquids to commercial, retail and industrial customers across the United States and Canada.
+Added: These operations are conducted through our five owned terminals, third-party storage and terminal facilities, nine common carrier pipelines and a fleet of leased railcars (updated for the transactions discussed above).
We also provide services for marine exports of butane through our facility located in Chesapeake, Virginia and we also own a propane pipeline in Michigan.
3 unchanged sentences
We establish our selling price based on a pass-through of our product supply, transportation, handling, storage, and capital costs plus a margin.
−Removed: Also, we conduct just-in-time sales for gasoline and diesel at a national network of terminals owned by third parties via rack spot sales that do not involve continuing contractual obligations to purchase or deliver product.
Weather conditions and gasoline blending can have a significant impact on the demand for propane and butane, and sales volumes and prices are typically higher during the colder months of the year.
16 unchanged sentences
2023 $ 0.85 $ 1.65 $ 0.92
−Removed: The following table summarizes the range of low and high Gulf Coast gasoline spot prices per barrel using NYMEX gasoline prompt-month futures for the periods indicated and the prices at period end:
−Removed: Gasoline Spot Price Per Barrel
−Removed: Year Ended March 31, Low High At Period End
−Removed: 2024 $ 83.15 $ 124.53 $ 115.97
−Removed: 2023 $ 86.06 $ 179.60 $ 113.42
−Removed: 2022 $ 81.95 $ 154.67 $ 133.96
−Removed: The following table summarizes the range of low and high diesel spot prices per barrel using NYMEX ULSD prompt-month futures for the periods indicated and the prices at period end:
−Removed: Diesel Spot Price Per Barrel
−Removed: Year Ended March 31, Low High At Period End
−Removed: 2024 $ 93.76 $ 146.22 $ 109.86
−Removed: 2023 $ 109.41 $ 215.69 $ 112.40
−Removed: 2022 $ 74.44 $ 186.37 $ 155.03
We believe volatility in commodity prices will continue, and our ability to adjust to and manage this volatility may impact our financial results.
−Removed: Our Liquids Logistics segment generated operating income of $2.5 million during the year ended March 31, 2024, compared to operating income of $66.6 million during the year ended March 31, 2023.
−Removed: Other Developments
−Removed: Global Pandemic, International Conflicts and Market Update
−Removed: Since March 2020, and throughout the last three years, global markets and commodity prices have been extremely volatile due to the impacts from the COVID-19 pandemic, with further impacts on volatility caused by the war in Ukraine that began in February 2022, the current conflict between Israel and Hamas that began in October 2023 and conflicts involving Iran and its proxy forces.
−Removed: While we have seen continued recovery in commodity prices since the beginning of the pandemic, there is still volatility that we expect to continue at least for the near-term and possibly longer, due to these conflicts.
−Removed: This volatility could result in economic recession or depression and negatively impact future prices for crude oil, natural gas, petroleum products and industrial products.
−Removed: In addition, if we see a continuation or acceleration of fiscal year 2023’s inflationary conditions, rising interest rates, supply chain disruptions and tight labor markets, we may also see higher costs of operating our assets and executing on our capital projects in fiscal year 2025.
−Removed: In an effort to curb inflation, the U.S.
−Removed: Federal Reserve raised interest rates during fiscal year
−Removed: 2023, in May 2023 and most recently in July 2023.
−Removed: Federal Reserve implements additional increases, costs under our variable-rate debt and preferred units will increase (see “Item 7A.
−Removed: Quantitative and Qualitative Disclosures About Market Risk–Interest Rate Risk” included in this Annual Report on Form 10-K (“Annual Report”)).
−Removed: On the other hand, our ability to pass along rate increases reflecting changes in producer and/or consumer price indices to our customers, under our contracts, should help to counterbalance the impact of inflation on our costs.
−Removed: Seismic Activity
−Removed: The subsurface injection of produced water for disposal has been associated with induced seismic events in Texas and New Mexico.
−Removed: While these events have been of relatively low magnitude, industry and relevant state regulators are, nevertheless, taking proactive measures to attempt to prevent similar induced seismic events.
−Removed: More specifically, we are engaged in various collaborative industry efforts with other disposal operators and relevant state regulatory agencies, working to collect and review data, enhance understanding of regional fault systems, and ultimately develop and implement appropriate longer-term mitigation strategies.
−Removed: As part of this effort, we have implemented reductions in injected volumes at certain facilities, and where appropriate have temporarily shut-in facilities.
−Removed: To date, due to the capacity of our integrated system in the affected areas, the diverse locations of our disposal facilities, and the connectivity of our system, our ability to dispose of produced water has not been materially impacted by these actions, and with our unique positioning outside of the affected areas, we have the ability to grow our asset base.
−Removed: Regulatory Developments
−Removed: On March 6, 2024, the Securities and Exchange Commission (“SEC”) adopted a new set of rules that require a wide range of climate-related disclosures, including material climate-related risks, information on any climate-related targets or goals that are material to the registrant’s business, results of operations, or financial condition, Scope 1 and Scope 2 greenhouse gas emissions on a phased-in basis by certain larger registrants when those emissions are material and the filing of an attestation report covering the same, and disclosure of the financial statement effects of severe weather events and other natural conditions including costs and losses.
−Removed: Compliance dates under the final rule are phased in by registrant category.
−Removed: Multiple lawsuits have been filed challenging the SEC ’s new climate rules, which have been consolidated and will be heard in the U.S.
−Removed: Court of Appeals for the Eighth Circuit.
−Removed: On April 4, 2024, the SEC issued an order staying the final rules until judicial review is complete.
+Added: Our Liquids Logistics segment generated operating income of $14.1 million during the year ended March 31, 2025, compared to an operating loss of $13.2 million during the year ended March 31, 2024.
Consolidated Results of Operations
15 unchanged sentences
Other income, net 4,262 2,782 30,410
−Removed: (Loss) income before income taxes (140,719) 52,763 (183,130)
−Removed: Income tax expense (2,405) (271) (971)
−Removed: Net (loss) income (143,124) 52,492 (184,101)
−Removed: Net income attributable to noncontrolling interests (631) (1,106) (655)
−Removed: Net (loss) income attributable to NGL Energy Partners LP $ (143,755) $ 51,386 $ (184,756)
+Added: Income (loss) from continuing operations before income taxes 60,104 (156,270) 9,254
+Added: Income tax benefit (expense) 4,885 (1,458) (219)
+Added: Income (loss) from continuing operations 64,989 (157,728) 9,035
+Added: (Loss) income from discontinued operations, net of tax (21,826) 14,604 43,457
+Added: Net income (loss) 43,163 (143,124) 52,492
+Added: Net income from continuing operations attributable to nonredeemable noncontrolling interests (3,749) (631) (1,106)
+Added: Net income from continuing operations attributable to redeemable noncontrolling interests (46) — —
+Added: Net income (loss) attributable to NGL Energy Partners LP $ 39,368 $ (143,755) $ 51,386
Items Impacting the Comparability of Our Financial Results
Our current and future results of operations may not be comparable to our historical results of operations for the periods presented due to commodity price volatility, demand fluctuations, acquisitions, dispositions and other transactions.
−Removed: Debt Refinancing
−Removed: On February 2, 2024, we closed a debt refinancing transaction of $2.9 billion consisting of a private offering of $2.2 billion of senior secured notes and also entered into a new seven-year $700.0 million senior secured term loan “B” credit facility (“Term Loan B”).
−Removed: The net proceeds from these transactions were used to (i) fund the redemption, and related discharge of the indentures governing our existing 7.5% senior secured notes due 2026 (“2026 Senior Secured Notes”) as well as our 6.125% senior unsecured notes due 2025 (“2025 Notes”) and 7.5% senior unsecured notes due 2026 (“2026 Notes”) (collectively, the “Senior Unsecured Notes”), including any applicable premiums and accrued and unpaid interest, (ii) to pay fees and expenses in connection therewith, (iii) to repay borrowings under the $600.0 million asset-based revolving credit facility (“ABL Facility”) and (iv) to the extent of any remaining net proceeds, for general corporate purposes.
−Removed: In addition, we amended the ABL Facility.
−Removed: See Note 7 to our consolidated financial statements included in this Annual Report and “–Liquidity, Sources of Capital and Capital Resource Activities” for a further discussion of these transactions.
−Removed: Repurchase and/or Redemption of Senior Secured Notes and Senior Unsecured Notes
−Removed: During the three months ended March 31, 2024, we repurchased and/or redeemed all $2.1 billion of our outstanding 2026 Senior Secured Notes and $280.7 million of the 2025 Notes.
−Removed: On February 2, 2024, we deposited $331.9 million with the trustee for the redemption of the 2026 Notes.
−Removed: See Note 7 to our consolidated financial statements included in this Annual Report for a further discussion of the repurchases and redemptions.
−Removed: We completed several dispositions during the years ended March 31, 2024, 2023 and 2022.
−Removed: These transactions impact the comparability of our results of operations between our current and prior fiscal years.
−Removed: See Note 17 to our consolidated financial statements included in this Annual Report for a discussion of dispositions that occurred during the current and prior fiscal years.
+Added: Recent Developments
+Added: Disposition transactions impact the comparability of our results of operations between our current and prior fiscal years.
+Added: See Note 1 and Note 17 to our consolidated financial statements included in this Annual Report for a discussion of dispositions that occurred during the current and prior fiscal years.
+Added: Other Developments
+Added: Seismic Activity
+Added: The subsurface injection of produced water for disposal has been associated with induced seismic events in Texas and New Mexico.
+Added: While these events have been of relatively low magnitude, industry and relevant state regulators are, nevertheless, taking proactive measures to attempt to prevent similar induced seismic events.
+Added: More specifically, we are engaged in various collaborative industry efforts with other disposal operators and relevant state regulatory agencies, working to collect and review data, enhance understanding of regional fault systems, and ultimately develop and implement appropriate longer-term mitigation strategies.
+Added: As part of this effort, we have implemented reductions in injected volumes at certain facilities, and where appropriate have temporarily shut-in facilities.
+Added: To date, due to the capacity of our integrated system in the affected areas, the diverse locations of our disposal facilities, and the connectivity of our system, our ability to dispose of produced water has not been materially impacted by these actions, and with our unique positioning outside of the affected areas, we have the ability to grow our asset base.
Seasonality impacts our Liquids Logistics segment.
Consequently, for our Liquids Logistics segment, revenues, operating profits and operating cash flows are generated mostly in the third and fourth quarters of our fiscal year.
−Removed: We generally borrow under the ABL Facility to supplement our operating cash flows during the periods in which we are building inventory (see “–Liquidity, Sources of Capital and Capital Resource Activities–General”).
+Added: We generally borrow under our asset-based revolving credit facility (“ABL Facility”) to supplement our operating cash flows during the periods in which we are building inventory (see “–Liquidity, Sources of Capital and Capital Resource Activities–General”).
Subsequent Events
12 unchanged sentences
Cost of sales-excluding impact of derivatives 7,848 10,146 (2,298)
−Removed: Derivative loss 1,148 4,363 (3,215)
+Added: Derivative (gain) loss (5,001) 1,148 (6,149)
Operating expenses 214,928 212,052 2,876
17 unchanged sentences
Operating expenses for produced water processed ($/barrel) (2) $ 0.22 $ 0.24 $ (0.02)
−Removed: (1) During the three months ended March 31, 2023, 34,380 barrels of skim oil were stored and were sold during the year ended March 31, 2024.
+Added: (1) As of March 31, 2023, approximately 34,380 barrels of skim oil were stored and were sold during the year ended March 31, 2024.
(2) Total produced water barrels processed during the years ended March 31, 2025 and 2024 were 958,252,275 and 884,576,981, respectively.
−Removed: These amounts do not include 63,968,944 barrels and 36,143,594 barrels for the years ended March 31, 2024 and 2023, respectively, related to payments received from producers for committed volumes not delivered, as discussed further below.
+Added: These amounts do not include 49,861,950 barrels and 63,968,944 barrels for the years ended March 31, 2025 and 2024, respectively, related to payments made by certain producers for committed volumes not delivered, as discussed further below.
+Added: In addition, water pipeline revenue, which is included in Other Revenues, includes payments from a producer for 19,257,873 committed barrels not delivered during the year ended March 31, 2025.
+Added: (3) Excluding payments made by certain producers for committed volumes not delivered and the one-time item discussed below, service fees for produced water processed ($/barrel) would have been $0.60/barrel and $0.61/barrel during the years ended March 31, 2025 and 2024, respectively.
Water Disposal Service Fee Revenues.
−Removed: The increase was due primarily to an increase in produced water volumes processed from contracted customers mainly in the Delaware Basin, increased fees from new contracts and higher fees charged for interruptible spot volumes.
−Removed: There was also an increase in payments made by certain producers for committed volumes not delivered.
−Removed: Service fees for produced water processed ($/barrel) also benefited from these deficiency payments.
−Removed: In addition, in July 2023, we entered into a transaction in which a portion of the total consideration received was allocated to revenue due to the termination of a minimum volume water disposal contract (see Note 17 to our consolidated financial statements included in this Annual Report).
+Added: The increase was due primarily to an increase in produced water volumes processed from contracted customers and higher fees charged for interruptible spot volumes.
+Added: These increases were partially offset by the expiration of certain higher fee per barrel contracts which were replaced with lower fee per barrel contracts with an extended term and higher volumes received under contracts with lower fees per barrel.
+Added: There was also a decrease in payments made by certain producers for committed volumes not delivered.
+Added: In addition, during July 2023, we entered into a transaction in which a portion of the total consideration received was allocated to revenue due to the termination of a minimum volume water disposal contract (see Note 17 to our consolidated financial statements included in this Annual Report).
Recovered Crude Oil Revenues.
−Removed: The decrease was due primarily to lower realized crude oil prices received from the sale of skim oil barrels, partially offset by an increase in skim oil barrels sold as a result of higher skim oil recovered from increased produced water processed.
−Removed: In addition, during the current fiscal year we sold 34,380 barrels of skim oil that were stored as of March 31, 2023 due to tighter pipeline specifications.
+Added: The increase was due primarily to an increase in skim oil barrels sold due to more skim oil recovered from receiving more water in higher oil cut basins, partially offset by lower realized crude oil prices received from the sale of skim oil barrels.
+Added: Also, during the year ended March 31, 2024, we sold approximately 34,380 barrels of skim oil that were stored as of March 31, 2023 due to tighter pipeline specifications.
Recycled Water Revenues.
Revenue from recycled water includes the sale of produced water and recycled water for use in our customers’ completion activities.
−Removed: The decrease was due primarily to lower recycled water volumes related to timing of water to be used in completions.
+Added: The decrease was due primarily to lower pricing for recycled water, partially offset by higher recycled water volumes related to timing of water to be used in completions.
Other Revenues.
−Removed: Other revenues primarily include brackish non-potable water revenues, water pipeline revenues, land surface use revenues, solids disposal revenues and reimbursements from construction projects, booster operating fees and generator rentals.
−Removed: The increase was due primarily to higher reimbursements from construction projects, booster operating fees and generator rentals, higher land surface use revenues and higher lease revenue from certain surface use and compensation agreements.
−Removed: These increases were partially offset by lower water pipeline revenues due to the expiration of certain pipeline commitment revenue in December 2022 and lower sales of brackish non-potable water related to the timing of our customers transitioning from brackish non-potable water to recycled water.
+Added: Other revenues primarily include reimbursements from construction projects, booster operating fees and generator rentals, water pipeline revenues, solids disposal revenues, land surface use revenues and brackish non-potable water revenues.
+Added: The decrease was due primarily to lower land surface use revenues, mining revenues and lease revenue from certain surface use and compensation agreements primarily due to the sale of our ranches in April 2024 (see Note 17 to our consolidated financial statements included in this Annual Report).
+Added: We also had lower reimbursements from construction projects, booster operating fees and generator rentals.
+Added: These decreases were partially offset by higher water pipeline revenue, including payments from a producer for committed volumes not delivered, due to our expanded Lea County Express Pipeline system (“LEX II”) commencing operations during the three months ended December 31, 2024.
Cost of Sales-Excluding Impact of Derivatives .
−Removed: The increase was due primarily to costs incurred that will be reimbursed by producers for generator and fuel costs at various booster stations.
−Removed: In addition, we incurred increased trucking expenses for skim oil sales during the year ended March 31, 2024.
−Removed: These increases were partially offset by lower recycling costs due to a decrease in recycling activity and lower purchases of brackish non-potable water from third-parties to meet customer needs.
−Removed: Derivative Loss .
+Added: The decrease was due primarily to lower recycling costs and a decrease in disposal fees paid to third-parties, partially offset by costs incurred that will be reimbursed by producers for generator and fuel costs at various booster stations.
+Added: Derivative (Gain) Loss .
We enter into derivatives in our Water Solutions segment to protect against the risk of a decline in the market price of the crude oil we expect to recover when processing produced water and selling recovered skim oil.
+Added: During the year ended March 31, 2025, we had $5.0 million of net unrealized losses on derivatives and $10.0 million of net realized gains on derivatives.
During the year ended March 31, 2024, we had $0.4 million of net unrealized losses on derivatives and $0.8 million of net realized losses on derivatives.
−Removed: During the year ended March 31, 2023, we had $4.5 million of net unrealized gains on derivatives and $8.8 million of net realized losses on derivatives.
Operating and General and Administrative Expenses .
−Removed: The decrease was due primarily to lower chemical expense due to purchasing fewer chemicals and using chemicals more efficiently, lower overhead costs, lower generator rental expense due to renting fewer generators and lower severance taxes due to a decrease in revenue from recovered crude oil and a severance tax refund in September 2023 related to prior periods.
−Removed: These decreases were partially offset by higher operating expenses due to increased produced water volumes processed.
+Added: The increase was due primarily to higher royalty expense due to volumes related to the LEX II pipeline commencing operations and increased volumes at certain other saltwater disposal wells, higher business insurance expense for remediation costs incurred and lower severance taxes in the prior year as a result of a severance tax refund in September 2023 related to prior periods.
+Added: These increases were partially offset by lower chemical expense due to purchasing fewer chemicals and using them more efficiently and lower repairs and maintenance expense due to the timing of repairs and tank cleaning.
Depreciation and Amortization Expense .
−Removed: The increase was due primarily to depreciation of newly developed facilities and infrastructure, partially offset by certain long-term assets being fully amortized or impaired during the fiscal years ended March 31, 2023 and 2024.
+Added: The increase was due primarily to depreciation of newly developed facilities and infrastructure, partially offset by certain long-term assets being fully amortized, impaired or sold during the fiscal years ended March 31, 2024 and 2025.
Loss on Disposal or Impairment of Assets, Net .
+Added: During the year ended March 31, 2025, we recorded a net loss of $15.1 million primarily related to the write down of the value of certain saltwater disposal wells and other assets as well as abandonment of certain capital projects and the retirement of certain other assets.
+Added: We also recorded a loss of $8.0 million related to the write down of certain investments in unconsolidated entities and related assets to fair value less cost to sell (see Note 18 to our consolidated financial statements included in this Annual Report).
+Added: In addition, we recorded a $3.4 million loss from the settlement of a dispute related to a force majeure event, which resulted in the plugging and abandoning of a disposal well in a prior period.
+Added: Lastly, we recorded a net gain of $10.1 million primarily related to the sale of certain assets (see Note 17 to our consolidated financial statements included in this Annual Report) and a gain of $6.5 million from insurance recoveries
+Added: for certain saltwater disposal facilities and boosters damaged in a prior period.
During the year ended March 31, 2024, we recorded a net loss of $37.5 million primarily related to the write down of the value of certain saltwater disposal wells as well as the abandonment of certain capital projects and the retirement of certain assets, a net loss of $17.6 million primarily related to the sale of certain assets and an impairment of $2.4 million for certain leases due to underutilization of certain freshwater wells.
In addition, we recorded a gain of $3.9 million from insurance recoveries for certain saltwater disposal facilities and boosters damaged in a prior period.
−Removed: During the year ended March 31, 2023, we recorded a net loss of $26.3 million primarily related to the sale of certain assets and a net loss of $21.8 million to write down the value of an inactive saltwater disposal facility and damaged equipment at another saltwater disposal facility, as well as the abandonment of certain capital projects and the retirement of certain assets.
−Removed: We also recorded a loss of $0.5 million related to the termination of a joint marketing agreement.
−Removed: In addition, we recorded a gain of $2.1 million from an insurance recovery for a saltwater disposal facility damaged in a prior period.
Revaluation of Liabilities.
−Removed: During the years ended March 31, 2024 and 2023, there was an increase in expense for the valuation of our contingent consideration liabilities related to royalty agreements acquired as part of certain business combinations due primarily to higher expected production from new customers, resulting in an increase to the expected future royalty payment.
+Added: During the year ended March 31, 2025, there was a decrease in expense for the valuation of our contingent consideration liabilities related to royalty agreements acquired as part of certain business combinations due primarily to lower expected produced water volumes from our customers, resulting in a decrease to the expected future royalty payment.
+Added: During the year ended March 31, 2024, there was an increase in expense for the valuation of our contingent consideration liabilities related to royalty agreements acquired as part of certain business combinations due primarily to higher expected production from new customers, resulting in an increase to the expected future royalty payment.
Crude Oil Logistics
7 unchanged sentences
Cost of sales-excluding impact of derivatives 771,526 1,514,370 (742,844)
−Removed: Derivative loss (gain) 7,367 (14,565) 21,932
+Added: Derivative (gain) loss (2,872) 7,367 (10,239)
Operating expenses 38,408 39,004 (596)
1 unchanged sentence
Depreciation and amortization expense 25,070 36,922 (11,852)
−Removed: Loss on disposal or impairment of assets, net 3,094 31,086 (27,992)
+Added: (Gain) loss on disposal or impairment of assets, net (1,004) 3,094 (4,098)
Total expenses 833,801 1,604,537 (770,736)
8 unchanged sentences
Crude oil product margin ($/barrel) (2) $ 3.373 $ 4.129 $ (0.756)
−Removed: (1) Revenues include $0.5 million and $8.6 million of intersegment sales during the years ended March 31, 2024 and 2023, respectively, that are eliminated in our consolidated statements of operations.
(1) Information is presented as of March 31, 2025 and March 31, 2024, respectively.
1 unchanged sentence
Crude Oil Sales and Cost of Sales-Excluding Impact of Derivatives.
−Removed: The decreases in sales and cost of sales, excluding the impact of derivatives, were due primarily to lower sales volumes due to lower production on acreage dedicated to us in the DJ Basin during the year ended March 31, 2024, compared to the year ended March 31, 2023 and a decrease in crude oil prices year over year.
−Removed: Crude oil product margin from the sale of crude oil decreased from $102.3 million for the year ended March 31, 2023 to $82.9 million during the year ended March 31, 2024, primarily due to lower volumes and lower crude oil prices year over year.
−Removed: The lower crude oil prices resulted in lower contracted rates with certain producers, compared to the prior year when the contracted rates were higher due to the higher crude oil prices.
−Removed: We also realized lower contract differentials on certain other sales contracts.
−Removed: Crude oil product margin per barrel increased during the year ended March 31, 2024, compared to the year ended March 31, 2023, due to the sale of lower priced inventory into a market in which prices were increasing during certain periods of 2024.
−Removed: Whereas during the year ended March 31, 2023, we were selling higher priced inventory into a market in which prices were generally declining throughout the fiscal year.
−Removed: Crude oil product margin calculations does not include gain and losses from derivatives that may offset the movement in the physical margin.
−Removed: Derivative Loss (Gain).
−Removed: Our cost of sales during the year ended March 31, 2024 included $58.4 million of net realized gains on derivatives, driven by decreasing crude oil prices, and $65.8 million of net unrealized losses on derivatives.
−Removed: The amounts in the previous sentence for the year ended March 31, 2024 included net realized gains of $60.9 million and net unrealized losses of $61.4 million associated with derivative instruments related to our hedge of the CMA Differential Roll, defined and discussed below under “–Non-GAAP Financial Measures.” Our cost of sales during the year ended March 31, 2023
−Removed: included $35.5 million of net realized losses on derivatives, driven by increasing crude oil prices, and $50.1 million of net unrealized gains on derivatives.
−Removed: The amounts in the previous sentence for the year ended March 31, 2023 includes net realized losses of $13.1 million and net unrealized gains of $23.8 million associated with derivative instruments related to our hedge of the CMA Differential Roll.
+Added: The decreases in sales and cost of sales, excluding the impact of derivatives, were due primarily to lower sales volumes due to lower production on acreage dedicated to us in the DJ Basin during the year ended March 31, 2025, compared to the year ended March 31, 2024.
+Added: Lower crude oil prices also contributed to the decrease.
+Added: During the year ended March 31, 2025, the crude oil product margin decreased primarily due to lower volumes as discussed further above.
+Added: Contributing to the decrease in product margin and margin per barrel was the expiration of certain higher-margin purchase contracts during the year ended March 31, 2024, which resulted in lower margin realized on barrels purchased during the year ended March 31, 2025.
+Added: The decrease in margin per barrel for the year ended March 31, 2025, compared to the year ended March 31, 2024 was partially offset by higher price and quality differentials realized, and the sale
+Added: of the remaining pipeline transportation deficiency credits included in gross margin during the year ended March 31, 2025.
+Added: Crude oil product margin calculations do not include gains and losses from derivatives that may offset the movement in the physical margin.
+Added: Derivative (Gain) Loss.
+Added: Our cost of sales during the year ended March 31, 2025 included $1.1 million of net realized losses on derivatives and $4.0 million of net unrealized gains on derivatives.
+Added: Our cost of sales during the year ended March 31, 2024 included $58.4 million of net realized gains on derivatives and $65.8 million of net unrealized losses on derivatives.
+Added: The amounts in the previous sentence for the year ended March 31, 2024 includes net realized gains of $60.9 million and net unrealized losses of $61.4 million associated with derivative instruments related to our hedge of the CMA Differential Roll, defined and discussed below under “–Non-GAAP Financial Measures.”
Crude Oil Transportation and Other Sales.
−Removed: The decrease was primarily due to the sale of our marine assets on March 30, 2023, and lower pipeline tariff revenue due to the assignment of our commitment on a third-party pipeline.
+Added: The increase was primarily due to higher tariff revenue on the Grand Mesa Pipeline as a result of signing a new shipper during the open season that ended January 5, 2024.
+Added: Additionally, the year ended March 31, 2025 benefited from higher terminaling revenue from an acreage dedication in the Eagle Ford Basin and higher throughput revenue from crude oil transported on third-party pipelines.
+Added: These increases were partially offset by lower storage fees at our Cushing terminal during the year ended March 31, 2025.
During the year ended March 31, 2025, physical volumes on the Grand Mesa Pipeline averaged approximately 61,000 barrels per day, compared to approximately 70,000 barrels per day for the year ended March 31, 2024.
1 unchanged sentence
Operating and General and Administrative Expenses .
−Removed: The decrease was primarily due to the sale of our marine assets on March 30, 2023.
−Removed: Additionally, the current year benefited from lower incentive compensation expense, as well as lower repairs and maintenance expense on leased rail cars returned to the lessor in the prior year.
+Added: The decrease was primarily due to lower utilities expense and lower materials and supplies expense on the Grand Mesa Pipeline and at our Cushing terminal from lower volumes flowing through the system during the year ended March 31, 2025, compared to the year ended March 31, 2024.
+Added: In addition, the year ended March 31, 2025 benefited from lower cleaning, repairs and maintenance costs on our owned railcars, lower environmental costs at one of our terminals, and lower corporate cost allocations.
+Added: These decreases were partially offset by higher incentive compensation expenses and higher ad valorem taxes assessed on the Grand Mesa Pipeline by the State of Colorado.
Depreciation and Amortization Expense.
−Removed: The decrease was primarily due to the sale of our marine assets on March 30, 2023, lower depreciation expense due to certain of our railcar assets becoming fully depreciated during the year ended March 31, 2024 and the impairment of certain terminal assets in the prior year, which lowered their depreciable base.
−Removed: Loss on Disposal or Impairment of Assets, Net .
+Added: The decrease was primarily due to certain assets becoming fully depreciated during the year ended March 31, 2024.
+Added: (Gain) Loss on Disposal or Impairment of Assets, Net .
+Added: During the year ended March 31, 2025, we recorded a net gain of $1.0 million primarily due to the gain on the sale of railcars (see Note 17 to our consolidated financial statements included in this Annual Report), partially offset by the write-down in value of linefill expected to be sold over the next four months and the loss on the sale of certain other assets.
During the year ended March 31, 2024, we recorded a net loss of $3.1 million primarily due to the retirement or sale of certain assets.
−Removed: During the year ended March 31, 2023, we recorded an impairment of $23.1 million related to an underperforming crude oil terminal and a loss of $8.0 million on the sale of our marine assets.
Liquids Logistics
The following table summarizes the operating results of our Liquids Logistics segment for the periods indicated.
+Added: As discussed above, the operating results of our refined products and biodiesel businesses have been classified as discontinued operations for all periods presented and prior periods have been retrospectively adjusted.
Year Ended March 31,
1 unchanged sentence
(in thousands, except per gallon amounts)
−Removed: Refined products:
−Removed: Sales-excluding impact of derivatives $ 2,192,783 $ 2,554,084 $ (361,301)
−Removed: Cost of sales-excluding impact of derivatives 2,168,481 2,512,748 (344,267)
−Removed: Derivative loss 110 1,255 (1,145)
−Removed: Product margin 24,192 40,081 (15,889)
Sales $ 755,646 $ 739,591 $ 16,055
Cost of sales-excluding impact of derivatives 721,372 692,649 28,723
−Removed: Derivative loss 2,463 11,642 (9,179)
+Added: Derivative (gain) loss (1,509) 2,463 (3,972)
Product margin 35,783 44,479 (8,696)
1 unchanged sentence
Cost of sales-excluding impact of derivatives 606,694 587,307 19,387
−Removed: Derivative loss (gain) 2,771 (22,976) 25,747
+Added: Derivative loss 14,136 2,771 11,365
Product margin 28,622 38,607 (9,985)
12 unchanged sentences
Total expenses 83,562 125,716 (42,154)
−Removed: Segment operating income $ 2,481 $ 66,624 $ (64,143)
−Removed: Year Ended March 31,
−Removed: 2024 2023 Change
−Removed: (in thousands, except per gallon amounts)
−Removed: Natural gas liquids and refined products storage capacity - owned and leased (gallons) (1) 130,441 160,329 (29,888)
−Removed: Refined products sold (gallons) 817,634 769,151 48,483
−Removed: Refined products sold ($/gallon) $ 2.682 $ 3.321 $ (0.639)
−Removed: Cost per refined products sold ($/gallon) (2) $ 2.652 $ 3.267 $ (0.615)
−Removed: Refined products product margin ($/gallon) (2) $ 0.030 $ 0.054 $ (0.024)
−Removed: Refined products inventory (gallons) (1) 1,872 1,003 869
+Added: Segment operating income (loss) $ 14,058 $ (13,178) $ 27,236
+Added: Natural gas liquids storage capacity - owned and leased (gallons) (1) 52,721 122,831 (70,110)
Propane sold (gallons) 760,287 811,035 (50,748)
15 unchanged sentences
(2) Cost and product margin (loss) per gallon excludes the impact of derivatives.
−Removed: Refined Products Sales and Cost of Sales-Excluding Impact of Derivatives.
−Removed: The decreases in sales and cost of sales, excluding the impact of derivatives, during the year ended March 31, 2024 were primarily due to a decrease in sales prices during the current year due to lower commodity prices.
−Removed: This decrease was partially offset by an increase in volumes, as we have added new supply and customer contracts in certain markets.
−Removed: Refined Products product margins, excluding the impact of derivatives, for the year ended March 31, 2024 decreased from the year ended March 31, 2023 due primarily to the higher margins generated in the prior year due to higher demand in several markets experiencing tighter supply.
−Removed: These supply issues returned to normal in the current year as supply issues were resolved and the supply/demand balance was restored.
−Removed: Refined Products Derivative Loss.
−Removed: Our Refined Products product margin during the year ended March 31, 2024 included realized losses of $0.1 million and the year ended March 31, 2023 included realized losses of $1.3 million.
Propane Sales and Cost of Sales-Excluding Impact of Derivatives.
−Removed: The decreases in sales and cost of sales, excluding the impact of derivatives, were due to lower propane volumes and lower prices during the year ended March 31, 2024.
−Removed: Propane volumes decreased during the year ended March 31, 2024 due to the sale of three natural gas liquids terminals, the loss of a certain supply contract, lower performing natural gas liquids terminals being idled and a focus on more profitable markets and customers.
−Removed: Also, demand was lower during the year ended March 31, 2024 due to the warmer than normal winter.
−Removed: Propane product margins, excluding the impact of derivatives, decreased during the year ended March 31, 2024 primarily due to lower volumes and lower prices.
−Removed: Propane Derivative Loss.
−Removed: Our cost of propane sales included $4.6 million of net unrealized gains on derivatives and $7.0 million of net realized losses on derivatives during the year ended March 31, 2024.
−Removed: During the year ended March 31, 2023, our cost of propane sales included $6.9 million of net unrealized losses on derivatives and $4.7 million of net realized losses on
+Added: The increases in sales and cost of sales, excluding the impact of derivatives, were primarily due to higher prices during the quarter ended March 31, 2025 due to the cold weather experienced throughout the United States during the first two months of the quarter.
+Added: Propane volumes decreased during the year ended March 31, 2025 due to lower contracted volumes and reduced retail customer demand.
+Added: Propane product margins, excluding the impact of derivatives, decreased during the year ended March 31, 2025 primarily due to lower volumes.
+Added: For most of the year ended March 31, 2025, we sold higher priced inventory into a market of declining prices, compared to the year ended March 31, 2024, when we were selling lower priced inventory into a market with rising prices.
+Added: In addition, during the quarter ended March 31, 2025, due to an increase in demand due to the colder than normal weather, we were short product and had to purchase spot barrels at higher prices to fulfill term obligations, resulting in lower margins.
+Added: Propane Derivative (Gain) Loss.
+Added: Our cost of propane sales included $3.0 million of net unrealized losses on derivatives and $4.5 million of net realized gains on derivatives during the year ended March 31, 2025.
+Added: During the year ended March 31, 2024, our cost of propane sales included $4.6 million of net unrealized gains on derivatives and $7.0 million of net realized losses on derivatives.
Butane Sales and Cost of Sales-Excluding Impact of Derivatives.
−Removed: The decreases in sales and cost of sales, excluding the impact of derivatives, were due primarily to lower butane prices.
−Removed: The decrease was also due to lower volumes during the first six months of the year ended March 31, 2024 as a result of weak spot demand, weak export demand and a change in strategy by a significant customer.
−Removed: These decreases were partially offset by strong blending demand from October 2023 through February 15, 2024.
−Removed: Butane product margins, excluding the impact of derivatives, increased during the year ended March 31, 2024, as compared to the year ended March 31, 2023, primarily due to higher demand for butane blending which has tightened up the butane supply, causing sales differentials to increase.
−Removed: Also, in the prior year, we were negatively impacted by lower location differentials as the product we contracted to purchase in the beginning of the season was continuing to compete with product purchased in the discounted market.
−Removed: Butane Derivative Loss (Gain).
−Removed: Our cost of butane sales during the year ended March 31, 2024 included $3.2 million of net unrealized losses on derivatives and $0.5 million of net realized gains on derivatives.
−Removed: Our cost of butane sales included $3.9 million of net unrealized gains on derivatives and $19.1 million of net realized gains on derivatives during the year ended March 31, 2023.
+Added: The increases in sales and cost of sales, excluding the impact of derivatives, were due primarily to higher butane prices during the year ended March 31, 2025.
+Added: Butane product margins, excluding the impact of derivatives, increased during the year ended March 31, 2025, as compared to the year ended March 31, 2024, primarily due to higher prices, partially offset by lower volumes due to a weak gasoline blending season.
+Added: Butane Derivative Loss.
+Added: Our cost of butane sales during the year ended March 31, 2025 included $0.6 million of net unrealized gains on derivatives and $14.7 million of net realized losses on derivatives.
+Added: Our cost of butane sales included $3.2 million of net unrealized losses on derivatives and $0.5 million of net realized gains on derivatives during the year ended March 31, 2024.
Other Products Sales and Cost of Sales-Excluding Impact of Derivatives.
−Removed: The decreases in sales and cost of sales, excluding the impact of derivatives, were due primarily to the decrease in market prices during the year ended March 31, 2024 as compared to the year ended March 31, 2023.
−Removed: Market prices for biodiesel decreased due to the United States Environmental Protection Agency (“EPA”) final renewable fuels standards (“RFS”) mandate which lowered the required amount of biodiesel to be blended, thus increasing the amount of supply in the market.
−Removed: The decrease was also the result of lower natural gasoline volumes due to the loss of certain supply contracts.
−Removed: These decreases were partially offset by increased sales of asphalt due to increased supply.
−Removed: Other products sales product margins, excluding the impact of derivatives, decreased during the year ended March 31, 2024 due to the increased supply of biodiesel in the market due to the EPA’s final RFS mandate, which lowered biodiesel and renewable identification numbers prices and delivery of biodiesel contracts entered into in the prior year, when prices were higher, for delivery in the current period when prices were declining.
+Added: The increases in sales and cost of sales, excluding the impact of derivatives, were primarily due to an increase in prices and volumes.
+Added: Strong spot markets led to an increase in isobutane and natural gasoline sales and asphalt sales increased due to a consistent supply during the year ended March 31, 2025.
+Added: Other products sales product margins, excluding the impact of derivatives, increased during the year ended March 31, 2025 due to the increase in volumes and prices, as discussed further above.
Other Products Derivative (Gain) Loss.
−Removed: Our derivatives of other products included $11.5 million of net realized gains on derivatives and $0.1 million unrealized losses on derivatives during the year ended March 31, 2024.
−Removed: Our derivatives of other products during the year ended March 31, 2023 included $24.6 million of net realized losses on derivatives and $0.1 million of unrealized gains on derivatives.
+Added: Our derivatives of other products included $0.3 million of net realized gains on derivatives during the year ended March 31, 2025.
+Added: Our derivatives of other products during the year ended March 31, 2024 included $0.1 million of net realized gains on derivatives and $0.1 million of net unrealized losses on derivatives.
Service Sales and Cost of Sales.
The sales include storage, terminaling and transportation services income.
−Removed: Sales during the year ended March 31, 2024 remained consistent with the year ended March 31, 2023 but cost of sales decreased due to lower third-party costs.
+Added: Sales and cost of sales during the year ended March 31, 2025 remained consistent with the year ended March 31, 2024.
Operating and General and Administrative Expenses.
−Removed: The increase was due to higher incentive compensation due to improved margins in certain of our businesses year over year.
+Added: The decrease during the year ended March 31, 2025 compared to the year ended March 31, 2024 was primarily due to a decrease in incentive compensation due to lower than expected earnings, a decrease in travel and entertainment expenses due to our efforts in the prior year to visit all customers and lower office lease expense due to the sale of certain terminals in the prior year.
Depreciation and Amortization Expense.
1 unchanged sentence
Loss on Disposal or Impairment of Assets, Net.
−Removed: During the year ended March 31, 2024, we recorded a goodwill impairment loss of $69.2 million in our Wholesale/Terminal reporting unit (see Note 5 to our consolidated financial statements included in this Annual Report).
+Added: During the year ended March 31, 2025, we recorded a net loss of $22.6 million.
+Added: The net loss was due to a goodwill impairment loss of $17.9 million in our Wholesale/Terminal reporting unit (see Note 5 to our consolidated financial statements included in this Annual Report).
+Added: We also recorded a net loss of $7.3 million due to costs incurred related to the sale of certain natural gas liquid terminals and a net gain of $2.0 million for the sale of the Green Bay terminal discussed in Note 17 to our consolidated financial statements included in this Annual Report.
+Added: During the year
+Added: ended March 31, 2024, we recorded a goodwill impairment loss of $69.2 million in our Wholesale/Terminal reporting unit (see Note 5 to our consolidated financial statements included in this Annual Report).
In addition, we recorded a net gain of $8.5 million due to the sale of three natural gas liquids terminals and we recorded a net gain of $0.8 million related to the retirement or sale of certain other assets.
−Removed: During the year ended March 31, 2023, we recorded a net loss of $10.1 million due to the impairment of several underperforming natural gas liquids terminals.
−Removed: In addition, during the year ended March 31, 2023, we recorded a net loss of $0.2 million related to the sale and retirement of other assets.
Corporate and Other
3 unchanged sentences
(in thousands)
+Added: Other revenues:
+Added: Service revenues $ 401 $ — $ 401
Cost of sales:
−Removed: Derivative (gain) loss $ (937) $ 1,181 $ (2,118)
+Added: Derivative gain — (937) 937
General and administrative expenses 39,592 105,147 (65,555)
Depreciation and amortization expense 3,027 4,749 (1,722)
−Removed: Gain on disposal or impairment of assets, net (720) (912) 192
+Added: Loss (gain) on disposal or impairment of assets, net 43 (720) 763
Total expenses 42,662 109,176 (66,514)
Operating loss $ (42,261) $ (108,239) $ 65,978
−Removed: Cost of Sales - Derivative (Gain) Loss.
+Added: Service Revenues.
+Added: These revenues relate to billings to the noncontrolling interest holders for usage of the airplanes acquired in June and October 2024.
+Added: Cost of Sales - Derivative Gain.
Our cost of sales during the year ended March 31, 2024 included $0.2 million of net realized losses on derivatives and $1.2 million of net unrealized gains on derivatives.
−Removed: We entered into economic hedges to protect our liquidity positions and leverage from a significant increase in commodity prices that drive our working capital demands, as we experienced in the prior fiscal year, thus impacting our ability to reduce absolute indebtedness until commodity prices weakened.
+Added: We entered into economic hedges to protect our liquidity positions and leverage from a significant increase in commodity prices that drive our working capital demands.
There were no open hedge positions that would impact cost of sales as of March 31, 2025.
General and Administrative Expenses .
−Removed: The increase during the year ended March 31, 2024 relates primarily to the increase in our accrual related to the LCT Capital, LLC (“LCT”) legal matter from $2.5 million to $36.0 million (see Note 8 to our consolidated financial statements included in this Annual Report), and the write-off of $14.2 million of legal costs related to the LCT legal matter that were originally allocated to the GP (see Note 12 to our consolidated financial statements included in this Annual Report).
−Removed: In addition, we also incurred increased business insurance expense as we paid the insurance company to be released from any future supplementary calls on our indemnity policy related to our former crude marine business (which we sold on March 30, 2023), increased insurance premiums and a reduction in our corporate overhead allocation to the other business segments.
−Removed: These increases were partially offset by a decrease in equity-based incentive compensation as our final service award vested on November 15, 2023.
+Added: The decrease during the year ended March 31, 2025 is primarily due to the increase in our accrual as of March 31, 2024, related to the LCT Capital, LLC (“LCT”) legal matter (see Note 8 to our consolidated financial statements included in this Annual Report and also in the section below discussing the segment operating results for the years ended March 31, 2024 and 2023).
+Added: The decrease also relates to lower legal expenses as several large cases ended and lower business insurance expense as we paid an insurance company in the prior year for the release of any supplementary calls related to our former crude marine business.
+Added: Compensation expense was also lower due to the elimination of the share-based compensation expense due to all outstanding long-term incentive plan awards being fully vested in November 2023.
Depreciation and Amortization Expense.
The decrease during the year ended March 31, 2025 was due to software that became fully depreciated during the year ended March 31, 2024.
−Removed: Gain on Disposal or Impairment of Assets, Net.
+Added: Loss (Gain) on Disposal or Impairment of Assets, Net.
+Added: During the year ended March 31, 2025, we recorded a net loss of less than $0.1 million due to the write-off of information technology equipment.
During the year ended March 31, 2024, we sold an airplane for a gain of $0.7 million.
−Removed: During the year ended March 31, 2023, we sold an airplane for a gain of $1.3 million, which was partially offset by a loss recorded to write-off the remaining amount of a loan receivable, due July 31, 2023, that was prepaid by the debtor and an impairment loss recorded on the sublease of a building we were no longer using.
Equity in Earnings of Unconsolidated Entities
−Removed: Equity in earnings of unconsolidated entities of $4.1 million during the year ended March 31, 2024 consisted primarily of earnings from certain membership interests related to specific land and water services operations and earnings from another entity due to a gain recognized on the sale of an airplane during the three months ended December 31, 2023 (see Note 12 to our consolidated financial statements included in this Annual Report).
−Removed: Equity in earnings of unconsolidated entities of $4.1 million during the year ended March 31, 2023 consisted primarily of earnings from certain membership interests related to specific land and water services operations and a loss from our interest in an aircraft company.
+Added: Equity in earnings of unconsolidated entities was $6.6 million during the year ended March 31, 2025, compared to $4.1 million during the year ended March 31, 2024.
+Added: The increase of $2.5 million during the year ended March 31, 2025 was due primarily to higher earnings from certain membership interests related to specific land and water services operations.
Interest Expense
4 unchanged sentences
Senior secured notes $ 182,000 $ 160,088 $ 21,912
−Removed: Senior unsecured notes 40,829 76,288 (35,459)
+Added: Senior secured term loan “B” credit facility (“Term Loan B”) 63,118 11,275 51,843
ABL Facility 20,893 15,645 5,248
−Removed: Term Loan B 11,275 — 11,275
+Added: Senior unsecured notes — 40,829 (40,829)
Other indebtedness 1,630 26,781 (25,151)
1 unchanged sentence
Amortization of debt issuance costs 12,010 15,701 (3,691)
−Removed: Unrealized gain on interest rate swap (515) — (515)
+Added: Unrealized loss (gain) on interest rate swaps 3,054 (515) 3,569
+Added: Realized gain on interest rate swaps (2,627) — (2,627)
Total interest expense $ 280,078 $ 269,804 $ 10,274
−Removed: The debt interest expense decreased $4.0 million during the year ended March 31, 2024 primarily due to the repurchase of the 7.5% senior unsecured notes due 2023 (“2023 Notes”) throughout the prior year and the redemption of the remaining 2023 Notes on March 31, 2023.
−Removed: In addition, we repurchased a portion of the outstanding 2025 Notes during the three months ended June 30, 2023.
−Removed: Also, in the prior year, we had an accrual of the settlement of a claim for the failure to pay interest on royalty payments.
−Removed: These decreases were partially offset by $26.1 million of interest accrued related to the LCT legal matter (see Note 8 to our consolidated financial statements included in this Annual Report) and an increase due to higher interest rates on the new debt instruments.
−Removed: (Loss) Gain on Early Extinguishment of Liabilities, Net
−Removed: Loss on early extinguishment of liabilities, net was $55.3 million during the year ended March 31, 2024, compared to a gain on early extinguishment of liabilities, net of $6.2 million during the year ended March 31, 2023.
−Removed: During the year ended March 31, 2024, the net loss (inclusive of debt issuance costs written off) primarily relates to the call premium of $38.4 million paid for the early extinguishment of the outstanding 2026 Senior Secured Notes, the write-off of debt issuance costs and other expenses related to the repurchase/redemption of the 2026 Senior Secured Notes and Senior Unsecured Notes during the fiscal year.
−Removed: During the year ended March 31, 2023, the net gain (inclusive of debt issuance costs written off) primarily related to the early extinguishment of a portion of the outstanding Senior Unsecured Notes partially offset by the write-off of debt issuance costs.
−Removed: In addition, we paid a prepayment premium of $1.6 million and wrote off debt issuance costs of less than $0.1 million related to the payoff of an outstanding equipment loan.
+Added: The debt interest expense increased $13.0 million during the year ended March 31, 2025 primarily due to higher interest rates on the Term Loan B, the 8.125% senior secured notes due 2029 (“2029 Senior Secured Notes”) and the 8.375% senior secured notes due 2032 (“2032 Senior Secured Notes”).
+Added: This was partially offset by the repurchase/redemption of the 6.125% senior unsecured notes due 2025 (“2025 Notes”) and the redemption of the 7.5% senior unsecured notes due 2026 (“2026 Notes”) (collectively, the “Senior Unsecured Notes”) during the year ended March 31, 2024.
+Added: Also, in the prior year we had an interest accrual of $26.1 million, included in other indebtedness, related to the LCT legal matter (see Note 8 to our consolidated financial statements included in this Annual Report).
+Added: Loss on Early Extinguishment of Liabilities, Net
+Added: Loss on early extinguishment of liabilities, net was $55.3 million during the year ended March 31, 2024.
+Added: During the year ended March 31, 2024, the net loss (inclusive of debt issuance costs written off) primarily relates to the call premium of $38.4 million paid for the early extinguishment of the outstanding 7.5% senior secured notes due 2026 (“2026 Senior Secured Notes”), the write-off of debt issuance costs and other expenses related to the repurchase/redemption of the 2026 Senior Secured Notes and Senior Unsecured Notes during the fiscal year.
+Added: We did not repurchase any debt during the year ended March 31, 2025.
See Note 7 to our consolidated financial statements included in this Annual Report for a further discussion of the debt instruments repurchased and redeemed.
Other Income, Net
−Removed: Other income, net of $2.8 million during the year ended March 31, 2024 consisted primarily of interest income on loan receivables (see Note 2 to our consolidated financial statements included in this Annual Report for a further discussion) and cash on hand, income from the settlement of a dispute and income from excess distributions received from an equity method investee (see Note 2 to our consolidated financial statements included in this Annual Report for a further discussion).
−Removed: Other income, net of $28.7 million during the year ended March 31, 2023 consisted primarily of a settlement of a dispute associated with commercial activities not occurring in the current reporting periods (see Note 17 to our consolidated financial statements included in this Annual Report for a further discussion).
−Removed: Income Tax Expense
−Removed: Income tax expense was $2.4 million during the year ended March 31, 2024, compared to income tax expense of $0.3 million during the year ended March 31, 2023.
+Added: Other income, net of $4.3 million during the year ended March 31, 2025 consisted primarily of a gain on the expiration of an option, realized and unrealized gains on marketable securities, interest income on loan receivables (see Note 2 to our consolidated financial statements included in this Annual Report for a further discussion) and unrealized losses on investments.
+Added: Other income, net of $2.8 million during the year ended March 31, 2024 consisted primarily of interest income on loan receivables and cash on hand, income from the settlement of a dispute and income from excess distributions received from an equity method investee.
+Added: Income Tax Benefit (Expense)
+Added: Income tax benefit was $4.9 million during the year ended March 31, 2025, compared to income tax expense of $1.5 million during the year ended March 31, 2024.
See Note 2 to our consolidated financial statements included in this Annual Report for a further discussion.
−Removed: Noncontrolling Interests
+Added: Noncontrolling Interests - Redeemable and Nonredeemable
Noncontrolling interests represent the portion of certain consolidated subsidiaries that are owned by third-parties.
−Removed: Noncontrolling interest income was $0.6 million during the year ended March 31, 2024, compared to $1.1 million during the
−Removed: year ended March 31, 2023.
−Removed: The decrease of $0.5 million during the year ended March 31, 2024 was due primarily to lower income from certain water solutions operations during the year ended March 31, 2024.
+Added: Noncontrolling interest income was $3.8 million during the year ended March 31, 2025, compared to $0.6 million during the year ended March 31, 2024.
+Added: The increase of $3.2 million during the year ended March 31, 2025 was due primarily to higher income from certain water solutions operations.
Segment Operating Results for the Years Ended March 31, 2024 and 2023
30 unchanged sentences
Operating expenses for produced water processed ($/barrel) (2) $ 0.24 $ 0.25 $ (0.01)
−Removed: (1) During the three months ended March 31, 2023, 34,380 barrels of skim oil were stored and will be sold during fiscal year 2024.
+Added: (1) As of March 31, 2023, approximately 34,380 barrels of skim oil were stored and were sold during the year ended March 31, 2024.
(2) Total produced water barrels processed during the years ended March 31, 2024 and 2023 were 884,576,981 and 849,477,938, respectively.
−Removed: These amounts do not include 36,143,594 barrels and 25,653,729 barrels for the years ended March 31, 2023 and 2022, respectively, related to payments received from producers for committed volumes not delivered, as discussed further below.
+Added: These amounts do not include 63,968,944 barrels and 36,143,594 barrels for the years ended March 31, 2024 and 2023, respectively, related to payments made by certain producers for committed volumes not delivered, as discussed further below.
+Added: (3) Excluding payments made by certain producers for committed volumes not delivered and the one-time item discussed below, service fees for produced water processed ($/barrel) would have been $0.61/barrel and $0.59/barrel during the years ended March 31, 2024 and 2023, respectively.
Water Disposal Service Fee Revenues.
−Removed: The increase was due to an increase in produced water volumes processed as a result of increased crude oil production driven by higher crude oil prices and completion activity, primarily in the Delaware Basin as well as higher fees charged for spot volumes.
−Removed: In addition, there was an increase in payments made by certain producers for committed volumes not delivered.
+Added: The increase was due primarily to an increase in produced water volumes processed from contracted customers mainly in the Delaware Basin, increased fees from new contracts and higher fees charged for interruptible spot volumes.
+Added: There was also an increase in payments made by certain producers for committed volumes not delivered.
Service fees for produced water processed ($/barrel) also benefited from these deficiency payments.
−Removed: These were partially offset by lower service fees received per barrel due to increased volumes from customers with long-term acreage dedications or minimum volume commitments with lower contracted fees.
+Added: In addition, during July 2023, we entered into a transaction in which a portion of the total consideration received was allocated to revenue due to the termination of a minimum volume water disposal contract (see Note 17 to our consolidated financial statements included in this Annual Report).
Recovered Crude Oil Revenues.
−Removed: The increase was due primarily to higher volumes of skim oil barrels sold due to an increase in produced water volumes processed as well as higher realized crude oil prices received from the sale of skim oil
−Removed: Additionally, an increase in the number of wells completed in our area of operations during the period with increased flowback activity resulted in higher skim oil volumes per barrel of produced water processed.
+Added: The decrease was due primarily to lower realized crude oil prices received from the sale of skim oil barrels, partially offset by an increase in skim oil barrels sold as a result of higher skim oil recovered from increased produced water processed.
+Added: In addition, during the current fiscal year we sold 34,380 barrels of skim oil that were stored as of March 31, 2023 due to tighter pipeline specifications.
Recycled Water Revenues.
−Removed: The increase was due primarily to increasing demand for water to be used in completions, driven by an increase in drilling and completion activity primarily in the Delaware Basin, and our customers’ transition from brackish non-potable water to recycled water, partially offset by lower pricing for recycled water.
+Added: The decrease was due primarily to lower recycled water volumes related to timing of water to be used in completions.
Other Revenues.
−Removed: The decrease was due primarily to lower sales of brackish non-potable water related to the termination of a joint marketing agreement as well as our customers transitioning from brackish non-potable water to recycled water, partially offset by reimbursements from construction projects in the current period.
+Added: The increase was due primarily to higher reimbursements from construction projects, booster operating fees and generator rentals, higher land surface use revenues and higher lease revenue from certain surface use and compensation agreements.
+Added: These increases were partially offset by lower water pipeline revenues due to the expiration of certain pipeline commitment revenue in December 2022 and lower sales of brackish non-potable water related to the timing of our customers transitioning from brackish non-potable water to recycled water.
Cost of Sales-Excluding Impact of Derivatives .
−Removed: The decrease was due primarily to lower purchases of brackish non-potable water from third-parties to meet customer needs due to the termination of a joint marketing agreement.
+Added: The increase was due primarily to costs incurred that will be reimbursed by producers for generator and fuel costs at various booster stations.
+Added: In addition, we incurred increased trucking expenses for skim oil sales during the year ended March 31, 2024.
+Added: These increases were partially offset by lower recycling costs due to a decrease in recycling activity and lower purchases of brackish non-potable water from third-parties to meet customer needs.
Derivative Loss.
We enter into derivatives in our Water Solutions segment to protect against the risk of a decline in the market price of the crude oil we expect to recover when processing produced water and selling recovered skim oil.
+Added: During the year ended March 31, 2024, we had $0.4 million of net unrealized losses on derivatives and $0.8 million of net realized losses on derivatives.
During the year ended March 31, 2023, we had $4.5 million of net unrealized gains on derivatives and $8.8 million of net realized losses on derivatives.
−Removed: During the year ended March 31, 2022, we had $11.7 million of net unrealized losses on derivatives and $4.0 million of net realized gains on derivatives.
Operating and General and Administrative Expenses .
−Removed: The increase was due primarily to higher utility, royalty and chemical expenses as a result of the increase in produced water volumes processed.
−Removed: Utility, royalty and chemical expenses, which are three of our largest variable expenses, were not impacted by the rise in inflation due to negotiated long-term utility contracts with fixed rates, royalty contracts with no escalation clauses and a fixed chemical expense per barrel with our chemical provider.
−Removed: The increase was also due to higher incentive compensation expense, higher severance taxes due to the increase in revenue from recovered crude oil and higher repairs and maintenance expense due to timing of repairs and the operation of temporary booster stations.
+Added: The decrease was due primarily to lower chemical expense due to purchasing fewer chemicals and using chemicals more efficiently, lower overhead costs, lower generator rental expense due to renting fewer generators and lower severance taxes due to a decrease in revenue from recovered crude oil and a severance tax refund in September 2023 related to prior periods.
+Added: These decreases were partially offset by higher operating expenses due to increased produced water volumes processed.
Depreciation and Amortization Expense .
−Removed: The decrease was due primarily to certain long-term assets being fully amortized or impaired during the years ended March 31, 2022 and 2023.
−Removed: This decrease was partially offset by the depreciation of newly developed facilities and infrastructure.
+Added: The increase was due primarily to depreciation of newly developed facilities and infrastructure, partially offset by certain long-term assets being fully amortized or impaired during the fiscal years ended March 31, 2023 and 2024.
Loss on Disposal or Impairment of Assets, Net.
+Added: During the year ended March 31, 2024, we recorded a net loss of $37.5 million primarily related to the write down of the value of certain saltwater disposal wells as well as the abandonment of certain capital projects and the retirement of certain assets, a net loss of $17.6 million primarily related to the sale of certain assets and an impairment of $2.4 million for certain leases due to underutilization of certain freshwater wells.
+Added: In addition, we recorded a gain of $3.9 million from insurance recoveries for certain saltwater disposal facilities and boosters damaged in a prior period.
During the year ended March 31, 2023, we recorded a net loss of $26.3 million primarily related to the sale of certain assets and a net loss of $21.8 million to write down the value of an inactive saltwater disposal facility and damaged equipment at another saltwater disposal facility, as well as the abandonment of certain capital projects and the retirement of certain assets.
1 unchanged sentence
In addition, we recorded a gain of $2.1 million from an insurance recovery for a saltwater disposal facility damaged in a prior period.
−Removed: During the year ended March 31, 2022, we recorded a net loss of $29.8 million primarily related to the write-down of an inactive saltwater disposal facility and damaged equipment and wells at other facilities, abandonment of certain capital projects and the sale of certain other miscellaneous assets.
−Removed: In addition, we recorded a gain of $4.3 million on the sale of certain land and a landfill permit.
Revaluation of Liabilities.
−Removed: During the year ended March 31, 2023, there was an increase in expense for the valuation of our contingent consideration liabilities related to royalty agreements acquired as part of certain business combinations due primarily to higher expected production from new customers, resulting in an increase to the expected future royalty payment.
−Removed: During the year ended March 31, 2022, there was a decrease in expense for the valuation of our contingent consideration liabilities related to royalty agreements acquired as part of certain business combinations due primarily to lower expected production from new customers, resulting in a decrease to the expected future royalty payment.
+Added: During the years ended March 31, 2024 and 2023, there was an increase in expense for the valuation of our contingent consideration liabilities related to royalty agreements acquired as part of certain business combinations due primarily to higher expected produced water volumes from our customers, resulting in an increase to the expected future royalty payment.
Crude Oil Logistics
7 unchanged sentences
Cost of sales-excluding impact of derivatives 1,514,370 2,274,089 (759,719)
−Removed: Derivative (gain) loss (14,565) 92,027 (106,592)
+Added: Derivative loss (gain) 7,367 (14,565) 21,932
Operating expenses 39,004 50,154 (11,150)
1 unchanged sentence
Depreciation and amortization expense 36,922 46,577 (9,655)
−Removed: Loss (gain) on disposal or impairment of assets, net 31,086 (3,101) 34,187
+Added: Loss on disposal or impairment of assets, net 3,094 31,086 (27,992)
Total expenses 1,604,537 2,391,888 (787,351)
8 unchanged sentences
Crude oil product margin ($/barrel) (2) $ 4.129 $ 4.014 $ 0.115
−Removed: (1) Revenues include $8.6 million and $11.1 million of intersegment sales during the years ended March 31, 2023 and 2022, respectively, that are eliminated in our consolidated statements of operations.
(1) Information is presented as of March 31, 2024 and March 31, 2023, respectively.
−Removed: The decrease in crude oil inventory was due primarily to capitalizing additional crude oil barrels as linefill as a result of increased requirements.
(2) Cost and product margin per barrel excludes the impact of derivatives.
Crude Oil Sales and Cost of Sales-Excluding Impact of Derivatives.
−Removed: The decrease in sales was due primarily to a reduction in sales volumes primarily due to lower production in the DJ Basin and increased buy/sell transactions during the year ended March 31, 2023.
−Removed: Buy/sell transactions are transactions in which we purchase product from a counterparty and sell the same volumes of product to the same counterparty at a different location or time.
−Removed: The sales, cost of sales and volumes are netted for these transactions.
−Removed: The decrease was partially offset by an increase in crude oil prices during the year ended March 31, 2023, compared to the year ended March 31, 2022.
−Removed: The increase in cost of sales, excluding the impact of derivatives, was due primarily to an increase in crude oil prices during the year ended March 31, 2023, compared to the year ended March 31, 2022 which was offset by a decrease in sales volumes.
−Removed: Crude oil product margin from the sale of crude oil decreased primarily due to the sale of higher priced inventory into a market in which prices were declining for most of the year.
−Removed: In the prior year, lower priced inventory was sold into a market in which prices were rising for most of the year.
−Removed: In addition, we incurred increased freight costs during the current period.
−Removed: This decrease in product margin was offset by higher contracted rates with certain producers as well as increased differentials on certain other sales contracts during the first nine months of the current year.
−Removed: Crude oil product margin calculations do not include gains and losses from derivatives that may offset the movement in the physical margin.
−Removed: Derivative (Gain) Loss.
−Removed: Our cost of sales during the year ended March 31, 2023 included $35.5 million of net realized losses on derivatives, driven by increasing crude oil prices, and $50.1 million of net unrealized gains on derivatives.
−Removed: The amounts in the previous sentence for the year ended March 31, 2023 included net realized losses of $13.1 million and net unrealized gains of $23.8 million associated with derivative instruments related to our hedge of the CMA Differential Roll, defined and discussed below under “–Non-GAAP Financial Measures.” Our cost of sales during the year ended March 31, 2022
−Removed: included $115.7 million of net realized losses on derivatives, driven by increasing crude oil prices, and $23.7 million of net unrealized gains on derivatives.
−Removed: The amounts in the previous sentence for the year ended March 31, 2022 include net realized losses of $83.5 million and net unrealized gains of $45.0 million associated with derivative instruments related to our hedge of the CMA Differential Roll.
+Added: The decreases in sales and cost of sales, excluding the impact of derivatives, were due primarily to lower sales volumes due to lower production on acreage dedicated to us in the DJ Basin during the year ended March 31, 2024, compared to the year ended March 31, 2023 and a decrease in crude oil prices year over year.
+Added: Crude oil product margin from the sale of crude oil decreased from $102.3 million for the year ended March 31, 2023 to $82.9 million during the year ended March 31, 2024, primarily due to lower volumes and lower crude oil prices year over year.
+Added: The lower crude oil prices resulted in lower contracted rates with certain producers, compared to the prior year when the contracted rates were higher due to the higher crude oil prices.
+Added: We also realized lower contract differentials on certain other sales contracts.
+Added: Crude oil product margin per barrel increased during the year ended March 31, 2024, compared to the year ended March 31, 2023, due to the sale of lower priced inventory into a market in which prices were increasing during certain periods of 2024.
+Added: Whereas during the year ended March 31, 2023, we were selling higher priced inventory into a market in which prices were generally declining throughout the fiscal year.
+Added: Crude oil product margin calculations does not include gains and losses from derivatives that may offset the movement in the physical margin.
+Added: Derivative Loss (Gain).
+Added: Our cost of sales during the year ended March 31, 2024 included $58.4 million of net realized gains on derivatives and $65.8 million of net unrealized losses on derivatives.
+Added: The amounts in the previous sentence for the year ended March 31, 2024 included net realized gains of $60.9 million and net unrealized losses of $61.4 million associated with derivative instruments related to our hedge of the CMA Differential Roll, defined and discussed below under “–Non-GAAP Financial Measures.” Our cost of sales during the year ended March 31, 2023 included $35.5 million of net realized losses on derivatives and $50.1 million of net unrealized gains on derivatives.
+Added: The amounts in the previous sentence for the year ended
+Added: March 31, 2023 includes net realized losses of $13.1 million and net unrealized gains of $23.8 million associated with derivative instruments related to our hedge of the CMA Differential Roll.
Crude Oil Transportation and Other Sales.
−Removed: The increase was primarily due to an increase in charter days and day rates within our marine transportation business as demand increased.
−Removed: On March 30, 2023, we sold our marine assets (see Note 17 to our consolidated financial statements included in this Annual Report).
+Added: The decrease was primarily due to the sale of our marine assets on March 30, 2023, and lower pipeline tariff revenue due to the assignment of our commitment on a third-party pipeline.
During the year ended March 31, 2024, physical volumes on the Grand Mesa Pipeline averaged approximately 70,000 barrels per day, compared to approximately 76,000 barrels per day for the year ended March 31, 2023.
−Removed: Both contracted and non-contracted volumes decreased as overall production in the DJ Basin declined in part due to producer permitting issues.
+Added: Lower contracted volumes were shipped on the Grand Mesa Pipeline due to lower production on acreage dedicated to us in the DJ Basin.
Operating and General and Administrative Expenses .
−Removed: The decrease was primarily related to the sale of the trucking business during the year ended March 31, 2022, and lower lease expense during the current period due to the completion of the renegotiation of certain leases.
+Added: The decrease was primarily due to the sale of our marine assets on March 30, 2023.
+Added: Additionally, the current year benefited from lower incentive compensation expense, as well as lower repairs and maintenance expense on leased railcars returned to the lessor in the prior year.
Depreciation and Amortization Expense.
−Removed: The decrease was due primarily to the sale of our trucking assets during the year ended March 31, 2022.
−Removed: Loss (Gain) on Disposal or Impairment of Assets, Net .
+Added: The decrease was primarily due to the sale of our marine assets on March 30, 2023, lower depreciation expense due to certain of our railcar assets becoming fully depreciated during the year ended March 31, 2024 and the impairment of certain terminal assets in the prior year, which lowered their depreciable base.
+Added: Loss on Disposal or Impairment of Assets, Net .
+Added: During the year ended March 31, 2024, we recorded a net loss of $3.1 million primarily due to the retirement or sale of certain assets.
During the year ended March 31, 2023, we recorded an impairment of $23.1 million related to an underperforming crude oil terminal and a loss of $8.0 million on the sale of our marine assets.
−Removed: During the year ended March 31, 2022, we recorded a gain of $5.5 million on the sale of our trucking assets and a loss of $2.2 million due to damage caused by Hurricane Ida to one of our Gulf Coast terminals.
Liquids Logistics
The following table summarizes the operating results of our Liquids Logistics segment for the periods indicated.
+Added: As discussed above, the operating results of our refined products and biodiesel businesses have been classified as discontinued operations for all periods presented and prior periods have been retrospectively adjusted.
Year Ended March 31,
1 unchanged sentence
(in thousands, except per gallon amounts)
−Removed: Refined products:
−Removed: Sales-excluding impact of derivatives (1) $ 2,554,084 $ 1,899,898 $ 654,186
+Added: Sales $ 739,591 $ 1,161,129 $ (421,538)
Cost of sales-excluding impact of derivatives 692,649 1,103,786 (411,137)
5 unchanged sentences
Product margin 38,607 19,764 18,843
−Removed: Sales (1) 773,633 863,348 (89,715)
−Removed: Cost of sales-excluding impact of derivatives 776,845 794,180 (17,335)
−Removed: Derivative (gain) loss (22,976) 18,690 (41,666)
−Removed: Product margin 19,764 50,478 (30,714)
Other products:
11 unchanged sentences
Total expenses 125,716 72,515 53,201
−Removed: Segment operating income (loss) $ 66,624 $ (8,441) $ 75,065
−Removed: Year Ended March 31,
−Removed: 2023 2022 Change
−Removed: (in thousands, except per gallon amounts)
−Removed: Natural gas liquids and refined products storage capacity - owned and leased (gallons) (2) 160,329 156,219 4,110
−Removed: Refined products sold (gallons) 769,151 776,797 (7,646)
−Removed: Refined products sold ($/gallon) $ 3.321 $ 2.446 $ 0.875
−Removed: Cost per refined products sold ($/gallon) (3) $ 3.267 $ 2.416 $ 0.851
−Removed: Refined products product margin ($/gallon) (3) $ 0.054 $ 0.030 $ 0.024
−Removed: Refined products inventory (gallons) (2) 1,003 1,090 (87)
+Added: Segment operating (loss) income $ (13,178) $ 21,446 $ (34,624)
+Added: Natural gas liquids storage capacity - owned and leased (gallons) (1) 122,831 152,719 (29,888)
Propane sold (gallons) 811,035 1,018,937 (207,902)
6 unchanged sentences
Cost per butane sold ($/gallon) (2) $ 1.094 $ 1.440 $ (0.346)
−Removed: Butane product (loss) margin ($/gallon) (3) $ (0.006) $ 0.117 $ (0.123)
+Added: Butane product margin (loss) ($/gallon) (2) $ 0.077 $ (0.006) $ 0.083
Butane inventory (gallons) (1) 17,790 17,409 381
4 unchanged sentences
Other products inventory (gallons) (1) 5,623 3,889 1,734
−Removed: (1) Revenue includes $1.3 million of intersegment sales during the year ended March 31, 2022 that is eliminated in our consolidated statement of operations.
(1) Information is presented as of March 31, 2024 and March 31, 2023, respectively.
(2) Cost and product margin (loss) per gallon excludes the impact of derivatives.
−Removed: Refined Products Sales and Cost of Sales-Excluding Impact of Derivatives.
−Removed: The increases in sales and cost of sales, excluding the impact of derivatives, were due to an increase in refined products prices.
−Removed: This was partially offset by a decrease in volumes primarily related to tighter supply in certain markets.
−Removed: Refined Products product margins, excluding the impact of derivatives, for the year ended March 31, 2023 increased from the year ended March 31, 2022 due to higher demand in several markets that were experiencing tighter supply as well as being well positioned from a supply and inventory perspective during the continued period of extreme volatility in commodity prices.
−Removed: Refined Products Derivative Loss.
−Removed: Our Refined Products product margin during the year ended March 31, 2023 included realized losses of $1.3 million and the year ended March 31, 2022 included realized losses of $2.9 million.
Propane Sales and Cost of Sales-Excluding Impact of Derivatives.
−Removed: The decreases in sales and cost of sales, excluding the impact of derivatives, were due primarily to lower propane prices and a decline in volumes.
−Removed: Propane prices have declined along with the decline in global energy prices as a result of the increase in interest rates to curb inflation and the overall concerns in the economy about a potential recession, as well as due to an increase in the days of domestic supply available, combined with lower demand due to the warmer heating season.
−Removed: Sales volumes decreased due to the decommissioning of a critical underground storage facility in the Midwest in April 2022, which were offset by an increase in sales volumes in the state of Michigan due to the completion of the Ambassador Pipeline.
−Removed: Propane product margins, excluding the impact of derivatives, increased as we replaced our inventory in a lower price environment and we realized the margin associated with our forward fixed-priced sales contracts and lower inventory costs due to the decreasing prices throughout the year ended March 31, 2023.
−Removed: During the year ended March 31, 2022, we experienced the
−Removed: opposite situation and were replacing our inventory when prices were rising.
−Removed: Propane Derivative Loss (Gain).
−Removed: Our cost of propane sales included $6.9 million of net unrealized losses on derivatives and $4.7 million of net realized losses on derivatives during the year ended March 31, 2023.
−Removed: During the year ended March 31, 2022, our cost of propane sales included $2.0 million of net unrealized gains on derivatives and $18.5 million of net realized gains on derivatives.
+Added: The decreases in sales and cost of sales, excluding the impact of derivatives, were due to lower propane volumes and lower prices during the year ended March 31, 2024.
+Added: Propane volumes decreased during the year ended March 31, 2024 due to the sale of three natural gas liquids terminals, the loss of a certain supply contract, lower performing natural gas liquids terminals being idled and a focus on more profitable markets and customers.
+Added: Also, demand was lower during the year ended March 31, 2024 due to the warmer than normal winter.
+Added: Propane product margins, excluding the impact of derivatives, decreased during the year ended March 31, 2024 primarily due to lower volumes and lower prices.
+Added: Propane Derivative Loss.
+Added: Our cost of propane sales included $4.6 million of net unrealized gains on derivatives and $7.0 million of net realized losses on derivatives during the year ended March 31, 2024.
+Added: During the year ended March 31, 2023, our cost of propane sales included $6.9 million of net unrealized losses on derivatives and $4.7 million of net realized losses on derivatives.
Butane Sales and Cost of Sales-Excluding Impact of Derivatives.
−Removed: The decreases in sales and cost of sales, excluding the impact of derivatives, were due to lower volumes due to weaker spot demand for the product, especially exports, and lower prices.
−Removed: The softening of export economics continued throughout the year, which led to lower domestic prices as less product was being moved abroad.
−Removed: Butane product margins, excluding the impact of derivatives, declined during the year ended March 31, 2023, as compared to the year ended March 31, 2022, due to the declining prices, lower export demand and increased freight charges due to higher fuel surcharges.
−Removed: In addition, we were also negatively impacted by lower location differentials as the product we contracted to purchase in the beginning of the season was continuing to compete with product purchased in the discounted market.
−Removed: Butane Derivative (Gain) Loss.
−Removed: Our cost of butane sales during the year ended March 31, 2023 included $3.9 million of net unrealized gains on derivatives and $19.1 million of net realized gains on derivatives.
−Removed: Our cost of butane sales included $1.0 million of net unrealized gains on derivatives and $19.7 million of net realized losses on derivatives during the year ended March 31, 2022.
+Added: The decreases in sales and cost of sales, excluding the impact of derivatives, were due primarily to lower butane prices.
+Added: The decrease was also due to lower volumes during the first six months of the year ended March 31, 2024 as a result of weak spot demand, weak export demand and a change in strategy by a significant customer.
+Added: These decreases were partially offset by strong blending demand from October 2023 through February 15, 2024.
+Added: Butane product margins, excluding the impact of derivatives, increased during the year ended March 31, 2024, as compared to the year ended March 31, 2023, primarily due to higher demand for butane blending which has tightened up the butane supply, causing sales differentials to increase.
+Added: Also, in the prior year, we were negatively impacted by lower location differentials as the product we contracted to purchase in the beginning of the season was continuing to compete with product purchased in the discounted market.
+Added: Butane Derivative Loss (Gain).
+Added: Our cost of butane sales during the year ended March 31, 2024 included $3.2 million of net unrealized losses on derivatives and $0.5 million of net realized gains on derivatives.
+Added: Our cost of butane sales included $3.9 million of net unrealized gains on derivatives and $19.1 million of net realized gains on derivatives during the year ended March 31, 2023.
Other Products Sales and Cost of Sales-Excluding Impact of Derivatives.
−Removed: The increases in sales and cost of sales, excluding the impact of derivatives, were due to an increased supply of biodiesel to sell during the current year compared to the prior year period due to favorable supply contracts entered into in the prior year.
−Removed: The increase was also related to the increase in asphalt revenues due to increased supply.
−Removed: Other products sales product margins, excluding the impact of derivatives, during the year ended March 31, 2023 increased due to an increase in biodiesel and biodiesel renewable identification number market prices, as well as securing favorable biodiesel supply contracts in the Midwest and transporting the product for sale in more favorable markets.
+Added: The decreases in sales and cost of sales, excluding the impact of derivatives, were due primarily to the decrease in market prices during the year ended March 31, 2024 as compared to the year ended March 31, 2023.
+Added: The decrease was also the result of lower natural gasoline volumes due to the loss of certain supply contracts.
+Added: These decreases were partially offset by increased sales of asphalt due to increased supply.
+Added: Other products sales product margins, excluding the impact of derivatives, decreased during the year ended March 31, 2024, mainly due to loss of certain supply contracts for natural gasoline as well as decreased market prices for natural gasoline.
Other Products Derivative Loss.
−Removed: Our derivatives of other products included $24.6 million of net realized losses on derivatives and $0.1 million of unrealized gains on derivatives during the year ended March 31, 2023.
−Removed: Our derivatives of other products during the year ended March 31, 2022 included $15.8 million of net realized losses on derivatives and there was no unrealized gains or losses on derivatives.
+Added: Our derivatives of other products included $0.1 million of net realized gains on derivatives and $0.1 million of net unrealized losses on derivatives during the year ended March 31, 2024.
+Added: Our derivatives of other products during the year ended March 31, 2023 included $1.3 million of net realized losses on derivatives and $0.1 million of net unrealized gains on derivatives.
Service Sales and Cost of Sales.
The sales include storage, terminaling and transportation services income.
−Removed: The decrease during the year ended March 31, 2023 was due to the disposition of Sawtooth Caverns, LLC (“Sawtooth”) in June 2021 as well as less throughput in certain of our propane and butane terminals.
−Removed: Cost of sales increased due to higher chemical costs at our natural gas liquids terminals.
+Added: Sales during the year ended March 31, 2024 remained consistent with the year ended March 31, 2023 but cost of sales decreased due to lower third-party costs.
Operating and General and Administrative Expenses.
−Removed: The decrease was primarily related to lower incentive compensation due to lower operating results.
+Added: The increase was due to higher incentive compensation due to improved margins in certain of our businesses year over year.
Depreciation and Amortization Expense.
−Removed: The decrease was primarily due to the disposition of Sawtooth in June 2021 as well as lower amortization expense due to certain intangible assets being fully amortized as of March 31, 2023.
+Added: The decrease was due to a customer relationship intangible asset being fully amortized as of June 30, 2023.
Loss on Disposal or Impairment of Assets, Net.
+Added: During the year ended March 31, 2024, we recorded a goodwill impairment loss of $69.2 million in our Wholesale/Terminal reporting unit (see Note 5 to our consolidated financial statements included in this Annual Report).
+Added: In addition, we recorded a net gain of $8.5 million due to the sale of three natural gas liquids terminals and we recorded a net gain of $0.8 million related to the retirement or sale of certain other assets.
During the year ended March 31, 2023, we recorded a net loss of $10.1 million due to the impairment of several underperforming natural gas liquids terminals.
In addition, during the year ended March 31, 2023, we recorded a net loss of $0.1 million related to the sale and retirement of other assets.
−Removed: During the year ended March 31, 2022, we recorded a net loss of $60.1 million related to the sale of Sawtooth (see Note 17 to our consolidated financial statements included in this Annual Report) and a net loss of $11.8 million related to the sale of another terminal during the three months ended September 30, 2021.
Corporate and Other
4 unchanged sentences
Cost of sales:
−Removed: Derivative loss $ 1,181 $ — $ 1,181
+Added: Derivative (gain) loss $ (937) $ 1,181 $ (2,118)
General and administrative expenses 105,147 50,978 54,169
3 unchanged sentences
Operating loss $ (108,239) $ (57,909) $ (50,330)
−Removed: Cost of Sales - Derivative Loss.
−Removed: Amount for the year ended March 31, 2023 represents an unrealized loss on crude oil options entered into to protect our liquidity position and leverage from a significant increase in commodity prices that drive our working capital demands, as we experienced in the prior fiscal year.
−Removed: These positions will expire between April 2023 and November 2023.
+Added: Cost of Sales - Derivative (Gain) Loss.
+Added: Our cost of sales during the year ended March 31, 2024 included $0.2 million of net realized losses on derivatives and $1.2 million of net unrealized gains on derivatives.
+Added: We entered into economic hedges to protect our liquidity positions and leverage from a significant increase in commodity prices that drive our working capital demands, as we experienced in the prior fiscal year, thus impacting our ability to reduce absolute indebtedness until commodity prices weakened.
+Added: There were no open hedge positions that would impact cost of sales as of March 31, 2024.
General and Administrative Expenses .
−Removed: The increase during the year ended March 31, 2023 was due to increased incentive compensation expense compared to the prior year and an increase in equity-based compensation primarily due to a reversal of an incentive compensation accrual during the year ended March 31, 2022.
+Added: The increase during the year ended March 31, 2024 relates primarily to the increase in our accrual related to the LCT legal matter from $2.5 million to $36.0 million (see Note 8 to our consolidated financial statements included in this Annual Report), and the write-off of $14.2 million of legal costs related to the LCT legal matter that were originally allocated to the GP.
+Added: In addition, we also incurred increased business insurance expense as we paid the insurance company to be released from any future supplementary calls on our indemnity policy related to our former crude marine business (which we sold on March 30, 2023), increased insurance premiums and a reduction in our corporate overhead allocation to the other business segments.
+Added: These increases were partially offset by a decrease in equity-based incentive compensation as our final service award vested on November 15, 2023.
Depreciation and Amortization Expense.
−Removed: Depreciation and amortization expense during the year ended March 31, 2023 was consistent with the year ended March 31, 2022.
+Added: The decrease during the year ended March 31, 2024 was due to software that became fully depreciated during the year ended March 31, 2024.
Gain on Disposal or Impairment of Assets, Net.
+Added: During the year ended March 31, 2024, we sold an airplane for a gain of $0.7 million.
During the year ended March 31, 2023, we sold an airplane for a gain of $1.3 million, which was partially offset by a loss recorded to write-off the remaining amount of a loan receivable, due July 31, 2023, that was prepaid by the debtor and an impairment loss recorded on the sublease of a building we were no longer using.
Equity in Earnings of Unconsolidated Entities
−Removed: Equity in earnings of unconsolidated entities was $4.1 million during the year ended March 31, 2023, compared to $1.4 million during the year ended March 31, 2022.
−Removed: The increase of $2.7 million during the year ended March 31, 2023 was due primarily to higher earnings from certain membership interests related to specific land and water services operations and a lower loss from our interest in an aircraft company.
+Added: Equity in earnings of unconsolidated entities of $4.1 million during the year ended March 31, 2024 consisted primarily of earnings from certain membership interests related to specific land and water services operations and earnings from another entity due to a gain recognized on the sale of an airplane during the three months ended December 31, 2023.
+Added: Equity in earnings of unconsolidated entities of $4.1 million during the year ended March 31, 2023 consisted primarily of earnings from certain membership interests related to specific land and water services operations and a loss from our interest in an aircraft company.
Interest Expense
6 unchanged sentences
ABL Facility 15,645 17,111 (1,466)
+Added: Term Loan B 11,275 — 11,275
Other indebtedness 26,781 11,552 15,229
1 unchanged sentence
Amortization of debt issuance costs 15,701 16,737 (1,036)
+Added: Unrealized gain on interest rate swaps (515) — (515)
Total interest expense $ 269,804 $ 275,438 $ (5,634)
−Removed: The debt interest expense increased $4.0 million during the year ended March 31, 2023 due primarily to a settlement of a claim for the failure to pay interest on royalty payments, as discussed further in Note 8 to our consolidated financial
−Removed: statements included in this Annual Report and an increase in the ABL Facility interest rates in the current year.
−Removed: The increases in the current year were offset by lower interest expense resulting from repurchases of a portion of our Senior Unsecured Notes.
−Removed: Gain on Early Extinguishment of Liabilities, Net
−Removed: Gain on early extinguishment of liabilities, net was $6.2 million during the year ended March 31, 2023, compared to $1.8 million during the year ended March 31, 2022.
−Removed: During the years ended March 31, 2023 and 2022, the net gain (inclusive of debt issuance costs written off) primarily relates to the early extinguishment of a portion of the outstanding Senior Unsecured Notes.
+Added: The debt interest expense decreased $4.1 million during the year ended March 31, 2024 primarily due to the repurchase of the 7.5% senior unsecured notes due 2023 (“2023 Notes”) throughout the prior year and the redemption of the remaining 2023 Notes on March 31, 2023.
+Added: In addition, we repurchased a portion of the outstanding 2025 Notes during the three months ended June 30, 2023.
+Added: Also, in the prior year, we had an accrual of the settlement of a claim for the failure to pay interest on royalty payments.
+Added: These decreases were partially offset by $26.1 million of interest accrued related to the LCT legal matter (see Note 8 to our consolidated financial statements included in this Annual Report) and an increase due to higher interest rates on the new debt instruments.
+Added: (Loss) Gain on Early Extinguishment of Liabilities, Net
+Added: Loss on early extinguishment of liabilities, net was $55.3 million during the year ended March 31, 2024, compared to a gain on early extinguishment of liabilities, net of $6.2 million during the year ended March 31, 2023.
+Added: During the year ended March 31, 2024, the net loss (inclusive of debt issuance costs written off) primarily relates to the call premium of $38.4 million paid for the early extinguishment of the outstanding 2026 Senior Secured Notes, the write-off of debt issuance costs and other expenses related to the repurchase/redemption of the 2026 Senior Secured Notes and Senior Unsecured Notes during the fiscal year.
+Added: During the year ended March 31, 2023, the net gain (inclusive of debt issuance costs written off) primarily related to the early extinguishment of a portion of the outstanding Senior Unsecured Notes partially offset by the write-off of debt issuance costs.
In addition, we paid a prepayment premium of $1.6 million and wrote off debt issuance costs of less than $0.1 million related to the payoff of an outstanding equipment loan.
−Removed: For the year ended March 31, 2022, the net gain was partially offset by a loss on the early extinguishment of the Sawtooth credit agreement.
−Removed: See Note 7 to our consolidated financial statements included in this Annual Report for a further discussion.
+Added: See Note 7 to our consolidated financial statements included in this Annual Report for a further discussion of the debt instruments repurchased and redeemed.
Other Income, Net
−Removed: Other income, net was $28.7 million during the year ended March 31, 2023, compared to other income, net of $2.3 million during the year ended March 31, 2022.
−Removed: The increase in other income, net of $26.4 million during the year ended March 31, 2023 was due primarily to the settlement of a dispute associated with commercial activities not occurring in the current reporting periods (see Note 17 to our consolidated financial statements included in this Annual Report for a further discussion).
+Added: Other income, net of $2.8 million during the year ended March 31, 2024 consisted primarily of interest income on loan receivables (see Note 2 to our consolidated financial statements included in this Annual Report for a further discussion) and cash on hand, income from the settlement of a dispute and income from excess distributions received from an equity method investee.
+Added: Other income, net of $30.4 million during the year ended March 31, 2023 consisted primarily of a settlement of a dispute associated with commercial activities not occurring in the current reporting periods (see Note 17 to our consolidated financial statements included in this Annual Report for a further discussion).
Income Tax Expense
1 unchanged sentence
See Note 2 to our consolidated financial statements included in this Annual Report for a further discussion.
−Removed: Noncontrolling Interests
+Added: Noncontrolling Interests - Redeemable and Nonredeemable
Noncontrolling interest income was $0.6 million during the year ended March 31, 2024, compared to $1.1 million during the year ended March 31, 2023.
−Removed: The increase of $0.4 million during the year ended March 31, 2023 was due primarily to higher income from certain water solutions operations during the year ended March 31, 2023 and a loss of $0.2 million from the operations of Sawtooth during the year ended March 31, 2022, partially offset by lower income from certain recycling operations during the year ended March 31, 2023.
+Added: The decrease of $0.5 million during the year ended March 31, 2024 was due primarily to lower income from certain water solutions operations during the year ended March 31, 2024.
Non-GAAP Financial Measures
4 unchanged sentences
We define Adjusted EBITDA as EBITDA excluding net unrealized gains and losses on derivatives, lower of cost or net realizable value adjustments, gains and losses on disposal or impairment of assets, gains and losses on early extinguishment of liabilities, equity-based compensation expense, revaluation of liabilities and other.
−Removed: We also include in Adjusted EBITDA certain inventory valuation adjustments related to certain refined products businesses within our Liquids Logistics segment as discussed below.
−Removed: EBITDA and Adjusted EBITDA should not be considered as alternatives to net (loss) income, (loss) income before income taxes, cash flows from operating activities, or any other measure of financial performance calculated in accordance with GAAP, as those items are used to measure operating performance, liquidity or the ability to service debt obligations.
+Added: EBITDA and Adjusted EBITDA should not be considered as alternatives to net income (loss), income (loss) from continuing operations before income taxes, cash flows from operating activities, or any other measure of financial performance calculated in accordance with GAAP, as those items are used to measure operating performance, liquidity or the ability to service debt obligations.
We believe that EBITDA provides additional information to investors for evaluating our ability to make quarterly distributions to our unitholders and is presented solely as a supplemental measure.
1 unchanged sentence
Further, EBITDA and Adjusted EBITDA, as we define them, may not be comparable to EBITDA, Adjusted EBITDA, or similarly titled measures used by other entities.
−Removed: Other than for certain businesses within our Liquids Logistics segment, for purposes of our Adjusted EBITDA calculation, we make a distinction between realized and unrealized gains and losses on derivatives.
−Removed: During the period when a
−Removed: derivative contract is open, we record changes in the fair value of the derivative as an unrealized gain or loss.
+Added: For purposes of our Adjusted EBITDA calculation, we make a distinction between realized and unrealized gains and losses on derivatives.
+Added: During the period when a derivative contract is open, we record changes in the fair value of the derivative as an unrealized gain or loss.
When a derivative contract matures or is settled, we reverse the previously recorded unrealized gain or loss and record a realized gain or loss.
−Removed: We do not draw such a distinction between realized and unrealized gains and losses on derivatives of certain businesses within our Liquids Logistics segment.
−Removed: The primary hedging strategy of these businesses is to hedge against the risk of declines in the value of inventory over the course of the contract cycle, and many of the hedges cover extended periods of time.
−Removed: The “inventory valuation adjustment” row in the reconciliation table reflects the difference between the market value of the inventory of these businesses at the balance sheet date and its cost.
−Removed: We include this in Adjusted EBITDA because the unrealized gains and losses associated with derivative contracts associated with the inventory of this segment, which are intended primarily to hedge inventory holding risk and are included in net income, also affect Adjusted EBITDA.
In our Crude Oil Logistics segment, we purchase certain crude oil barrels using the West Texas Intermediate (“WTI”) calendar month average (“CMA”) price and sell the crude oil barrels using the WTI CMA price plus the Argus CMA Differential Roll Component (“CMA Differential Roll”) per our contracts.
4 unchanged sentences
The derivative instrument positions we entered into related to the CMA Differential Roll expired as of December 31, 2023, and we have not entered into any new derivative instrument positions related to the CMA Differential Roll.
−Removed: The following table reconciles net (loss) income to EBITDA and Adjusted EBITDA for the periods indicated:
+Added: As previously reported, for purposes of our Adjusted EBITDA calculation, we did not draw a distinction between realized and unrealized gains and losses on derivatives of certain businesses within our Liquids Logistics segment, which are included in discontinued operations.
+Added: The primary hedging strategy of these businesses is to hedge against the risk of declines in the value of inventory over the course of the contract cycle, and many of the hedges cover extended periods of time.
+Added: The “inventory valuation adjustment” row in the reconciliation table reflects the difference between the market value of the inventory of these businesses at the balance sheet date and its cost.
+Added: We include this in Adjusted EBITDA because the unrealized gains and losses for derivative contracts associated with the inventory of this segment, which are intended primarily to hedge inventory holding risk and are included in net income, also affect Adjusted EBITDA.
+Added: Beginning April 1, 2024, and going forward, we will now be drawing a distinction between realized and unrealized gains and losses on derivatives and will no longer include the activity on the “inventory valuation adjustment” row in the reconciliation table for these certain businesses within our Liquids Logistics segment, which are included in discontinued operations.
+Added: This change aligns with how management now views and evaluates the transactions within these businesses and is also consistent with the calculation of Adjusted EBITDA used in our other businesses.
+Added: If this change was made as of April 1, 2022, Adjusted EBITDA for the years ended March 31, 2023 and 2024 would have been $638.8 million and $609.5 million, respectively.
+Added: The following table reconciles net income (loss) to EBITDA and Adjusted EBITDA for the periods indicated:
Year Ended March 31,
1 unchanged sentence
(in thousands)
−Removed: Net (loss) income $ (143,124) $ 52,492 $ (184,101)
−Removed: Net income attributable to noncontrolling interests (631) (1,106) (655)
−Removed: Net (loss) income attributable to NGL Energy Partners LP (143,755) 51,386 (184,756)
+Added: Net income (loss) $ 43,163 $ (143,124) $ 52,492
+Added: Net income from continuing operations attributable to nonredeemable noncontrolling interests (3,749) (631) (1,106)
+Added: Net income from continuing operations attributable to redeemable noncontrolling interests (46) — —
+Added: Net income (loss) attributable to NGL Energy Partners LP 39,368 (143,755) 51,386
Interest expense 280,241 270,004 275,505
−Removed: Income tax expense 2,405 271 971
+Added: Income tax (benefit) expense (4,775) 2,405 271
Depreciation and amortization 253,190 266,287 273,544
1 unchanged sentence
Net unrealized losses (gains) on derivatives 21,782 63,762 (50,438)
−Removed: CMA Differential Roll net losses (gains) (1) (71,285) 3,547 67,738
−Removed: Inventory valuation adjustment (2) (3,419) (7,795) 8,409
Lower of cost or net realizable value adjustments (1) (1,619) 1,337 (11,534)
Loss on disposal or impairment of assets, net (2) 33,705 115,555 86,872
+Added: Revaluation of liabilities (6,705) 2,680 9,665
+Added: CMA Differential Roll net losses (gains) (3) — (71,285) 3,547
+Added: Inventory valuation adjustment (4) — (3,419) (7,795)
Loss (gain) on early extinguishment of liabilities, net — 55,281 (6,177)
Equity-based compensation expense — 1,098 2,718
−Removed: Revaluation of liabilities (3) 2,680 9,665 (6,495)
Other (5) 2,572 50,131 5,111
Adjusted EBITDA $ 617,759 $ 610,081 $ 632,675
+Added: Adjusted EBITDA - Discontinued Operations (6) $ (5,133) $ 16,667 $ 39,066
+Added: Adjusted EBITDA - Continuing Operations $ 622,892 $ 593,414 $ 593,609
+Added: (1) Lower of cost or net realizable value adjustments in the table above differ from lower of cost or net realizable value adjustments reported in our consolidated statements of cash flows, as the amounts reported in the table above represent the change in lower of cost or net realizable value adjustments recorded in the consolidated statements of operations, which includes reversals, whereas the amounts reported in our consolidated statements of cash flows represent the lower of cost or net realizable value adjustments recorded at the balance sheet date.
+Added: (2) Excludes amounts related to unconsolidated entities and noncontrolling interests.
(3) Adjustment to align, within Adjusted EBITDA, the net gains and losses of the Partnership’s CMA Differential Roll derivative instruments positions with the physical margin being hedged.
2 unchanged sentences
See “Non-GAAP Financial Measures” section above for a further discussion.
−Removed: (3) Amounts represent the non-cash valuation adjustment of contingent consideration liabilities, offset by the cash payments, related to royalty agreements acquired as part of acquisitions in our Water Solutions segment.
−Removed: (4) Amounts represent accretion expense for asset retirement obligations, unrealized gains/losses on marketable securities and expenses incurred related to legal and advisory costs associated with acquisitions and dispositions, including the accrued judgment related to the LCT legal matter, excluding interest (see Note 8 to our consolidated financial statements included in this Annual Report), and the write-off of the legal costs related to the LCT legal matter that were originally allocated to the GP (see Note 12 to our consolidated financial statements included in this Annual Report).
−Removed: Also, the amount for the year ended March 31, 2023 includes the write off of an asset acquired in a prior period acquisition and the amounts for the years ended March 31, 2023 and 2022 include non-cash operating expenses related to our Grand Mesa Pipeline.
+Added: (5) Amounts represent accretion expense for asset retirement obligations, unrealized gains and losses on investments and marketable securities and expenses incurred related to legal and advisory costs associated with acquisitions and dispositions, including the accrued judgment related to the LCT legal matter, excluding interest (see Note 8 to our consolidated financial statements included in this Annual Report), and the write-off of the legal costs related to the LCT legal matter that were originally allocated to the GP.
+Added: Also, the amount for the year ended March 31, 2023 includes the write off of an asset acquired in a prior period acquisition and non-cash operating expenses related to our Grand Mesa Pipeline.
+Added: (6) Amounts include our refined products and biodiesel businesses.
The following tables reconcile depreciation and amortization amounts per the EBITDA table above to depreciation and amortization amounts reported in our consolidated statements of operations and consolidated statements of cash flows for the periods indicated:
6 unchanged sentences
Depreciation and amortization attributable to noncontrolling interests 2,708 1,182 1,134
+Added: Depreciation and amortization attributable to discontinued operations (483) (669) (773)
Depreciation and amortization per consolidated statements of operations $ 254,732 $ 266,114 $ 273,108
4 unchanged sentences
Depreciation and amortization attributable to noncontrolling interests 2,708 1,182 1,134
+Added: Depreciation and amortization attributable to discontinued operations (483) (669) (773)
Depreciation and amortization per consolidated statements of cash flows $ 267,246 $ 282,062 $ 290,106
4 unchanged sentences
Interest expense per EBITDA table $ 280,241 $ 270,004 $ 275,505
−Removed: Interest expense attributable to unconsolidated entities (81) (60) (65)
Interest expense attributable to noncontrolling interests 63 — —
+Added: Interest expense attributable to unconsolidated entities (1) (81) (60)
+Added: Interest expense attributable to discontinued operations (225) (119) (7)
Interest expense per consolidated statements of operations $ 280,078 $ 269,804 $ 275,438
+Added: The following table summarizes additional amounts attributable to discontinued operations in the EBITDA and Adjusted EBITDA table above for the periods indicated:
+Added: Year Ended March 31,
+Added: 2025 2024 2023
+Added: (in thousands)
+Added: Income tax expense $ 110 $ 947 $ 52
+Added: Net unrealized losses on derivatives $ 18,416 $ — $ —
+Added: Lower of cost or realizable value adjustments $ (4,535) $ 3,745 $ 790
+Added: Loss on disposal or impairment of assets, net $ 1,995 $ — $ 112
+Added: Inventory valuation adjustment $ — $ (3,419) $ (7,795)
+Added: Other $ — $ 1 $ 1,670
The following tables reconcile operating income (loss) to Adjusted EBITDA by segment for the periods indicated.
2 unchanged sentences
Logistics Liquids Logistics Corporate
−Removed: and Other Consolidated
+Added: and Other Continuing Operations Discontinued Operations Consolidated
(in thousands)
3 unchanged sentences
Net unrealized losses (gains) on derivatives 4,953 (4,011) 2,424 — 3,366 — 3,366
−Removed: CMA Differential Roll net losses (gains) — (71,285) — — (71,285)
−Removed: Inventory valuation adjustment — — (3,419) — (3,419)
Lower of cost or net realizable value adjustments — — 2,916 — 2,916 — 2,916
Loss (gain) on disposal or impairment of assets, net 9,813 (1,004) 22,596 43 31,448 — 31,448
−Removed: Equity-based compensation expense — — — 1,098 1,098
Other income, net 485 1 1,518 2,258 4,262 — 4,262
3 unchanged sentences
Other 3,918 216 243 (1,735) 2,642 — 2,642
+Added: Discontinued operations — — — — — (5,133) (5,133)
Adjusted EBITDA $ 541,996 $ 66,373 $ 53,369 $ (38,846) $ 622,892 $ (5,133) $ 617,759
2 unchanged sentences
Logistics Liquids Logistics Corporate
−Removed: and Other Consolidated
+Added: and Other Continuing Operations Discontinued Operations Consolidated
(in thousands)
1 unchanged sentence
Depreciation and amortization 214,480 36,922 9,963 4,749 266,114 — 266,114
−Removed: Amortization recorded to cost of sales — — 274 — 274
−Removed: Net unrealized (gains) losses on derivatives (4,464) (50,104) 2,951 1,179 (50,438)
+Added: Net unrealized losses (gains) on derivatives 385 65,786 (1,230) (1,179) 63,762 — 63,762
CMA Differential Roll net losses (gains) — (71,285) — — (71,285) — (71,285)
−Removed: Inventory valuation adjustment — — (7,795) — (7,795)
Lower of cost or net realizable value adjustments — — (2,408) — (2,408) — (2,408)
1 unchanged sentence
Equity-based compensation expense — — — 1,098 1,098 — 1,098
−Removed: Other income (expense), net 70 330 (1,665) 30,013 28,748
+Added: Other income, net 1,110 105 1 1,566 2,782 — 2,782
Adjusted EBITDA attributable to unconsolidated entities 4,393 — (12) 124 4,505 — 4,505
2 unchanged sentences
Other 2,186 191 228 47,533 50,138 — 50,138
+Added: Discontinued operations — — — — — 16,667 16,667
Adjusted EBITDA $ 508,308 $ 86,887 $ 53,287 $ (55,068) $ 593,414 $ 16,667 $ 610,081
2 unchanged sentences
Logistics Liquids Logistics Corporate
−Removed: and Other Consolidated
+Added: and Other Continuing Operations Discontinued Operations Consolidated
(in thousands)
2 unchanged sentences
Amortization recorded to cost of sales — — 14 — 14 — 14
−Removed: Net unrealized losses (gains) on derivatives 11,652 (23,664) (2,965) — (14,977)
+Added: Net unrealized (gains) losses on derivatives (4,464) (50,104) 2,951 1,179 (50,438) — (50,438)
CMA Differential Roll net losses (gains) — 3,547 — — 3,547 — 3,547
−Removed: Inventory valuation adjustment — — 8,409 — 8,409
Lower of cost or net realizable value adjustments — (2,247) (10,077) — (12,324) — (12,324)
1 unchanged sentence
Equity-based compensation expense — — — 2,718 2,718 — 2,718
−Removed: Other income, net 718 353 711 472 2,254
+Added: Other income (expense), net 70 330 (3) 30,013 30,410 — 30,410
Adjusted EBITDA attributable to unconsolidated entities 4,759 — 27 176 4,962 — 4,962
2 unchanged sentences
Other 2,894 203 263 95 3,455 — 3,455
+Added: Discontinued operations — — — — — 39,066 39,066
Adjusted EBITDA $ 463,091 $ 110,916 $ 37,580 $ (17,978) $ 593,609 $ 39,066 $ 632,675
1 unchanged sentence
Our principal sources of liquidity and capital resource requirements are cash flows from our operations, borrowings under the ABL Facility, issuing long-term notes, common and/or preferred units, loans from financial institutions, asset securitizations or asset sales.
−Removed: We expect our primary cash outflows to be related to capital expenditures, interest and repayment of debt maturities and distributions.
−Removed: On February 2, 2024, we closed a debt refinancing transaction of $2.9 billion.
−Removed: The refinancing consisted of a private offering of $2.2 billion of senior secured notes, which includes $900.0 million of 8.125% senior secured notes due 2029 (“2029 Senior Secured Notes”) and $1.3 billion of 8.375% senior secured notes due 2032 (“2032 Senior Secured Notes”).
−Removed: We also entered into a new seven-year $700.0 million Term Loan B.
−Removed: The net proceeds from these transactions were used to (i) to fund the redemption, and related discharge of the indentures governing our existing 2025 Notes, 2026 Notes and 2026 Senior Secured Notes, including any applicable premiums and accrued and unpaid interest (as discussed further below), (ii) to pay fees and expenses in connection therewith, (iii) to repay borrowings under the ABL Facility and (iv) to the extent of any remaining net proceeds, for general corporate purposes.
+Added: We expect our primary cash outflows to be related to capital expenditures, interest, repayment of debt maturities and distributions.
We believe that our anticipated cash flows from operations and the borrowing capacity under the ABL Facility will be sufficient to meet our liquidity needs.
Our borrowing needs vary during the year due in part to the seasonal nature of certain businesses within our Liquids Logistics segment.
−Removed: Our greatest working capital borrowing needs generally occur during the period of June through December, when we are building our natural gas liquids inventories in anticipation of the butane blending and heating seasons.
+Added: Our greatest working capital borrowing needs generally occur during the period of June through December, when we are building our natural gas liquids inventories in anticipation of the butane blending and propane heating seasons.
Our working capital borrowing needs generally decline during the period of January through March, when the cash inflows from our Liquids Logistics segment are the greatest.
11 unchanged sentences
On February 2, 2024, we amended the ABL Facility to, among other things, (i) extend the maturity to the earliest of (a) February 2, 2029 and (b) 91 days prior to the earliest maturity date in respect to any of our indebtedness in an aggregate principal amount of $50.0 million or greater, subject to certain exceptions, (ii) provide for a sub-limit of $200.0 million for letters of credit and a $200.0 million incremental facility, subject to the receipt of commitments from lenders and customary borrowing conditions, (iii) modify the applicable margin for loans under the ABL Facility based on a secured overnight financing rate (“SOFR”) or the alternative base rate to provide for a 0.25% decrease based on our consolidated net leverage ratio, and (iv) provide for a mandatory prepayment under the ABL Facility while any loans are outstanding under the ABL Facility if aggregate “excess cash” (as defined in the ABL Facility) exceeds $50.0 million, subject to certain exceptions.
−Removed: The commitments under the ABL Facility are $600.0 million.
−Removed: At March 31, 2024, there were no borrowings under the ABL Facility and we had letters of credit outstanding of approximately $99.5 million.
+Added: Total commitments under the ABL Facility are $550.0 million.
+Added: At March 31, 2025, $109.0 million was outstanding under the ABL Facility, letters of credit outstanding were $60.9 million, and we had a borrowing base of $397.7 million.
For additional information related to the ABL Facility and the amendment, see Note 7 to our consolidated financial statements included in this Annual Report.
2 unchanged sentences
We expect to fund our long-term financing requirements by issuing long-term notes, common units and/or preferred units, loans from financial institutions, asset securitizations or asset sales.
−Removed: New Senior Secured Notes
+Added: Senior Secured Notes
On February 2, 2024, we closed on our private offering of $900.0 million of 2029 Senior Secured Notes that mature on February 15, 2029 and $1.3 billion of 2032 Senior Secured Notes that mature on February 15, 2032.
−Removed: Interest on the new senior secured notes will be paid quarterly on February 15, May 15, August 15 and November 15 of each year, beginning on May 15, 2024.
+Added: Interest on the 2029 Senior Secured Notes and 2032 Senior Secured Notes is payable on February 15, May 15, August 15 and November 15 of each year.
On February 2, 2024, we entered into a new seven-year $700.0 million Term Loan B.
−Removed: The Term Loan B will mature on February 2, 2031 and will amortize in equal quarterly installments in aggregate annual amounts equal to 1.0% of the original principal amount beginning with the fiscal quarter ending June 30, 2024, with the balance payable on maturity.
−Removed: 2026 Senior Secured Notes
−Removed: On January 19, 2024, we delivered notice to the holders of our 2026 Senior Secured Notes that we intend to redeem all of the existing 2026 Senior Secured Notes at 101.875% of the principal amount, together with accrued and unpaid interest.
−Removed: On February 6, 2024, we redeemed all of the outstanding 2026 Senior Secured Notes for total consideration of $2.1 billion, which included the payment of accrued interest and unpaid interest of $2.1 million and a call premium of $38.4 million.
−Removed: Senior Unsecured Notes
−Removed: On January 19, 2024, we delivered notice to the holders of the 2025 Notes and the 2026 Notes that we intend to redeem all of the outstanding notes for each series at 100% of the principal amount, together with accrued and unpaid interest.
−Removed: On February 20, 2024, we redeemed all of the outstanding 2025 Notes for total consideration of $288.8 million, which included the payment of accrued and unpaid interest of $8.1 million.
−Removed: On February 2, 2024, we deposited $331.9 million with the trustee for the redemption of the 2026 Notes, which included the payment of accrued and unpaid interest of $12.0 million.
−Removed: As we met the requirements of discharge under an indenture dated February 4, 2021, we no longer have this liability as of March 31, 2024.
+Added: The Term Loan B matures on February 2, 2031 and will amortize in equal quarterly installments in aggregate annual amounts equal to 1.0% of the original principal amount, with the balance payable on maturity.
+Added: The amount outstanding at March 31, 2025 is $693.0 million.
For additional information related to our long-term debt, see Note 7 to our consolidated financial statements included in this Annual Report.
7 unchanged sentences
2023 $ 79,091 $ 61,649 $ — $ — $ 88
−Removed: (1) Amount for the year ended March 31, 2024 includes $9.2 million of equipment and other assets received in connection with contracts with customers and $6.4 million for a transaction classified as an acquisition of assets.
+Added: (1) Amount for the year ended March 31, 2025 is related to a transaction classified as an acquisition of assets in a prior period.
+Added: Amount for the year ended March 31, 2024 includes $9.2 million of equipment and other assets received in connection with contracts with customers
+Added: and $6.4 million for a transaction classified as an acquisition of assets.
See Note 17 to our consolidated financial statements included in this Annual Report for information regarding the acquisition of assets.
3 unchanged sentences
Distributions Declared
−Removed: The board of directors of our GP decided to temporarily suspend all distributions in order to deleverage our balance sheet until we meet the 4.75 to 1.00 total leverage ratio set forth within the indenture for the 2026 Senior Secured Notes.
−Removed: As a result, quarterly common unit distributions were suspended beginning with the quarter ended December 31, 2020 and preferred unit distributions were suspended beginning with the quarter ended March 31, 2021.
−Removed: On February 6, 2024, the board of directors of our GP declared a cash distribution of 50% of the outstanding distribution arrearages through December 31, 2023 to the holders of the Class B Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units (“Class B Preferred Units”), the Class C Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units (“Class C Preferred Units”) and the 9.00% Class D Preferred Units (“Class D Preferred Units”).
−Removed: total distribution of $178.3 million was made on February 27, 2024 to the holders of record at the close of trading on February 16, 2024.
−Removed: On April 4, 2024, the board of directors of our GP declared a cash distribution of 55.4% of the outstanding distribution arrearages through the quarter ended March 31, 2024 to the holders of the Class B Preferred Units, the Class C Preferred Units and the Class D Preferred Units.
−Removed: The total distribution of $120.0 million was made on April 18, 2024 to the holders of record at the close of trading on April 12, 2024.
−Removed: On April 9, 2024, the board of directors of our GP declared a cash distribution to fully pay the remaining distribution arrearages and interest to the holders of the Class B Preferred Units, the Class C Preferred Units and the Class D Preferred Units.
−Removed: The total distribution of $98.1 million was made on April 25, 2024 to the holders of record at the close of trading on April 19, 2024.
−Removed: As of April 25, 2024, all preferred unit distributions in arrears have been paid.
+Added: On March 19, 2025, the board of directors of our GP declared a cash distribution for the quarter ended March 31, 2025 to the holders of the Class B Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units (“Class B Preferred Units”), the Class C Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units (“Class C Preferred Units”) and the 9.00% Class D Preferred Units (“Class D Preferred Units”).
+Added: The total distribution of $29.8 million was made on April 15, 2025 to the holder of record at the close of trading on April 1, 2025.
The board of directors of our GP expects to evaluate the reinstatement of the common unit distributions in due course, taking into account a number of important factors, including our leverage, liquidity, the sustainability of cash flows, upcoming debt maturities, capital expenditures and the overall performance of our businesses.
2 unchanged sentences
Contractual Obligations
−Removed: Our contractual obligations primarily consist of purchase commitments, outstanding debt principal and interest obligations, operating lease obligations, pipeline commitments, asset retirement obligations and other commitments.
+Added: Our contractual obligations primarily consist of purchase commitments, outstanding debt principal and interest obligations, operating lease obligations, asset retirement obligations and other commitments.
+Added: The amounts below do not include obligations related to liabilities classified as either held for sale or discontinued operations within our March 31, 2025 and 2024 consolidated balance sheets (see Note 18 to our consolidated financial statements included in this Annual Report).
Purchase Commitments
9 unchanged sentences
See Note 15 to our consolidated financial statements included in this Annual Report for information regarding our lease obligations and timing of our expected lease payments.
−Removed: Pipeline Commitments
−Removed: Our pipeline commitment is a noncancelable agreement with a crude oil pipeline operator, which guarantee us minimum monthly shipping capacity on the pipeline.
−Removed: As of March 31, 2024, our future minimum throughput payments were $30.4 million, which is due within one year.
−Removed: See Note 8 to our consolidated financial statements included in this Annual Report for information regarding our pipeline commitment and timing of our expected pipeline commitment payments.
Asset Retirement Obligations
1 unchanged sentence
As of March 31, 2025, our asset retirement obligations were $69.6 million, of which we expect to settle $2.5 million during fiscal year 2026.
−Removed: See Note 8 to our consolidated financial statements included in this Annual Report for information regarding our asset retirement obligations and timing of our expected asset retirement obligations payments.
+Added: See Note 8 to our consolidated financial statements included in this Annual Report for information regarding our asset retirement obligations.
Other Commitments
2 unchanged sentences
See Note 8 to our consolidated financial statements included in this Annual Report for information regarding our other commitments and timing of our expected commitment payments.
−Removed: LCT Legal Judgment
−Removed: On May 28, 2024, the Supreme Court of Delaware affirmed the jury verdict and remanded the case back to the trial court to re-calculate the amount of the pre- and post-judgment interest accrual.
−Removed: As of March 31, 2024, we accrued $ 62.1 million related to this matter, of which approximately $ 26.1 million represents interest accrued through March 31, 2024 and $ 0.1 million of costs awarded to the plaintiff.
−Removed: Interest will continue to accrue until the amount of the judgment is paid.
−Removed: We expect to pay the amount of the judgment, costs and interest related to this matter by June 30, 2024.
−Removed: See Note 8 to our consolidated financial statements included in this Annual Report for further information regarding this matter.
−Removed: The following table summarizes the sources (uses) of our cash flows for the periods indicated:
−Removed: Year Ended March 31,
−Removed: Cash Flows Provided by (Used in):
−Removed: 2024 2023 2022
+Added: Sources (Uses) of Cash
+Added: The following table summarizes the sources (uses) of cash and cash equivalents for the periods indicated related to continuing operations (see the footnotes to our consolidated financial statements included in this Annual Report for the footnotes referenced in the table):
+Added: Cash Flow Year Ended March 31,
+Added: Category 2025 2024 2023
(in thousands)
−Removed: Operating activities, before changes in operating assets and liabilities $ 324,993 $ 447,024 $ 342,362
−Removed: Changes in operating assets and liabilities 51,171 (1,838) (136,516)
−Removed: Operating activities $ 376,164 $ 445,186 $ 205,846
−Removed: Investing activities $ (83,761) $ 64,188 $ (212,408)
−Removed: Financing activities $ (258,925) $ (507,765) $ 5,555
−Removed: Operating Activities.
−Removed: The decrease in net cash provided by operating activities during the year ended March 31, 2024 was due primarily to fluctuations in working capital, particularly accounts receivable and accounts payable, due to lower crude oil volumes and prices, and inventory due to decreased sales and purchases of natural gas liquids, and decreased earnings from operations.
−Removed: The increase in net cash provided by operating activities during the year ended March 31, 2023 was due primarily to fluctuations in working capital, particularly accounts receivable, inventory and accounts payable, during the year ended March 31, 2023 and increased earnings from operations.
−Removed: Investing Activities .
−Removed: Net cash used in investing activities was $83.8 million during the year ended March 31, 2024, compared to net cash provided by investing activities of $64.2 million during the year ended March 31, 2023.
−Removed: The increase in net cash used in investing activities was due primarily to:
−Removed: • an $88.4 million decrease in proceeds received due to higher proceeds received from the sale of certain assets and businesses primarily related to the sale of our marine assets and certain saltwater disposal assets in March 2023 compared to lower proceeds received from the sale of certain saltwater disposal assets and the sale of three natural gas liquids terminals during the year ended March 31, 2024 (see Note 17 to our consolidated financial statements included in this Annual Report);
−Removed: • a $55.5 million increase in payments to settle derivatives;
−Removed: • an increase in capital expenditures from $147.8 million (includes payment of amounts accrued as of March 31, 2022) during the year ended March 31, 2023 to $152.3 million (includes payment of amounts accrued as of March 31, 2023) during the year ended March 31, 2024 due primarily to the timing of the expenditures in our Water Solutions segment.
−Removed: Net cash provided by investing activities was $64.2 million during the year ended March 31, 2023, compared to net cash used in investing activities of $212.4 million during the year ended March 31, 2022.
−Removed: The decrease in net cash used in investing activities was due primarily to:
−Removed: • a $206.5 million decrease in payments to settle derivatives;
−Removed: • a $75.6 million increase in proceeds received from the sale of certain assets and businesses primarily related to the sale of our marine assets and certain saltwater disposal assets in March 2023 and the sale of our interest in Sawtooth in June 2021 (see Note 2, Note 4 and Note 17 to our consolidated financial statements included in this Annual Report).
−Removed: These decreases in net cash used in investing activities were partially offset by an increase in capital expenditures from $142.4 million (includes payment of amounts accrued as of March 31, 2021) during the year ended March 31, 2022 to $147.8 million (includes payment of amounts accrued as of March 31, 2022) during the year ended March 31, 2023 due primarily to the timing of the expenditures in our Water Solutions segment.
−Removed: Financing Activities.
−Removed: Net cash used in financing activities was $258.9 million during the year ended March 31, 2024, compared to net cash used in financing activities of $507.8 million during the year ended March 31, 2023.
−Removed: The decrease in net cash used in financing activities was due primarily to:
−Removed: • $2.9 billion in proceeds from the issuance of the 2029 Senior Secured Notes, 2032 Senior Secured Notes and Term Loan B during the year ended March 31, 2024;
−Removed: • payments on other long-term debt of $43.3 million on the outstanding balance on our equipment loan and a prepayment premium as we sold our marine assets in March 2023 (see Note 17 to our consolidated financial statements included in this Annual Report).
−Removed: These decreases in net cash used in financing activities were partially offset by:
−Removed: • an increase of $2.3 billion paid in cash to repurchase a portion of our 2025 Notes and redeem the remaining outstanding 2025 Notes, 2026 Notes and 2026 Senior Secured Notes during the year ended March 31, 2024;
−Removed: • an increase of $177.9 million in distributions paid to our preferred unitholders and noncontrolling interest owners during the year ended March 31, 2024 due primarily to distributions to the holders of the Class B Preferred Units, the Class C Preferred Units and the Class D Preferred Units during the year ended March 31, 2024;
−Removed: • a decrease of $160.0 million in borrowings on the ABL Facility (net of repayments) during the year ended March 31, 2024;
−Removed: • an increase of $49.9 million in debt issuance costs for the 2029 Senior Secured Notes, 2032 Senior Secured Notes, Term Loan B and ABL Facility during the year ended March 31, 2024.
−Removed: Net cash used in financing activities was $507.8 million during the year ended March 31, 2023, compared to net cash provided by financing activities of $5.6 million during the year ended March 31, 2022.
−Removed: The increase in net cash used in financing activities was due primarily to:
−Removed: • an increase of $396.1 million paid in cash to repurchase a portion of our Senior Unsecured Notes and redeem the remaining outstanding 2023 Notes during the year ended March 31, 2023;
−Removed: • a decrease of $90.0 million in borrowings on the ABL Facility (net of repayments) during the year ended March 31, 2023;
−Removed: • payments on other long-term debt of $43.3 million on the outstanding balance on our equipment loan and a prepayment premium as we sold our marine assets in March 2023 (see Note 17 to our consolidated financial statements included in this Annual Report).
−Removed: These increases in net cash used in financing activities were partially offset by:
−Removed: • a decrease of $9.6 million in debt issuance costs for the ABL Facility during the year ended March 31, 2023;
−Removed: • a decrease of $5.0 million in payments on other long-term debt as the Sawtooth credit agreement was paid off and terminated prior to us selling our ownership interest in Sawtooth in June 2021.
+Added: Sources of cash and cash equivalents:
+Added: Net cash provided by operating activities-continuing operations Operating $ 256,850 $ 361,818 $ 355,685
+Added: Net proceeds from borrowings under ABL Facility (see Note 7)
+Added: Financing 109,000 — 22,000
+Added: Proceeds from divestitures of businesses and investments, net (see Note 17)
+Added: Investing 72,246 16,000 111,633
+Added: Proceeds from sales of assets (see Note 17)
+Added: Investing 42,819 53,246 45,848
+Added: Proceeds from borrowings on other long-term debt (see Note 7)
+Added: Financing 12,720 — —
+Added: Issuance of secured debt (see Note 7)
+Added: Financing — 2,894,873 —
+Added: Net settlements of derivatives (see Note 10)
+Added: Investing — — 56,005
+Added: Uses of cash and cash equivalents:
+Added: Distributions to preferred unitholders (see Note 9)
+Added: Financing (305,291) (178,299) —
+Added: Capital expenditures (see Note 11)
+Added: Investing (245,816) (152,295) (147,765)
+Added: Payments on Term Loan B (see Note 7)
+Added: Financing (7,000) — —
+Added: Warrant repurchases (see Note 9)
+Added: Financing (6,929) — —
+Added: Debt issuance costs (see Note 6 and Note 7)
+Added: Financing (5,258) (53,170) (3,294)
+Added: Payments on other long-term debt (see Note 7)
+Added: Financing (1,068) — (43,278)
+Added: Net settlements of derivatives (see Note 10)
+Added: Investing (246) (6,185) —
+Added: Repayment and repurchase of Senior Unsecured Notes (see Note 7)
+Added: Financing — (2,781,067) (479,302)
+Added: Net payments on borrowings under ABL Facility (see Note 7)
+Added: Financing — (138,000) —
+Added: Other sources / (uses) – net Investing and Financing (2,192) (2,952) (3,979)
+Added: Net (decrease) increase in cash and cash equivalents-continuing operations $ (80,165) $ 13,969 $ (86,447)
+Added: Operating Activities-Continuing Operations.
+Added: The decrease in net cash provided by operating activities during the year ended March 31, 2025 was due primarily to fluctuations in working capital, particularly accounts receivable and accounts payable, due to lower crude oil volumes and lower crude oil prices and the timing of invoices and payments on construction projects, partially offset by higher earnings from operations.
+Added: Also, on June 13, 2024, we paid LCT $63.3 million related to the legal judgment against us, of which $27.2 million represented interest and $0.1 million of costs awarded to LCT (see Note 8 to our consolidated financial statements included in this Annual Report).
+Added: The increase in net cash provided by operating activities during the year ended March 31, 2024 was due primarily to fluctuations in working capital, particularly accounts receivable and accounts payable, due to open derivative positions, partially offset by lower crude oil volumes and prices, lower inventory due to decreased sales and purchases of natural gas liquids, and decreased earnings from operations.
Environmental Legislation
See Part I, Item 1–“Business–Government Regulation–Greenhouse Gas Regulation” for a discussion of proposed environmental legislation and regulations that, if enacted, could result in increased compliance and operating costs.
−Removed: However, at this time we cannot predict the structure or outcome of any future legislation or regulations or the eventual cost we could incur in compliance.
+Added: this time we cannot predict the structure or outcome of any future legislation or regulations or the eventual cost we could incur in compliance.
Recent Accounting Pronouncements
15 unchanged sentences
If future results are not consistent with our estimates, we could be exposed to future impairment losses that could be material to our results of operations.
−Removed: During the year ended March 31, 2024, we recorded a goodwill impairment of $69.2 million.
−Removed: We did not record a goodwill impairment during the years ended March 31, 2023 and 2022.
+Added: During the years ended March 31, 2025 and 2024, we recorded goodwill impairments of $17.9 million and $69.2 million, respectively.
+Added: We did not record a goodwill impairment during the year ended March 31, 2023.
See Note 5 to our consolidated financial statements included in this Annual Report for a further discussion of our goodwill impairment assessment.
3 unchanged sentences
Individual assets are grouped at the lowest level for which the related identifiable cash flows are largely independent of the cash flows of other assets and liabilities.
−Removed: Estimates of future net cash flows include estimating future volumes, future margins or tariff rates, future operating costs and other estimates and assumptions consistent with our business
−Removed: plans as well as external factors such as industry and economic trends.
+Added: Estimates of future net cash flows include estimating future volumes, future margins or tariff rates, future operating costs and other estimates and assumptions consistent with our business plans as well as external factors such as industry and economic trends.
An estimate of the sensitivity to changes in underlying assumptions of a fair value calculation is not practicable, given the numerous assumptions that can materially affect our estimates.
15 unchanged sentences
All changes in the fair value of our physical contracts that do not qualify as normal purchases and normal sales and settlements (whether cash transactions or non-cash mark-to-market adjustments) are reported either within revenue (for sales contracts) or cost of sales (for purchase contracts) in our consolidated statements of operations, regardless of whether the contract is physically or financially settled, and within cash flows from operations in our consolidated statements of cash flows.
−Removed: The change in the fair value of our interest rate swap is recorded as a net gain or loss within interest expense in our consolidated statement of operations and within cash flows from operations in our consolidated statements of cash flows.
+Added: The change in the fair value of our interest rate swaps is recorded as a net gain or loss within interest expense in our consolidated statement of operations and within cash flows from operations in our consolidated statements of cash flows.
We determine the fair value of our exchange traded derivative financial instruments utilizing publicly available prices, and for non-exchange traded derivative financial instruments, we utilize pricing models for similar instruments including publicly available prices and forward curves generated from a compilation of data gathered from third parties.
8 unchanged sentences
The estimated performance obligation over the life of a contract includes significant judgments by management including volume and forecasted production information.
−Removed: Changes in these assumptions or a contract modification could have a material
−Removed: effect on the amount of variable consideration recognized as revenue.
+Added: Changes in these assumptions or a contract modification could have a material effect on the amount of variable consideration recognized as revenue.
See Note 14 to our consolidated financial statements included in this Annual Report for a further discussion of our revenue recognition policies.
3 unchanged sentences
We are required to recognize the fair value of a liability for an asset retirement obligation if a reasonable estimate of fair value can be made.
−Removed: In order to determine the fair value of such a liability, we must make certain estimates and assumptions including, among other things, projected cash flows, the estimated timing of retirement, a credit-adjusted risk-free interest rate, and an assessment of market conditions, which could significantly impact the estimated fair value of the asset retirement obligation.
+Added: In order to determine the fair value of such a liability, we must make certain estimates and assumptions including, among other things, projected cash flows,
+Added: the estimated timing of retirement, a credit-adjusted risk-free interest rate, and an assessment of market conditions, which could significantly impact the estimated fair value of the asset retirement obligation.
Most of these asset retirement obligations are many years, or decades, in the future and the contracts and regulations often have vague descriptions of what removal practices and criteria must be met when the removal event actually occurs.
4 unchanged sentences
We will record an asset retirement obligation for these assets in the periods in which settlement dates are reasonably determinable.
+Added: Contingent Consideration Liabilities
+Added: Certain business combinations in our Water Solutions segment included future royalty payments to the seller, which we recorded as contingent consideration liabilities as part of our purchase price allocation.
+Added: The initial fair value was calculated based on an estimate of the activity related to the assets acquired in the transaction, either volumes or revenue, and an estimate of the expected useful life of the assets and discounted to its present value using an appropriate discount rate.
+Added: The fair value of the contingent consideration liabilities is assessed each reporting period and the updated fair value is calculated using the same process used to calculate the initial fair value.
+Added: Cha nges in our assumptions and estimates may occur as a result of the passage of time and the occurrence of future events.
+Added: Our consolidated balance sheet at March 31, 2025 includes a liability of $15.8 million related to contingent consideration liabilities, which is recorded within accrued expenses and other payables and other noncurrent liabilities.
Fair values of assets acquired and liabilities assumed are based upon available information and may involve engaging an independent third party to perform an appraisal.
7 unchanged sentences
Pursuant to GAAP, an entity is allowed a reasonable period of time (not to exceed one year) to obtain the information necessary to identify and measure the fair value of the assets acquired and liabilities assumed in a business combination.
−Removed: Our inventories consist of crude oil, natural gas liquids, diesel and biodiesel.
+Added: Our inventories consist of crude oil and natural gas liquids.
Our inventories are valued at the lower of cost or net realizable value, with cost determined using either the weighted-average cost or the first in, first out (FIFO) methods, including the cost of transportation and storage, and with net realizable value defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.
6 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.