NGL Energy Partners LP 10-K

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations Overview NGL Energy Partners LP is a Delaware master limited partnership (“we,” “us,” “our,” or the “Partnership”). NGL Energy Holdings LLC serves as our general partner (“GP”). At March 31, 2026, our operations included three segments as discussed below. 52 Water Solutions Our Water Solutions segment transports, treats, recycles and disposes of produced and flowback water generated from crude oil and natural gas production. We also sell produced water for reuse and recycle to our producer customers to be used in their crude oil exploration and production activities. As part of processing water, we aggregate and sell recovered crude oil, also known as skim oil. We also dispose of solids such as tank bottoms, drilling fluids and drilling muds and perform other ancillary services such as truck washouts. Our activities in this segment are underpinned by long-term, fixed fee contracts and acreage dedications, a significant portion of which contain minimum volume commitments with leading oil and gas companies including large, investment grade producer customers. We operate in a number of the most prolific crude oil and natural gas producing areas in the United States including the Delaware Basin in New Mexico and Texas, the Denver-Julesburg (“DJ”) Basin in Colorado and the Eagle Ford Basin in Texas. With a system that handled approximately 1.063 billion barrels of produced water across its areas of operation during the year ended March 31, 2026, we believe that we are the largest independent produced water transportation and disposal company in the United States. 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. Recently, our disposal volumes have been positively impacted by the increase in the level of crude oil production, particularly in the Delaware and DJ Basins, due to higher 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. Seismic Activity The subsurface injection of produced water for disposal has been associated with induced seismic events in Texas and New Mexico. 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. 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. As part of this effort, we have implemented reductions in injected volumes at certain facilities, and where appropriate have temporarily shut-in facilities. 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. Crude Oil Logistics 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. 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. James, Louisiana, and Magellan East Houston. We attempt to reduce our exposure to price fluctuations by using back-to-back physical contracts whenever possible. When back-to-back physical contracts are not optimal, we enter into financially settled derivative contracts as economic hedges of our physical inventory, physical sales and physical purchase contracts. We use our transportation assets to move crude oil from the wellhead to the highest value market. Spreads between crude oil prices in different markets can fluctuate, which may expand or limit our opportunity to generate margins by transporting crude oil to different markets. 53 The following table summarizes the range of low and high crude oil spot prices per barrel of New York Mercantile Exchange (“NYMEX”) West Texas Intermediate Crude Oil at Cushing, Oklahoma for the periods indicated and the prices at period end: Crude Oil Spot Price Per Barrel Year Ended March 31, Low High At Period End 2026 $ 55.27 $ 102.88 $ 101.38 2025 $ 66.75 $ 86.91 $ 71.48 2024 $ 67.12 $ 93.68 $ 83.17 We believe volatility in commodity prices will continue, and our ability to adjust to and manage this volatility may impact our financial results. Liquids Logistics Our Liquids Logistics segment conducts supply operations for natural gas liquids to commercial, retail and industrial customers across the United States and Canada. These operations are conducted through our five owned terminals, third-party storage and terminal facilities, access to nine common carrier pipelines and a fleet of leased railcars. 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. We attempt to reduce our exposure to price fluctuations by using back-to-back physical contracts and pre-sale agreements that allow us to lock in a margin on a percentage of our winter volumes. We also enter into financially settled derivative contracts as economic hedges of our physical inventory, physical sales and physical purchase contracts. Our wholesale liquids business is a “cost-plus” business that can be affected by both price fluctuations and volume variations. We establish our selling price based on a pass-through of our product supply, transportation, handling, storage, and capital costs plus a margin. 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. Consequently, our revenues, operating profits, and operating cash flows are typically lower in the first and second quarters of our fiscal year. The following table summarizes the range of low and high propane spot prices per gallon at Conway, Kansas, and Mt. Belvieu, Texas, two of our main pricing hubs, for the periods indicated and the prices at period end: Conway, Kansas Mt. Belvieu, Texas Propane Spot Price Per Gallon Propane Spot Price Per Gallon Year Ended March 31, Low High At Period End Low High At Period End 2026 $ 0.52 $ 0.84 $ 0.74 $ 0.60 $ 1.03 $ 0.82 2025 $ 0.61 $ 0.99 $ 0.83 $ 0.49 $ 1.01 $ 0.90 2024 $ 0.49 $ 0.91 $ 0.78 $ 0.53 $ 0.97 $ 0.84 The following table summarizes the range of low and high butane spot prices per gallon at Mt. Belvieu, Texas for the periods indicated and the prices at period end: Butane Spot Price Per Gallon Year Ended March 31, Low High At Period End 2026 $ 0.70 $ 1.19 $ 1.09 2025 $ 0.79 $ 1.26 $ 0.95 2024 $ 0.58 $ 1.14 $ 0.98 We believe volatility in commodity prices will continue, and our ability to adjust to and manage this volatility may impact our financial results. 54 Recent Developments Debt Refinancing On March 12 , 2026, we closed a debt refinancing transaction of $950.0 million consisting of a new seven-year senior secured 2026 term loan “B” credit facility (“2026 Term Loan B”). In connection with the closing of the debt refinancing transaction, our asset-based revolving credit facility (“ABL Facility”) was amended to reduce our total commitments and to make other changes to the terms thereof. For additional information related to the 2026 Term Loan B and ABL Facility, see Note 7 to our consolidated financial statements included in this Annual Report. Discontinued Operations Sale of Refined Products Business and Exiting Biodiesel Business As of March 31, 2025, we completed winding down our biodiesel business (see Note 17 to our consolidated financial statements included in this Annual Report on Form 10-K (“Annual Report”) for a further discussion). On April 30, 2025, we sold our refined products business, including certain working capital items, to a third-party (see Note 17 to our consolidated financial statements included in this Annual Report for a further discussion). 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. 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). Other Dispositions Sale of Certain Investments in Unconsolidated Entities and Related Assets On April 14, 2025, we sold certain investments in unconsolidated entities, property, plant and equipment and intangible assets to a third-party (see Note 17 to our consolidated financial statements included in this Annual Report for a further discussion). Sale of Certain Natural Gas Liquids Terminals and Most of Our Wholesale Propane Business On April 30, 2025, we sold most of our wholesale propane business, 17 of our natural gas liquids terminals, our interest in an unconsolidated entity and working capital (“Wholesale Propane Disposition”) to a third-party (see Note 17 to our consolidated financial statements included in this Annual Report for a further discussion). Sale of Certain Railcars During the year ended March 31, 2026, we sold the remaining 203 railcars of our Crude Oil Logistics segment (see Note 17 to our consolidated financial statements included in this Annual Report for a further discussion). Disposition transactions impact the comparability of our results of operations between our current and prior fiscal years. 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. Consolidated Results of Operations How We Evaluate Our Operations We use a variety of financial and operating metrics to analyze our performance. Our consolidated financial metrics include operating income, income from continuing operations and Adjusted EBITDA. We evaluate segment operating results 55 using operating income, Adjusted EBITDA and our operating metrics, which include various volume and rate statistics that are relevant for the respective segment. These operating metrics allow investors to analyze the various components of segment financial results in terms of volumes and rate/price. We use these metrics to analyze historical segment financial results and as the key inputs for forecasting and budgeting segment financial results. For additional information on our operating metrics, see the respective segment discussions below. The following table summarizes our consolidated statements of operations for the periods indicated: Year Ended March 31, 2026 2025 2024 (in thousands) Revenues $ 3,156,159 $ 3,469,186 $ 4,153,307 Cost of sales 2,182,163 2,507,077 3,185,434 Operating expenses 293,587 297,686 299,605 General and administrative expense 70,108 55,593 121,625 Depreciation and amortization 254,831 254,732 266,114 Loss on disposal or impairment of assets, net 256,322 31,448 115,936 Revaluation of liabilities 4,415 (6,705) 2,680 Operating income 94,733 329,355 161,913 Equity in earnings of unconsolidated entities 201 6,565 4,120 Interest expense (257,490) (280,078) (269,804) Loss on early extinguishment of liabilities, net (16,749) — (55,281) Other income, net 526 4,262 2,782 (Loss) income from continuing operations before income taxes (178,779) 60,104 (156,270) Income tax benefit (expense) 276 4,885 (1,458) (Loss) income from continuing operations (178,503) 64,989 (157,728) Income (loss) from discontinued operations, net of tax 39,340 (21,826) 14,604 Net (loss) income (139,163) 43,163 (143,124) Less: Net income from continuing operations attributable to nonredeemable noncontrolling interests (3,376) (3,749) (631) Less: Net loss (income) from continuing operations attributable to redeemable noncontrolling interests 244 (46) — Net (loss) income attributable to NGL Energy Partners LP $ (142,295) $ 39,368 $ (143,755) Adjusted EBITDA - Continuing Operations (1) $ 660,203 $ 622,892 $ 593,414 (1) See Adjusted EBITDA definition and reconciliation in “Non-GAAP Financial Measures” section below. Changes in commodity prices and sales volumes affect both revenues and cost of sales in our consolidated statements of operations and, therefore, the impact is largely offset between these line items. Operating income decreased $234.6 million for the year ended March 31, 2026, compared with the same period in 2025, primarily as a result of the following: • Water Solutions – an increase of $23.9 million due primarily to higher water disposal revenues from an increase in produced water volumes processed and higher pipeline revenues, partially offset by higher derivative losses and increased expenses, mainly due to the revaluation of liabilities and losses on disposal or impairment of assets; • Crude Oil Logistics – a decrease of $273.0 million due primarily to a goodwill impairment charge, lower pipeline revenue, higher derivative losses and increased expenses due to a loss on the sale of assets, partially offset by increased revenues and volumes from higher production on acreage dedicated to us; • Liquids Logistics – an increase of $34.2 million due primarily to lower expenses related to the Wholesale Propane Disposition, including a gain on the sale, partially offset by lower product margins for propane, due to the Wholesale Propane Disposition and butane, due to a weak blending market; and • Corporate and Other – a decrease of $19.7 million due to increased equity-based compensation expense, increased legal expenses and lower overhead allocations. In addition to the items discussed above, there was a loss (inclusive of debt issuance costs written off) related to the early termination of the seven-year senior secured 2024 term loan “B” credit facility (“2024 Term Loan B”), a lower income tax 56 benefit (see Note 2 to our consolidated financial statements included in this Annual Report), lower equity in earnings of unconsolidated entities as we sold our equity method investments during the year ended March 31, 2026 and a loss from a legal dispute. These decreases were partially offset by lower interest expense (as discussed below) and gains on marketable securities. Operating income increased $167.4 million for the year ended March 31, 2025, compared with the same period in 2024, primarily as a result of the following: • Water Solutions – an increase of $80.2 million due primarily to higher water disposal revenues from an increase in produced water volumes processed and lower losses on disposal or impairment of assets; • Crude Oil Logistics – a decrease of $6.0 million due primarily to lower sales volumes due to lower production on acreage dedicated to us and lower crude oil prices, partially offset by higher tariff revenue on the Grand Mesa Pipeline, decreased depreciation expense and higher derivative gains; • Liquids Logistics – an increase of $27.2 million due primarily to lower expenses from the impairment of goodwill in fiscal year 2024, partially offset by higher derivative losses and lower product volumes; and • Corporate and Other – an increase of $66.0 million due primarily to increased legal expenses in fiscal year 2024 from an increase in our accrual related to the LCT Capital, LLC (“LCT”) legal matter. In addition to the items discussed above, there was a loss on early extinguishment of liabilities, net during the year ended March 31, 2024 due to a call premium 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 (as defined herein) and a higher income tax benefit (see Note 2 to our consolidated financial statements included in this Annual Report), partially offset by higher interest expense (as discussed below). Seasonality 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. 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”). Subsequent Events Water Disposal Agreement with Minimum Volume Commitment and Extension of Acreage Dedication On May 7, 2026, we announced a further expansion of our Lea County Express Pipeline System (“LEX II Expansion”) to increase capacity by 165,000 barrels of water per day with a capability to transport approximately 560,000 barrels of water per day on the LEX II system. The LEX II Expansion is un derwritten by a newly executed long-term volume commitment contract that includes increased volume commitments, and an additional four township committed area in Eddy County, New Mexico . Additionally, the LEX II Expansion is expandable up to 650,000 barrels of water per day. 57 Segment Operating Results for the Years Ended March 31, 2026 and 2025 Water Solutions The following table summarizes the operating results of our Water Solutions segment for the periods indicated. Year Ended March 31, 2026 2025 Change (in thousands, except per barrel and per day amounts) Revenues: Water disposal service fees (1) $ 659,157 $ 599,870 $ 59,287 Sale of recovered crude oil 114,617 109,008 5,609 Recycled water (2) 7,138 7,544 (406) Other revenues (1)(2) 58,002 39,265 18,737 Total revenues 838,914 755,687 83,227 Expenses: Cost of sales-excluding impact of derivatives 6,499 7,848 (1,349) Cost of sales-derivative loss-unrealized 21,573 4,953 16,620 Cost of sales-derivative loss (gain)-realized 2,633 (9,954) 12,587 Operating expenses 222,142 214,928 7,214 General and administrative expenses 5,124 6,120 (996) Depreciation and amortization expense 221,048 217,227 3,821 Loss on disposal or impairment of assets, net 20,114 9,813 10,301 Revaluation of liabilities 4,415 (6,705) 11,120 Total expenses 503,548 444,230 59,318 Segment operating income $ 335,366 $ 311,457 $ 23,909 Adjusted EBITDA - Continuing Operations (3) $ 602,726 $ 541,996 $ 60,730 Produced water processed (barrels per day) Delaware Basin 2,555,166 2,303,142 252,024 Eagle Ford Basin 179,789 175,251 4,538 DJ Basin 177,963 146,956 31,007 Total 2,912,918 2,625,349 287,569 Recycled water (barrels per day) 198,709 116,058 82,651 Total (barrels per day) 3,111,627 2,741,407 370,220 Skim oil sold (barrels per day) 5,119 4,268 851 Service fees for produced water processed ($/barrel) (4)(5) $ 0.62 $ 0.63 $ (0.01) Recovered crude oil for produced water processed ($/barrel) (4) $ 0.11 $ 0.11 $ — Operating expenses for produced water processed ($/barrel) (4) $ 0.21 $ 0.22 $ (0.01) (1) Water disposal service fees and Other revenues in the table above differ from the amounts reported in Note 11 to our consolidated financial statements included in this Annual Report, as the amounts in Note 11 are disaggregated by the performance obligations with type of contract and service provided and the timing of the transfer of goods and services, while the amount above is presented based on how management reviews performance. In the table above, revenues from reimbursements from construction projects, booster operating fees and generator rentals and pipeline revenue are included in Other revenues, while in Note 11 the amounts are included in Water disposal service fees. (2) Recycled water in the table above differs from the amount of Sale of Water reported in Note 11 to our consolidated financial statements included in this Annual Report, as the amounts in Note 11 are disaggregated by the performance obligations with type of contract and service provided and the timing of the transfer of goods and services, while the amount above is presented based on how management reviews performance. In Note 11, Sale of Water includes the sale of produced water, recycled water and brackish non-potable water, which in the table above, brackish non-potable water is included in Other revenues. (3) See Adjusted EBITDA definition and reconciliation in “Non-GAAP Financial Measures” section below. (4) Total produced water barrels processed during the years ended March 31, 2026 and 2025 were 1,063,215,067 and 958,252,275, respectively. These amounts do not include 47,514,240 barrels and 49,861,950 barrels for the years ended March 31, 2026 and 2025, respectively, related to payments made by certain producers for committed volumes not delivered. In addition, water pipeline revenue, which is included in Other revenues, includes payments from a producer for 23,144,533 and 19,257,873 committed barrels not delivered during the years ended March 31, 2026 and 2025 , respectively. 58 (5) Excluding payments made by certain producers for committed volumes not delivered, service fees for produced water processed ($/barrel) would have been $0.60/barrel and $0.60/barrel during the years ended March 31, 2026 and 2025, respectively. Water Disposal Service Fee Revenues. The increase was due primarily to an increase in produced water volumes processed from contracted customers. Recovered Crude Oil Revenues. The increase was due primarily to an increase in skim oil barrels sold due to more skim oil recovered from receiving more produced water, partially offset by lower realized crude oil prices received from the sale of skim oil barrels. Recycled Water Revenues. Revenue from recycled water includes the sale of produced water and recycled water for use in our customers’ completion activities. 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. Other revenues primarily include reimbursements from construction projects, booster operating fees and generator rentals, water pipeline revenues, solids disposal revenues and brackish non-potable water revenues. The increase was due primarily to higher water pipeline revenue, including payments from a producer for committed volumes not delivered, due to our LEX II Expansion commencing operations during the three months ended December 31, 2024, as well as higher reimbursements from construction projects and booster operating fees. Cost of Sales-Excluding Impact of Derivatives . The decrease was due primarily to lower costs incurred that will be reimbursed by producers for generator and fuel costs at various booster stations and lower recycling costs. Operating and General and Administrative Expenses . The increase was due primarily to higher royalty expense due to volumes related to the LEX II Expansion commencing operations and increased volumes at certain other saltwater disposal wells and higher utilities expense due to increased produced water volumes processed, partially offset by lower chemical expense due to purchasing fewer chemicals and using chemicals more efficiently and lower bad debt expense. Depreciation and Amortization Expense . 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 years ended March 31, 2025 and 2026. Loss on Disposal or Impairment of Assets, Net . During the year ended March 31, 2026, we recorded: • a net loss of $21.7 million primarily related to writing down the net book value of certain saltwater disposal wells and capital projects due to abandonment and the retirement of certain other assets; • a gain of $2.2 million from insurance recoveries for certain saltwater disposal facilities and boosters damaged in a prior period; and • a net loss of $0.5 million primarily related to the sale of certain assets. During the year ended March 31, 2025, we recorded: • a net loss of $15.1 million primarily related to writing down the net book value of certain saltwater disposal wells and capital projects due to abandonment and the retirement of certain other assets; • 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); • 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); • a gain of $6.5 million from insurance recoveries for certain saltwater disposal facilities and boosters damaged in a prior period; and • a loss of $3.4 million 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. Revaluation of Liabilities. Revaluation of liabilities includes the valuation of our contingent consideration liabilities related to royalty agreements acquired as part of certain business combinations. During the year ended March 31, 2026, there was an increase in expense due primarily to higher expected produced water volumes from our customers, resulting in an 59 increase to the expected future royalty payment. During the year ended March 31, 2025, there was a decrease in expense due primarily to lower expected produced water volumes from our customers, resulting in a decrease to the expected future royalty payment. Crude Oil Logistics The following table summarizes the operating results of our Crude Oil Logistics segment for the periods indicated: Year Ended March 31, 2026 2025 Change (in thousands, except per barrel amounts) Revenues: Crude oil sales $ 1,020,241 $ 806,653 $ 213,588 Crude oil transportation and other sales 34,390 73,249 (38,859) Total revenues 1,054,631 879,902 174,729 Expenses: Cost of sales-excluding impact of derivatives 951,676 771,526 180,150 Cost of sales-derivative loss (gain)-unrealized 5,604 (4,664) 10,268 Cost of sales-derivative loss-realized 7,001 1,792 5,209 Operating expenses 38,398 38,408 (10) General and administrative expenses 2,752 2,673 79 Depreciation and amortization expense 24,331 25,070 (739) Loss (gain) on disposal or impairment of assets, net 251,761 (1,004) 252,765 Total expenses 1,281,523 833,801 447,722 Segment operating (loss) income $ (226,892) $ 46,101 $ (272,993) Adjusted EBITDA - Continuing Operations (1) $ 58,941 $ 66,373 $ (7,432) Crude oil sold (barrels) 15,419 10,412 5,007 Crude oil transported on owned pipelines (barrels) 26,451 22,238 4,213 Crude oil storage capacity - owned and leased (barrels) (2) 5,232 5,232 — Crude oil storage capacity leased to third-parties (barrels) (2) 1,650 1,650 — Crude oil inventory (barrels) (2) 298 339 (41) Crude oil sold ($/barrel) $ 66.168 $ 77.473 $ (11.305) Cost per crude oil sold ($/barrel) (3) $ 61.721 $ 74.100 $ (12.379) Crude oil product margin ($/barrel) (3) $ 4.447 $ 3.373 $ 1.074 (1) See Adjusted EBITDA definition and reconciliation in “Non-GAAP Financial Measures” section below. (2) Information is presented as of March 31, 2026 and March 31, 2025, respectively. (3) Cost and product margin per barrel excludes the impact of derivatives. Crude Oil Sales and Cost of Sales-Excluding Impact of Derivatives. The increases in sales and cost of sales, excluding the impact of derivatives, were due primarily to higher production on acreage dedicated to us in the DJ Basin during the year ended March 31, 2026, partially offset by lower commodity prices. During the year ended March 31, 2026, the crude oil product margin increased compared to the year ended March 31, 2025 due to higher crude oil barrels sold during the year. Product margin per barrel also increased due to a general increase in commodity prices, specifically during the quarter ended March 31, 2026, thus contributing to a higher margin per barrel for the current period. Crude oil product margin calculations do not include gains and losses from derivatives that may offset the movement in the physical margin. Crude Oil Transportation and Other Sales. The decrease was primarily due to lower pipeline revenue resulting from the expiration of certain transportation services contracts on third-party pipelines and lower rental revenue due to the sale of our railcars. During the year ended March 31, 2026, physical volumes on the Grand Mesa Pipeline were approximately 72,000 barrels per day, compared to approximately 61,000 barrels per day for the year ended March 31, 2025. Higher contracted volumes were shipped on the Grand Mesa Pipeline due to higher production on acreage dedicated to us in the DJ Basin. 60 Operating and General and Administrative Expenses . Operating and general and administrative expenses were consistent with the prior year. Depreciation and Amortization Expense. The decrease was primarily due to the sale of railcars during the years ended March 31, 2025 and 2026. Loss (Gain) on Disposal or Impairment of Assets, Net . During the year ended March 31, 2026, we recorded a net loss of $251.8 million. The net loss was due to a goodwill impairment loss of $247.8 million (see Note 5 to our consolidated financial statements included in this Annual Report). We also recorded a loss from the sale of linefill held on third-party pipelines of $5.7 million, which includes a loss from derivatives of $5.5 million from hedging transactions relating to the sale of linefill barrels, a loss of $0.3 million related to the sale or retirement of certain assets and a gain of $2.0 million from the sale of railcars (see Note 17 to our consolidated financial statements included in this Annual Report). 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. Liquids Logistics The following table summarizes the operating results of our Liquids Logistics segment for the periods indicated. As discussed above, the operating results of our refined products and biodiesel businesses have been classified as discontinued operations and prior periods have been retrospectively adjusted. 61 Year Ended March 31, 2026 2025 Change (in thousands, except per gallon amounts) Butane: Sales $ 554,491 $ 649,452 $ (94,961) Cost of sales-excluding impact of derivatives 521,340 606,694 (85,354) Cost of sales-derivative loss (gain)-unrealized 10,615 (588) 11,203 Cost of sales-derivative (gain) loss-realized (2,408) 14,724 (17,132) Product margin 24,944 28,622 (3,678) Propane: Sales 336,674 755,646 (418,972) Cost of sales-excluding impact of derivatives 316,069 721,372 (405,303) Cost of sales-derivative (gain) loss-unrealized (1,310) 2,973 (4,283) Cost of sales-derivative gain-realized (393) (4,482) 4,089 Product margin 22,308 35,783 (13,475) Other products: Sales-excluding impact of derivatives 362,882 414,985 (52,103) Cost of sales-excluding impact of derivatives 341,981 393,935 (51,954) Cost of sales-derivative (gain) loss-unrealized (4) 38 (42) Cost of sales-derivative loss (gain)-realized 30 (310) 340 Product margin 20,875 21,322 (447) Service: Sales 8,149 13,529 (5,380) Cost of sales 1,261 1,636 (375) Product margin 6,888 11,893 (5,005) Expenses: Operating expenses 33,047 44,350 (11,303) General and administrative expenses 3,087 7,208 (4,121) Depreciation and amortization expense 6,201 9,408 (3,207) (Gain) loss on disposal or impairment of assets, net (15,551) 22,596 (38,147) Total expenses 26,784 83,562 (56,778) Segment operating income $ 48,231 $ 14,058 $ 34,173 Adjusted EBITDA - Continuing Operations (1) $ 45,483 $ 53,369 $ (7,886) Natural gas liquids storage capacity - owned and leased (gallons) (2) 42,641 52,721 (10,080) Butane sold (gallons) 510,367 516,202 (5,835) Butane sold ($/gallon) $ 1.086 $ 1.258 $ (0.172) Cost per butane sold ($/gallon) (3) $ 1.022 $ 1.175 $ (0.153) Butane product margin ($/gallon) (3) $ 0.064 $ 0.083 $ (0.019) Butane inventory (gallons) (2) 23,774 21,871 1,903 Propane sold (gallons) 365,736 760,287 (394,551) Propane sold ($/gallon) $ 0.921 $ 0.994 $ (0.073) Cost per propane sold ($/gallon) (3) $ 0.864 $ 0.949 $ (0.085) Propane product margin ($/gallon) (3) $ 0.057 $ 0.045 $ 0.012 Propane inventory (gallons) (2) 7,297 11,833 (4,536) Other products sold (gallons) 281,494 277,495 3,999 Other products sold ($/gallon) $ 1.289 $ 1.495 $ (0.206) Cost per other products sold ($/gallon) (3) $ 1.215 $ 1.420 $ (0.205) Other products product margin ($/gallon) (3) $ 0.074 $ 0.075 $ (0.001) Other products inventory (gallons) (2) 5,166 8,556 (3,390) (1) See Adjusted EBITDA definition and reconciliation in “Non-GAAP Financial Measures” section below. 62 (2) Information is presented as of March 31, 2026 and March 31, 2025, respectively. (3) Cost and product margin per gallon excludes the impact of derivatives. Butane Sales and Cost of Sales-Excluding Impact of Derivatives. The decreases in sales and cost of sales, excluding the impact of derivatives, were due primarily to lower butane prices and volumes during the year ended March 31, 2026, compared to the year ended March 31, 2025. Butane product margins, excluding the impact of derivatives, decreased during the year ended March 31, 2026, compared to the year ended March 31, 2025 due to a weak gasoline blending season in certain markets and higher-priced inventory sold into a declining market. Propane Sales and Cost of Sales-Excluding Impact of Derivatives. The decreases in sales and cost of sales, excluding the impact of derivatives, were due primarily to the Wholesale Propane Disposition. Propane product margins, excluding the impact of derivatives, decreased during the year ended March 31, 2026, compared to the year ended March 31, 2025 primarily due to the Wholesale Propane Disposition. In addition, margins were negatively impacted due to selling higher-priced inventory into a declining market early in the year. Other Products Sales and Cost of Sales-Excluding Impact of Derivatives. The decreases in sales and cost of sales, excluding the impact of derivatives, were due primarily to decreased commodity prices during the year ended March 31, 2026, compared to the year ended March 31, 2025, partially offset by increased volumes. Other products sales product margins, excluding the impact of derivatives, decreased during the year ended March 31, 2026, compared to the year ended March 31, 2025 primarily due to lower commodity prices and lower asphalt volumes and margins due to tighter supply. Service Sales and Cost of Sales. The sales include storage, terminaling and transportation services income. Sales and cost of sales decreased during the year ended March 31, 2026 due to the Wholesale Propane Disposition and the expiration of a throughput agreement during the year ended March 31, 2025. Operating and General and Administrative Expenses. The decrease during the year ended March 31, 2026 compared to the year ended March 31, 2025 was primarily due to the Wholesale Propane Disposition. Depreciation and Amortization Expense. The decrease during the year ended March 31, 2026 compared to the year ended March 31, 2025 was primarily due to the Wholesale Propane Disposition. (Gain) Loss on Disposal or Impairment of Assets, Net. During the year ended March 31, 2026, we recorded a net gain of $17.1 million due to the Wholesale Propane Disposition. We also recorded a net loss of $1.6 million related to the impairment of certain right-of-use assets. During the year ended March 31, 2025, we recorded a net loss of $22.6 million. 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). We also recorded a net loss of $7.3 million due to costs incurred related to the Wholesale Propane Disposition 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. 63 Corporate and Other The operating loss within “Corporate and Other” includes the following components for the periods indicated: Year Ended March 31, 2026 2025 Change (in thousands) Revenues: Service revenues $ 422 $ 401 $ 21 Expenses: General and administrative expenses 59,145 39,592 19,553 Depreciation and amortization expense 3,251 3,027 224 (Gain) loss on disposal or impairment of assets, net (2) 43 (45) Total expenses 62,394 42,662 19,732 Operating loss $ (61,972) $ (42,261) $ (19,711) Adjusted EBITDA - Continuing Operations (1) $ (46,947) $ (38,846) $ (8,101) (1) See Adjusted EBITDA definition and reconciliation in “Non-GAAP Financial Measures” section below. Service Revenues. These revenues relate to billings to the noncontrolling interest holders for usage of the airplanes acquired in June and October 2024. General and Administrative Expenses . The increase was primarily due to the addition of equity-based compensation expense related to awards granted under the 2025 Long-Term Incentive Plan (“2025 Plan”) (see Note 9 to our consolidated financial statements included in this Annual Report), increased legal expenses due primarily to a reimbursement of legal expenses related to a dispute associated with commercial activities received in the prior year and lower allocations of overhead expenses to the other business segments during the year ended March 31, 2026 due to recent disposition transactions. Depreciation and Amortization Expense. The increase during the year ended March 31, 2026 was due to depreciation of the two airplanes put into service during the year ended March 31, 2025. (Gain) Loss on Disposal or Impairment of Assets, Net. During the year ended March 31, 2026, we recorded a gain of less than $0.1 million on the sale of a vehicle. During the year ended March 31, 2025, we recorded a loss of less than $0.1 million due to the write-off of information technology equipment. Interest Expense The following table summarizes the components of our consolidated interest expense for the periods indicated: Year Ended March 31, 2026 2025 Change (in thousands) Senior secured notes $ 180,567 $ 182,000 $ (1,433) 2024 Term Loan B 51,203 63,118 (11,915) ABL Facility 9,286 20,893 (11,607) 2026 Term Loan B 3,788 — 3,788 Other indebtedness 1,356 1,630 (274) Total debt interest expense 246,200 267,641 (21,441) Amortization of debt issuance costs 12,582 12,010 572 Unrealized (gain) loss on interest rate swaps (1,369) 3,054 (4,423) Realized loss (gain) on interest rate swaps 77 (2,627) 2,704 Total interest expense $ 257,490 $ 280,078 $ (22,588) The debt interest expense decreased $21.4 million during the year ended March 31, 2026 primarily due to a lower weighted average daily balance on the ABL Facility and lower interest rates on the 2024 Term Loan B for the year ended March 31, 2026 compared to the year ended March 31, 2025. 64 Segment Operating Results for the Years Ended March 31, 2025 and 2024 Water Solutions The following table summarizes the operating results of our Water Solutions segment for the periods indicated. Year Ended March 31, 2025 2024 Change (in thousands, except per barrel and per day amounts) Revenues: Water disposal service fees (1) $ 599,870 $ 572,972 $ 26,898 Sale of recovered crude oil 109,008 107,367 1,641 Recycled water (2) 7,544 9,785 (2,241) Other revenues (1)(2) 39,265 40,694 (1,429) Total revenues 755,687 730,818 24,869 Expenses: Cost of sales-excluding impact of derivatives 7,848 10,146 (2,298) Cost of sales-derivative loss-unrealized 4,953 385 4,568 Cost of sales-derivative (gain) loss-realized (9,954) 763 (10,717) Operating expenses 214,928 212,052 2,876 General and administrative expenses 6,120 5,417 703 Depreciation and amortization expense 217,227 214,480 2,747 Loss on disposal or impairment of assets, net 9,813 53,639 (43,826) Revaluation of liabilities (6,705) 2,680 (9,385) Total expenses 444,230 499,562 (55,332) Segment operating income $ 311,457 $ 231,256 $ 80,201 Adjusted EBITDA - Continuing Operations (3) $ 541,996 $ 508,308 $ 33,688 Produced water processed (barrels per day) Delaware Basin 2,303,142 2,123,337 179,805 Eagle Ford Basin 175,251 142,374 32,877 DJ Basin 146,956 150,426 (3,470) Other Basins — 740 (740) Total 2,625,349 2,416,877 208,472 Recycled water (barrels per day) 116,058 84,212 31,846 Total (barrels per day) 2,741,407 2,501,089 240,318 Skim oil sold (barrels per day) (4) 4,268 3,992 276 Service fees for produced water processed ($/barrel) (5)(6) $ 0.63 $ 0.65 $ (0.02) Recovered crude oil for produced water processed ($/barrel) (5) $ 0.11 $ 0.12 $ (0.01) Operating expenses for produced water processed ($/barrel) (5) $ 0.22 $ 0.24 $ (0.02) (1) Water disposal service fees and Other revenues in the table above differ from the amounts reported in Note 11 to our consolidated financial statements included in this Annual Report, as the amounts in Note 11 are disaggregated by the performance obligations with type of contract and service provided and the timing of the transfer of goods and services, while the amount above is presented based on how management reviews performance. In the table above, revenues from reimbursements from construction projects, booster operating fees and generator rentals and pipeline revenue are included in Other revenues, while in Note 11 the amounts are included in Water disposal service fees. (2) Recycled water in the table above differs from the amount of Sale of Water reported in Note 11 to our consolidated financial statements included in this Annual Report, as the amounts in Note 11 are disaggregated by the performance obligations with type of contract and service provided and the timing of the transfer of goods and services, while the amount above is presented based on how management reviews performance. In Note 11, Sale of Water includes the sale of produced water, recycled water and brackish non-potable water, which in the table above, brackish non-potable water is included in Other revenues. (3) See Adjusted EBITDA definition and reconciliation in “Non-GAAP Financial Measures” section below. (4) As of March 31, 2023, approximately 34,380 barrels of skim oil were stored and were sold during the year ended March 31, 2024. (5) Total produced water barrels processed during the years ended March 31, 2025 and 2024 were 958,252,275 and 884,576,981, respectively. 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. In 65 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. (6) 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. The increase was due primarily to an increase in produced water volumes processed from contracted customers and higher fees charged for interruptible spot volumes. 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. There was also a decrease in payments made by certain producers for committed volumes not delivered. 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. 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. 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. 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. 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). We also had lower reimbursements from construction projects, booster operating fees and generator rentals. These decreases were partially offset by higher water pipeline revenue, including payments from a producer for committed volumes not delivered, due to our LEX II Expansion commencing operations during the three months ended December 31, 2024. Cost of Sales-Excluding Impact of Derivatives . 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. Operating and General and Administrative Expenses . The increase was due primarily to higher royalty expense due to volumes related to the LEX II Expansion 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. 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 . 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 years ended March 31, 2024 and 2025. Loss on Disposal or Impairment of Assets, Net. During the year ended March 31, 2025, we recorded: • a net loss of $15.1 million primarily related to writing down the net book value of certain saltwater disposal wells and capital projects due to abandonment and the retirement of certain other assets; • 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); • 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); • a gain of $6.5 million from insurance recoveries for certain saltwater disposal facilities and boosters damaged in a prior period; and • a loss of $3.4 million 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. 66 During the year ended March 31, 2024, we recorded: • a net loss of $37.5 million primarily related to writing down the net book value of certain saltwater disposal wells and capital projects due to abandonment and the retirement of certain assets; • a net loss of $17.6 million primarily related to the sale of certain assets; • a gain of $3.9 million from insurance recoveries for certain saltwater disposal facilities and boosters damaged in a prior period; and • an impairment of $2.4 million for certain leases due to underutilization of certain freshwater wells. Revaluation of Liabilities. Revaluation of liabilities includes the valuation of our contingent consideration liabilities related to royalty agreements acquired as part of certain business combinations. During the year ended March 31, 2025, there was a decrease in expense due primarily to lower expected produced water volumes from our customers, resulting in a decrease to the expected future royalty payment. During the year ended March 31, 2024, there was an increase in expense due primarily to higher expected production from new customers, resulting in an increase to the expected future royalty payment. Crude Oil Logistics The following table summarizes the operating results of our Crude Oil Logistics segment for the periods indicated: Year Ended March 31, 2025 2024 Change (in thousands, except per barrel amounts) Revenues: Crude oil sales $ 806,653 $ 1,597,238 $ (790,585) Crude oil transportation and other sales 73,249 59,373 13,876 Total revenues 879,902 1,656,611 (776,709) Expenses: Cost of sales-excluding impact of derivatives 771,526 1,514,370 (742,844) Cost of sales-derivative (gain) loss -unrealized (4,664) 65,786 (70,450) Cost of sales-derivative loss (gain) -realized 1,792 (58,419) 60,211 Operating expenses 38,408 39,004 (596) General and administrative expenses 2,673 3,780 (1,107) Depreciation and amortization expense 25,070 36,922 (11,852) (Gain) loss on disposal or impairment of assets, net (1,004) 3,094 (4,098) Total expenses 833,801 1,604,537 (770,736) Segment operating income $ 46,101 $ 52,074 $ (5,973) Adjusted EBITDA - Continuing Operations (1) $ 66,373 $ 86,887 $ (20,514) Crude oil sold (barrels) 10,412 20,068 (9,656) Crude oil transported on owned pipelines (barrels) 22,238 25,611 (3,373) Crude oil storage capacity - owned and leased (barrels) (2) 5,232 5,232 — Crude oil storage capacity leased to third-parties (barrels) (2) 1,650 2,250 (600) Crude oil inventory (barrels) (2) 339 573 (234) Crude oil sold ($/barrel) $ 77.473 $ 79.591 $ (2.118) Cost per crude oil sold ($/barrel) (3) $ 74.100 $ 75.462 $ (1.362) Crude oil product margin ($/barrel) (3) $ 3.373 $ 4.129 $ (0.756) (1) See Adjusted EBITDA definition and reconciliation in “Non-GAAP Financial Measures” section below. (2) Information is presented as of March 31, 2025 and March 31, 2024, respectively. (3) Cost and product margin per barrel excludes the impact of derivatives. Crude Oil Sales and Cost of Sales-Excluding Impact of Derivatives. 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. Lower crude oil prices also contributed to the decrease. 67 During the year ended March 31, 2025, the crude oil product margin decreased primarily due to lower volumes as discussed further above. 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. 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 of the remaining pipeline transportation deficiency credits included in gross margin during the year ended March 31, 2025. Crude oil product margin calculations do not include gains and losses from derivatives that may offset the movement in the physical margin. Crude Oil Transportation and Other Sales. 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. 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. 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 were approximately 61,000 barrels per day, compared to approximately 70,000 barrels per day for the year ended March 31, 2024. 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 . 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. 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. 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. The decrease was primarily due to certain assets becoming fully depreciated during the year ended March 31, 2024. (Gain) Loss on Disposal or Impairment of Assets, Net . 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. 68 Liquids Logistics The following table summarizes the operating results of our Liquids Logistics segment for the periods indicated. As discussed above, the operating results of our refined products and biodiesel businesses have been classified as discontinued operations and prior periods have been retrospectively adjusted. 69 Year Ended March 31, 2025 2024 Change (in thousands, except per gallon amounts) Butane: Sales $ 649,452 $ 628,685 $ 20,767 Cost of sales-excluding impact of derivatives 606,694 587,307 19,387 Cost of sales-derivative (gain) loss-unrealized (588) 3,238 (3,826) Cost of sales-derivative loss (gain)-realized 14,724 (467) 15,191 Product margin 28,622 38,607 (9,985) Propane: Sales 755,646 739,591 16,055 Cost of sales-excluding impact of derivatives 721,372 692,649 28,723 Cost of sales-derivative loss (gain)-unrealized 2,973 (4,571) 7,544 Cost of sales-derivative (gain) loss-realized (4,482) 7,034 (11,516) Product margin 35,783 44,479 (8,696) Other products: Sales-excluding impact of derivatives 414,985 383,998 30,987 Cost of sales-excluding impact of derivatives 393,935 367,293 26,642 Cost of sales-derivative loss-unrealized 38 104 (66) Cost of sales-derivative gain-realized (310) (79) (231) Product margin 21,322 16,680 4,642 Service: Sales 13,529 14,151 (622) Cost of sales 1,636 1,379 257 Product margin 11,893 12,772 (879) Expenses: Operating expenses 44,350 48,549 (4,199) General and administrative expenses 7,208 7,281 (73) Depreciation and amortization expense 9,408 9,963 (555) Loss on disposal or impairment of assets, net 22,596 59,923 (37,327) Total expenses 83,562 125,716 (42,154) Segment operating income (loss) $ 14,058 $ (13,178) $ 27,236 Adjusted EBITDA - Continuing Operations (1) $ 53,369 $ 53,287 $ 82 Natural gas liquids storage capacity - owned and leased (gallons) (2) 52,721 122,831 (70,110) Butane sold (gallons) 516,202 537,015 (20,813) Butane sold ($/gallon) $ 1.258 $ 1.171 $ 0.087 Cost per butane sold ($/gallon) (3) $ 1.175 $ 1.094 $ 0.081 Butane product margin ($/gallon) (3) $ 0.083 $ 0.077 $ 0.006 Butane inventory (gallons) (2) 21,871 17,790 4,081 Propane sold (gallons) 760,287 811,035 (50,748) Propane sold ($/gallon) $ 0.994 $ 0.912 $ 0.082 Cost per propane sold ($/gallon) (3) $ 0.949 $ 0.854 $ 0.095 Propane product margin ($/gallon) (3) $ 0.045 $ 0.058 $ (0.013) Propane inventory (gallons) (2) 11,833 35,177 (23,344) Other products sold (gallons) 277,495 263,422 14,073 Other products sold ($/gallon) $ 1.495 $ 1.458 $ 0.037 Cost per other products sold ($/gallon) (3) $ 1.420 $ 1.394 $ 0.026 Other products product margin ($/gallon) (3) $ 0.075 $ 0.064 $ 0.011 Other products inventory (gallons) (2) 8,556 5,623 2,933 (1) See Adjusted EBITDA definition and reconciliation in “Non-GAAP Financial Measures” section below. 70 (2) Information is presented as of March 31, 2025 and March 31, 2024, respectively. (3) Cost and product margin (loss) per gallon excludes the impact of derivatives. Butane Sales and Cost of Sales-Excluding Impact of Derivatives. 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. 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. Propane Sales and Cost of Sales-Excluding Impact of Derivatives. 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. Propane volumes decreased during the year ended March 31, 2025 due to lower contracted volumes and reduced retail customer demand. Propane product margins, excluding the impact of derivatives, decreased during the year ended March 31, 2025 primarily due to lower volumes. 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. 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. Other Products Sales and Cost of Sales-Excluding Impact of Derivatives. The increases in sales and cost of sales, excluding the impact of derivatives, were primarily due to an increase in prices and volumes. 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. 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. Service Sales and Cost of Sales. The sales include storage, terminaling and transportation services income. 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. 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. 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. During the year ended March 31, 2025, we recorded a net loss of $22.6 million. 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). We also recorded a net loss of $7.3 million due to costs incurred related to the Wholesale Propane Disposition 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. 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). 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. 71 Corporate and Other The operating loss within “Corporate and Other” includes the following components for the periods indicated: Year Ended March 31, 2025 2024 Change (in thousands) Revenues: Service revenues $ 401 $ — $ 401 Expenses: Cost of sales-derivative gain-unrealized (1) — (1,179) 1,179 Cost of sales-derivative loss-realized (1) — 242 (242) General and administrative expenses 39,592 105,147 (65,555) Depreciation and amortization expense 3,027 4,749 (1,722) Loss (gain) on disposal or impairment of assets, net 43 (720) 763 Total expenses 42,662 108,239 (65,577) Operating loss $ (42,261) $ (108,239) $ 65,978 Adjusted EBITDA - Continuing Operations (2) $ (38,846) $ (55,068) $ 16,222 (1) 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. (2) See Adjusted EBITDA definition and reconciliation in “Non-GAAP Financial Measures” section below. Service Revenues. These revenues relate to billings to the noncontrolling interest holders for usage of the airplanes acquired in June and October 2024. General and Administrative Expenses . 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 legal matter (see Note 8 to our consolidated financial statements included in this Annual Report). 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. Compensation expense was also lower due to the elimination of the equity-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. Loss (Gain) on Disposal or Impairment of Assets, Net. During the year ended March 31, 2025, we recorded a 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. 72 Interest Expense The following table summarizes the components of our consolidated interest expense for the periods indicated: Year Ended March 31, 2025 2024 Change (in thousands) Senior secured notes $ 182,000 $ 160,088 $ 21,912 2024 Term Loan B 63,118 11,275 51,843 ABL Facility 20,893 15,645 5,248 Senior unsecured notes — 40,829 (40,829) Other indebtedness 1,630 26,781 (25,151) Total debt interest expense 267,641 254,618 13,023 Amortization of debt issuance costs 12,010 15,701 (3,691) Unrealized loss (gain) on interest rate swaps 3,054 (515) 3,569 Realized gain on interest rate swaps (2,627) — (2,627) Total interest expense $ 280,078 $ 269,804 $ 10,274 The debt interest expense increased $13.0 million during the year ended March 31, 2025 primarily due to higher interest rates on the 2024 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”). This was partially offset by the repurchase/redemption of the 6.125% senior unsecured notes due 2025 and the redemption of the 7.5% senior unsecured notes due 2026 (collectively, the “Senior Unsecured Notes”) during the year ended March 31, 2024. 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). Non-GAAP Financial Measures In addition to financial results reported in accordance with accounting principles generally accepted in the United States (“GAAP”), we have provided the non-GAAP financial measures of EBITDA and Adjusted EBITDA. These non-GAAP financial measures are not intended to be a substitute for those reported in accordance with GAAP. These measures may be different from non-GAAP financial measures used by other entities, even when similar terms are used to identify such measures. We define EBITDA as net income (loss) attributable to NGL Energy Partners LP, plus interest expense, income tax expense (benefit), and depreciation and amortization expense. 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. EBITDA and Adjusted EBITDA should not be considered as alternatives to net (loss) income, (loss) income 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. We believe that Adjusted EBITDA provides additional information to investors for evaluating our financial performance without regard to our financing methods, capital structure and historical cost basis. 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. For purposes of our Adjusted EBITDA calculation, we make a distinction between realized and unrealized gains and losses on derivatives. 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. 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. To eliminate the volatility of the CMA Differential Roll, we entered into derivative instrument positions in January 2021 to secure a margin of approximately $0.20 per barrel on 1.5 million barrels per month from May 2021 through December 2023. Due to the nature of these positions, the cash flow and earnings recognized on a GAAP basis differed from period to period depending on the current crude oil price and future estimated crude oil price which were valued utilizing third-party market quoted prices. We recognized in Adjusted EBITDA the gains and losses from the derivative instrument positions entered into in January 2021 to 73 properly align with the physical margin we hedged each month through the term of this transaction. This representation aligns with management’s evaluation of the transaction. 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. 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. 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. 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. 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. 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. 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. If this change was made as of April 1, 2023, Adjusted EBITDA for the year ended March 31, 2024 would have been $609.5 million. The following table reconciles net (loss) income to EBITDA and Adjusted EBITDA for the periods indicated: Year Ended March 31, 2026 2025 2024 (in thousands) Net (loss) income $ (139,163) $ 43,163 $ (143,124) Less: Net income from continuing operations attributable to nonredeemable noncontrolling interests (3,376) (3,749) (631) Less: Net loss (income) from continuing operations attributable to redeemable noncontrolling interests 244 (46) — Net (loss) income attributable to NGL Energy Partners LP (142,295) 39,368 (143,755) Interest expense 257,406 280,241 270,004 Income tax (benefit) expense (260) (4,775) 2,405 Depreciation and amortization 253,263 253,190 266,287 EBITDA 368,114 568,024 394,941 Net unrealized losses on derivatives (1) 36,462 21,782 63,762 Lower of cost or net realizable value adjustments (2) (2,890) (1,619) 1,337 Loss on disposal or impairment of assets, net (3) 218,010 33,705 115,555 Revaluation of liabilities 4,415 (6,705) 2,680 Loss on early extinguishment of liabilities, net 16,749 — 55,281 Equity-based compensation expense 11,206 — 1,098 CMA Differential Roll net losses (gains) (4) — — (71,285) Inventory valuation adjustment (5) — — (3,419) Other (6) 9,238 2,572 50,131 Adjusted EBITDA $ 661,304 $ 617,759 $ 610,081 Adjusted EBITDA - Discontinued Operations (7) $ 1,101 $ (5,133) $ 16,667 Adjusted EBITDA - Continuing Operations $ 660,203 $ 622,892 $ 593,414 (1) Due to the conflict between the United States and Iran, crude oil prices increased significantly during the month of March 2026. To better match the movement of inventory and derivative losses with the physical gains recognized by our Crude Oil Logistics segment in March 2026 and April 2026 and to align with how management evaluated these transactions, approximately $4.0 million of losses from settled contracts are included within this amount. (2) 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. (3) Excludes amounts related to unconsolidated entities and noncontrolling interests. 74 (4) 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. See “Non-GAAP Financial Measures” section above for a further discussion. (5) Amounts represent the difference between the market value of the inventory at the balance sheet date and its cost. See “Non-GAAP Financial Measures” section above for a further discussion. (6) Amounts represent accretion expense for asset retirement obligations, unrealized gains and losses on investments and marketable securities, a loss from a legal dispute 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. For the year ended March 31, 2026, the amount includes the difference in value recorded to cost of sales-product related to the misclassification of line fill within inventories (see Note 2 to our consolidated financial statements included in this Annual Report). (7) 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: Year Ended March 31, 2026 2025 2024 (in thousands) Depreciation and amortization per EBITDA table $ 253,263 $ 253,190 $ 266,287 Intangible asset amortization recorded to cost of sales-service (1,068) — — Intangible asset amortization recorded to cost of sales-product — (257) — Depreciation and amortization attributable to unconsolidated entities (24) (426) (686) Depreciation and amortization attributable to noncontrolling interests 2,660 2,708 1,182 Depreciation and amortization attributable to discontinued operations — (483) (669) Depreciation and amortization per consolidated statements of operations $ 254,831 $ 254,732 $ 266,114 Depreciation and amortization per EBITDA table $ 253,263 $ 253,190 $ 266,287 Amortization of debt issuance costs recorded to interest expense 12,582 12,010 15,701 Amortization of royalty expense recorded to operating expense 247 247 247 Depreciation and amortization attributable to unconsolidated entities (24) (426) (686) Depreciation and amortization attributable to noncontrolling interests 2,660 2,708 1,182 Depreciation and amortization attributable to discontinued operations — (483) (669) Depreciation and amortization per consolidated statements of cash flows $ 268,728 $ 267,246 $ 282,062 The following table summarizes additional amounts attributable to discontinued operations in the EBITDA and Adjusted EBITDA table above for the periods indicated: Year Ended March 31, 2026 2025 2024 (in thousands) Income tax expense $ 16 $ 110 $ 947 Net unrealized (gains) losses on derivatives $ (16) $ 18,416 $ — Lower of cost or realizable value adjustments $ — $ (4,535) $ 3,745 (Gain) loss on disposal or impairment of assets, net $ (38,290) $ 1,995 $ — Inventory valuation adjustment $ — $ — $ (3,419) Other $ 46 $ — $ 1 75 The following tables reconcile operating income (loss) to Adjusted EBITDA by segment for the periods indicated. Year Ended March 31, 2026 Water Solutions Crude Oil Logistics Liquids Logistics Corporate and Other Continuing Operations Discontinued Operations Consolidated (in thousands) Operating income (loss) $ 335,366 $ (226,892) $ 48,231 $ (61,972) $ 94,733 $ — $ 94,733 Depreciation and amortization 221,048 24,331 6,201 3,251 254,831 — 254,831 Amortization in cost of sales-service 1,068 — — — 1,068 — 1,068 Net unrealized losses on derivatives 21,573 5,604 9,301 — 36,478 — 36,478 Lower of cost or net realizable value adjustments — — (2,890) — (2,890) — (2,890) Loss (gain) on disposal or impairment of assets, net 20,114 251,761 (15,551) (2) 256,322 — 256,322 Equity-based compensation expense — — — 11,206 11,206 — 11,206 Other income (expense), net 4,352 (873) (284) (2,669) 526 — 526 Adjusted EBITDA attributable to unconsolidated entities 221 — 4 — 225 — 225 Adjusted EBITDA attributable to noncontrolling interest (6,012) — — 40 (5,972) — (5,972) Revaluation of liabilities 4,415 — — — 4,415 — 4,415 Other 581 5,010 471 3,199 9,261 — 9,261 Discontinued operations — — — — — 1,101 1,101 Adjusted EBITDA $ 602,726 $ 58,941 $ 45,483 $ (46,947) $ 660,203 $ 1,101 $ 661,304 Year Ended March 31, 2025 Water Solutions Crude Oil Logistics Liquids Logistics Corporate and Other Continuing Operations Discontinued Operations Consolidated (in thousands) Operating income (loss) $ 311,457 $ 46,101 $ 14,058 $ (42,261) $ 329,355 $ — $ 329,355 Depreciation and amortization 217,227 25,070 9,408 3,027 254,732 — 254,732 Amortization in cost of sales-product — — 257 — 257 — 257 Net unrealized losses (gains) on derivatives 4,953 (4,011) 2,424 — 3,366 — 3,366 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 Other income, net 485 1 1,518 2,258 4,262 — 4,262 Adjusted EBITDA attributable to unconsolidated entities 7,044 — (51) — 6,993 — 6,993 Adjusted EBITDA attributable to noncontrolling interest (6,196) — — (178) (6,374) — (6,374) Revaluation of liabilities (6,705) — — — (6,705) — (6,705) Other 3,918 216 243 (1,735) 2,642 — 2,642 Discontinued operations — — — — — (5,133) (5,133) Adjusted EBITDA $ 541,996 $ 66,373 $ 53,369 $ (38,846) $ 622,892 $ (5,133) $ 617,759 76 Year Ended March 31, 2024 Water Solutions Crude Oil Logistics Liquids Logistics Corporate and Other Continuing Operations Discontinued Operations Consolidated (in thousands) Operating income (loss) $ 231,256 $ 52,074 $ (13,178) $ (108,239) $ 161,913 $ — $ 161,913 Depreciation and amortization 214,480 36,922 9,963 4,749 266,114 — 266,114 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) Lower of cost or net realizable value adjustments — — (2,408) — (2,408) — (2,408) Loss (gain) on disposal or impairment of assets, net 53,639 3,094 59,923 (720) 115,936 — 115,936 Equity-based compensation expense — — — 1,098 1,098 — 1,098 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 Adjusted EBITDA attributable to noncontrolling interest (1,821) — — — (1,821) — (1,821) Revaluation of liabilities 2,680 — — — 2,680 — 2,680 Other 2,186 191 228 47,533 50,138 — 50,138 Discontinued operations — — — — — 16,667 16,667 Adjusted EBITDA $ 508,308 $ 86,887 $ 53,287 $ (55,068) $ 593,414 $ 16,667 $ 610,081 Liquidity, Sources of Capital and Capital Resource Activities General 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. 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. 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. In addition, our working capital borrowing needs vary with changes in commodity prices. A significant increase in commodity prices could drive up our working capital demands and limit our ability to continue to delever our balance sheet and restrict our financial flexibility. To protect our liquidity and leverage, we have in the past and may in the future enter into economic hedges that mitigate this exposure when we are building inventory. There were no open financial derivative contracts for the purpose of an economic hedge of our physical inventory volumes as of March 31, 2026. Cash Management We manage cash by utilizing a centralized cash management program that concentrates the cash assets of our operating subsidiaries in joint accounts for the purposes of providing financial flexibility and lowering the cost of borrowing, transaction costs and bank fees. Our centralized cash management program provides that funds in excess of the daily needs of our operating subsidiaries are concentrated, consolidated or otherwise made available for use within our consolidated group. All of our wholly-owned operating subsidiaries participate in this program. Under the cash management program, depending on whether a participating subsidiary has short-term cash surpluses or cash requirements, we provide cash to the subsidiary or the subsidiary provides cash to us. 77 Short-Term Liquidity Our principal sources of short-term liquidity consist of cash flows from our operations and borrowings under the ABL Facility, which we believe will provide liquidity to operate our business, manage our working capital requirements and repay current maturities. On March 12, 2026, we amended the ABL Facility to (i) reduce our total commitments to $425.0 million, (ii) reduce our sub-limit for letters of credit to $100.0 million, (iii) reduce the applicable margin for alternate base rate loans to a range of 1.00% to 1.50% and (iv) reduce the applicable margin for secured overnight financing rate (“SOFR”) to a range of 2.00% to 2.50%. At March 31, 2026, $135.0 million was outstanding under the ABL Facility, letters of credit outstanding were $60.6 million, and we had a borrowing base of $388.7 million. The ABL Facility is scheduled to mature at the earliest of (a) February 2, 2029, or (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. For additional information related to the ABL Facility and the amendment, see Note 7 to our consolidated financial statements included in this Annual Report. As of March 31, 2026, our current assets exceeded our current liabilities by approximately $34.5 million. Long-Term Financing 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. 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. 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. 2026 Term Loan B On March 12, 2026, we entered into a new seven-year $950.0 million 2026 Term Loan B. The 2026 Term Loan B matures on March 11, 2033 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. The amount outstanding at March 31, 2026 is $950.0 million. For additional information related to our long-term debt, see Note 7 to our consolidated financial statements included in this Annual Report. Capital Expenditures, Acquisitions and Other Investments The following table summarizes expansion, maintenance and other non-cash capital expenditures (which excludes additions for tank bottoms and linefill and has been prepared on the accrual basis) and other investments for the periods indicated. Capital Expenditures Other Year Ended March 31, Expansion Maintenance Other (1) Investments (2) (in thousands) 2026 $ 190,401 $ 46,084 $ — $ — 2025 $ 175,730 $ 69,500 $ 20 $ 106 2024 $ 99,533 $ 54,854 $ 15,680 $ 258 (1) Amount for the year ended March 31, 2025 is related to a transaction classified as an acquisition of assets in a prior period. 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. See Note 17 to our consolidated financial statements included in this Annual Report for information regarding the acquisition of assets. (2) Amounts relate to contributions made to unconsolidated entities. 78 There were no acquisitions during the years ended March 31, 2026, 2025 or 2024. Capital expenditures for the year ending March 31, 2027 are expected to be approximately $200 million for growth and $45 million for maintenance. Distributions Declared On March 18, 2026, the board of directors of our GP declared a cash distribution for the quarter ended March 31, 2026 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 Class D Preferred Units (“Class D Preferred Units”). The total distribution of $18.8 million was made on April 15, 2026 to the holders of record at the close of trading on April 1, 2026. 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. See further discussion of our cash distribution policy in Part II, Item 5–“Market for Registrant’s Common Equity, Related Unitholder Matters and Issuer Purchases of Equity Securities” included in this Annual Report. For additional information related to the payment of distributions, see Note 9 to our consolidated financial statements included in this Annual Report. Contractual Obligations Our contractual obligations primarily consist of purchase commitments, outstanding debt principal and interest obligations, operating lease obligations, finance lease obligations, asset retirement obligations and other commitments. Purchase Commitments Our fixed-price and index-price commodity purchase commitments result from contracts we have entered into for which we expect the parties to physically settle and deliver the inventory in future periods. As of March 31, 2026, our purchase commitments totaled $2.6 billion, with $1.8 billion due within one year. See Note 8 to our consolidated financial statements included in this Annual Report for information regarding our commodity purchase commitments and timing of our expected purchase commitments payments. Debt Principal and Interest Obligations As of March 31, 2026, our outstanding long-term debt was $3.3 billion, with $11.5 million due within one year. Our interest obligation on the debt was $1.3 billion, with $250.0 million due within one year, based on our outstanding balances and interest rates as of March 31, 2026. See Note 7 to our consolidated financial statements included in this Annual Report for information regarding our outstanding debt principal and interest obligations and timing of our expected debt principal and interest payments. Operating Lease Obligations As of March 31, 2026, our undiscounted operating lease obligation was $142.6 million, with $40.9 million due within one year. 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. Finance Lease Obligations As of March 31, 2026, our undiscounted finance lease obligation was $8.0 million, with $3.2 million due within one year. 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. 79 Asset Retirement Obligations We have contractual and regulatory obligations at certain facilities for which we have to perform remediation, dismantlement or removal activities when the assets are retired. As of March 31, 2026, our asset retirement obligations were $76.3 million and we do not expect to settle any asset retirement obligations during fiscal year 2027. See Note 8 to our consolidated financial statements included in this Annual Report for information regarding our asset retirement obligations. Other Commitments We have noncancelable agreements for product storage, railcar spurs, capital projects and real estate. As of March 31, 2026, our commitment obligations were $18.2 million, with $6.4 million due within one year. 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. Sources (Uses) of Cash 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): Cash Flow Year Ended March 31, Category 2026 2025 2024 (in thousands) Sources of cash and cash equivalents: Net cash provided by operating activities-continuing operations Operating $ 350,317 $ 256,850 $ 361,818 Issuance of secured debt (see Note 7) Financing 945,286 — 2,894,873 Proceeds from divestitures of businesses and investments, net (see Note 17) Investing 88,639 72,246 16,000 Proceeds from sales of assets (see Note 17) Investing 72,672 42,819 53,246 Net proceeds from borrowings under ABL Facility (see Note 7) Financing 26,000 109,000 — Proceeds from borrowings on other long-term debt (see Note 7) Financing — 12,720 — Uses of cash and cash equivalents: Payments on 2024 Term Loan B (see Note 7) Financing (693,000) (7,000) — Class D preferred unit repurchases (see Note 9) Financing (422,502) — — Capital expenditures (see Note 11) Investing (221,278) (245,816) (152,295) Distributions to preferred unitholders (see Note 9) Financing (113,486) (305,291) (178,299) Common unit repurchases and cancellations (see Note 9) Financing (47,649) (2,126) (84) Net settlements of derivatives (see Note 10) Investing (24,226) (246) (6,185) Debt issuance costs (see Note 6 and Note 7) Financing (17,955) (5,258) (53,170) Repayment and repurchase of senior notes (see Note 7) Financing (17,274) — (2,781,067) Payments on other long-term debt (see Note 7) Financing (1,805) (1,068) — Warrant repurchases (see Note 9) Financing — (6,929) — Net payments on borrowings under ABL Facility (see Note 7) Financing — — (138,000) Other sources / (uses) – net Investing and Financing (4,228) (66) (2,868) Net (decrease) increase in cash and cash equivalents-continuing operations $ (80,489) $ (80,165) $ 13,969 Operating Activities-Continuing Operations. The increase in net cash provided by operating activities during the year ended March 31, 2026 was due primarily to higher earnings from operations (excluding non-cash items) and fluctuations in working capital, particularly accounts receivable and accounts payable, due to higher crude oil volumes and lower crude oil prices, lower purchases and sales of natural gas liquids due to the Wholesale Propane Disposition and the timing of invoices and payments on construction projects. 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. Also, on June 13, 2024, we paid LCT $63.3 million related to the legal judgment 80 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). 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. 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. Recent Accounting Pronouncements For a discussion of recent accounting pronouncements that are applicable to us, see Note 2 to our consolidated financial statements included in this Annual Report. Critical Accounting Estimates The preparation of financial statements and related disclosures in conformity with GAAP requires the selection and application of appropriate accounting principles to the relevant facts and circumstances of our operations and the use of estimates made by management. We have identified the following more critical judgment areas in the application of our accounting policies that are most important to the portrayal of our consolidated financial position and results of operations. The application of these accounting policies, which requires subjective or complex judgments regarding estimates and projected outcomes of future events, and changes in these accounting policies, could have a material effect on our consolidated financial statements. Impairment of Goodwill The goodwill relating to each of our reporting units is tested for impairment annually as well as when an event or change in circumstances indicates an impairment may have occurred. For each reporting unit, we perform a qualitative assessment of relevant events and circumstances about the likelihood of goodwill impairment. If it is deemed more likely than not that the fair value of the reporting unit is less than its carrying value, we calculate the fair value of the reporting unit. Otherwise, further testing is not required. The qualitative assessment is based on reviewing several factors, including macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, other entity specific events (for example, changes in management) or other events such as selling or disposing of a reporting unit. The determination of a reporting unit’s fair value is predicated on our assumptions regarding the future economic prospects of the reporting unit. Such assumptions include (i) discrete financial forecasts for the assets contained within the reporting unit, which rely on management’s estimates of operating margins, (ii) long-term growth rates for cash flows beyond the discrete forecast period, (iii) appropriate discount rates and (iv) estimates of the cash flow multiples to apply in estimating the market value of our reporting units. 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. If the fair value of the reporting unit (including its inherent goodwill) is less than its carrying value, an impairment loss is recognized to the extent that the implied fair value of the goodwill of the reporting unit is less than its carrying value, limited to the total amount of goodwill for the reporting unit. 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. During the years ended March 31, 2026, 2025 and 2024, we recorded goodwill impairments of $247.8 million, $17.9 million and $69.2 million, respectively. See Note 5 to our consolidated financial statements included in this Annual Report for a further discussion of our goodwill impairment assessment. Impairment of Long-Lived Assets We evaluate the carrying value of our long-lived assets (property, plant and equipment and amortizable intangible assets) for potential impairment when events and circumstances warrant such a review. A long-lived asset group is considered impaired when the anticipated undiscounted future cash flows from the use and eventual disposition of the asset group is less than its carrying value. 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. 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. If the carrying value is not recoverable, an impairment loss is measured as the excess of the asset’s carrying value over its estimated fair value. When we cease to use an acquired trade name, we test the trade name for impairment using the 81 relief from royalty method and we begin amortizing the trade name over its estimated useful life as a defensive asset. 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. See Note 4 and Note 6 to our consolidated financial statements included in this Annual Report for a further discussion of our impairments of long-lived assets. Depreciation and Amortization Methods and Estimated Useful Lives of Property, Plant and Equipment and Intangible Assets Depreciation and amortization expense is the systematic write-off of the cost of our property, plant and equipment (net of residual or salvage value, if any) and the cost of our amortizable intangible assets to the results of operations for the quarterly and annual periods during which the assets are used. We depreciate our property, plant and equipment and amortize the majority of our intangible assets using the straight-line method, which results in our recording depreciation and amortization expense evenly over the estimated life of the individual asset. The estimate of depreciation and amortization expense requires us to make assumptions regarding the estimated useful lives and residual values of our assets. When we acquire and place our property, plant and equipment in service or acquire intangible assets, we develop assumptions about the estimated useful lives and residual values of such assets that we believe to be reasonable; however, circumstances may develop that could require us to change these assumptions in future periods, which would change our depreciation and amortization expense prospectively and have a material impact on our results of operations. Examples of such circumstances include changes in laws and regulations that limit the estimated economic life of an asset, changes in technology that render an asset obsolete, changes in expected salvage values or changes in customer attrition rates. See Note 2, Note 4 and Note 6 to our consolidated financial statements included in this Annual Report for a further discussion. Derivative Financial Instruments We record all derivative financial instrument contracts at fair value in our consolidated balance sheets except for normal purchase and normal sale transactions that are expected to result in physical delivery. 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 within cost of sales-product (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. 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. Actual amounts could vary materially from estimated fair values due to changes in market prices. In addition, changes in the methods or assumptions used to determine the fair value of our derivative financial instruments could have a material effect on our consolidated financial statements. See “Item 7A. Quantitative and Qualitative Disclosures About Market Risk–Commodity Price Risk” for the impact of a 10% increase in the underlying commodity value, “Item 7A. Quantitative and Qualitative Disclosures About Market Risk–Interest Rate Risk” for the impact of a 10% increase in the underlying interest rate swap value and Note 2 and Note 10 to our consolidated financial statements included in this Annual Report for a further discussion of our derivative financial instruments. Revenue Recognition Our Water Solutions segment has certain long-term contracts with customers that include variable consideration that must be estimated at contract inception and re-assessed at each reporting period. Total consideration for these arrangements is recognized as revenue over the applicable contract period and is based on our measure of satisfaction of our corresponding performance obligation, and the difference in timing of revenue recognition and billings results in contract assets and liabilities. The estimated performance obligation over the life of a contract includes significant judgments by management including volume and forecasted production information. 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. Asset Retirement Obligations We have contractual and regulatory obligations at certain facilities for which we have to perform remediation, dismantlement or removal activities when the assets are retired. Our largest asset retirement obligations involve the abandonment or removal of pipelines and saltwater and freshwater disposal wells. 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. In order to determine the fair 82 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. 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. These estimates and assumptions are very subjective and can vary over time. Our consolidated balance sheet at March 31, 2026 includes a liability of $76.3 million related to asset retirement obligations, which is reported within other noncurrent liabilities. In addition to the obligations described above, we may be obligated to remove facilities or perform other remediation upon retirement of certain other assets. However, the fair value of the asset retirement obligation cannot currently be reasonably estimated because the settlement dates are indeterminable. We will record an asset retirement obligation for these assets in the periods in which settlement dates are reasonably determinable. Contingent Consideration Liabilities 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. 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. 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. Cha nges in our assumptions and estimates may occur as a result of the passage of time and the occurrence of future events. Our consolidated balance sheet at March 31, 2026 includes a liability of $18.0 million related to contingent consideration liabilities, which is recorded within accrued expenses and other payables and other noncurrent liabilities. Acquisitions 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. Estimating fair values can be complex and subject to significant business judgment. We must also identify and include in the allocation all acquired tangible and intangible assets that meet certain criteria, including assets that were not previously recorded by the acquired entity. The estimates most commonly involve property, plant and equipment and intangible assets, including those with indefinite lives. The estimates also include the fair value of contracts including commodity purchase and sale agreements, storage contracts, and transportation contracts. The judgments made in the determination of the estimated fair value assigned to the assets acquired, the liabilities assumed and any noncontrolling interest in the investee, as well as the estimated useful life of each asset and the duration of each liability, can materially impact the financial statements in periods after the acquisition, such as through depreciation and amortization expense. While we believe we have made reasonable assumptions to calculate the fair value, 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. For a business combination, the excess of the purchase price over the net fair value of acquired assets and assumed liabilities is recorded as goodwill, which is not amortized but instead is evaluated for impairment at least annually. 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. Inventories 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 the weighted average cost method, 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. In performing this analysis, we consider fixed-price forward commitments. At the end of each fiscal year, we also perform a “lower of cost or net realizable value” analysis; if the cost basis of the inventories would not be recoverable based on the net realizable value at the end of the year, we reduce the book value of the inventories to the recoverable amount. When performing this analysis during interim periods within a fiscal year, accounting standards do not require us to record a lower of cost or net realizable value write-down if we expect the net realizable value to recover by our fiscal year end. The net realizable values of these commodities change on a daily basis as supply and demand conditions change. We are unable to control changes in the net realizable value of these commodities and are unable to determine whether write-downs will be required in future periods. 83