NGL Energy Partners LP Liquidation Value

NGL Energy Partners LP (NGL) presents a deeply negative liquidation value as of December 31, 2025, consistent with the MFFAIS-reported CLV of approximately -$3.66B, LLV of -$3.65B, and OLV of -$3.58B. The liability stack overwhelms recoverable assets under any haircut scenario. Total assets are $4.38B against total liabilities implied by the balance sheet structure anchored by $2.97B gross debt carrying value and $2.93B net long-term debt. The preferred and common equity accounts are already negative ($52.9M and -$194.7M respectively for GP and LP interests), confirming book insolvency absent intangible and goodwill value support.

Asset-side recovery is heavily impaired at liquidation. Goodwill of $599.3M receives zero recovery under the lens. Net intangibles of $820.0M (gross $1.20B, accumulated amortization $383.2M) also receive zero. PP&E net book value is not directly tagged in XBRL but accumulated D&A of $1.23B is observable; applying a 50-70% recovery to the net PP&E base produces a partial but insufficient offset. Liquid assets are thin: cash of $6.5M (100% recovery), AR gross $405.3M (90-95% recovery), inventory $78.8M (60% recovery). Operating lease ROU asset of $119.5M and finance lease ROU of roughly $7.4M receive minimal to zero recovery.

On the liability side, $2.97B gross debt stays at face value: $900M 8.125% 2029 Senior Secured Notes, $1.30B 8.375% 2032 Senior Secured Notes, and $687.8M Term Loan B (SOFR + 3.50%, matures 2031), plus $92M ABL drawn. Operating lease liabilities of $121.9M, finance lease liabilities of $7.4M, and ARO of $75.3M do not extinguish on windup. Contingent consideration of $14.0M and deferred revenue of $13.7M are additional claims at face. Accrued liabilities current of $139.2M and current liabilities total of $646.8M are also face-value obligations.

Versus the prior filing (September 30, 2025 10-Q), notable changes include: ABL drawn increased from $71M to $92M; Term Loan B declined modestly from $689.5M to $687.8M (scheduled amortization); the working capital surplus narrowed from $147.6M to $74.6M, indicating incremental current liability pressure; capital expenditure guidance was raised from approximately $205M to $220-230M for FY2026, increasing near-term cash burn; $127.2M of Class D preferred units were repurchased in the nine months ended December 31, 2025, reducing the preferred claim but consuming operating cash. The company also repurchased $17.3M of senior secured notes and $44.8M of common units during the nine-month period. Discontinued operations (refined products/biodiesel) generated $67.7M investing cash and $15.5M operating cash during the nine months, partially offsetting capex. Filing discusses asset retirement obligations ($75.3M), purchase commitments, and legal contingencies in MD&A and footnotes; the ARO XBRL-tagged value rose from period to period reflecting new liabilities incurred ($8.9M), adding incremental face-value wind-down obligations. No goodwill impairment was recorded in the current period, leaving $599.3M of zero-recovery goodwill on the asset side.