What were the key drivers behind any variance in net income versus the prior quarter and the same quarter last year?
Answer
The press release you referenced – “NGL Energy Partners LP Announces First Quarter Fiscal 2026 Financial Results” – does not include the detailed financial commentary needed to pinpoint the specific factors that caused net‑income to differ from:
- the prior quarter (Q4 FY 2025), and
- the same quarter in the prior year (Q1 FY 2025).
Because the release only announces the results without supplying a breakdown of revenue, expense, volume, price, or non‑operating items, we cannot identify the exact drivers of any net‑income variance from the information provided.
What would normally be examined to explain such variances
When a company’s net income changes quarter‑to‑quarter or year‑over‑year, analysts typically look at the following categories of drivers:
| Potential Driver | How it can affect net income |
|---|---|
| Commodity price fluctuations (e.g., natural‑gas, crude, NGL spreads) | Higher realized prices boost revenue and margins; lower prices compress them. |
| Volume changes (e.g., processing throughput, sales of NGLs) | More barrels processed or sold increase gross profit; declines have the opposite effect. |
| Operating expense trends (e.g., maintenance, labor, SG&A) | Cost‑containment improves net income; unexpected spikes (e.g., equipment failures) erode it. |
| Non‑operating items (e.g., gains/losses on derivatives, asset sales, interest expense, tax rate changes) | A large hedge gain or a one‑off asset disposition can create a significant net‑income swing. |
| Capital‑intensity and depreciation | New capital projects raise depreciation and amortization, reducing net income, while the completion of projects can defer those costs. |
| Regulatory or market‑access events (e.g., pipeline outages, permit changes) | Disruptions can curtail volumes or impose penalties, impacting profitability. |
| Currency effects (if any foreign‑currency exposure) | Gains or losses on foreign‑currency translation can affect the bottom line. |
If the full earnings release (or the accompanying Management Discussion & Analysis) were available, we would be able to:
- Compare the reported net‑income figures to the prior quarter and prior year.
- Identify line‑item changes (e.g., “realized price margin improved 45 b c/bbl versus Q4 FY 2025”) that the company highlights as primary contributors.
- Quote any explicit statements from the company about “key drivers” (e.g., “higher NGL spreads and lower operating costs drove the net‑income increase” or “higher interest expense and a derivative loss reduced net income”).
Recommended next steps
- Locate the complete earnings release (often posted on NGL Energy Partners’ investor‑relations website or on Business Wire as a full PDF).
- Review the “Management Discussion & Analysis” section for commentary on:
- Revenue and price trends – what commodity price spreads or volume changes occurred.
- Cost structure – any notable reductions or increases in operating expenses, SG&A, or depreciation.
- Non‑operating items – especially derivatives, interest, and tax effects.
- Revenue and price trends – what commodity price spreads or volume changes occurred.
- Cross‑check the financial tables to see the exact net‑income numbers for Q1 FY 2026, Q4 FY 2025, and Q1 FY 2025, then calculate the quarter‑over‑quarter and year‑over‑year variances.
- If you need a concise summary, you can extract the bullet‑point “Key Drivers” that many companies list (e.g., “Higher realized NGL spreads (+ $X MM) and lower operating expenses (‑ $Y MM) were the primary contributors to net‑income growth versus the prior quarter.”).
Bottom line
Based solely on the brief news headline you provided, we do not have enough information to specify the exact drivers behind any net‑income variance for NGL Energy Partners LP. Accessing the full earnings release (or the accompanying MD&A) will be necessary to deliver a comprehensive, data‑driven answer. If you can share those details, we’ll gladly break down the variance drivers for you.