Commitments and Contingencies

6 Months Ended

Sep. 30, 2025

Commitments and Contingencies Disclosure [Abstract]

Legal Contingencies

We are party to various claims, legal actions, and complaints arising in the ordinary course of business. In the opinion of our management, the ultimate resolution of these claims, legal actions, and complaints, after consideration of amounts accrued, insurance coverage, and other arrangements, is not expected to have a material adverse effect on our consolidated financial position, results of operations or cash flows. However, the outcome of such matters is inherently uncertain, and estimates of our liabilities may change materially as circumstances develop.

Environmental Matters

At September 30, 2025, we have an environmental liability, measured on an undiscounted basis, of $1.1 million, which is recorded within accrued expenses and other payables in our unaudited condensed consolidated balance sheet. Our operations are subject to extensive federal, state, and local environmental laws and regulations. Although we believe our operations are in substantial compliance with applicable environmental laws and regulations, risks of additional costs and liabilities are inherent in our businesses, and there can be no assurance that we will not incur significant costs. Moreover, it is possible that other developments, such as increasingly stringent environmental laws, regulations and enforcement policies thereunder, and claims for damages to property or persons resulting from the operations, could result in substantial costs. Accordingly, we have adopted policies, practices, and procedures in the areas of pollution control, product safety, occupational health, and the handling, storage, use, and disposal of hazardous materials designed to prevent material environmental or other damage, and to limit the financial liability that could result from such events. However, some risk of environmental or other damage is inherent in our businesses.

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 liability for asset retirement obligations is discounted to present value. To calculate the liability, we make estimates and assumptions about the retirement cost and the timing of retirement. Changes in our assumptions and estimates may occur as a result of the passage of time and the occurrence of future events.

The following table summarizes changes in our asset retirement obligations, which is reported within other noncurrent liabilities in our unaudited condensed consolidated balance sheets (in thousands):


Asset retirement obligations at March 31, 2025	$	69,572
Liabilities incurred	6,172
Liabilities associated with disposed assets (1)	(402)
Liabilities settled	(4,628)
Accretion expense	2,541
Asset retirement obligations at September 30, 2025	$	73,255

(1) Relates to the sale of a certain saltwater disposal well within our Water Solutions segment.

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.

Sales and Purchase Contracts

We have entered into product sales and purchase contracts for which we expect the parties to physically settle and deliver the inventory in future periods.

At September 30, 2025, we had the following commodity purchase commitments:


	Crude Oil (1)			Natural Gas Liquids
	Value		Volume (in barrels)	Value		Volume (in gallons)
	(in thousands)
Fixed-Price Commodity Purchase Commitments:
Year ending March 31,
2026 (six months)	$	53,402	854	$	18,547	24,453
2027	—		—	4,075		5,796
2028	—		—	1,042		1,512

Total	$	53,402	854	$	23,664	31,761

Index-Price Commodity Purchase Commitments:
Year ending March 31,
2026 (six months)	$	1,179,505	20,371	$	352,082	392,023
2027	198,053		4,687	9,008		9,960
2028	198,809		4,680	8,239		9,750
2029	30,540		1,820	—		—
2030	30,942		1,820	—		—
2031	33,243		557	—		—
Thereafter	122,150		2,045	—		—
Total	$	1,793,242	35,980	$	369,329	411,733

(1) Our crude oil index-price purchase commitments exceed our crude oil index-price sales commitments (presented above) due primarily to our long-term purchase commitments for crude oil that we purchase and ship on the Grand Mesa Pipeline.

At September 30, 2025, we had the following commodity sale commitments:


	Crude Oil			Natural Gas Liquids
	Value		Volume (in barrels)	Value		Volume (in gallons)
	(in thousands)
Fixed-Price Commodity Sale Commitments:
Year ending March 31,
2026 (six months)	$	52,577	836	$	50,163	50,759
2027	—		—	7,165		8,829
2028	—		—	639		875
2029	—		—	19		19
2030	—		—	19		19
Total	$	52,577	836	$	58,005	60,501

Index-Price Commodity Sale Commitments:
Year ending March 31,
2026 (six months)	$	980,787	15,669	$	323,421	279,899
2027	77,116		1,263	76,940		71,370
2028	77,604		1,266	—		—
2029	75,146		1,263	—		—
2030	73,638		1,263	—		—
Total	$	1,284,291	20,724	$	400,361	351,269

We account for the contracts shown in the tables above using the normal purchase and normal sale election. Under this accounting policy election, we do not record the physical contracts at fair value at each balance sheet date; instead, we record the purchase or sale at the contracted value once the delivery occurs. Contracts in the tables above may have offsetting derivative contracts (described in Note 9) or inventory positions (described in Note 2).

Other Commitments

We have noncancelable agreements for product storage, railcar spurs, capital projects and real estate. The following table summarizes future minimum payments under these agreements at September 30, 2025 (in thousands):


Year Ending March 31,
2026 (six months)	$	3,139
2027	5,493
2028	4,647
2029	2,653
2030	1,660
2031	1,408
Thereafter	1,155
Total	$	20,155