NGL Energy Partners (NGL) 12 Nov 242025 Q2 Earnings call transcript

Greetings. Welcome to the NGL Energy Partners Second Quarter '25 Earnings Conference Call. [Operator Instructions] Please note, this conference is being recorded.

I will now turn the conference over to your host, Brad Cooper, CFO.

You may begin.

you for thank the us and today. call afternoon, to joining everyone on Good

public will and forecasts forward-looking and These in include are today to cautionary uncertainties comments Our plans, language actual cause take our under to risks presentation disclosure results U.S. our note that subject the could forward-looking from materials. and provided the securities Please are risk law. the other factors comments differ assumptions, materials and statements. statements that estimates of

Consolidated primarily winter $XXX.X quarter heating demand, third quarter. to the are blending adjusted weather and Crude million for very The consolidated results. butane came in should fourth on contribute after EBITDA at our ended and the and adjusted driven Solutions The you and began second and the EBITDA as quarter's aware, Water wholesale segments. was propane Logistics season well dependent by is

under and service $X.XX points, paid B, Board B our expansion of to distribution XXX,XXX C of year. August, The XXX XX. Directors day basis expense the which early declared SOFR terms October expandable is capacity September XX, basis per On time. to per of per our Loan preferred XXX approximately by the from in amended and interest with general partnership on that Term of was the barrels points In repriced a million was reduces we the agreement, initial for II the margin on project and quarterly Class in placed October Ds LEX XXX,XXX day barrels

producer. volume a fully is project commitment this by calls, previous on mentioned with investment-grade an we've minimum As underwritten

the much project this We free flow are consumed have months. cash X it excited of last to our as completed over

The entered in unitholders. Class folks want have were in for These project the agreements granted great to of the from B thank to After expiration XXXX of in to the the the or outstanding to B summer at common XXXX. represents the work $XX.XX. warrants warrants have the timely outstanding our quarter, $XX.XX back XX% fashion. in prices of today. of the executing XX% we XX% The of into Class purchase time warrants dates this the a XX,XXX,XXX from fall holders roughly close preferred the units I field warrants with strike their investments and

event been Said component differently, has common unitholders dilution we of years the Eliminating warrants XX% the eliminated next warrants. over to have purchase a of strategy. our potential a with these X the these long-term

results second day adjusted for units. X% million a day EBITDA water in second barrels Solutions per in million quarter X.XX approximately the this were first disposal the barrels fiscal $XXX.X per X.XX get year, into of business the the quarter-over-quarter. million Water in quarterly versus was the Let's increase quarter. quarter Physical volumes

to were of day the we includes barrels that quarter versus quarter volumes year. second million first dispose per volumes were in million in Total the deficiency X.XX day paid barrels the per X.XX

[ ]. So of total were paid up dispose volumes X% to were approximately we

as calculation. Expenses margin find the barrel came chemicals more of barrel maintenance using QX are lower is and due quarter we in well year. as lower for decrease The expenses repairs this the first chemical expense efficiently. at to per optimize as in in the per compared $X.XX $X.XX quarter The both the sides team Solutions to continues Water to to of ways segment for

year. per XX,XXX 'XX in in this of sales was quarter, quarter second the $XX.X Crude Crude this of fiscal the with versus approximately first the for barrels quarter adjusted Oil in of averaged first year. $XX.X million Logistics day line EBITDA Oil million quarter fiscal the

the contracting year. and to of have basin calendar remain to by updates optimistic some continue end We hope the the on

the in $X.X EBITDA was quarter second adjusted prior million versus million the $XX.X Logistics second in Liquids quarter.

expectations. demand above date, It's for to performing wholesale the blending year butane been start propane. out. propane it's play in too To warm project is the season business a early Our how will to business

The other within X expectations. businesses liquids versus have underperformed

these expected be of time are this we results to With the the year. in where at books, second we quarter

in expectations and year-to-date line consolidated internal basis. are our budget We a with on

I turn call Mike would that, CEO, Krimbill. to over With our now Mike? to like the

Good Brad. Thanks, afternoon, everyone.

just Brad our line EBITDA mentioned, As first half in our results expectations. with are

a and weather as second prices. The few warm half have crude oil may such lower challenges

$XXX our EBITDA million. X% reduction, We strategy is $XXX guidance a fiscal This reducing X% does a to for forward. of our which going not any the way slightly are full impact million year range to to in

one, Logistics oil asset smaller Oil are, volume $XX well Mesa on as by the of successful, meaningful Crude million pursuing In million Logistics, we increase up range. the next provide start Liquids a a fiscal Strategically, to close in asset $XX segment producers sales additional Grand crude in of as signing are the will if that, sales we year. couple the to

our to continues and future. be in segment foreseeable the engine currently Solutions growth Water

our grown long-term have the Basin. customers and capacity, providing a out-of-basin to We for Delaware optionality the offering thereby solution of development our

growth multiple the to XX months. next believe projects producers Delaware have new in the Basin approached over of as We the continue us with

evaluating are and them. We to expect for solutions provide

unit agreements future buying finally, purchases purchase this unitholders. earlier. the The nearly Fourth, strategy have mentioned dilution and to purchase Brad of of our leverage warrants the in milestone a that all priority. with buyback warrant eliminated long-term equity common We program reducing marks value with another while creating began is these quarter common back our limited

water strengthening results, not long-term growing are the by balance are equity the value to on our quality, We revenues, and increasing focused sheet. but create asset repurchasing long-term managing quarterly system, partnership contracted improving

Q&A. So let's to go with that,

first question Hamid comes Tarek JPMorgan. Our from Instructions] with [Operator

your for on conversations Tarek. were We Nevin customers the are going just This how wondering for is XXXX. outlook with regarding calendar

there? are the Doug, Doug, you on are you line?

Yes, am. can I that... answer I

from You want perspective? a one to water take that

Ford, have our II system pipeline. continues new demand -- very we're We're LEX new opportunities the increase about, the both hard DJ providing also We're to create be us for Yes. where to as We're of working capacity -- Delaware forget in also Basin the much to The Basin all capacity. not to on volumes. opportunities. maximize provide strategies Eagle may lots the and people and in areas working

In volumes, contracted in adding And existing long-term amending the the volumes Ford, Eagle new Ford, extending our and been the entrants, as DJ, successful of commitments. on underway with we're then we're there producers year Eagle well. and some very this the new new increasing we've and focused the

X basins which new very all in operate business, we and the contracting we across beyond. So for XXXX actively Water are in volumes

with from Fargo. Wells hear now Ned Baramov We

CapEx EBITDA 'XX? on the Can for fiscal provide you for just maybe total latest water your expectations and

the total Water unchanged to capital, the million, million from capital. $XXX believe, I was still $XXX million intact. The $XXX it guide, Total year, for in Yes. where earlier is same. It's

And purchase can And are what maybe X your remaining then million the now? warrants, plans little to agreement on a more bit so you transaction this of provide for on warrants? or triggered your what

Yes.

I think to the couple been were long-term what strategy but always last and for eliminate the over common process, part of the warrants thinking those. of is years, strategy being able we've thought through the

And ago those sell made itself. down really a their D when down I available. position, position. an they weeks warrants D few think here the Class X-K. did sold that at became announcement We EIG presented Class opportunity

D worked warrants. take just with we holders out to arrangement one other them so And Class an those the and of

Mike. is think, would Ned, that. I I this add So to

to warrants options years determine worth. Black-Scholes run what you If and These model are remaining. X had

more felt we wouldn't So significantly get cheaper. they could They like get only expensive.

So better wait a years. today get buy to them than X year or

remaining for And million then plans so? X the or Understood.

waiting the with of contact and holder we're to in been the We've at Yes. and those hear repurchase to back. those same price, offered

no back hosts we the any [Operator over and to turn your left have for With closing Instructions] our the remarks. call in session, questions Q&A, question-and-answer end the now will I reached of

your couple third up everyone for everyone, in in Thanks, We quarter call. forward again NGL. talk the to February. look of Thank We'll a months interest in you. with catching on

This concludes and you your today's lines this may you Thank participation. disconnect for time. at your conference,