Earnings call transcript Q4 2022

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Operator

Good afternoon, ladies and gentlemen, and welcome to the NGL Energy Partners LP 4Q and Year-End 2022 Earnings Call. At this time, all participants have been placed on a listen-only mode and we will open the floor for your questions and comments after the presentation.

It’s now my pleasure to turn the floor over to your host Linda J. Bridges, CFO. The floor is yours.

Linda Bridges

NGLs and to earnings fiscal welcome call. and fourth year-end quarter XXXX Hi, like attention end call Harbor start, filed to To I'd this closed your earnings which can afternoon. found after market partnership's language, be to towards the the of release, was which Safe our the may contain of within Reform Litigation the statements remarks Securities Act Today's meaning forward-looking Private of XXXX. website. Management's in the act, I on for direct SEC partnership's to and partnership, website the available the to risk report would your and which in by section discussed like the on our Discussion also with on Form Analysis accordance and the SEC's the March In annual year other factors and XX, are made attention XX-K filings ended XXXX the Safe in those from statements. set with could statement that factors together forward-looking earnings important in actual the results differ These, cause any such forth the to release contained materially Harbor

performance our XXXX, Looking and produce of quality strategy. financial back results fiscal the has at asset of started our reflect to our validation base that

a our saw Solutions benefited oil underlying growing million, basis, higher with ‘XX EBITDA adjusted than Water in XX% fiscal prices. as sales realized tremendous $XXX Our or over on grew million and year-over-year of more volumes skim $XXX as oil XX% growth crude volume from segment

year grew approximately day. X over quarter and of the the volumes X% we nearly per exited at Fourth as million volumes preceding fiscal expected, quarter, processed barrels

recycled volumes total approximately reported for Partnership the XXXX. million Additionally, of XX barrels fiscal

in for XXXX going barrel, disposal offset forward. level margin X.X per oil barrels water and expect by per per reasonable for for average Margin which We day, volumes this a fiscal seen we already skim estimate processed believe that is million $X.XX barrel. includes revenue, fiscal a to XXXX OpEx totaled have We May.

The EBITDA of segment total reported million. for Liquids adjusted XXXX $XX.X fiscal logistics

course demand and related market challenging which as and business areas the as increased propane to price backwardated lower propane our curve due in biodiesel had a exceptionally as a elevated lower differentials. fiscal volumes competition in with and butane full we demand fourth conditions margins, challenging supply due we margins and to location year these increases a and well to our market, products businesses in difficult experienced of in tight over wholesale quarter operate, performed year. propane, Our fiscal refined the for year products favorable well Despite

As rebound see market well off based this of year, propane perform XXXX Pipeline, to service as as segment XXXX. which a fiscal from whole, expect in better fiscal conditions, fiscal current should in during than earnings some not past slightly we this our as business in was Ambassador

include to sale will of the Drivers of the of and $XX be to our market the disruptions. approximately was which million XXXX. losses inventory half the fiscal remember, Crude liquids to logistics year. majority and be gasoline is refining agricultural demand in segment weather continue adjusted Please for propane, the of flow year logistics of EBITDA however, for for cash second and demand, crude generated winter reported oil expected These gains rapidly related derivatives fiscal first on commodity to net quarter million, prices. increasing due offset of the to gains higher $XXX expected in realized due to million are realized than by $XX activity

to in fluctuations between volatile should would crude expect continue leaving price will business subsequent continue inventory fluctuations in Similar sales. Again, see the of timing we fiscal in to our be saw particular neutral. any quarter-over-quarter or underlying EBITDA physical these adjusted financial relates due environment, and to fiscal increase quarters, we to a and timing decrease quarter due settlements the to a going to we to experience forward, timing what ’XX, fiscal numbers offset in differences highly

underlying crude perform with the expect relatively XXXX. in fiscal logistics we fiscal For line business to ’XX,

Moving majority driven prices. back unsecured inventory balance flow decrease, inventory will to The free notes of this see to be we the during in increase generated repurchased cash commodity notes. at values values of debt fiscal $XX it cash time by us, reduction flow remaining an year. to balance the Should the utilized remains XXXX of sheet, expect on for should sheet, the higher approximately due in we million which senior come we fiscal ‘XX

certain to of commodity discussed CMA the cash related on realized in form our gains to XXXX. or the hedge strategy derivatives XXXX our return role distributable December $XX to million includes flow the differential hedge before Additionally, approximately for realized in fiscal Partnership of that of on will related previously losses expiration strategy the

along to In Liquidity the on working $XXX proactively group XX to prices temporarily $XXX million by most, group. certain was rapidly other all to out bank year. to fiscal this of our million $XXX increased end, commitment should of increase elevated of ABL light give to the increase reached our not, sufficient quarter as requirement, million. we end if commitment higher XXXX bank pursued to capital Subsequent as with from with well being commodity totaled from increasing our March repay needs. participation This capital us fund our full liquidity initiatives accommodate working notes our

we these months. hope the specifics prepared to on of have this coming discuss to updates in not we're call, While initiatives the

comment. that, Mike for With over it his turn to I'll

Mike Krimbill

Well, NGL, you, XXXX. and Thank year momentum this into going Linda. very strong we exciting have a turning are fiscal corner is for the time

grow Our significantly. to Water business is Solutions continuing

Our is prior year's without fueling momentum, allowing that to our provide to investment us delays. capacity customers capital upstream

reduce order our XXXX’s review briefly and primary the sheet, one, two, target; to $XXX below of absolute million balance leverage, into get prudent leverage are we focus; Before in debt preferred the reducing I the financial management dividends the and flexibility. our reinstate current specifics, increase

cash a cash cash free underutilized flow three, that working We EBITDA; to from free debt; and significant assets. of reducing the requirements, four, combination and by debt to CapEx reduced operations this provide will monetizing through enhance capital achieve generate flow increased the repay decreasing

time, not water any the leveraging opportunities, the to customers of to our offered While investments. we while and reasonable the at system, in volume water continue commit a solutions down to same water NGL, with growth on our network take they know turn breadth pursue We price. redundancy our their. can at Due minimal new depend capacity pipeline do

Now let's do strong upon discuss environment. fiscal continuing it ‘XX, our million. have depending range upper We is not as significantly EBITDA guidance excess price the $XXX commodity of an could vary in

solutions. water solutions first forecast was of $XX We The $XXX million the least to fiscal $XXX water are quarter EBITDA quarter from our XXXX increasing recently million completed fourth million. at EBITDA the for

quarter fiscal $XXX it where will we of ‘XX EBITDA quarter. We realize first appears our have first clarity into million the

of quarter barrels XX% terms last X.X year volume, XXXX we averaged just and in than the a In is first three X.XX the barrels million more million day, day average This excluding a to months. expect of both any increase fourth volumes. of quarter recycle a

the increase Volumes this EBITDA of level this year guidance. of in excess us subsequent to during quarters further could allow

subject liquids losses. to estimates gains In gains inventory losses hedge result the they clarity time, crude not water segments significant logistics are more capturing versus or revenues for oil as we other results. skim and realizing a first and increased prices. volume this and we higher quantity financial have physical and do the additional quarter into words, oil the versus offsetting crude higher timing At of due As volumes have of financial to both

at but optimistic, for this cautiously segments fiscal are with respect EBITDA We ’XX. guiding time roughly these conservative to flat

this winter We fully will performance that such will realize have Pipeline Marysville full we connected Ambassador the to a investment in Michigan. our service, year and operational in this summer, from

expense about cash with items Continuing XX% is that Interest NGL. our determine for fixed flow. free

So the rates impactful. in not increase interest is

As the million debt $XX free flow each reduction. we depending on interest provide costs repay cash lower indebtedness, of million year $XX to additional

about contemplates is is to and Approximately Regarding growth be million, XX% to water $XXX a were CapEx decrease should and CapEx, of agreement ‘XX new produced CapEx four maintenance at our growth agreement year. legacy million due In million ‘XX to This facilities. fiscal SWDs $XX million. pipeline long-term XX-inch and Fiscal ‘XX XX $XX $XX announced the recycle February about and annually. transportation, million our XX% disposal new forecasted surface committed this with CapEx lower $XX respectively. investments and in respectively, the

XX-inch addition, to XXX-inch Poker of barrels plus Lake day, a lines per a twinning the third customer. pipeline the provide of XX-inch we for SWD combined capacity XXX,XXX are In in pipeline

currently some additional We and dedications producers result negotiating are capital. could further require in that would with connections that thus

reduce in ‘XX continue We We year. are assets about progressing $XX million million and to every monetize sales this realized of we towards dollar as $XX another underutilized helps debt.

XXXX that, expecting like [KJ] And the beginning In I’m strong potential back finally, tell dancing. summary, half the a an would stronger we and for with (ph) XX JHH year current to are of year. the even I yes, to

for we'll that up With question. open it

Operator

open the with Hamid And first for Ladies questions. [Operator now Tarek JP you. floor from Thank Morgan. gentlemen, and is Instructions] the coming is question

line Your live. is

Tarek Hamid

Good afternoon.

Linda Bridges

Hello.

Tarek Hamid

So on business, really strong above obviously, to performance of see of guidance sort the EBITDA the of million good water $XXX and there. really,

opening touched total low EBITDA (ph) liquid less that sort your You sort sort the in million would a end remarks, EBITDA of EBITDA down of little of over about and out million that million XXXX. from in logistics clearly crude fiscal oil, and logistics [XXXX] little million $XXX but bit $XXX of of of sort of would of on the $XXX $XXX be imply a and water on

thinking maybe I about help Just too Am can Is with a be little just us numbers? those of you're that? other you precise that sort a about color would sort helpful. conservatism. how bit being So little bit of bridge any

Linda Bridges

corporate expenses missing I you. the that should offset think and bridge that you're of to

Tarek Hamid

Okay.

Mike Krimbill

we XX we about that it overhead, million. have when say I think was number, was $XX think I corporate it --

be your difference. would that So million $XX

Tarek Hamid

Okay.

flattish think just about as really and it liquids crude the logistics. in So

Mike Krimbill

Yes.

Tarek Hamid

on second, the CMA then, And hedge.

commodity of expect you quarter talked this of to in hedging the any read about look cash correctly give next expected doc you $XX like in upcoming what impact was the the million this on sort Could I million. overall $XX flow think quarter? program you million color the us flow the the EBITDA if about to cash impact pretty of of quarter. impact at program $XX hedging I tough Obviously,

Linda Bridges

Yeah.

the think of the could items, net remixed you’ve offset is million hit some That the million yeah. commodity of in I on the to loss couple quarter first $XX that a expect So gains. derivatives to we $XX

curve flow on to on CMA is So it's to backwarddated at flow a hedging are that's what realizing outflow a price would going and what do, the knowing vice versa difficult role. higher into if to inflow. and that cash prices predict the you necessarily Typically be hedges impact the is. not an market those cash are relating Without differential prices,

Tarek Hamid

it this last to sort relative upcoming should how just sense quarter it will of quarter? -- Any look what of in this like

Linda Bridges

commodity Not without the next do knowing what prices going to for are month.

Tarek Hamid

Okay. That’s Fair it me. enough. from

Operator

with Mandel Jason Okay. The RBC. from next question is coming

live. is line Your

Jason Mandel

question. Hi the guys. Thanks for taking

is So, obviously, which thoughts structure total perspective, the moves. is towards next it -- little including of outlook for on business an settlements headroom and flow part the it everything, could Asset revolver. guess, other of understand, strong, seems I more yourselves a little but to the levers challenging $XXX be are other like liquidity couple I as really outright sales the bit water give or million a I Is any -- quarters perspective? is think from from pull the capital there a increase to other cash

Linda Bridges

at talk in think Yeah. are would that different specifically about pay we're debt few the to we time, liquidity updates referenced provide initiatives a comments not prepared from Yes, initiatives earnings we months. to that on both hope those stated the we but perspective, we I coming down and this in working

Jason Mandel

challenging? more thank just that the -- when next a or early of date room capital extend give And quarters then breathing working hope or guess like the couple there no a to to more plan million $XXX over back is expansion is drops And it or that there need? Okay, is facility, facility sounds the in bit ‘XX, I expectation is you. then any down little that on

Linda Bridges

needs, March next and on and most commitment prices we to then. we Based year. XX group let additional talk due between on reduce that by in of capital I $XXX requesting commodity these prices. working would the bank If depends now today, really agreement back million that commodity going what higher The we just me what was year. up will so down this the to for to would say see related $XXX continue that, initial back are likely do seeing with It next increases reason levels the into to higher million

Jason Mandel

for Okay, in queue. good. hop very I'll back the help. Thanks

Operator

live. Up next your Kane with LLC, we have Kane Robert, line Robert is

Robert Kane

are where goal the is Thank know I the X.XX, you. Good leverage ratio right now? curious, we afternoon. on I'm

Linda Bridges

Right now, X.X. I believe we're right around

Robert Kane

Okay.

Linda Bridges

of [indiscernible] be where year, walks be, where at just that the we an to presentation and year. we we the ended end posted expect where to investor through expect next

Robert Kane

right, quarter? earnings All an this very have on we Okay. share good. per Do number

Linda Bridges

it's in that that right have up, though. would I after posted our don't today. have pulled close going market be XX-K, to We

Robert Kane

All I that Okay. look see didn't I thought number there right. did available. have at I it. you that would and

Mike Krimbill

Yes.

have. We

Linda Bridges

Yeah. perfect. It's not

Mike Krimbill

Now just the XX-K – check

Robert Kane

Okay.

Mike Krimbill

pay but flow the That's not a pay cash and really any attention number we free the EBITDA. attention we to, to

Robert Kane

All right, right, look very that at question. you've good. a answered take All that my I'll and

Operator

Robert [Operator [Stetson] live. next your Instructions] Robert line (ph), Robert is Up your is Stetson, we live. have Investor. Private line

Unidentified Participant

or Hi, more the preferred and in to that the shares preferred the are in dividends to have typically Directors case right I'm is thank when the you. preferred shareholders a primarily the Investor Board, in suspended and being here? one shares suspension name the

Linda Bridges

No.

Mike Krimbill

preferred the not investor dividends. member, came with is -- share it to EIG have appoint of and of this board they their investment, We largest one right but No. suspension the because

Unidentified Participant

have do on through they intention of And that? any following

Mike Krimbill

Yes, they had since a Yes. day the Board of the member investment.

Unidentified Participant

Okay.

So at time they suspended investment? was dividend made the the the

Mike Krimbill

to Subsequent investment. the

Unidentified Participant

Okay.

Mike Krimbill

Board Randy Wade until the that on is, expect he is Board a WIG of and repay. and can our member members, he be will they they you member on we invested, So Mr. currently and brought there Board check

Unidentified Participant

thank right, you. All Okay.

Operator

question next BMR. coming Okay. John is The Horton from with

live. is line Your

John Horton

help as would you quarter growth? as the retailers next the this now Thank more points you you. Pipeline. there? situation of Michael Good was lot Linda. afternoon, gave have opportunity. a will on And the a that of some progress with excitement I you the of in a see highlight contract the and the noted that Ambassador region, appreciate couple Last Do increase the far status do color by favorable year the for that you

Mike Krimbill

with both who pipeline response here he Marysville, runs we'll connections, give the cetera. what seeing an the Pinter can on And from Jeff then retailers. so et Sure. [indiscernible] liquids, update we're

Jeff Pinter

and the has up very come Saginaw. we and year it brand halfway X the of completed recall, service the this terminal, We Yes, west been state, that customers brought February with to efficient a of in had very a pump we truck afternoon. in -- center the of new had to were Wheeler was Good reception warm, about system. very and facility excited you'll loading in which, little if pipeline Michigan built the

million month reception has moved, we so the in gallons great. service first And I and think, X been in over

the itself, ready into up pipeline the have -- The connection the the we cavern. of of their pieces both some line finishing DCP with of to go. Marysville last connection We're

mentioned comments, and be summer for expect complete winter Mike we As this that earlier service. to in the ready

Mike Krimbill

the that then limited ability, at that. by production Wheeler addition us propane and in to then the Yeah, propane that's were that allows did winter rail a I having of that to might the bring hub up and that connection importance and a not importance The is -- to have of add. of lot in we produce to line we we the to Kalkaska. This Marysville up were move Kalkaska

So Michigan [indiscernible] supply bringing points, this change. they has is Toledo, product are big, in big very few Chicago from Detroit. a

– So

Jeff Pinter

Sarnia.

Mike Krimbill

the vast and and majority Sarnia rail truck. by

this point also truck view, a asset, an because So, of a it's environmental of lot eliminate is from going miles. great to this

John Horton

standpoint? ecological Do what And on that to that. saving it’s follow-up from was a of the kind an you estimates question

Mike Krimbill

a the number. We at to look don't we've know Not today. emissions ready I share that transports, really from we're got that

efficiency looking pipeline at a amount the that. benefits, it gain. provides from significant are for it We ESC Yes, -- is of the

about with Michigan empty. hall trucks you you trip returning Northern from then talked miles or and to half round Toledo miles XXX If and XXX empty, the Chicago about think to

product much rucks Roads the and smoothly efficiently there so during reliably. I'd more and brings runs And say icy pipeline up can have much potholes that the and bad more and underground weather. conditions, efficiently

John Horton

the will efforts. a just the and was they it's dynamic, with we're of materials economic all you with to I have question, environment relationship that I that Well, those great thinking guess look the late in Governor we appreciate Michigan ought very next lot business. be and next behind the year of, recession? puts our marks We have year? It it or And of now. this will the with a question right many a economist of questions early

to you a down the considering, getting how back hear help of that pay are debt of off the you to can action March particular in management So see seeing not in a all anything Let's say, that of to in that if got $XX good plan? place the change offset? you're barrel, does the, forecast go end that significant amount it's you've an able in dynamics But the plan by guess, ’XX. you're I

Mike Krimbill

three because well. demand, Europe LNG a these especially anticipate we very going all all still business price. on crude will lower The do of at seeing, Well, that of businesses Liquids we're to kind

affect X is So flip I lower there the a amount side rigs. doesn't Mesa. hasn't lower our the then and increase -- XX crude between fluctuated a of crude which rig price volume of it's probably crude anyway. logistics will primarily large a Having being Grand count in not affect basin price in because that guess produced seeing crude the

rig $XX your water much question. could to it water comes drop. that count down [indiscernible] then how I So If of answer the that knew I side, will

John Horton

plans and not push spot. I'm Many I put of investors would coming flat of the viability future to as as a far for will minds Wells question a just think, that investing to I on holes or it back the poke very not It's NGL dividend. of showed in just management that account people, you Fargo paying -- to range And trying take trying a to trying it. certain strategic Okay. the understand into typically variables

possibility don't challenge or into looking place. be going or add I see any money a common and the points have of you late, the but questions hey, an shareholders at think until shareholder, are for common still price common So go dividend Do next that's to put just the is preferreds some up for is maybe ago back and three can there left say, year absolute quarters maybe there in we great, you there the we're back you lot that mentioned four professionally? back opinion the

Mike Krimbill

can't press we until are reinstate focused you a the the really increase you because press. first, common No, on do

to what XXX the ’XX. common So our that that get the reinstated we with do we goal we're see after units. key -- will to is And Obviously, the is then in that.

John Horton

Okay. on gain earnings per common valued not it's trying so share, to follow PE to not years If now. I’m between going looking the just multiple at will a to three be there. the two doesn't perspective typically, how now you're shares -- from and it a

be flat, have accumulate you time a So to completely that in Thank very it may much. of then lot case. we

Mike Krimbill

thank call. Okay, you for your

Operator

Okay.

we Next Investor. (ph) Jamil] have [Kalid Private

is line Your live.

Unidentified Participant

Yeah. Michael. Thank you,

For I that. dancing. appreciate

Mike Krimbill

sight. pretty It’s a

Unidentified Participant

Yes.

question on opportunities of have Horton had I John seeing and the anything Europe. from but not couple question in coming that. you I quarters? are there So covered, Is any significant heard opportunities about management

Mike Krimbill

don't gas. natural Not from have say, we don't I’d any Europe. No, export. we

LNGs, yeah -- facility America. because not liquids. crude North butane export to would we ourselves. we in of in be We we refineries, export export butane side, do the natural don't Chesapeake, would presumably transport the but we That's the So we would around crude more crude any Virginia, and -- produce from more which moving do have but gas propane where be produced come exports, gas

Unidentified Participant

right. All

Thank further you. any have questions. don't I Now

Mike Krimbill

Thanks.

Operator

Okay.

James have with Yoon Nomura. we Next

Your live. line is

James Yoon

assuming what crude can price? thanks like was changes crude by your bucks? you just taking guys guys are oil guidance, provide or happens what wondering $XX if Hi, oil EBITDA any on my are cash $X assuming for and free to oil for for you prices and question. What crude in sensitivities I flow you

Mike Krimbill

skim we've Sure. been to The XXX,XXX XXX,XXX is the easy a barrels one oil, barrels running month.

$XX you So say XX if then so that's barrels, X.X it million is you're -- $XX, $X million.

water back on count, rig $XX what's that Other So our the the to impact volumes. would cost think, drop a then it's $XX which I than impact would million.

James Yoon

Got it. adjusted EBITDA for oil guys And what your then crude guidance? assuming are in you prices

Linda Bridges

specifically, James. that We haven't disclosed

Mike Krimbill

our customers. what Yeah. grab the is, we do James, projections we water from

for not it's we are, don't do water crude year. we of a us, the prices know crude for plans function So projections their drilling volumes of prices, but different have what their

James Yoon

it. Got

acreage CapEx guidance are any last Okay. think And year? curious then had little guys because you dedication, just just higher, bit changes is that new there late for XXXX I provided if to ‘XX a your

Mike Krimbill

get don't No, of point but more wanted from hopefully, increasing, wanted We any view. reduction decrease a debt of we changes, view point really have from to changes we profitability we a increase it to water. as

like to see little. like would it go I’d see drop Linda probably and a to up would a So

Linda Bridges

at change though, this No point James.

James Yoon

Got it.

look acreage -- Okay. just what for Thanks, what then water for dedication those for like that's we the economics And volumes ramping barrel expect the the just guys start those for announced curious margin you should the should we on economics helpful. new what curious per business, volumes like and there as up?

Mike Krimbill

We -- under we anything can't our like disclose that. agreement

could about think, where in margin the we on line. see we Doug scaling. I talk general, White Is

Doug White

Mike. I’m here

Mike Krimbill

about what Maybe little bit you a talk we're seeing. could

Doug White

We're to barrel, price seeing on I revenue very think previous February asked a Obviously, I’m I decrease the the margins previous little about our helpful is in seeing were know per call increase. we that bit. -- that. oil

increase. think now, turnaround I -- if we're and look seeing that you If we

barrel think, $X.XX a So was in I I think it margin release. Linda, our

from are the competitors. to I increasing fees. model, a with It into per increase number good our position but along we in obviously, think that'll that put barrel limitation if use putting your of a are seeing, to capacity activity, us revenue be you also strong the that

James Yoon

than better that it. I to think forward? mix? guess that in we current guys oil the -- how is like with amount of or dedication. is able this are like from grab that current Is better your kind that And going is should your line mix than about skim of guess your Got I you

Doug White

line. In

activity in call And I little drives this current course. points the last and this think basis of we on were that bit a completions has the quarter. that, XX up ticked

close new averages, that our be dedication and to write-up very take just you're you the to going if use it. to think I So

James Yoon

it. Got

I questions Okay. That's the you. all Thank had.

Operator

we next Oliver And Okay. with Cap] Moon [Moon have Private (ph).

line is live. Your

Unidentified Participant

are how actually. Spain. you from I'm guys, in Europe calling Hey Barcelona, you? I'm herein

with on I'm what's with LNG market. over Europe going and very familiar here the the So

are briefly gas really out knowing if get doing But American on was the and a you able butane next you facility export and have over to can you need convert winter, to touched did about if higher. and be wholesale butane interested through propane any in You here. and on I should guys companies here able roof. to liquid Europe? be As butane, liquid is at right, it plans prices to Europe that, get going I'm state LNG, the here in you're going to guys be propane going not Chesapeake. it over being for any sure producing it its already It's to quite the

the shares the but don't all. at number ones. to that excited next the see question export up Energy do I anything, And I've butane last are I shares John in Doug doing insider see seen hold going some list any Ciolek Mike try trading up one. wondering buying here you on anything seen be So quarter quick two if Partners, each actually would about on then guys haven't White you really Doug bought NGL to XXX,XXX I've are and Doug get and quarter, seen -- because that facility just -- all just to White,

-- export sales conversations that in NGL there worries have any should buyout, if So Doug should buyout Energy sort any question, know and NGL major of of facility, we of White, Partners? buyout do company? sort asset wondering you the Energy we that any And are opportunities in shares just about about? you hold near butane or third there Partners, had shares term So are buyouts any

Mike Krimbill

when All like right. I you summarize.

So I then I and go you very invested all. NGL first. [indiscernible] a in got am Doug, company. them to want

Unidentified Participant

to been where to shares hear glad I've looking them. find your that, Very because and can’t I trying online

stock that's So, then. super

I think –

Doug White

Unfortunate to that I have report. don't

Unidentified Participant

the one sole you'd bit Yes, little hear -- all everybody. them, that's a good that. for it's to Well, settles to have thanks that

Mike Krimbill

Butane.

US So, Gulf question the to yeah, the from West so Mediterranean, of shot as Coast. from Chesapeake. Europe you great it's the is know, and It cost on east is it Africa, -- closer than

that. exports winter. but like some say, butane subscribed we is, fall, we still the do would So have through nearly The for capacity for I fully facility the

So –

Unidentified Participant

[indiscernible]

Mike Krimbill

that? What’s

Unidentified Participant

is in out of that and traffic There export facility.

Mike Krimbill

yes. Correct,

Unidentified Participant

where? To

Mike Krimbill

locations. Africa. And to South Mediterranean A as lot lately been To America West -- shipments we sent has well. have to and of that but various going the

And so I reach there about would I’d talk if interested are say be happy us, out parties to to to [indiscernible].

Unidentified Participant

how company. working selling but we happen? hook a I you got help Turkey facility making the to make partners? sorry of your lot we more? money that, like money, mean, invested Turkey. want off more make export in butane this interested do I can butane up this How you do get that I Is Partnership and be you would to guys speak if in Because to money want of I I'm

Mike Krimbill

have a – We

Unidentified Participant

propane we from I getting do we produce butane -- I'm more XX understand Partners has and How is, have what propane. wells, NGL what Because we sell sell Wholesale, Energy I Energy and at. XX NGL believe, that is

to we like, Michigan, everywhere. to should around, for to sell So winter year be selling we shouldn't time wait

Mike Krimbill

Sure.

trading We anchored company an that international has have facility. our

that's we provide So selling, not and the trading the to actually the we're company. facility the company butane

So I us don't you, know the to -- what tell connection Turkey giving

Unidentified Participant

as and like It sounds propane. NGL a Correct? butane just wholesale, we wholesale Energy Partners

Mike Krimbill

Yes.

Unidentified Participant

do -- that only only do we that in to just don't United we we States, do not -- Europe. we're selling But the

Mike Krimbill

correct. That's

Linda Bridges

Canada. and US

Mike Krimbill

Our partner maybe.

these other about speaking Yes. to who our selling is countries. Just partner

Unidentified Participant

there, Partners, come is call -- I Right. just a out NGL nothing you send in a Okay. mean We're mean, Right? of passive. later in to terms I person scares bankruptcy. totally as of we're just no then Well, the as guys covering And bankruptcy. [indiscernible] -- woods I’ll invested phone Energy a happened, in there fully

Mike Krimbill

Yes.

Unidentified Participant

and not in not here I'm I York. I'm like European I'm a I'm speaking New just -- out Partners. business straight investor up man banker from mean, just Energy a NGL

We’re solid, time? we're good, we just need more

Mike Krimbill

If is not. they which qualified have would opinion auditors problem a correct. That the was do outside there a

Unidentified Participant

into volumes we're up, to push that's in and go Exactly, patients [indiscernible] needs sales so we're and trying time to what up just correct. go -- water trying to which propane

Mike Krimbill

correct. That’s

Unidentified Participant

to put my Hey, you for wonderful it's voice day. a voices very -- to taking a Have good Very Thank appreciated. call. your the call.

Mike Krimbill

you. Thank

Operator

we with Campana next Countryside have Up Okay. Edward Ventures.

Your line is live.

Edward Campana

demand afternoon. component are friendly oil a as recycled is, of only get not What your the produce only it solutions but about water? to more, Good complete the large yourself more and tandem wells for more actually drill is about most kind of premiums many of my SWDs. as seeing can goes for recycled that My permitting relates operators it. this in means produced to to environmentally more that, What I customers kind might be possible. water? have restrictions understanding want as enhance margins, on XX% of with like also for it to And recycled of water business is that sense to want water the in now or of water as terms question receive you you

Mike Krimbill

Hey, Doug.

Doug White

day. we’re get That's very that, day. of XXX,XXX over we up, in water. QX to And year a good day, outpacing QX, a did topic in to That's barrels XX% last hope already of XX,XXX XXX,XXX bring barrels to a we barrels QX all

year that So a excited a produced comfortable we're about the process. is water, very perspective, utilizing to everyone accelerate, customer business. in versus getting From demand even business that continues ago completions

there think I So is runway there. large a

have ability system some We is sell to heavily that wells certainly expressed our with see on our maintenance less that I end, about think to on of disposal be us. two of there's for we margins, water talked that capital in subscribed. the beneficial you spend our in of even coin. of disposal sides it areas already system, may You the or And off growth to on benefit

it's that along So great benefit There that. goes with also an there. OpEx is a savings

to as On We is the see continue we there systems. away the has ago were getting look out water off revenue year side, increased. their a people increase value -- demand there, water

selling but were never We've $X.XX guess, have May we barrel. a $X.XX we in I barrel. done for deals, saw We done that, a

the increase of really also the and quickly the seeing side water volumetrically. we're from So increase value revenue in our

but they with the fit importantly, is also demand ESG accepted an It's they water. promote first, brakeage cheaper our mind, is it care see good and Keep So the the industry get ESG future. and because been a because customers, generally taking to their than as, off or most fresh also in in that it offer we benefit. and it's obviously, a also

changing, for win-win taking used What part as NGLs say We that as customers' core hands, to our off all barrels oil. business really the disposal. that we're so see core opening, based oncoming is with quote is his like barrels Mike that of our can recycle what fee. as fee business we the we a those and a but but described subsequent disposal, at barrels a did come out they of produce which for it's been revenue that piece that's So parties. do do and oncoming has water of traditionally our -- reused The those numbers for we less business. business to revenue in full barrels, on lesser

they but to impactful incrementally our to are nice as they're line, not bottom So quite have.

Edward Campana

provide reporting being any required to regarding and what's injected delineating DSWs. recycled back customers between the what's being your you to Are

Mike Krimbill

not we volumes, which oil In have for OCD operators have the brakeage those versus body -- Mexico, reused. that. and our report midstream water the New of operator, to requirements is fresh the they versus gas, do As regulatory

Edward Campana

very you much. Thank Great.

Operator

we Okay. Craig And CWT with next have Capital. Thomas

live. is line Your

Craig Thomas

Hi me percentage takeaway water for everyone, is will help in business spot the of conducted in the you taking market? water now my thank Could about right solutions for business you what call.

Mike Krimbill

trucked basis, Very, volumes. and total to would spot X% water business. a our of the Trucked be very that's little. is would percentage we that maybe water On assume X.X%

Craig Thomas

very climbing? then, flows that revenue the that get to to through to more exposed business is spot goal water small. given be is pipelines there So, a And

Doug White

think mentioned that I Mike earlier. Yes,

with a this we high interruptible grow asked our capacity calendar -- that our water return added not and agreements not a over are where able anywhere agreements we're $X.XX year that's us high to agreements, these these committed with fees. capturing while to and in the environment we everyone at they roll in I are quarter their few are basis, will the the to We in or new system those and competitors, years, systems our overbuilt commodity we has are Those to that have our throughput maybe to have we but $X for what very the portfolio built those on last they been from is ourselves had capture based think, capacity continue about utilized see from system interruptible fee, how in barrels this past.

Craig Thomas

Right.

So that Mexico pipes then multi-direction. and those you interruptible New contracts are across not the have trucking Texas, contracts go because

should than I used of how now is be exposure word, maybe much interruptable, it our interruptable? So I the is guess more business wrong maybe there

Doug White

Yeah.

had year. this pipeline year, very to we interruptible this growing agreements few prior So calendar

and in average barrels speaking day I'm say, million interruptible there doing Delaware, doing I of where that's would this -- on day our is. because of We if most X probably Delaware, XXX,XXX the of, have we're at Now, $X a is about business we're a -- the now.

going So to do continue that. this. you It’s

Craig Thomas

permitting given Yeah. would, disposal the issues I imagine and it with earthquakes well.

a great all have. strategic that's asset you So

a half call. a In that obviously than all I was the then So so the call, having get of indicated last had substantially was did a you a $XX January the guess to February doing call $XX kind to calculate beginning from then higher was you the at call that And that able skim prices to lower million was higher oil at for $XX in when and million level at at and one were or water it’s sell on February on March, quarter that rate great congratulations system. you that million. and on in solutions month and it oil I that when little clean-up least of was

water there in this were curious something – suppressed weeks Was bit? something time from prepaid EBITDA I'm expenses now business one was dramatically. last pretty quarter or that there there So pulled fiscal of the year a expenses was number the in that solutions sorry, declined the of six may be your the kind just that forward

Doug White

March to Linda. sorry the Can the Mike -- or actual speak April I actual

Mike Krimbill

Yeah. Sure.

Doug White

making million gets And or accounting other accruals that to on GAAP was captured EBITDA. March all question, measures? events pretty accounting your answer been It's actual focused the would operational we the at the there just were one-timers that up were those some in we've really really, $XX of have So accounting fiscal were March, sure and year-end, our in $XX there some quarter, year. any one-time outpaced to GAAP but even at million of or nothing strategic wrap there

Craig Thomas

Got it.

year caught just are quarter? fourth all be in accrued nine you've where things in and they months those So every kind then or the under may up the of first normal

Doug White

or are catch-ups fiscal magnitude we be we the but year. and latter. the same expect this typical normal just It had. They to were not the magnitude Those would that priors, not from clean-ups would new in

Craig Thomas

sounds like probably it. $XX if do that's would million, you're crude million and rate so should the good. $XX that seem exit Got the than That that's now. you of million better well, where rate, million exit given quite doing the so, than $XX is Well, better $XXX dramatically it was

$XX So could It it numbers, your number low are that assuming skim be low? in oil you it seems are the in you like assume? like oil realization. price very your of seems a that for Is

Mike Krimbill

to this make beat trying No, year. we we're be just numbers our sure

Craig Thomas

propane’s get. you're never things in keep get understand. some Okay, to that a know I you And it. always, business have your what you you I going wildcard I know

hard numbers. as certainly one investors appreciate predict. that hitting your you is a understand I we So one And to

you I fiscal that end final due say the of all $XXX at And the end Did hear you to right? of XXXX the by you're this conservatism. going off Did I year. go. question So appreciate one on, million the I'll notes pay let

Linda Bridges

well get point there flow were pay off some generated million. generated us at $XXX to notes we initiatives the cash the year. cash substantially million think by alluded of I can free to earlier either flow pay or this fiscal end outstanding where XXXX the from We expect $XXX a we this of year as off as would that to

Craig Thomas

fantastic That's news.

there nothing of ‘XX then to as ‘XX. win terms in So in the is maturities pipeline of

Linda Bridges

a is There charge small in ’XX.

Craig Thomas

Wow.

people. Okay, Have for paid -- up gone kind end the off how and through that's repurchase final the much debt Have has of back you market question, And of paid I'll the notes? been queue to the open the May? then you impressive. into

Linda Bridges

come quarter out we'll It number will XX-Q. that a in first our disclose. not It's

Craig Thomas

Okay. you much. Wonderful. Thank very

Mike Krimbill

Thank you.

Operator

management like closing floor for remarks. Now to turn back the to

Linda Bridges

Thanks Well, right. we guys look forward participation guys XXXX first to to All discuss for thank your guys. today's quarter in call. you numbers. talking August you our in when We

Mike Krimbill

Thank you.

Operator

Thank call. and you. conference gentlemen, Ladies today's this does conclude

your participation. day. your phone at have disconnect a You for lines time this may and wonderful Thank you

Linda Bridges	Executive Vice President & Chief Financial Officer
Mike Krimbill	Chief Executive Officer, President & Director
Jeff Pinter	Executive Vice President, Liquids Logistics
Doug White	Executive Vice President-Water Solutions
Tarek Hamid	JPMorgan
Jason Mandel	RBC Capital Markets
Robert Kane	Kane LLC
John Horton	BMR
James Yoon	Nomura
Edward Campana	Countryside Ventures
Craig Thomas	CWT Capital

NGL Energy Partners (NGL) 6 Jun 222022 Q4 Earnings call transcript