NGL - Earnings call transcript Q1 2025

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Thank you for standing by. My name is Max and I will be your conference operator for today. At this time I would like to welcome everyone to NGL Energy Partners First Quarter 2025 Earnings Call. [Operator Instructions]

I would now like to turn the call over to Brad Cooper, CFO. ahead. go Please

Brad Cooper

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

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

Let's get the quarterly into results.

for the in in will the as on first units. or begin quarter Solutions over to to $XXX.X soon while with and adjusted perform The quite are physical segment well results approximately on we Logistics barrels X.X in Logistics volumes day carried month you quarter will Our Consolidated I'm all were our heating the Water July. at met X to continues the averaging Water million well dependent in aware. When barrels weather deficiency winter include and start be volumes per of strong very disposal paid wholesale propane business came quarter. season is the per beat all quarter Oil million approximately blending first The of you expectations. X butane for across our has the day. demand, million internal July, Solutions, performance quarter. Crude from second happy EBITDA report the Liquids

we the nonoperational during on As quarter. also early call achieved our mentioned other June, year-end in milestones

a total Eddy in X for the of Counties announced million. we First, of Lea ranches sale approximately $XX and

July Board made for XX. B, on B, on D. ] last was C partner distribution [ Ds April the all C On of on made This paid XX, the on preferred Directors of Class preferred general Second, declared quarterly and current classes. our that XX, payment a preferred the June and arrears we us our Class

to fixed of Third, on not program, authorized outstanding million $XX units. allows a June Board have repurchase This does us unit of Directors spend liquids common our common units a X as X, the we repurchase purchased date. up which under to our program as LEX have not this builds. as managing well have been the seasonal we expiration program inventory any Currently,

the after the terms repriced week under Fourth, we Loan expense on the per and agreement, margin this which ending August interest our June million amended from points SOFR repricing the quarter points earlier XX basis the and by B XXX XXX $X.XX closed X. We of basis reduces year. to Term

were deficiency prior first in X.XX was disposal in Water quarter the paid we first $XXX.X day Total the were first quarter Solutions' were quarter. prior adjusted EBITDA quarter versus day million million first in per million volumes barrels volumes volumes Physical first prior barrels water versus dispose per the barrels day million quarter. million million per quarter. includes in X.X that first X.XX X.XX the day to in per the in versus the $XXX.X barrels

X%, first up of first So 'XX. of total quarter quarter fiscal were to dispose 'XX paid volumes fiscal were of we over

continues day with for Solutions in per to date to Water in-service team year in in QX the schedule with water day $X.XX XXX,XXX that The barrels Operating initial costs. expenses expandable on capacity pipeline project is X The XXX,XXX low LEX ago. expenses keep per to of is X October. compared face barrels of of to an $X.XX in same rising find were ways quarter operating the

offset pipeline the lower Mesa XQ Crude volumes DJ prior Grand day approx well margins to acreage year's dedicated on differentials production partially January first was oil 'XX. from tariff as versus per Logistics day by million in revenue primarily were adjusted higher quarter over season open XQ on Oil XX,XXX lower compared X, on a was the approximately averaged realized Crude of EBITDA higher Grand for ended barrels quality to in the $XX.X million first in 'XX on the Mesa up $XX.X in quarter fiscal pipeline barrels new quarter. XXXX, volumes during Basin. the This quarter. the fiscal as the Physical that XX,XXX shipper in from signing same the current per due

for Butane Logistics lending in stronger up for our the $X.X the This quarter. volumes first versus in the were excluding were first 'XX. the in in nice prior EBITDA as higher the resulting balance. $XX.X quarter was in year, supply a in derivatives than expectations and margins, resolved margins demand issues butane fiscal set Liquids supply million was for seen and prior refined adjusted lower were million business products more and markets has the Product certain margins quarter.

stream quarter EBITDA the the The first is the point typically for of low segment. Liquids

So first business unit. it's a nice this see to quarter strong from

how summarize is track turn our about first All I construction planned. for should quarter over on Mike. you before results I our to segments X is go expected exceeded to quarter. as it would service like X LEX think to and expectations just this in

interest our sheet propane loan B. our the expense on during managing butane of balance buildout build LEX X have and the pipeline during opportunistically the are season We and reduced term

$XXX year for Solutions. million to guide our the million We Water million of EBITDA full $XXX partnership and of for $XXX are reaffirming

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

H. Krimbill

Thanks, Brad. afternoon, Good everyone.

out manage time. year. to said, good quarterly a periods this We expect, That as new this would off you basis, multiyear a and short-term are are do start quarter not we pleased NGL of on fiscal looking over we

For the positive term. for short, business, instance, trends see long Water and we in medium Solutions the

drilling are year's it last expanding to quarterly, and is long County, by the this will recycling, EBITDA bring in actual. term, additional volumes above customer programs in these But impacted schedules. north and guidance seeing have Basin Medium Delaware completion year We the which water Lee future. we

do but new We not streams, continued expense announce until EBITDA. generate on revenue to them are working proven and reductions

for Basin, term and long signs medium is positive It in With are that and terms. respect flowing still basin could influenced the be the see the produced we Oil politics, volumes regulatory by environmental into appears The short increasing. and DJ to factors. Crude Logistics

have to are Grand per to not segment. $X been willing do we of our We rates at believe below contract that with before $X.XX at the barrel to the Mesa or We close cycle capacity expenses. the bottom

Logistics, this do but which have is we years. Liquids do a especially Regarding a anticipate several being some segment, with weather, not cold for winter internal growth nor on most normal shown This business we significant is our to up volatile growth, expanding dependent hasn't expect we portion opportunities.

attractive reduction is leverage growth both increased the that at balances on function reduced continue and debt EBITDA. multiples. We Remember and to internal focus sheet, a of debt balance lower

So line operator, with Q&A. for the that, please open

Operator

comes Sibal with from Partners. question Instructions] [Operator Your Seaport Sunil Research first

Sunil Sibal

especially more of think number like about I fee-based So handle fee on off parts -- I quarter has about to a been there? we next talked been strong. side fee forward? you per be how per And a the bit wanted think fee like the talk moving of water volumes should importantly, little some versus just But It pretty you about seems it barrel bit. around moving barrel your the going has start will business. your the seems Could volumes

Brad Cooper

hearing the hard had a question. little I time

up revenue quarter. the I previous if I was about the think, $X.XX, think year's quarter, around barrel which for it per from we're I think

as we how contract. think -- clear we in very I been we've

contract is recall we're side probably have get lighter Poker for another We Those to on were did acreage As a the contracts bit, looking rate X the MVC. longer-term to willing obviously of MVCs portfolio. little contract a on we water within bit 'XX, of dedication. step-up That a January give barrels. the relative rate other Lake the in XXX,XXX guess, little MVCs and to world, I

little a but to yes, truly of July start bit for quarter. starting penny. the QX really So second off bit probably little really hard impacted it's recycling, by strong. QX, to the reconcile the are looks strong volumes But a

Sunil Sibal

the And the average we Okay. volumes, length higher since how about you you total have with your probably contracts think MVCs? MVCs then should the of that percentage on the that remaining mentioned are

Brad Cooper

Yes.

I the years, think, what, it's presentation roughly it's think in the on believe, I materials, contract life? I X

David Sullivan

MVC Yes, disposal percentage about water as we be -- the Yes. to that long will We X volumes project of be about as were is It once MVC-related. some have percentage where of will the XX% happen the up. XX% will David Yes. be go LEX Sullivan. yes. we'll comes volumes -- our That's This will MVCs, the on. are

Operator

the Your Fitzgerald next with question of comes from Baird. line Patrick

Patrick John Fitzgerald

that instruments out? preferred, the Class to something particular, deal on you forward? potentially. those getting talk expensive D, would to doing with consider out this you those up but plan take to with about point. pretty the costs And in your And going with Could at those take it caught those what are Congrats

Brad Cooper

the the year, flow You our loaded. free that cash through it's back-end really way bet. Yes, builds

QX. start in quarters. as LEX of So unwinding a couple our QX, this in year, we Obviously, in, of the guess, bulk flow with free our the the the X fiscal to making on us, first see to cash and capital year, cash But flow payments the burden heavy free Class project of coming comes working in utilize QX and back dollars redemption I end QX or the unwinding and those Ds. capital be plan the would

But with Ds, very, guess, cash look there I we now, free attack it. spend pragmatic to consider sales. would years Ds. through opportunity, comfortably at additionally knocking flow I out the free just market address cash debt next think and Ds the how to was the us of the couple and can asset free we If very over being flow think flow I cash right Class for our some take our a down

Patrick John Fitzgerald

horizon be is to like you enough all out? I -- is the sales your have for a you're while, the generated Okay. to so asset take intel going for flow free those cash preferreds of them But in to big terms guess, in on paying -- nothing

Brad Cooper

That's Yes. correct. our plan. current base That's

Patrick John Fitzgerald

in just quarter, the X it paid did you guess, then first be is barrels July from What fiscal X.X did million first up the day getting average Could you're then would on a about And a the significantly? talk in the paid I to get quarter? why question. day. the on And million step-up you Okay. so barrels in step

Brad Cooper

think, really, as I by Yes. quarter, earlier, recycling. first the I impacted mentioned Yes,

come seeing that is second the producers quarter. our to to on So frack water wells. the flush way. point, what as production going of That's at start using At we're water are some location

lumpiness volumes day-to-day, I of their result in think see comments, his on will a as producers completion cadence. hit in Mike we month-to-month some

For quarter. the

for First the X.XX paid -- barrels. yes, quarter, quarter, barrels, about million million on almost X.X got we

Patrick John Fitzgerald

quarter, talked for here bottom do crude why right. And this All I about then you in quarter, at you logistics guess this talked DJ? the we're last like but you about think the

H. Krimbill

are we the rigs, are just think producers it's more starting efficient add an that increase -- anticipating in I to that volume.

Operator

last of Our comes RBC line Mandel from Markets. Jason with the Capital question

Jason Mandel

I from strategic follow business? just may the updates about Any wanted to some would think, alternatives up but be Liquids like the a the just clarity last whole sales of a helpful. on exploring I business. comment, you be asset about that? portion any sounds It not So thinking to call from conference

Brad Cooper

at Yes. this No time. updates

we'll this business at way. think time. to look I opportunities updates come But at our to that just point no in continue on

Operator

Questions. I remarks. Cooper over to closing now will conference the turn back for Brad

Brad Cooper

NGL. a 'XX Thanks, nice and months Thanks, couple We weekend. the up everyone, forward everyone call. look in a catching in fiscal quarter on interest for with to have your second of

Operator

conference call. concludes This today's

You now may disconnect.

NGL Energy Partners (NGL) 8 Aug 242025 Q1 Earnings call transcript