NGL Energy Partners LP (NGL) 2024 Q3 法說會逐字稿

Greetings, and welcome to the NGL Energy Partners 3Q 2024 Earnings Call. (Operator Instructions) Please note this conference is being recorded.

您好，歡迎參加 NGL Energy Partners 2024 年第三季財報電話會議。（操作員說明）請注意，本次會議正在錄製中。

I will now turn the conference over to your host, Brad Cooper, CFO of NGL Energy Partners.

我現在將會議交給東道主、NGL Energy Partners 財務長 Brad Cooper。

Good afternoon, and thank you to everyone for joining us on the call today. Our comments today will include plans, forecasts and estimates that are forward-looking statements under the U.S. securities law, and these comments are subject to assumptions, risks and uncertainties that could cause actual results to differ from the forward-looking statements.

下午好，感謝大家今天加入我們的電話會議。我們今天的評論將包括根據美國證券法屬於前瞻性陳述的計劃、預測和估計，這些評論受到假設、風險和不確定性的影響，可能導致實際結果與前瞻性陳述有所不同。

Please take note of the cautionary language and risk factors provided in our presentation materials and our other public disclosure materials.

請注意我們的簡報資料和其他公開揭露資料中提供的警告性語言和風險因素。

Before we get into the third quarter's financial results, I wanted to take some time and discuss what we've accomplished this quarter. I first wanted to thank all the NGO employees for their dedication and extra efforts over the last few months. What we have accomplished over the last few months is astonishing, and we should be proud of what we have achieved.

在我們公佈第三季的財務業績之前，我想花一些時間討論我們本季所取得的成就。我首先要感謝所有非政府組織員工在過去幾個月的奉獻和額外努力。過去幾個月我們所取得的成就令人震驚，我們應該為我們所取得的成就感到自豪。

We have been able to execute on our long-term plan faster than we anticipated. Operationally, we recently held an open season on the Grand Mesa pipeline on January fifth, we closed the open season on the Grand Mesa Pipeline and have a new five year MBC with the same counterparty whose prior contract expired on December 31st, outside of entering into a new 5-year NBC agreement this counterparty will also be the shipper on the pipeline freeing up $18 million to $20 million of working capital.

我們能夠比預期更快地執行長期計劃。在營運方面，我們最近於1 月5 日在Grand Mesa 管道上舉行了開放季，我們結束了Grand Mesa 管道的開放季，並與先前合約於12 月31 日到期的同一交易對手簽訂了新的五年期MBC，除了簽訂新的 NBC 協議為期 5 年，該交易對手也將成為管道中的托運人，從而釋放 1800 萬至 2000 萬美元的營運資金。

This is a permanent release of working capital as we continue to negotiate new contracts, signed three contracts on the pipeline. We should continue to see further reductions in working capital. These reductions in working capital will require us to hedge fewer barrels, thus reduce reducing earnings volatility and turns crude logistics into a more ratable long-term fee-based type of business with more MPCs.

這是對營運資金的永久釋放，因為我們繼續談判新合同，簽署了三份正在醞釀中的合約。我們應該會繼續看到營運資金進一步減少。營運資金的減少將要求我們對沖更少的石油，從而減少獲利波動，並將原油物流轉變為具有更多貨幣政策委員會的、更具評級的長期收費業務類型。

A few weeks ago, we issued a press release on the expansion of the Lex produced water pipeline system into Andrews County. This expansion of the Lea County Express Pipeline system takes the existing capacity of 140,000 barrels of water per day, up to 340,000 barrels per day. In 2024.

幾週前，我們發布了一份關於將 Lex 採出水管系統擴展到安德魯斯縣的新聞稿。此次Lea County Express Pipeline系統擴建將現有每天14萬桶水的容量提升至每天34萬桶。2024年。

The addition of a second large diameter pipeline, new disposal wells and new facilities will greatly expand the capabilities of NGL's existing produced water super system and create a significantly larger outlet for Delaware Basin produced water.

第二條大直徑管道、新處理井和新設施的增加將大大擴展 NGL 現有採出水超級系統的能力，並為特拉華盆地採出水創造更大的出口。

The construction of the 27 mile 30 inch produced water pipeline will transport water to areas outside the core of the basin there, but thereby further diversifying NGL's geographic location on its disposal operations.

27英里30英寸的采出水管道的建設將把水輸送到盆地核心以外的地區，進一步使NGL處理業務的地理位置更加多樣化。

Elects to expansion is fully underwritten by a recently executed minimum volume commitment contract that includes an acreage dedication, extension with an investment grade oil and gas producer. This is a strong example of the types of transactions we are able to execute upon with our continued demonstration of being the most reliable and dependable water disposal company in the Lower 48 financially on February second, we closed on the refinancing of our debt maturities.

選擇擴張由最近執行的最低產量承諾合約全額承保，其中包括面積奉獻以及與投資級石油和天然氣生產商的延期。這是我們能夠執行的交易類型的一個強有力的例子，我們在2 月2 日繼續證明自己是美國48 個州財務上最可靠和最可靠的水處理公司，我們完成了債務到期的再融資。

With this $2.9 billion refinancing we extended the weighted average maturity of our debt by approximately three years, while rebalancing the corporate mature maturity stack towards pre-payable debt, providing us the optionality to further accelerate our deleveraging plans the new term loan also provides additional exposure to floating interest rates.

透過這筆29 億美元的再融資，我們將債務的加權平均期限延長了大約三年，同時將企業到期期限堆疊重新平衡為可預付債務，為我們提供了進一步加快去槓桿化計劃的選擇權，新定期貸款還提供了額外的風險敞口至浮動利率。

With projected rate cuts on the horizon, we should be able to capture lower interest expense in the future. The combined three tranches were the largest midstream sector financing efforts in 2022 and the most significant capital raise effort in NGL's history.

隨著預計降息的臨近，我們未來應該能夠降低利息支出。這三筆合併是 2022 年最大的中游產業融資活動，也是 NGL 史上最重要的融資活動。

We have been very clear with our strategy over the last few quarters, our plan was to address the debt maturities in the first half of calendar 2024, and we've been able to execute this refinancing months earlier than anticipated with high yield energy spreads trading the tightest they have been over the last two years.

我們在過去幾季的策略非常明確，我們的計劃是在 2024 年上半年解決債務到期問題，並且我們能夠透過高收益能源利差交易比預期提前幾個月執行再融資是過去兩年來最嚴格的。

We decided to accelerate this refinancing while simultaneously amending and extending the ABL in connection with this transaction, all three rating agencies issued new ratings with S&P and Moody's both raising the corporate credit rating one notch to single B.

我們決定加快本次再融資，同時修改並延長與本次交易相關的ABL，三大評級機構均發布了新的評級，標普和穆迪均將企業信用評級上調一級至單B。

Fitch initiated coverage on the company as well as issued a corporate credit rating of single-B and double-B minus on the secured notes and permanent.

惠譽開始對該公司進行評級，並對該公司的有擔保票據和永久信用評級頒發了單 B 級和雙 B 減級信用評級。

ABL has been extended five years to 2029 the commitment level stayed the same with $600 million of commitments from the bank group, while at the same time getting relief within the documents across a few key covenants that provide us more flexibility.

ABL 已延長五年至 2029 年，承諾水準保持不變，銀行集團承諾提供 6 億美元，同時在幾個關鍵契約的文件中得到緩解，為我們提供了更大的靈活性。

The new debt consists of $2.2 billion of senior secured notes with $900 million of year non-call two notes at eight and one eight interest due 2029 and $1.3 billion of 8 year non-call three notes at eight and three-eighths to 2032.

新債務包括22億美元的優先擔保票據，其中9億美元的年期8年期和八分之三無贖回票據，將於2029年到期，以及13億美元的8年期非贖回三期票據，年期8年及八分之三，將於2032年到期。

In addition of the secured notes, we entered into a seven year, $700 million term loan facility, the term loan facility floating rate debt as a and as I mentioned earlier, we went into the refinancing wanting and mixing a mix of fixed and floating rate debt.

除了有擔保票據之外，我們還簽訂了一項為期七年、金額為7 億美元的定期貸款融資，即定期貸款融資浮動利率債務，正如我之前提到的，我們進行了再融資，希望將固定利率和浮動利率混合在一起。債務。

The term loan also gives us the ability to reprice the facility as we continue to execute on our operational plan. And as we strengthen the balance sheet along the way, the net proceeds from the transactions are being used to fund the redemption of the 25 unsecured notes, the 26 unsecured notes and the 26 senior secured notes, including any applicable premiums and accrued and unpaid interest funds will also be used to pay fees and expenses in connection with the transaction and to repay borrowings under the ABL.

定期貸款還使我們能夠在繼續執行營運計劃時重新定價該貸款。隨著我們持續加強資產負債表，交易的淨收益將用於為贖回25 張無擔保票據、26 張無擔保票據和26 張優先擔保票據提供資金，包括任何適用的溢價以及應計和未付利息資金也將用於支付與交易相關的費用和開支，以及償還 ABL 項下的借款。

This refinancing allows us to take the next step in addressing our capital structure. On Tuesday of this week, we announced the payment for 50% of the outstanding arrearages on the three classes of the preferred securities.

此次再融資使我們能夠在解決資本結構問題上採取下一步措施。本週二，我們宣布支付三類優先證券未償欠款的 50%。

Over the last few months, we have been using free cash flow to pay down our ABL and position ourselves to quickly address the arrearages after the refinancing, we believe we are catching up on these arrearages quicker than anyone anticipated.

在過去的幾個月裡，我們一直在使用自由現金流來償還我們的ABL，並做好準備以在再融資後快速解決欠款問題，我們相信我們正在比任何人預期的更快地追上這些欠款。

The first 50% payment will be made to holders of record as of February 16th, with payments being made on February 27th, for the holders of the Class B preferred securities, they will receive $4.44 per week per unit and each holder of the Class C's will receive approximately $4.7 per unit. In addition to the payments of the Class B and C holders, we are also making a $115 million payment to the holders of the Class D preferreds.

首筆50% 的付款將支付給截至2 月16 日記錄在案的持有人，付款將於2 月27 日支付，對於B 類優先證券的持有人，他們將每週獲得每單位4.44 美元，每位C 類優先證券的持有人將獲得每單位將收到約 4.7 美元。除了 B 類和 C 類優先股持有人的付款外，我們還向 D 類優先股持有人支付 1.15 億美元。

The first question we expect to receive in the Q&A session is when do we plan to make the second half payment and declare we are current on the preferred distributions. In the press release we issued after market today. We are raising the full year guide on asset sales from $100 million to $150 million.

我們期望在問答環節收到的第一個問題是我們計劃何時支付下半年付款並聲明我們目前處於首選分配狀態。在我們今天盤後發布的新聞稿中。我們將全年資產銷售指南從 1 億美元提高到 1.5 億美元。

The remaining asset sales should close by 331 with free cash flow, asset sales and the release of working capital in the liquids segment, we will make the remaining 50% payment in the very near future. We will be thoughtful on the timing of this payment as we assess what the fiscal 2025 cash flow and capital budget could be.

剩餘的資產銷售應在 331 年前結束，自由現金流、資產銷售和液體部門的營運資金釋放，我們將在不久的將來支付剩餘的 50%。在評估 2025 財政年度現金流和資本預算時，我們將仔細考慮這筆付款的時間。

As we kick off the budget process in late February over the last several quarters, we have positioned the partnership to take advantage of a market window to address the debt maturities. Our ability to execute quickly allows us the flexibility to take the next step of our long-term strategy addressing the preferred arrearages. As we achieve these milestones, our long term strategy will continue to evolve. We have additional steps to complete, but all of our stakeholders should feel comfortable with the progress we have made and our consistent messaging along the way.

當我們在二月底啟動過去幾季的預算流程時，我們已將合作夥伴關係定位為利用市場窗口來解決債務到期問題。我們的快速執行能力使我們能夠靈活地採取長期策略的下一步來解決首選欠款問題。隨著我們實現這些里程碑，我們的長期策略將繼續發展。我們還有其他步驟需要完成，但我們所有的利害關係人應該對我們所取得的進展以及我們一路走來的一致訊息感到滿意。

With that, let's get into the third quarter financial results. Water Solutions. Adjusted EBITDA was $121.3 million in the third quarter versus $121.7 million in the prior third quarter. Water disposal volumes were $2.38 million barrels per day in the third quarter versus $2.43 million barrels per day in the prior third quarter.

接下來，讓我們來看看第三季的財務表現。水解決方案。第三季調整後 EBITDA 為 1.213 億美元，上一季為 1.217 億美元。第三季的水處理量為每天 238 萬桶，而上一季的水處理量為每天 243 萬桶。

As Mike mentioned on the previous earnings call, we expected water disposal volumes would be down versus the fiscal second quarter. There are two main drivers that impacted our third quarter disposal volumes. First, producers are keeping produced water on location for completion activity.

正如麥克在之前的財報電話會議上提到的那樣，我們預計水處理量將比第二財季有所下降。有兩個主要驅動因素影響了我們第三季的處置量。首先，生產商將採出水保留在現場以進行完井活動。

This activity will create lumpiness in our disposal volumes going forward. The good news is NGL will receive these disposal volumes once all completion activity is completed at that location. NGL isn't losing any volumes. It's just a timing issue on when those volumes will be received.

這項活動將使我們未來的處理量變得不穩定。好消息是，一旦該地點的所有完井活動完成，NGL 將收到這些處置量。NGL 的產量並未減少。這只是何時收到這些卷的時間問題。

Second, we have a large NBC with an investment grade integrated energy, major producer pressured up its own water gathering system, and it was limited to the amount of water volumes they can get on our system. This producer is currently working on reducing pressures on our water gathering system the volume impact for the third quarter was approximately 178,000 barrels per day for the quarter.

其次，我們有一個大型NBC，具有投資級綜合能源，主要生產商給自己的集水系統施加了壓力，而且他們可以從我們的系統獲得的水量受到限制。該生產商目前正在努力減輕集水系統的壓力，對第三季的產量影響約為每天 178,000 桶。

It's important to remember that we get paid for these volumes and these deficiency volumes are not included in the physical disposal volumes. We report also this in BC as approximately nine years. Remaining Water Solutions continues to maintain operating expenses at $0.25 per barrel best in the industry.

重要的是要記住，我們為這些數量獲得報酬，而這些不足量不包括在物理處置量中。我們也在 BC 報告了大約九年。Remain Water Solutions 繼續將營運費用維持在業界最佳水準每桶 0.25 美元。

This is primarily due to lower chemical expenses, lower generator rental expenses and utilities expenses. These decreases were partially offset by higher repairs and maintenance expense due to the timing of repairs that preventative maintenance and tank cleaning Crude Oil Logistics adjusted EBITDA was seven, was $17 million in the third quarter versus $33.3 million in the prior third quarter.

這主要是由於化學品費用、發電機租賃費用和公用事業費用減少。這些下降被較高的維修和保養費用部分抵消，這是由於預防性維護和油罐清潔原油物流調整後的 EBITDA 為 7，第三季為 1700 萬美元，而上一季為 3330 萬美元。

The adjusted EBITDA, the decrease was primarily due to lower crude sales margins as we received lower contracted rates with certain producers as WTI pricing went below $75 and lower contract differentials negatively, it negatively impacted certain other sales contracts. Volumes decreased due to lower production on acreage dedicated to the Grand Mesa pipeline and also our adjusted EBITDA when compared to the same quarter.

調整後的EBITDA 下降主要是由於原油銷售利潤率下降，因為我們與某些生產商簽訂的合約利率較低，因為WTI 定價低於75 美元，且合約差價較低，這對某些其他銷售合約產生了負面影響。與同季相比，由於 Grand Mesa 管道專用面積產量下降以及我們調整後的 EBITDA，銷售量有所下降。

The previous quarter is slightly impacted by the sale of our marine assets in March on March 30th of 2023. We remain constructive on the DJ Basin and believe the results of the most recent open season on Grand Mesa demonstrate the important to producers of having long-term capacity contracted on the pipeline. We will continue to work with the producers in the DJ and look forward to having additional contracting updates in the near future.

上一季受到 2023 年 3 月 30 日 3 月出售海洋資產的輕微影響。我們對 DJ 盆地仍然持建設性態度，並相信最近 Grand Mesa 開放季的結果表明，在管道上簽訂長期產能合約對生產商來說非常重要。我們將繼續與 DJ 製作人合作，並期待在不久的將來有更多的合約更新。

Liquids Logistics EBITDA adjusted EBITDA was $22.4 million in the third quarter versus $20.5 million in the prior third quarter. This increase was due to higher margins and higher demand for butane blending This was partially offset by lower propane margins and volumes due to warmer weather in the third quarter.

Liquids Logistics 第三季 EBITDA 調整後 EBITDA 為 2,240 萬美元，而上一季為 2,050 萬美元。這一增長是由於利潤率提高和丁烷混合需求增加所致，但第三季度天氣變暖導致丙烷利潤率和銷量下降，部分抵消了這一增長。

Also lower margins on refined products supply issues seen in certain markets in the prior year have been alleviated and have tightened margins. Corporate and adjusted and other adjusted EBITDA was a loss of $11.9 million in the third quarter versus income of $19.5 million in the prior third quarter.

此外，上一年某些市場出現的成品油供應問題帶來的利潤率下降已經得到緩解，並收緊了利潤率。第三季公司及調整後及其他調整後的 EBITDA 虧損 1,190 萬美元，而上一季的營收為 1,950 萬美元。

I want to remind everyone that in the prior year third quarter, it included other income of $29.5 million to settle a dispute associated with commercial activities.

我想提醒大家的是，去年第三季度，其中包括2,950萬美元的其他收入，用於解決與商業活動相關的爭議。

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

我現在想把電話轉給我們的執行長 Mike Krimbill。麥克風？

Thanks, Brad. As you have heard in the last year, we have achieved significant milestones as we position NGL for success at the same time continue exceeding expectations. First, as Brad described, we have reduced leverage on the balance sheet faster than expected due to free cash flow and asset sales attractive multiples. Second, this deleveraging allowed us to complete the refi of all of our indebtedness earlier than expected, reducing our refinancing risk providing financial flexibility.

謝謝，布拉德。正如您在去年所聽到的那樣，我們已經實現了重要的里程碑，因為我們使 NGL 取得成功，同時繼續超越預期。首先，正如布拉德所描述的，由於自由現金流和資產銷售倍數具有吸引力，我們降低資產負債表槓桿的速度快於預期。其次，這種去槓桿化使我們能夠比預期更早完成所有債務的再融資，降低再融資風險，提供財務彈性。

And third, we announced the payment of 50% of the preferred dividend arrearages sooner than expected. We are trying not to disappoint, but rather establish a reputation for beating expectations. Looking forward, we are focused on the following payment of the remaining preferred distribution arrearages as soon as possible, then reinstatement of the Class B C and D distribution as soon as possible.

第三，我們比預期更早宣布支付拖欠優先股股利的 50%。我們努力不讓人失望，而是建立超乎預期的聲譽。展望未來，我們的重點是盡快支付剩餘的優先分配欠款，然後儘快恢復 B C 和 D 級分配。

Third, continued deleveraging through debt reduction and increased EBITDA balanced with addressing the Class D preferred debt reduction can be begin six months after the recent refi as the new high-yield debt has non-call provisions of two to three years.

第三，透過債務削減和增加EBITDA 來持續去槓桿化，並與解決D 級優先債務削減相平衡，可以在最近的再融資六個月後開始，因為新的高收益債務有兩到三年的非贖回條款。

And the term loan incurs breakage fees if repaid within the next six months for improve our credit rating with the agencies, debt reduction, payment of the distribution arrearages and increased EBITDA from accelerations process.

如果在未來六個月內償還貸款，以提高我們與機構的信用評級、減少債務、支付分配欠款以及透過加速流程增加 EBITDA，則定期貸款將產生違約金。

I emphasize internal growth opportunities at attractive rates of return underwritten supported by MVCs rather than limiting growth capital. As we have up until now, we will look for investments to expand our footprint, strengthen our competitive position that will also increase the quality consistency and amount of our adjusted EBITDA.

我強調由 MVC 支持的內部成長機會和有吸引力的回報率，而不是限製成長資本。到目前為止，我們將尋求投資來擴大我們的足跡，增強我們的競爭地位，這也將提高我們調整後的 EBITDA 的品質一致性和金額。

For example, this is the recently announced expansion of the county Express Pipeline system growth. Capex and adjusted EBITDA for this project will be included in our fiscal 2025 guidance. Another example of the outcome of the open season Brad spoke about.

例如，這就是最近宣布的縣域快速管道系統的擴建成長。該項目的資本支出和調整後的 EBITDA 將包含在我們的 2025 財政年度指導中。布拉德談到的公開賽季結果的另一個例子。

We are currently working on multiple new growth projects and contracts, which we will announce if successful. Finally we expect to grow adjusted EBITDA each year for the foreseeable future, led by our Delaware Water Solutions business.

我們目前正在進行多個新的增長項目和合同，如果成功我們將宣布。最後，我們預計在可預見的未來，在特拉華州水務解決方案業務的帶動下，調整後的 EBITDA 每年都會成長。

With respect to our adjusted EBITDA, we are affirming the previous guidance of $500 million plus for water and $645 million for the partnership. So our guidance for adjusted EBITDA and growth CapEx in fiscal year 25 will obviously be higher than the current fiscal year that we will announce that at our year-end call and closing over the last few years, we have made tremendous progress in many areas, increased efficiencies, cost reduction, asset sales, reduce leverage and increase in EBITDA.

關於調整後的 EBITDA，我們確認先前的指導方針，即水費 5 億美元以上，合作夥伴關係 6.45 億美元以上。因此，我們對第 25 財年調整後 EBITDA 和成長資本支出的指導將明顯高於當前財年，我們將在過去幾年的年終電話會議和結案中宣布，我們在許多領域取得了巨大進展，提高效率、降低成本、出售資產、降低槓桿並增加EBITDA。

Going forward we will have fewer opportunities to capitalize on most of these areas. So our renewed focus will be on internal growth with MVCs and hitting our numbers. Ngl was one of the best performing equities in the energy space in calendar '23. We will do our utmost to repeat that performance. Thank you. Couple of questions.

展望未來，我們利用其中大部分領域的機會將會減少。因此，我們新的重點將放在 MVC 的內部成長和達到我們的數字上。Ngl 是 23 年能源領域表現最好的股票之一。我們將盡最大努力重複這樣的表演。謝謝。有幾個問題。

Thank you. At this time we will be conducting a question and answer session. (Operator Instructions)

謝謝。此時我們將進行問答環節。（操作員說明）

Paul Chamber, Barclays.

保羅錢伯，巴克萊銀行。

Yes, great. Thanks. And I'll surprise you here and not ask about the pref on Brad, you brought up a working capital release in crude logistics and obviously your March quarter historically has not had the largest swings towards the positive working capital change of I know there are a lot of factors involved, including seasonal inventories, but any color or range you can kind of point us to for what the fourth quarter could look like or what you're targeting for the full year?

對，很好。謝謝。我會讓你感到驚訝，而不是問布拉德的偏好，你提出了原油物流方面的營運資金釋放，顯然你的三月季度歷史上沒有出現最大的積極營運資金變化的波動，我知道有一個涉及許多因素，包括季節性庫存，但您可以向我們指出第四季度的情況或您全年的目標嗎？

Q4 ABL balance?

Q4 ABL餘額？

Working cap sorry, working capital change?

營運資本 抱歉，營運資本有變動嗎？

Working capital lending motors, it was like $120 million and I think the previous year was like $60 million. I know it's a big swing for you every year?

貸款汽車的營運資金大約是 1.2 億美元，我認為前一年大約是 6000 萬美元。我知道每年這對你來說都是一個很大的轉變？

Yes, that's probably a decent ZIP code. It's a little bit challenging to think that I'm looking thinking through the ABL balance because we've been using free cash flow to pay down the ABL to address the pref on, I would think we'd probably be a $40 million to $50 million working capital number at 331, Paul.

是的，這可能是個不錯的郵遞區號。考慮到我正在考慮 ABL 餘額，這有點具有挑戰性，因為我們一直在使用自由現金流來支付 ABL 來解決預付款問題，我認為我們可能會是 4000 萬至 50 美元萬元營運資金數為331，保。

Okay, great.

好的，太好了。

Or not out of the 55 sorry.

還是沒出55抱歉。

But yes, so far, Q4 working capital would be somewhere around keeping in the 50-ish, plus or minus range. Just put it.

但是，到目前為止，第四季度的營運資金將保持在 50 左右左右的正負範圍內。就放吧。

Well, that's a good estimate.

嗯，這是一個很好的估計。

Apologies, can you hear me?

抱歉，你聽得到我說話嗎？

Patrick Fitzgerald, Baird. Please proceed.

派崔克·菲茨杰拉德，貝爾德。請繼續。

Hey, congrats on the refi on what is if you wouldn't mind, could you provide an update on the ABL balance, you know, as of today or recently

嘿，恭喜您重新審核了，如果您不介意的話，您能否提供 ABL 餘額的最新信息，您知道，截至今天或最近

It's zero today.

今天為零。

Okay. Sell your May-Kin preferred payments and I guess you all with a free cash flow and asset sales.

好的。出售您的 May-Kin 首選付款，我猜您都會獲得自由現金流和資產出售。

Yes. We're using we'll be using a little bit of the ABL balance just because we've been using free cash flow in the third quarter to get the ABL down to zero. So back to the kind of the opening question about the ABL balance at three 31 will represent a little bit of usage for the preferred. Otherwise, it's free cash flow.

是的。我們將使用一點 ABL 餘額，只是因為我們在第三季使用自由現金流將 ABL 降至零。那麼回到關於 ABL 餘額在 3 點 31 處的開場問題將代表首選的一點使用。否則，就是自由現金流。

Is the moderator there?

版主在嗎？

Apologies having technical difficulties here.

在此對遇到技術困難表示歉意。

Gregg Brody, Bank of America.

格雷格·布羅迪，美國銀行。

Hey, guys, and congrats. Congrats on all the work you did on refine and getting the first slug of preferred addressed. I know it's been a long road. So congrats on that. Just maybe my question is more just on the asset sales. Can maybe give us a sense of what some of those might be on and if that will lead to some of any revision to your guidance once it's done?

嘿，夥計們，恭喜你。恭喜您在優化方面所做的所有工作並獲得了首選解決方案的第一批。我知道這是一條漫長的路。所以恭喜你。也許我的問題更多的是關於資產出售。也許可以讓我們了解其中一些內容可能是什麼，以及完成後是否會導致對您的指導進行一些修改？

Yes, good question about the what's the what's really laps? And I spoke to the working capital release that's coming our way as a result of the new for the shipper on the Grand Mesa Pipeline that just occurred through the open season, we've accounted for that $18 million to $20 million of working capital release in our asset sale number because of a permanent release of working capital.

是的，關於什麼是真正的圈數的好問題？我談到了我們即將釋放的營運資金，這是由於大梅薩管道托運人在開放季節剛剛發生的新變化，我們已經在 2019 年釋放了 1800 萬至 2000 萬美元的營運資金。由於永久釋放營運資金，我們的資產出售數量。

When there's a second transaction that it is a land position that generates a mid to high single digit EBITDA that we're close to wrapping up. It would be a similar type. Our multiple from what we've been executing this year.

當第二筆交易發生時，它是一個土地頭寸，產生中高個位數的 EBITDA，我們即將完成。這將是一個類似的類型。我們今年執行的倍數。

And then just as you talk about shifting to organic growth opportunities, you've highlighted the one that you announced in the last month. How significant do you think that could be and is there you sounded like you were trying to pay off the rest of the preferred near term. Is it possible that gets delayed as a result of organic growth opportunities or where do you think you can do you think you can do it all at the same time? You think you can do it?

然後，正當您談論轉向有機成長機會時，您強調了上個月宣布的一個機會。您認為這可能有多重要？聽起來您是否正在嘗試償還剩餘的短期優先貸款。是否有可能由於有機增長機會而被推遲，或者您認為您可以在哪裡同時完成這一切？你認為你能做到嗎？

Yes, we can. I mean that work we're committed to getting caught up on the preferred arrearages. We've been very clear. I think with the press release that went out Tuesday and the first payment, we wouldn't have committed to making a first payment. We didn't see line of sight to adding the second payment being May. We do want to see the release of working capital come our way in the third quarter.

我們可以。我的意思是，我們致力於解決首選欠款問題。我們已經說得很清楚了。我認為，根據週二發布的新聞稿和第一筆付款，我們不會承諾進行第一筆付款。我們沒有看到在五月添加第二筆付款的可能性。我們確實希望看到第三季營運資金的釋放。

The free cash flow we typically generate come our way in the fiscal fourth quarter and then be in a position to make that payment. But the growth projects that Mike spoke to does not impede our ability to address those arrearages.

我們通常會在第四財季產生自由現金流，然後就能夠支付這筆款項。但麥克談到的成長項目並不妨礙我們解決這些欠款的能力。

Great, that's it for me, guys. Thanks for your time, and congrats again.

太好了，這就是我的目標，夥計們。感謝您抽出寶貴時間，再次恭喜。

Thank you.

謝謝。

Paul Chambers, Barclays.

保羅·錢伯斯，巴克萊銀行。

Hey, guys, thanks for letting me back in. I think you got bumped there from follow-up question on kind of oil skimming and as we look at fiscal '25 and the ramp of the new contract commencing in the second half, will the oil skimming daily volumes grow commensurate with that or maybe put another way, is it fair to assume that oil scan volumes will be higher in fiscal '25?

嘿，夥計們，謝謝你讓我回來。我認為你是從關於撇油類型的後續問題中被撞到的，當我們考慮 25 財年以及下半年開始的新合約的增長時，撇油日產量是否會相應增長，或者可能會增加換句話說，假設石油掃描量在25 財年會更高是否公平？

Yes, that the relationship between skim and disposal volumes that we've had the last couple of years should hold for fiscal '25.

是的，我們過去幾年的脫脂量和處置量之間的關係應該在 25 財年保持不變。

Okay. And then I guess, Brad, once the clarity on the income statement, the water solutions cost of sales was a benefit. And I know it's a small number, but can you get any clarity on why that is product? Is that cost of sales that might be?

好的。然後我想，布拉德，一旦損益表變得清晰，水解決方案的銷售成本就會帶來好處。我知道這個數字很小，但是你能解釋為什麼這是一個產品嗎？這可能是銷售成本嗎？

We've got hedges. We've hedged the skim oil with costless collars that would be rolling through that line item. Let us look at that real quick and then we can circle back with you, Paul, if that's not. Okay. Not the does those composition? We had about 80% to 90% of our skim oil hedge with collars through the end of the fiscal year.

我們有樹籬。我們用無成本的項圈對沖了脫脂油，這些項圈將在該行項目中滾動。讓我們快速地看一下這個，然後我們可以回到你身邊，保羅，如果不是的話。好的。不是那些成分嗎？到本財年末，我們大約 80% 到 90% 的脫脂油對沖都帶有套圈。

Okay. Fair enough. Great. Thanks for that.

好的。很公平。偉大的。感謝那。

Ward Blum, UBS.

沃德布魯姆，瑞銀集團。

Going to have no great accomplishment on the refi sort of looking forward, perhaps a quarter or so when you have the free cash flow and the asset sale proceeds to bring your preferreds current? How do you view the sort of the priorities between getting rid of the B Preferred with a 12% coupon or starting to pay distributions to that unit holders.

當你擁有自由現金流並且資產出售收益可以使你的優先股流動時，在未來的再融資方面不會有什麼偉大的成就，也許是四分之一左右？您如何看待以 12% 優惠券擺脫 B Preferred 或開始向該單位持有人支付分配之間的優先順序。

I think we got a bad connection. I know we the issue on the deal is there is a maturity of those at June 30th of 27. So it's not perpetual. We just can't let it hang out there. So we need we do we're not fans of the cost of those funds either. So that would say we have to do something in the next 3.5 years.

我認為我們的關係不好。我知道這筆交易的問題是這些交易將於 27 月 30 日到期。所以它不是永久的。我們只是不能讓它在那裡閒逛。所以我們要做的是，我們也不喜歡這些資金的成本。也就是說，我們必須在未來 3.5 年內做一些事情。

I was referring to the B as in boy?

我指的是男孩中的 B？

Yes, these being perpetual that they've bought our first now not the first securing that prepared that we would we would go after getting caught up on the BC. and D. arrearages allows us now to make to start making redemption payments on the class fees to Mike's comment that those have the obligation to put right in the summer of 27 and we will go activities before we address the B's and C's.

是的，這些是永恆的，他們現在已經購買了我們的第一個，而不是第一個確保我們在追上 BC 後會去的準備。 D. 欠款允許我們現在開始償還麥克的評論中的班級費用，這些費用有義務在 27 年夏天糾正，我們將在解決 B 和 C 之前開展活動。

Would that preclude you from making common distributions at that point when you were going after the pay down of the D.

當您追求 D 的首付時，這會阻止您進行共同分配嗎？

No, once we have paid the arrearages, we have as we refer to the financial flexibility, we can reduce debt further, we can buy out these over time and we could then do something with the comment.

不，一旦我們支付了欠款，我們就擁有了財務靈活性，我們可以進一步減少債務，我們可以隨著時間的推移買斷這些債務，然後我們可以對評論做一些事情。

Thank you very much.

非常感謝。

Yes, thank you.

是的，謝謝。

Ned Baramov, Wells Fargo.

內德·巴拉莫夫，富國銀行。

Talk about how big the contract is with the one shipper which signed up for capacity. And then when are the remaining contracts on Grand Mesa rolling off?

談論與簽署運力的一家托運人簽訂的合約有多大。那麼大梅薩的剩餘合約何時到期？

Yes, we've got some maybe a smaller contract that's rolling off towards the latter part of this calendar year. And the second contract of size equivalent to one that just rolled off as it had a couple of years on it.

是的，我們有一些可能較小的合約將在今年下半年到期。第二份合約的規模相當於剛到期的合約，因為它還有幾年的時間。

Okay, got it. And then maybe on the on the water system expansion project, can you give us a sense for CapEx dollars associated with the expansion? I know that you mentioned next year's growth CapEx is going to be higher than the current year, but just looking for additional color there.

好，知道了。然後，也許在供水系統擴建項目上，您能給我們介紹一下與擴建相關的資本支出嗎？我知道您提到明年的成長資本支出將高於今年，但只是在那裡尋找額外的色彩。

Yes, at this time we can it will be part of our fiscal '25 budget. And I think as Mike spoke to, and we'll roll that all that out on the June year end call.

是的，目前我們可以將其納入我們 25 財年預算的一部分。我認為正如麥克所說，我們將在六月的年終電話會議上推出所有這些內容。

Understood. Thanks for the time.

明白了。謝謝你的時間。

Thank you.

謝謝。

Ben Niedermeyer, NBW Capital.

本·尼德邁爾，NBW Capital。

Yes, I'm just wondering with the desire to get a higher debt rating you what you're thinking isn't a debt to EBITDA, aspirationally, where do you want to see it? And I know you've got to counterbalance that with the fact that some of the debt, you can pay down right away and it's more of an EBITDA grossing. But nonetheless, where do you see EBITDA two, three years out?

是的，我只是想知道，您希望獲得更高的債務評級，您認為這不是 EBITDA 的債務，您希望在哪裡看到它？我知道你必須用這樣的事實來平衡這一點：你可以立即償還一些債務，而且它更多的是 EBITDA 收入。但儘管如此，您對兩三年後的 EBITDA 有何看法？

So Bill, I think the agencies consider the arrearages as indebtedness, and they also consider the class DDi's indebtedness. So by we're not we're not looking at are just kind of pure plain vanilla leverages really all three of those. So we will be paying down the arrearages and going after the D's that will be reducing leverage from the agency's point of view.

所以比爾，我認為這些機構將拖欠視為債務，他們也認為 DDi 類的債務。因此，我們並不是在考慮純粹的普通槓桿，實際上是所有這三個槓桿。因此，我們將償還欠款並追究 D 的責任，從該機構的角度來看，這將減少槓桿。

And where what are you looking at in terms of goals, are you looking for leverage to be 3.5 debt to EBITDA?

就目標而言，您的目標是什麼？您是否希望槓桿率達到 EBITDA 的 3.5 倍？

Yes, just plain vanilla without the arrearages or the trap. And we'd like to be frankly, any while we continue to address the graphite Class D specifically, they were in those three and three quarters of up to four times range. And then once the deals are taking care of something, something sub that level.

是的，只是普通的香草，沒有欠款或陷阱。坦白說，當我們繼續專門討論 D 級石墨時，它們都處於四倍範圍內的三又四分之三。然後，一旦交易解決了某些問題，某些低於該水平的問題。

I think we're probably 3.5 is a nice long-term goal for us to they have post class these.

我認為 3.5 對我們來說可能是一個很好的長期目標，因為他們有課後這些。

Now can I do a follow on question on another topic of the former question on not being able to disclose the cost of the new type fit. I'm interested in knowing if you can disclose at the length of those MVCs. And I'm assuming the return on invested capital is going to be much higher than the Company norm because you've got it on an existing right-of-way, that's you're building another pipe right next to another one. And so an existing one, how can you give us some sense of what type of returns, the length of those MBCs just beyond without disclosing the costs?

現在我可以對前一個問題的另一個主題進行後續問題，即無法透露新型配件的成本。我很想知道您是否可以透露這些 MVC 的長度。我假設投資資本的回報率將遠高於公司的正常水平，因為你已經在現有的通行權上獲得了它，也就是說你正在另一根管道旁邊建造另一根管道。那麼，對於現有的 MBC，您如何在不揭露成本的情況下讓我們了解什麼類型的回報以及這些 MBC 的長度？

Is Doug on. Doug, are you there?

道格在嗎？道格，你在嗎？

From here and we say the likes of the MBC. Yes, as the press release, I believe stated Mike, the NBC, the five year NBC was public.

從這裡開始我們就說MBC之類的。是的，正如新聞稿中所說，邁克說，NBC，五年的 NBC 是公開的。

And returns on existing. Are you putting this up at a very low multiple of EBITDA? Can you give us some sense of the returns on the project we do envision.

並回報現有。您是否將其定為非常低的 EBITDA 倍數？您能否讓我們了解一下我們所設想的項目的回報？

So your comment on right away is correct. We've all we previously purchased that right away. We had to and we built the X1, this has legs to. So there is not significant right away costs, which we can't disclose see the return. But I think the important thing here is the whole story is we got an extension of the acreage dedication. There's value that there is EBITDA from obviously what gets shipped over these five years. But what we're very excited about is the total capacity is 500,000 barrels per day.

所以你立即發表的評論是正確的。我們之前都立即購買了它。我們不得不這麼做，所以我們打造了 X1，這是有道理的。因此，立即產生的成本並不高，我們無法透露具體的回報。但我認為整個故事中最重要的是我們擴大了土地投入。顯然，這五年內出貨的產品所帶來的 EBITDA 是有價值的。但令我們非常興奮的是總產能為每天 50 萬桶。

So we have a couple of hundred thousand barrels of capacity to sell to other producers. So ultimately, the return or the there, the GAAP rate of return is going to be very attractive through. I can't give you a number.

因此，我們有幾十萬桶的產能可以出售給其他生產商。因此，最終，GAAP 回報率將非常有吸引力。我不能給你一個號碼。

Okay. Thank you.

好的。謝謝。

Yes, thank you.

是的，謝謝。

I would now like to turn the call back to Brad Cooper for closing remarks.

現在我想將電話轉回給布拉德·庫珀，讓其致閉幕詞。

Well, thanks, everyone, for your interest in the call today. We've accomplished a lot this last quarter and look forward to talking to you all in June with our year-end results and fiscal '25 budget. Thank you.

好的，謝謝大家對今天電話會議的關注。上個季度我們取得了許多成就，並期待在 6 月與大家討論我們的年終業績和 25 財年預算。謝謝。

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

今天的會議到此結束，您現在可以掛斷電話了。感謝您的參與。