NGL Energy Partners LP (NGL) 2026 Q1 法說會逐字稿

Greetings. Welcome to the NGL Energy Partners 1Q ' 26 earnings call. (Operator Instructions) Please note, this conference is being recorded.

問候。歡迎參加 NGL Energy Partners 26 年第一季財報電話會議。（操作員指示）請注意，本次會議正在錄音。

I will now turn the conference over to your host, Brad Cooper. You may begin.

現在我將會議交給主持人布拉德庫柏。你可以開始了。

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 US securities law. These comments are subject to assumptions, risks and uncertainties that could cause actual results to differ from the forward-looking statements. Please take note of the cautionary language and risk factors provided in our presentation materials and our other public disclosure materials.

下午好，感謝大家今天參加我們的電話會議。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不同。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語言和風險因素。

During the first quarter, we closed on the sale of our Rack marketing business, the interest in the Limestone Ranch and a majority of the wholesale propane business that included 17 terminals. As discussed on previous calls, we will continue to look for opportunities to shrink the remaining footprint of the Liquids segment with further asset sales. We used a portion of the proceeds to completely pay down the ABL during the quarter. We did end the quarter with a small ABL balance, but this is expected as we began our butane build within the Liquids segment. In addition to paying down the ABL, we opportunistically attacked other pieces of the capital structure with the proceeds.

在第一季度，我們完成了 Rack 行銷業務、Limestone Ranch 的權益以及包括 17 個終端在內的大部分丙烷批發業務的出售。正如之前的電話會議所討論的那樣，我們將繼續尋找機會透過進一步的資產出售來縮小液體部門的剩餘足跡。我們利用部分收益在本季完全償還了 ABL。我們在本季末確實有一個較小的 ABL 餘額，但這是預料之中的，因為我們開始在液體部門內建造丁烷。除了償還 ABL 之外，我們還利用所得收益伺機攻擊資本結構的其他部分。

Mike will elaborate on these efforts during his prepared remarks. We continue to execute on our multiyear strategy of rightsizing the asset footprint, paying down debt and reducing overall leverage of the company. Let's get into the quarterly results. Consolidated adjusted EBITDA for the quarter came in at $144 million versus $138.6 million in the prior year first quarter or approximately 4% higher than the prior year's first quarter. This increase was primarily driven by the performance of our Water Solutions business segment. We are reaffirming our full year adjusted EBITDA guidance of $615 million to $625 million.

麥克將在準備好的發言中詳細闡述這些努力。我們將繼續執行多年策略，即調整資產規模、償還債務並降低公司的整體槓桿率。讓我們來看看季度業績。本季合併調整後 EBITDA 為 1.44 億美元，去年同期為 1.386 億美元，比去年同期高出約 4%。這一增長主要得益於我們水解決方案業務部門的業績。我們重申全年調整後的 EBITDA 預期為 6.15 億美元至 6.25 億美元。

Our Water segment continues to perform above our expectations thus far, and we will reevaluate our full year guidance after the second quarter closes. Water Solutions adjusted EBITDA was $142.9 million in the first quarter versus $125.6 million in the prior first quarter, a 13.8% increase. Physical water disposal volumes were 2.77 million barrels per day in the first quarter versus 2.47 million barrels per day in the prior year first quarter, a 12.4% increase.

到目前為止，我們的水務部門表現持續超出我們的預期，我們將在第二季結束後重新評估全年業績指引。第一季度，Water Solutions 調整後的 EBITDA 為 1.429 億美元，而去年同期為 1.256 億美元，成長 13.8%。第一季實體水處理量為每天 277 萬桶，去年同期為每天 247 萬桶，成長 12.4%。

Total volumes we were paid to dispose that includes deficiency volumes were 3.1 million barrels per day in the first quarter versus 2.6 million barrels per day in the prior year first quarter. So total volumes we were paid to dispose of were up approximately 18% first quarter of fiscal '26 over first quarter of fiscal 2025. The increase in EBITDA was primarily driven by higher disposal revenues due to an increase in produced water volumes processed from contracted customers as well as higher water pipeline revenue due to the LEX II pipeline commencing operations during the quarter ended December 31, 2024.

第一季度，我們獲得的處置總量（包括短缺量）為每天 310 萬桶，而去年同期為每天 260 萬桶。因此，2026 財年第一季我們處理的總數量比 2025 財年第一季成長了約 18%。EBITDA 的成長主要得益於合約客戶處理的生產水量增加導致的處置收入增加，以及 LEX II 管道於 2024 年 12 月 31 日結束的季度開始營運導致的輸水管道收入增加。

Operating expenses for the quarter on a per barrel basis were lower by $0.02 when compared to the same quarter of the previous year. For the first quarter, our operating expenses in Water Solutions was $0.22 per barrel. With the current market sentiment and oil price uncertainty, we have not seen any drop-off in activity from our customers in the core of the basin. We have continuous conversations with the producers to monitor activity levels and the impacts the macro backdrop could have on our Water Solutions segment. As highlighted in our earnings call presentation, we are well positioned with 90% of our volumes committed through acreage dedications and MVCs. Recall, 80% of our total volumes are with investment-grade counterparties.

與去年同期相比，本季每桶營運費用下降了 0.02 美元。第一季度，我們的水務解決方案營運費用為每桶 0.22 美元。鑑於當前的市場情緒和油價不確定性，我們並未看到盆地核心地區的客戶活動有任何減少。我們與生產商持續對話，以監控活動水平以及宏觀背景對我們的水解決方案部門可能產生的影響。正如我們在收益電話會議上所強調的那樣，我們處於有利地位，90% 的產量是透過土地承諾和 MVC 實現的。回想一下，我們總交易量的 80% 都來自投資等級交易對手。

Crude Oil Logistics adjusted EBITDA was $9.6 million in the first quarter of fiscal '26 versus $18.6 million in the prior year's first quarter. During the quarter, volumes on the Grand Mesa pipeline averaged approximately 55,000 barrels per day compared to 63,000 barrels per day for the first quarter of 2025. The decrease was due primarily to reduced sales as a result of lower production on acreage dedicated to us in the DJ Basin and lower crude oil prices.

原油物流公司 26 財年第一季調整後的 EBITDA 為 960 萬美元，去年同期第一季為 1,860 萬美元。本季度，大梅薩輸油管的平均輸送量約為每天 55,000 桶，而 2025 年第一季的平均輸送量為每天 63,000 桶。下降的主要原因是 DJ 盆地專用土地產量下降以及原油價格下跌導致銷售下降。

As we have previously discussed on these calls, we have been anticipating an increase in volumes on the Grand Mesa system for a while now. For the month of July, volumes were approximately 25% higher than June volumes. So we anticipate stronger quarters ahead for the Crude Logistics segment. Liquids Logistics adjusted EBITDA was $2.9 million in the first quarter versus $5.7 million in the prior first quarter. This is adjusted for the previously announced asset sales that closed in the quarter. The primary EBITDA contributor of the Liquids Logistics segment going forward will be our butane blending business. And recall that a majority of the EBITDA from this segment occurs in the back half of the fiscal year.

正如我們之前在這些電話會議上討論過的，我們一直預計大梅薩系統的交易量會增加一段時間。7 月的交易量比 6 月高出約 25%。因此，我們預期原油物流領域未來幾季的表現將會更加強勁。Liquids Logistics 在第一季調整後的 EBITDA 為 290 萬美元，而去年同期為 570 萬美元。這是根據本季完成的先前宣布的資產出售情況進行調整的。未來液體物流部門的主要 EBITDA 貢獻者將是我們的丁烷混合業務。請記住，該部門的大部分 EBITDA 都發生在財政年度的後半年。

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

現在，我想將電話轉給我們的執行長 Mike Krimbill。

Thanks, Brad. Good afternoon. I have just some brief comments. With respect to the first quarter results, as Brad said, we have exceeded our expectations. Water Solutions experienced a strong quarter, continues to reduce its cost per barrel. We expect strength in the back half of the year from our Crude Oil Logistics segment as volumes on Grand Mesa ramp up. The remaining Liquids Logistics business generates enough adjusted EBITDA to cover our corporate costs. If our results continue to exceed expectations, we will consider raising guidance at the time of our second quarter earnings call in early November.

謝謝，布拉德。午安.我只想發表一些簡短的評論。關於第一季的業績，正如布拉德所說，我們已經超越了預期。Water Solutions 本季表現強勁，每桶成本持續降低。隨著大梅薩原油運輸量的增加，我們預計下半年原油物流部門將表現強勁。剩餘的液體物流業務產生的調整後 EBITDA 足以涵蓋我們的公司成本。如果我們的業績持續超出預期，我們將考慮在 11 月初的第二季財報電話會議上提高預期。

Now as you can see from our first quarter actions, we are exercising an opportunistic strategy with regards to the use of our free cash flow. Cash is being used to purchase, repay debt and equity that provides the highest return and greatest benefit to the partnership while considering liquidity and leverage. These opportunities may change as the markets continue to move. So first, during the quarter, we purchased $19 million of our outstanding 2032 notes at a discount as our bond prices temporarily declined due to the tariff announcement in early April.

現在，正如您從我們第一季的行動中看到的，我們在使用自由現金流方面正在實施機會主義策略。現金用於購買、償還債務和股權，在考慮流動性和槓桿率的同時，為合夥企業提供最高的回報和最大的利益。隨著市場的持續變化，這些機會可能會改變。首先，在本季度，我們以折扣價購買了 1,900 萬美元的未償還 2032 年票據，因為 4 月初的關稅公告導致我們的債券價格暫時下跌。

We paid off $17 million of debt that was outstanding on our ABL at March 31. We then repurchased 70,000 units or approximately 12% of our outstanding Class D preferred units. The successful refinancing in February last year and the full payment of the preferred arrearages allows us to purchase any of our preferred classes B, C and D in the open market or call them at our discretion. We have a couple of years to redeem the Class D preferred, so we are beginning that process now and anticipate additional purchases this fiscal year.

截至 3 月 31 日，我們已償還 ABL 上未償還的 1,700 萬美元債務。然後，我們回購了 70,000 個單位，約占我們未償還 D 類優先股單位的 12%。去年 2 月的成功再融資和優先股欠款的全額支付使我們能夠在公開市場上購買 B、C 和 D 類優先股中的任何一種，或者自行決定贖回。我們有幾年的時間來贖回 D 類優先股，因此我們現在就開始這項流程，並預計本財年將進行額外購買。

And finally, under the Board authorized common unit repurchase plan, we have purchased a total of approximately 4.7 million common units at an average price of $4.30 per unit. This represents approximately 3.5% of the outstanding common units. So in conclusion, as we move forward, the balance sheet remains a priority, but we are very focused on growing our adjusted EBITDA as it reduces leverage and provides additional cash for the balance sheet improvement.

最後，根據董事會授權的普通股回購計劃，我們以平均每股 4.30 美元的價格共回購了約 470 萬股普通股。這約佔已發行普通股的 3.5%。總而言之，隨著我們不斷前進，資產負債表仍然是我們的首要任務，但我們非常注重提高調整後的 EBITDA，因為它可以降低槓桿率並為資產負債表改善提供額外的現金。

And so with that, operator, let's open up the line for Q&A.

接線員，現在讓我們開始問答環節。

Certainly at this time we will be conducting a question and answer session. (Operator Instructions)

當然，此時我們將進行問答環節。（操作員指示）

Tarek Hamid, JPMorgan.

摩根大通的塔里克‧哈米德 (Tarek Hamid)。

Hi, this is Nevin on for Tarek. I know you just mentioned that you'd be remaining opportunistic with capital allocation. But just going forward, do you expect further common unit repurchases? Or is this would you consider this quarter more as a one-off and you'll be remaining more concentrated on the Class Ds?

大家好，我是 Nevin，代表 Tarek 發言。我知道您剛才提到，您將在資本配置方面保持機會主義。但展望未來，您是否預期會有進一步的普通股回購？或者您認為本季只是一次性事件，並且您將更加專注於 D 類？

This is Brad. I think we'll continue to be opportunistic. If the unit prices kind of hang out in the same level they've been this last quarter, I think you'll see us nibble at that. If the bonds trade down based on some macro event, we'll nibble at those, and we'll continue to attack the Class Ds. So I don't think we're going to set a path right now in terms of what we're just going to go after solely. It will be a little bit of each at these levels.

這是布拉德。我認為我們會繼續抓住機會。如果單價與上一季持平，我想你會看到我們對此進行削減。如果債券交易價格因某些宏觀事件而下跌，我們就會逐漸買入這些債券，並繼續攻擊 D 類債券。因此，我認為我們現在不會單獨設定一條我們要追求的道路。在這些層面上，每種情況都會有一點。

Got it. Thank you.

知道了。謝謝。

Derrick Whitfield, Texas Capital.

德瑞克·惠特菲爾德，德州首府。

Good afternoon guys, and Congrats on the opportunistic purchases. With respect to the produced water volumes for the quarter, they were a little bit lighter than what we were expecting. Just wanted to see if you could add some color as to perhaps some of the moving parts for the quarter itself.

大家下午好，恭喜您有機會購買。就本季的產水量而言，比我們預期的要少一些。只是想看看您是否可以為本季本身的一些活動部分添加一些色彩。

Doug, do you want to take kind of Q1's water volume question?

道格，你想回答 Q1 的水量問題嗎？

Sure. They were quite a bit close to where we were expecting. There were some were -- in June, there were recycling jobs that ramped up, which we're now seeing those volumes on the takeaway side this quarter. But we feel pretty good about the volumes in Q1. We came in about 79,000 barrels a day over budget for the quarter over our internal budget. So we felt those were pretty solid. We see that continuing for the balance of the year based on our customer forecast at this time.

當然。它們與我們預期的非常接近。有一些情況——6 月份，回收工作量有所增加，我們在本季度的外賣方面看到了這些數量。但我們對第一季的銷售感覺相當滿意。本季我們的日產量比內部預算超出約 79,000 桶。所以我們覺得這些非常可靠。根據我們目前的客戶預測，我們認為這種情況將持續到今年年底。

Very good.

非常好。

Derrick, let me add to that. So when we look at volumes, we see the physical volumes we move. Then we see the, we call it, financial volumes on the MVCs we get paid for that physically didn't move. And then what we do not recorded in the quarter are additional MVC volumes we will get paid for next quarter. So you're not seeing all the volumes that the system is actually, I'll say, receiving. And you won't see it next quarter when we sell off on an MVC.

德里克，讓我補充一下。因此，當我們查看體積時，我們會看到我們移動的物理體積。然後，我們看到了我們稱之為 MVC 的財務量，這些 MVC 是我們獲得報酬的，但實際上並沒有移動。然後，我們在本季沒有記錄的是下個季度將獲得的額外 MVC 量。因此，您看不到系統實際接收的所有資料量。當我們下個季度拋售 MVC 時，你不會看到它。

Got it. That makes sense. And then maybe just higher level, I wanted to get your thoughts on the Ares acquisition by Western. I mean, from our perspective, while we look at it in question the timing from a value recognition perspective, it definitely supports the Delaware water thesis that we have for your business and the revaluing of that core space over time.

知道了。這很有道理。然後也許只是更高層次，我想聽聽您對西方收購 Ares 的看法。我的意思是，從我們的角度來看，雖然我們從價值識別的角度質疑時機，但它肯定支持我們對您的業務的特拉華水資源論點以及隨著時間的推移對該核心空間的重新評估。

Yeah. I'll start, and Doug, you may have some thoughts, too. But I think we congratulate Ares for getting a premium price for their business. That's a price we would never have paid. And our model is a little different, too, as we do not focus on recycling. There are some other companies out there that do a great job who's really focused on that business.

是的。我先開始，道格，你可能也有一些想法。但我認為我們應該祝賀 Ares 為其業務獲得了溢價。這是我們永遠不會付出的代價。我們的模式也有點不同，因為我們不關注回收。還有一些其他公司真正專注於該業務，並且做得很好。

And Doug, do you have any other thoughts?

道格，您還有其他想法嗎？

Yeah. I think it's great for the industry, great sign. Consolidation has been positive in the Delaware for even on the producer side, once the consolidation happens, they start you build and continue to build more of a foundation of an asset base, be it whether the producer side or the midstream side. So we welcome seeing consolidation, which also includes fewer parties at the ball game. The remaining groups that are out there, I think a couple more of them are looking to be consolidated.

是的。我認為這對行業來說是一件好事，是一個好兆頭。特拉華州的整合是積極的，即使在生產商方面，一旦整合發生，他們就會開始建立並繼續建立更多的資產基礎，無論是生產商方面還是中游方面。因此，我們歡迎看到合併，其中也包括減少比賽中的派對。剩下的團體中，我認為還有幾個正在尋求合併。

So over time, this will come down to a few parties in the midstream water business, and it will then eliminate the spending of CapEx on duplicate assets, duplicating such the existing other competitor assets, which I think is good for the industry. The larger diameter pipes, more centralized operation of a larger contiguous area of assets. I think that's just good for the industry. And it's good for the producers, producers become more efficient, drill more wells and create more water.

因此，隨著時間的推移，這將歸結為中游水業務中的幾個參與者，然後將消除重複資產的資本支出，重複現有的其他競爭對手的資產，我認為這對行業有利。管道直徑越大，更大連續區域的資產運作就越集中。我認為這對行業來說是件好事。這對生產商來說是件好事，生產商變得更有效率，鑽更多的井，產出更多的水。

We have reached the end of the question-and-answer session, and I will now turn the call over to Brad Cooper for closing remarks.

問答環節已經結束，現在我將把發言權交給布拉德庫柏 (Brad Cooper) 作結束語。

Thanks, everyone, for your interest in NGL. We look forward to catching up with everyone in early November during our second quarter call for fiscal '26.

感謝大家對 NGL 的關注。我們期待在 11 月初 26 財年第二季電話會議期間與大家見面。

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，大家可以斷開連線了。感謝您的參與。