NGL Energy Partners LP (NGL) 2026 Q4 法說會逐字稿

Please continue to hold your conference will begin momentarily. Please continue to hold. Thank you for your patience.

請繼續保持在線，您的會議即將開始。請繼續保持在線。感謝您的耐心等候。

Greetings. Welcome to the NGL Energy Partners 4Q '26 earnings call. (Operator Instructions) Please note, this conference is being recorded.

您好。歡迎參加 NGL Energy Partners 2026 會計年度第四季（4Q '26）財報電話會議。（接線員指示）請注意，本次會議將被錄音。

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

現在我將把會議交給主持人、財務長 Brad Cooper。您可以開始了。

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 presentation materials and our other public disclosure materials.

各位下午好，感謝大家今天加入本次電話會議。我們今天的發言將包含計畫、預測與估計，依據美國證券法屬於前瞻性陳述。這些陳述受若干假設、風險與不確定性影響，可能導致實際結果與前瞻性陳述有所差異。請留意簡報資料以及我們其他公開揭露資料中所提供的警示性語言與風險因素。

We are pleased to report a strong finish to fiscal '26, highlighted by record performance in our Water Solutions segment, and meaningful progress on our capital structure priorities.

我們很高興報告 2026 會計年度強勁收官，其中以水務解決方案（Water Solutions）部門創紀錄的表現，以及在資本結構優先事項上取得實質進展為亮點。

For the year, adjusted EBITDA from continuing operations was approximately $660 million which came in at the high end of our guidance range and represents meaningful growth year over year driven by our Water Solutions segment. In the fourth quarter, we generated adjusted EBITDA of approximately $176 million Excluding the goodwill impairment charge, income from continuing operations is approximately $70 million

全年來看，持續營運的調整後 EBITDA 約為 6.60 億美元，落在我們指引區間的高端，並在水務解決方案部門帶動下，較去年同期實現顯著成長。在第四季，我們產生的調整後 EBITDA 約為 1.76 億美元。扣除商譽減損費用後，持續營運的淨利約為 7,000 萬美元。

As we step back and look at the partnership's accomplishments this year, we believe fiscal 2026 encapsulates execution across every tenet of our multiyear strategy.

當我們回顧本年度合夥企業的各項成果時，我們認為 2026 會計年度體現了我們多年策略各項核心要素的全面落實與執行。

First, in April, we closed on the sale of our wholesale propane and rack marketing businesses. As we are positioning the partnership to be a pure play water company the Liquid segment will continue to be rightsized as we work to monetize the non-core assets in this division. The disposition of the wholesale propane and rack marketing businesses significantly reduced the volatility in our quarterly reported EBITDA, as well as eliminated swings in our working capital.

第一，我們於 4 月完成出售批發丙烷與 rack 行銷業務。在我們將合夥企業定位為純水務公司之際，液體（Liquids）部門將持續縮減規模，我們也將致力於將該部門的非核心資產變現。處分批發丙烷與 rack 行銷業務，大幅降低了我們每季揭露 EBITDA 的波動性，同時也消除了營運資金的起伏。

Second, we continue to attack and simplify the capital structure. We completed a $950 million refinancing transaction, extending maturities and providing cash to reduce the Class D preferred units outstanding. Over the course of the fiscal year, we redeemed approximately 285,000 Class D preferred units, significantly reducing our highest cost of capital. The redemption of the Class D's represents approximately 47% of the original amount.

第二，我們持續推進並簡化資本結構。我們完成了 9.50 億美元的再融資交易，延長到期日並提供現金以降低在外流通的 D 類優先單位（Class D preferred units）。在整個會計年度期間，我們贖回約 285,000 個 D 類優先單位，顯著降低了我們成本最高的資本。贖回 D 類約相當於原始發行數量的 47%。

Our strategy over the last few years has remained consistent since the refinancing in early 2024. We will continue to chip away at the Class Cs with free cash flow and noncore asset sales. And when leverage is at an appropriate level, we can access the capital markets to further reduce the Class Ds.

過去幾年來，我們的策略自 2024 年初再融資以來一直保持一致。我們將持續運用自由現金流與非核心資產出售，逐步降低 C 類（Class C）。當槓桿水準達到適當水位時，我們即可進入資本市場以進一步降低 D 類（Class D）。

We have remained opportunistic with respect to the term loan B market, and our ability to reprice this debt instrument. This component of our capital structure has allowed us to further reduce interest expense as our operational and financial performance continues to excel.

就 B 期定期貸款（term loan B）市場而言，我們一直把握機會，並具備重新定價該債務工具的能力。在我們營運與財務表現持續優異之際，這項資本結構組成也使我們得以進一步降低利息費用。

Third, the partnership bought 8.7 million common units under our buyback program, at an attractive price of $5.72. At the time when the Board approved the $50 million buyback program, we believe the common units to be the best return in our portfolio. And I think the recent performance in the unit price validates our investment and belief in our multiyear strategy to allocate this capital to the common units.

第三，合夥企業在回購計畫下以具吸引力的價格 5.72 美元回購了 870 萬個普通單位。董事會核准 5,000 萬美元回購計畫之時，我們認為普通單位是我們投資組合中報酬最佳的選擇。我認為，近期單位價格的表現也驗證了我們的投資，以及我們對多年策略的信念——將這筆資本配置至普通單位。

Lastly, we continue to deploy capital to our Water Solutions segment, that drove growth in our EBITDA year over year by 11%. Our disposal volumes committed under volume commitments grew from 45% to 53% during the fiscal year as well. Recall, over 90% of our volumes are contractual volume commitments or are acreage dedicated.

最後，我們持續向水務解決方案部門投入資本，使我們的 EBITDA 年增 11%。在本會計年度期間，我們在量承諾（volume commitments）下所承諾的處置量占比也從 45% 提升至 53%。請記得，我們超過 90% 的量來自合約式量承諾或為區塊（acreage）專屬承諾。

We will get into the guide and outlook for 2027 later, but I would expect us to utilize the same playbook for fiscal '27 that we utilized in fiscal '26 by executing on accretive growth projects in our Water Solutions segment, and continuing to simplify our capital structure. Fiscal '27 is off to a great start. The momentum we exited with in fiscal '26 is carrying through to 2027. As evidenced by the press release issued earlier this month.

我們稍後會談到 2027 年的指引與展望，但我預期我們在 2027 會計年度將沿用 2026 會計年度的同一套作法：在水務解決方案部門執行具增益性的成長專案，並持續簡化資本結構。2027 會計年度開局表現非常好。我們在 2026 會計年度結束時的動能正延續到 2027 年。這也可從本月稍早發布的新聞稿中看出。

On May 7, we announced a further expansion of our LEX II system, increasing capacity by 165,000 barrels per day with the capability to transport approximately 560,000 barrels of water per day on the LEX II system. The LEX II expansion is underwritten by a long term volume commitment contract, that includes increased volume commitments and an additional four township committed area in Eddy County. Additionally, the LEX II expansion is expandable up to 650,000 barrels of water per day.

5 月 7 日，我們宣布進一步擴建 LEX II 系統，將產能提高 165,000 桶/日，使 LEX II 系統具備每日約 560,000 桶水的輸送能力。LEX II 擴建案由一份長期量承諾合約提供支撐，合約包含提高的量承諾，以及在 Eddy County 額外承諾的四個 township 區域。此外，LEX II 擴建案可進一步擴充至每日 650,000 桶水。

Now let's hit the highlights for the fourth quarter of fiscal '26. Starting with Water Solutions, which continues to be the cornerstone of our business. This segment delivered another record year with adjusted EBITDA of approximately $153 million in the fourth quarter and approximately $603 million for the full year. From a volume standpoint, we achieved produced water volumes of 3 million barrels per day in the fourth quarter, a 10% increase in physical volumes disposed compared to the previous year's fourth quarter.

接下來我們來看 2026 會計年度第四季的重點。先從水務解決方案開始，該部門仍是我們業務的基石。該部門再度創下紀錄：第四季調整後 EBITDA 約為 1.53 億美元，全年約為 6.03 億美元。就量而言，我們在第四季達到每日 300 萬桶的產出水（produced water）處理量，與去年第四季相比，實際處置量增加 10%。

Total volumes we were paid on for the fourth quarter were approximately 3.1 million barrels per day compared to approximately 3 million barrels per day in the previous fourth quarter. For the full year, disposal volumes averaged approximately 2.9 million barrels per day, up 11% from the prior year.

第四季我們獲得付費的總量約為每日 310 萬桶，相較於去年第四季約每日 300 萬桶。全年來看，處置量平均約每日 290 萬桶，較前一年增加 11%。

From a margin and cost perspective, operating costs remain well managed. Our operating expenses per barrel was $0.22 in the quarter, improving when compared to the same quarter from the prior year, reflecting continued efficiency gains and system optimization.

從利潤與成本角度來看，營運成本仍維持良好控管。本季每桶營運費用為 0.22 美元，較去年同期改善，反映持續的效率提升與系統最佳化。

As we think about the drivers behind this performance, there are a few key factors. First, the scope and size of our integrated system in the Delaware Basin which allows us to bolt on additional volume pipelines and volumes; second, strong customer activity levels, particularly from large investment grade producers; third, our long term fee-based contracts with minimum volume commitments and acreage dedications.

在思考推動此一表現的因素時，有幾個關鍵要素。第一，我們在德拉瓦盆地（Delaware Basin）整合系統的範圍與規模，使我們能夠加掛（bolt on）額外的輸送管線與量；第二，客戶活動水準強勁，特別是大型投資級生產商；第三，我們擁有長期、以費率為基礎的合約，並包含最低量承諾與區塊專屬承諾。

Additionally, our infrastructure footprint continues to expand in the Delaware Basin, with incremental disposal capacity in Andrews County, where we have millions of barrels of pore space. We believe our Water Solutions segment remains one of the most durable, invisible, earnings streams in the midstream sector and provides our most attractive returns from internal growth opportunities. It continues to be the primary growth engine of the partnership.

此外，我們在德拉瓦盆地的基礎設施版圖持續擴張，在 Andrews County 增加了額外的處置產能，該地我們擁有數百萬桶的孔隙空間（pore space）。我們相信，我們的水務解決方案部門仍是中游產業中最具韌性、最不顯眼的獲利來源之一，並為我們內生成長機會提供最具吸引力的報酬。它仍是合夥企業的主要成長引擎。

Turning to Crude Oil Logistics. Adjusted EBITDA for the quarter was approximately $17 million. Grand Mesa pipeline volumes averaged approximately 78,000 barrels per day during the quarter, for the full year averaged 72,000 barrels per day. We continue to work with producers and gatherers in the DJ Basin to contract more barrels to ship on the pipeline.

接著談原油物流（Crude Oil Logistics）。本季調整後 EBITDA 約為 1,700 萬美元。Grand Mesa 管線本季平均輸送量約為每日 78,000 桶，全年平均為每日 72,000 桶。我們持續與 DJ 盆地（DJ Basin）的生產商與集輸商合作，簽約更多桶數以透過該管線運輸。

In Liquids Logistics, we generated approximately $17 million of adjusted EBITDA in the quarter. As a reminder, this segment has been significantly streamlined following the divestiture of non-core assets, including the wholesale propane business. As a result, the segment is now a less volatile business.

在液體物流（Liquids Logistics）方面，本季我們產生約 1,700 萬美元的調整後 EBITDA。提醒一下，該部門在出售包括批發丙烷業務在內的非核心資產後，已大幅精簡。因此，該部門目前是一項波動性較低的業務。

Performance continues to be stable and in line with expectations. With reduced seasonality and lower capital requirements than in previous years. As I mentioned at the beginning of my prepared remarks, fiscal '26 was an important year in terms of strengthening our balance sheet and positioning the partnership for long term success.

業績表現持續穩定，並符合預期。相較於以往年度，季節性降低且資本需求更低。如我在開場準備稿中所提到，2026 會計年度在強化我們的資產負債表以及為合夥企業的長期成功奠定定位方面，是重要的一年。

Combined with our growth in adjusted EBITDA, the actions mentioned earlier collectively represent meaningful progress toward our key financial priorities of reducing leverage, lowering our cost of capital, and improving overall financial flexibility. We ended the year with solid liquidity, no near term debt maturities, and we remain focused on further sheet improvement.

結合我們調整後 EBITDA 的成長，前述各項行動合計代表我們在關鍵財務優先事項上取得了實質進展，包括降低槓桿、降低資本成本，以及提升整體財務彈性。我們在年底時擁有穩健的流動性、短期內沒有到期的債務，並且仍專注於進一步改善資產負債表。

With that, I will turn the call over to Mike.

接下來，我把電話交給 Mike。

Thanks, Brad. Fiscal 2026 represents another important step forward in our transformation into a more focused, less volatile, higher growth, improved quality business. There are three key takeaways I would highlight.

謝謝，Brad。2026 財政年度代表我們轉型為更聚焦、波動性更低、成長性更高、品質更佳的企業之另一個重要里程碑。我想強調三個關鍵重點。

First, Water Solutions continues to deliver strong growth with attractive returns. Second, our business mix transformation is improving adjusted EBITDA stability, reducing volatility and seasonality. And third, we have built a strong pipeline of contracted projects that supports continued growth in fiscal 2027 and into fiscal 2028.

第一，Water Solutions 持續帶來強勁成長並具備具吸引力的報酬。第二，我們的業務組合轉型正在提升調整後 EBITDA 的穩定性，降低波動與季節性。第三，我們已建立強勁的已簽約專案管線，支持 2027 財年並延伸至 2028 財年的持續成長。

Strategically, we remain focused on three priorities: accelerating our transition to a pure play water company by expanding our water infrastructure and monetizing unrelated assets, continuing to strengthen the balance sheet, and opportunistically repurchasing both preferred and common equity when it creates value.

在策略上，我們仍聚焦三項優先事項：透過擴大水務基礎設施並將非相關資產變現，加速轉型為純水務公司；持續強化資產負債表；以及在能創造價值時，伺機回購特別股與普通股。

Our 2027 outlook We are guiding consolidated adjusted EBITDA to a range of $715 million to $725 million This represents approximately 10% growth year over year at the high end of our adjusted EBITDA guidance in 2027. We expect this growth to be driven primarily by continued expansion in Water Solutions supported by projects already contracted. The larger of which we have previously announced. Our adjusted EBITDA guidance does not include any new contracts which may be entered into from this point forward nor the benefits from the current crude oil price levels.

我們對 2027 年的展望：我們預期合併調整後 EBITDA 將落在 7.15 億至 7.25 億美元區間。這代表在 2027 年調整後 EBITDA 指引高端，年增約 10%。我們預期此成長主要由 Water Solutions 的持續擴張所帶動，並由已簽約的專案支撐。其中較大型的專案我們先前已對外公告。我們的調整後 EBITDA 指引不包含自即日起可能簽訂的任何新合約，也不包含目前原油價格水準所帶來的效益。

From a capital standpoint, we are guiding to approximately $200 million of growth capital and about $45 million of maintenance capital. This capital includes the increased cost of the pipeline portion of the new projects, we are absorbing and not passing on to our customers.

就資本面而言，我們指引約 2 億美元的成長資本支出，以及約 4,500 萬美元的維護資本支出。此資本包含新專案中管線部分成本的增加，我們將自行吸收而不轉嫁給客戶。

With that we are ready to open the line for questions.

接下來我們準備開放提問。

(Operator Instructions) Derrick Whitfield, Texas Capital. Please proceed.

(接線員指示) Derrick Whitfield，Texas Capital。請開始。

Congrats on the strength of your Water business and the progress you've made just recently in improving the capital structure. It's been quite an overhaul for you guys.

恭喜你們水務業務的強勁表現，以及最近在改善資本結構方面取得的進展。對你們來說確實是一次相當大的整頓。

I wanted to start first with your growth capital. With regard to the growth CapEx of $200 million for 2027, does that include growth projects beyond the LEX II expansion?

我想先從你們的成長資本談起。關於 2027 年 2 億美元的成長性資本支出（growth CapEx），其中是否包含 LEX II 擴建以外的成長專案？

A bulk of that $200 million is the LEX II. There are some incremental projects embedded in that $200 million.

那 2 億美元中的大部分是用於 LEX II。在這 2 億美元中也包含一些額外的增量專案。

Great. And then just with respect to the LEX II expansion, how would you characterize the split between new and existing clients for underwriting that capacity and can lead the need for further expansion up to 650,000 barrels based on those discussions?

很好。接著就 LEX II 擴建而言，你會如何描述在承作（underwriting）該產能時，新客戶與既有客戶的占比？以及根據目前的討論，是否可能帶動進一步擴建至 65 萬桶的需求？

Yes, current customers. Doug, I don't know if you want to take the latter part of the expansion up to 650,000.

是的，主要是現有客戶。Doug，我不確定你是否想回答後半段關於擴建到 65 萬桶的部分。

Yeah. This is Doug. We really amended and extended an existing agreement, which included longer-term, additional barrel count, volume commitments, and then the large four township dedication on this expansion.

好的。我是 Doug。我們基本上是修訂並延長了一份既有協議，其中包含更長期、額外的桶數、量的承諾，並且在這次擴建中納入了四個大型 township 的專屬投入（dedication）。

And then the question, can you clarify the question on the further expansion, Derrick?

另外，Derrick，關於進一步擴建的問題，你能再澄清一下嗎？

Yeah, just the need to further expand to 650,000 based on what your client discussions you're having today.

可以，就是基於你們今天與客戶的討論，是否有進一步擴建到 65 萬桶的需求。

There is an incredible amount of demand for additional capacity in the basin. That should answer that question. It's continuing to increase and continuing to have a line out the door of demand for additional capacity.

盆地對額外產能的需求非常驚人。我想這應該回答了你的問題。需求仍在持續增加，對額外產能的需求可說是絡繹不絕。

Great. And just on the activity outlook side, I know that you guys stated in your prepared remarks that you didn't place any increased activity into your plans. Having said that, with you guys reporting nearly a month after most of the sector, what are you guys hearing around plans of acceleration beyond just the pull forward in activity that most of the independents announced during Q1 earnings?

很好。再就活動量展望而言，我知道你們在事先準備的講稿中提到，計畫中並未納入任何活動量的增加。但話說回來，你們的財報公布時間比多數同業晚了將近一個月；那麼就目前你們聽到的情況，除了多數獨立業者在第一季財報中提到的活動前移（pull forward）之外，是否還有加速的計畫？

The pull forward has really been what we've been seeing. Probably more important is what I just mentioned, the dearth of available capacity, with at least 10% growth of the water volumes, have really driven a lot of interest in new underwriting -- new projects to be underwritten. And just more of the deal flow that we're seeing. It's not so much driven by the commodity price as it has just been driven by the acceleration of development over the last couple of years, and the efficiencies are really driving a lot more demand for the service.

我們看到的確主要就是活動前移。可能更重要的是我剛提到的，可用產能的匱乏，加上水量至少 10% 的成長，確實帶動了對新承作（underwriting）——也就是新專案承作——的高度興趣。以及我們看到更多的交易流量（deal flow）。這與其說是由商品價格驅動，不如說是過去幾年開發加速所帶動，而效率提升也正在推升對服務的需求。

Great. Maybe shifting over to beneficial reuse and other next-gen opportunities. Based on your announcements over the last couple of quarters with mature on the progress you guys have talked about on the water desalination side, how would you characterize where those opportunities sit today and again, the opportunities you see ahead of you for that next-gen type business?

很好。或許把話題轉到有益再利用（beneficial reuse）以及其他下一代（next-gen）機會。基於你們過去幾季的公告，以及你們談到在海水淡化（desalination）方面的進展，你會如何描述這些機會目前所處的位置？以及你們對這類下一代業務未來機會的看法？

We are continuing to make progress on those previously announced projects. We expect our draft permit from TCEQ any day now, certainly within the next few weeks, which has taken a lot of effort, making a lot of progress.

我們持續推進先前已公告的那些專案。我們預期隨時都可能收到 TCEQ 的許可草案，肯定會在接下來幾週內，這過程投入了大量努力，也取得了很大進展。

Lots of progress on the energy campus project, which would include the nuclear power. And we're looking at the data center addition to that campus as well as the large-scale decel, but we are making a lot of progress on those projects.

能源園區（energy campus）專案也有很大進展，其中將包含核能發電。我們也在評估在該園區增設資料中心，以及大型規模的 decel（原文如此），而我們在這些專案上都取得了很大進展。

Great. And finally, if I could, maybe shifting over to Crude Logistics segment, while Water is clearly the driver here, how are you thinking about EBITDA and production outlook for 2027?

很好。最後，如果可以的話，想轉到原油物流（Crude Logistics）部門。雖然水務顯然是主要驅動力，但你們如何看待 2027 年的 EBITDA 與產量展望？

Doug, you want to maybe talk about what you're seeing the DJ from producers?

Doug，你要不要談談你從生產商那邊看到的 DJ 情況？

Sure. This is Doug again. We are really seeing very, very good activity in the DJ this year. We're also seeing some of the smaller players, private equity-backed players really have consolidated acreage and have a more cohesive development plan moving forward. So we are seeing certainly an uptick in activity, and we see that carrying into this fiscal year and in the next couple of fiscal years versus what it has been in the past.

當然。我又是 Doug。我們今年在 DJ 看到非常、非常好的活動量。我們也看到一些較小的參與者、由私募股權支持的業者，確實整併了土地（acreage），並且未來有更一致、更連貫的開發計畫。因此我們確實看到活動量上升，並且預期相較於過去，這樣的趨勢會延續到本財年以及接下來幾個財年。

Terrific. And then just maybe to clarify one thing, I had an inbound come from the client, but just on the build multiple for the LEX II expansion, is all of that capital accounted for within 2027? Or would there be capital to extend beyond 2027? It looks quite capital at this point.

太好了。另外想澄清一點：我收到客戶那邊的詢問，但關於 LEX II 擴建的建置倍數（build multiple），這些資本是否都已在 2027 年內入帳？還是會有資本支出延伸到 2027 年之後？就目前看起來資本額相當可觀。

It'll all be in this fiscal year. The bulk of it's in the first couple quarters here, two, three quarters of the fiscal year.

會全部都在本財年內。其中大部分會發生在本財年前兩、三個季度。

Thank you. 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.

謝謝。問答環節到此結束，接下來我把電話交回 Brad Cooper 作結語。

Thanks, everyone. We'll talk to you in a few months. Take care.

謝謝各位。我們幾個月後再聊。保重。

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線。感謝您的參與。